{"component": "clause", "props": {"groups": [{"snippet_links": [{"key": "the-benefits", "type": "clause", "offset": [0, 12]}, {"key": "to-receive", "type": "definition", "offset": [48, 58]}, {"key": "other-benefits", "type": "definition", "offset": [84, 98]}, {"key": "other-plans", "type": "clause", "offset": [147, 158]}, {"key": "agreements-and-arrangements", "type": "clause", "offset": [160, 187]}, {"key": "benefits-provided", "type": "definition", "offset": [214, 231]}, {"key": "this-section-13", "type": "clause", "offset": [384, 399]}, {"key": "to-the-extent", "type": "clause", "offset": [453, 466]}, {"key": "net-after-tax-amount", "type": "definition", "offset": [531, 551]}, {"key": "the-accounting-firm", "type": "clause", "offset": [605, 624]}, {"key": "determine-the", "type": "clause", "offset": [636, 649]}, {"key": "to-the-executive", "type": "clause", "offset": [700, 716]}, {"key": "the-net", "type": "clause", "offset": [758, 765]}, {"key": "total-parachute-payments", "type": "definition", "offset": [815, 839]}, {"key": "amount-of-payments", "type": "clause", "offset": [893, 911]}, {"key": "code-section-4999", "type": "clause", "offset": [992, 1009]}, {"key": "the-total", "type": "clause", "offset": [1171, 1180]}, {"key": "agreement-or", "type": "definition", "offset": [1448, 1460]}, {"key": "any-other-plan", "type": "definition", "offset": [1461, 1475]}, {"key": "section-409a-of-the-code", "type": "definition", "offset": [1526, 1550]}, {"key": "source-of", "type": "definition", "offset": [1561, 1570]}, {"key": "the-participant", "type": "clause", "offset": [1603, 1618]}, {"key": "notify-the", "type": "clause", "offset": [1873, 1883]}, {"key": "executive-and-the-company", "type": "clause", "offset": [1884, 1909]}, {"key": "a-copy-of", "type": "clause", "offset": [2038, 2047]}, {"key": "detailed-calculations", "type": "clause", "offset": [2052, 2073]}, {"key": "application-of", "type": "clause", "offset": [2143, 2157]}, {"key": "at-the-time", "type": "definition", "offset": [2186, 2197]}, {"key": "determinations-under-this-section", "type": "clause", "offset": [2233, 2266]}, {"key": "additional-amounts", "type": "clause", "offset": [2445, 2463]}, {"key": "based-on", "type": "definition", "offset": [2587, 2595]}, {"key": "the-internal-revenue-service", "type": "definition", "offset": [2636, 2664]}, {"key": "substantial-authority", "type": "definition", "offset": [2810, 2831]}, {"key": "to-the-company", "type": "definition", "offset": [2893, 2907]}, {"key": "no-loan", "type": "definition", "offset": [2951, 2958]}, {"key": "by-the-executive", "type": "clause", "offset": [3022, 3038]}, {"key": "deemed-loan", "type": "definition", "offset": [3100, 3111]}, {"key": "tax-imposed", "type": "clause", "offset": [3244, 3255]}, {"key": "by-the-company", "type": "clause", "offset": [3569, 3583]}], "snippet": "The benefits that the Executive may be entitled to receive under this Agreement and other benefits that the Executive is entitled to receive under other plans, agreements and arrangements (which, together with the benefits provided under this Agreement, are referred to as \u201cPayments\u201d), may constitute Parachute Payments that are subject to Code Sections 280G and 4999. As provided in this Section 13, the Parachute Payments will be reduced if, and only to the extent that, a reduction will allow the Executive to receive a greater Net After Tax Amount than the Executive would receive absent a reduction. The Accounting Firm will first determine the amount of any Parachute Payments that are payable to the Executive. The Accounting Firm also will determine the Net After Tax Amount attributable to the Executive\u2019s total Parachute Payments. The Accounting Firm will next determine the largest amount of Payments that may be made to the Executive without subjecting the Executive to tax under Code Section 4999 (the \u201cCapped Payments\u201d). Thereafter, the Accounting Firm will determine the Net After Tax Amount attributable to the Capped Payments. The Executive will receive the total Parachute Payments or the Capped Payments, whichever provides the Executive with the higher Net After Tax Amount. If the Executive will receive the Capped Payments, the total Parachute Payments will be adjusted by first reducing the amount of any benefits under this Agreement or any other plan, agreement or arrangement that are not subject to Section 409A of the Code (with the source of the reduction to be directed by the Participant) and then by reducing the amount of any benefits under this Agreement or any other plan, agreement or arrangement that are subject to Section 409A of the Code (with the source of the reduction to be directed by the Participant). The Accounting Firm will notify the Executive and the Company if it determines that the Parachute Payments must be reduced to the Capped Payments and will send the Executive and the Company a copy of its detailed calculations supporting that determination. As a result of the uncertainty in the application of Code Sections 280G and 4999 at the time that the Accounting Firm makes its determinations under this Section 13, it is possible that amounts will have been paid or distributed to the Executive that should not have been paid or distributed under this Section 13 (\u201cOverpayments\u201d), or that additional amounts should be paid or distributed to the Executive under this Section 13 (\u201cUnderpayments\u201d). If the Accounting Firm determines, based on either the assertion of a deficiency by the Internal Revenue Service against the Company or the Executive, which assertion the Accounting Firm believes has a high probability of success or controlling precedent or substantial authority, that an Overpayment has been made, the Executive must repay to the Company, without interest; provided, however, that no loan will be deemed to have been made and no amount will be payable by the Executive to the Company unless, and then only to the extent that, the deemed loan and payment would either reduce the amount on which the Executive is subject to tax under Code Section 4999 or generate a refund of tax imposed under Code Section 4999. If the Accounting Firm determines, based upon controlling precedent or substantial authority, that an Underpayment has occurred, the Accounting Firm will notify the Executive and the Company of that determination and the amount of that Underpayment will be paid to the Executive promptly by the Company.", "samples": [{"hash": "bhEkYf8EDVE", "uri": "/contracts/bhEkYf8EDVE#code-section-280g", "label": "Employment Agreement (Chatham Lodging Trust)", "score": 27.1601638794, "published": true}, {"hash": "aNRdmuGbX5Z", "uri": "/contracts/aNRdmuGbX5Z#code-section-280g", "label": "Employment Agreement (Chatham Lodging Trust)", "score": 27.1601638794, "published": true}, {"hash": "4AIbO1A97aH", "uri": "/contracts/4AIbO1A97aH#code-section-280g", "label": "Employment Agreement (Chatham Lodging Trust)", "score": 27.1601638794, "published": true}], "size": 119, "hash": "e25f3de0084906971f62b61942428f33", "id": 2}, {"snippet_links": [{"key": "to-executive", "type": "clause", "offset": [93, 105]}, {"key": "total-payments", "type": "clause", "offset": [112, 126]}, {"key": "parachute-payments", "type": "clause", "offset": [151, 169]}, {"key": "meaning-of", "type": "clause", "offset": [182, 192]}, {"key": "allocated-to", "type": "definition", "offset": [266, 278]}, {"key": "provisions-of", "type": "clause", "offset": [304, 317]}, {"key": "section-7", "type": "definition", "offset": [318, 327]}, {"key": "payments-of", "type": "clause", "offset": [358, 369]}, {"key": "for-purposes-of-section", "type": "clause", "offset": [394, 417]}, {"key": "subject-to-the", "type": "definition", "offset": [478, 492]}, {"key": "tax-imposed", "type": "clause", "offset": [500, 511]}, {"key": "section-4999-of-the-code", "type": "clause", "offset": [515, 539]}, {"key": "the-total", "type": "clause", "offset": [565, 574]}, {"key": "payments-shall-be", "type": "clause", "offset": [575, 592]}, {"key": "the-foregoing", "type": "definition", "offset": [763, 776]}, {"key": "the-applicable", "type": "clause", "offset": [806, 820]}, {"key": "taxes-and", "type": "clause", "offset": [854, 863]}, {"key": "basis-of", "type": "clause", "offset": [927, 935]}, {"key": "payments-may-be", "type": "clause", "offset": [1033, 1048]}, {"key": "company-and-executive", "type": "clause", "offset": [1087, 1108]}, {"key": "in-writing", "type": "definition", "offset": [1125, 1135]}, {"key": "determination-required", "type": "clause", "offset": [1141, 1163]}, {"key": "section-25", "type": "clause", "offset": [1175, 1185]}, {"key": "in-good-faith", "type": "definition", "offset": [1211, 1224]}, {"key": "based-on", "type": "definition", "offset": [1225, 1233]}, {"key": "nationally-recognized-accounting-firm", "type": "definition", "offset": [1250, 1287]}, {"key": "by-the-company", "type": "clause", "offset": [1297, 1311]}, {"key": "approval-of", "type": "definition", "offset": [1318, 1329]}, {"key": "in-the-event-of-a", "type": "clause", "offset": [1362, 1379]}, {"key": "reduction-of-benefits", "type": "clause", "offset": [1380, 1401]}, {"key": "section-5", "type": "definition", "offset": [1537, 1546]}, {"key": "with-respect-to", "type": "clause", "offset": [1612, 1627]}, {"key": "related-awards", "type": "clause", "offset": [1686, 1700]}, {"key": "required-by", "type": "definition", "offset": [1779, 1790]}, {"key": "the-accountants", "type": "clause", "offset": [1808, 1823]}, {"key": "applicable-taxes", "type": "definition", "offset": [1886, 1902]}, {"key": "application-of-the-code", "type": "clause", "offset": [1973, 1996]}, {"key": "other-applicable", "type": "definition", "offset": [2002, 2018]}, {"key": "legal-authority", "type": "definition", "offset": [2019, 2034]}, {"key": "furnish-to", "type": "clause", "offset": [2068, 2078]}, {"key": "information-and-documents", "type": "clause", "offset": [2100, 2125]}, {"key": "determination-under", "type": "clause", "offset": [2178, 2197]}, {"key": "the-company-shall", "type": "clause", "offset": [2219, 2236]}, {"key": "cost-of", "type": "clause", "offset": [2246, 2253]}, {"key": "all-fees", "type": "clause", "offset": [2254, 2262]}, {"key": "in-connection-with", "type": "clause", "offset": [2286, 2304]}], "snippet": "In the event that any payments, distributions, benefits, or entitlements of any type payable to Executive (the \u201cTotal Payments\u201d) would (i) constitute \u201cparachute payments\u201d within the meaning of Section 280G of the Code (which will not include any portion of payments allocated to the restrictive covenant provisions of Section 7 hereof that are classified as payments of reasonable compensation for purposes of Section 280G of the Code), and (ii) but for this paragraph would be subject to the excise tax imposed by Section 4999 of the Code (the \u201cExcise Tax\u201d), then the Total Payments shall be either: (a) provided in full, or (b) provided as to such lesser extent as would result in no portion of such Total Payments being subject to the Excise Tax, whichever of the foregoing amounts, taking into account the applicable federal, state, and local income taxes and the Excise Tax, results in Executive\u2019s receipt on an after-tax basis of the greatest amount of the Total Payments, notwithstanding that all or some portion of the Total Payments may be subject to the Excise Tax. Unless the Company and Executive otherwise agree in writing, any determination required under this Section 25 shall be made in writing in good faith based on the advice of a nationally recognized accounting firm selected by the Company (with approval of Executive) (the \u201cAccountants\u201d). In the event of a reduction of benefits hereunder, benefits shall be reduced by first reducing or eliminating the portion of the Total Payments that are payable in cash under Section 5 and then by reducing or eliminating any amounts that are payable with respect to long-term incentives including any equity-based or equity-related awards (whether payable in cash or in kind). For purposes of making the calculations required by this Section 25, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of the Code, and other applicable legal authority. The Company and Executive shall furnish to the Accountants such information and documents as the Accountants may reasonably require to make a determination under this Section 25, and the Company shall bear the cost of all fees the Accountants charge in connection with any calculations contemplated by this Section 25.", "samples": [{"hash": "2120ZWxv274", "uri": "/contracts/2120ZWxv274#code-section-280g", "label": "Executive Employment Agreement (Trulieve Cannabis Corp.)", "score": 36.6522941589, "published": true}, {"hash": "d1YakYbLtfm", "uri": "/contracts/d1YakYbLtfm#code-section-280g", "label": "Executive Employment Agreement (Trulieve Cannabis Corp.)", "score": 36.3456535339, "published": true}, {"hash": "909ZCrdQPAK", "uri": "/contracts/909ZCrdQPAK#code-section-280g", "label": "Executive Employment Agreement (Trulieve Cannabis Corp.)", "score": 36.1567420959, "published": true}], "size": 121, "hash": "6569fefa1f6931194615784c669fe626", "id": 1}, {"snippet_links": [{"key": "agreement-to", "type": "definition", "offset": [37, 49]}, {"key": "in-the-event", "type": "clause", "offset": [64, 76]}, {"key": "benefits-provided", "type": "definition", "offset": [106, 123]}, {"key": "to-or-for-the-benefit-of", "type": "definition", "offset": [124, 148]}, {"key": "legal-representatives", "type": "clause", "offset": [169, 190]}, {"key": "pursuant-to-this-agreement", "type": "clause", "offset": [206, 232]}, {"key": "any-other-agreement", "type": "definition", "offset": [237, 256]}, {"key": "related-parties", "type": "clause", "offset": [290, 305]}, {"key": "other-agreements", "type": "definition", "offset": [331, 347]}, {"key": "change-of-control-arrangements", "type": "clause", "offset": [425, 455]}, {"key": "parachute-payments", "type": "clause", "offset": [470, 488]}, {"key": "meaning-of", "type": "clause", "offset": [501, 511]}, {"key": "change-of-control-payments", "type": "clause", "offset": [611, 637]}, {"key": "subject-to-the", "type": "definition", "offset": 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{"key": "capped-amount", "type": "definition", "offset": [1533, 1546]}, {"key": "the-value", "type": "clause", "offset": [1554, 1563]}, {"key": "terms-of-the", "type": "clause", "offset": [1633, 1645]}, {"key": "and-benefits", "type": "clause", "offset": [1711, 1723]}, {"key": "dollar-amount", "type": "clause", "offset": [1779, 1792]}, {"key": "to-pay", "type": "clause", "offset": [1849, 1855]}, {"key": "pursuant-to-section", "type": "clause", "offset": [1856, 1875]}, {"key": "receipt-of", "type": "clause", "offset": [1908, 1918]}, {"key": "net-value", "type": "definition", "offset": [1954, 1963]}, {"key": "income-taxes-payable", "type": "definition", "offset": [2060, 2080]}, {"key": "highest-marginal-tax-rate", "type": "definition", "offset": [2209, 2234]}, {"key": "federal-income-taxes", "type": "definition", "offset": [2256, 2276]}, {"key": "hospital-insurance", "type": "clause", "offset": [2300, 2318]}, {"key": "based-on", "type": "definition", "offset": [2419, 2427]}, {"key": "the-hospital", "type": "definition", "offset": [2428, 2440]}, {"key": "insurance-tax", "type": "definition", "offset": [2441, 2454]}, {"key": "to-receive", "type": "definition", "offset": [2616, 2626]}, {"key": "equal-to", "type": "definition", "offset": [2681, 2689]}, {"key": "responsible-for", "type": "clause", "offset": [2984, 2999]}, {"key": "payment-of-the", "type": "clause", "offset": [3004, 3018]}, {"key": "tax-due", "type": "definition", "offset": [3026, 3033]}, {"key": "right-of", "type": "clause", "offset": [3104, 3112]}, {"key": "additional-payment", "type": "definition", "offset": [3113, 3131]}, {"key": "in-writing", "type": "definition", "offset": [3255, 3265]}, {"key": "determination-required", "type": "clause", "offset": [3271, 3293]}, {"key": "tax-counsel", "type": "clause", "offset": [3346, 3357]}, {"key": "independent-public-accounting-firm", "type": "definition", "offset": [3367, 3401]}, {"key": "by-the-employer", "type": "clause", "offset": [3412, 3427]}, {"key": "binding-upon", "type": "clause", "offset": [3506, 3518]}, {"key": "for-purposes-of", "type": "clause", "offset": [3550, 3565]}, {"key": "required-by", "type": "definition", "offset": [3590, 3601]}, {"key": "the-auditor", "type": "definition", "offset": [3621, 3632]}, {"key": "taxes-and", "type": "clause", "offset": [3706, 3715]}, {"key": "good-faith", "type": "clause", "offset": [3740, 3750]}, {"key": "application-of", "type": "clause", "offset": [3782, 3796]}, {"key": "furnish-to", "type": "clause", "offset": [3869, 3879]}, {"key": "information-and-documents", "type": "clause", "offset": [3897, 3922]}, {"key": "reasonably-request", "type": "definition", "offset": [3942, 3960]}, {"key": "in-order-to", "type": "clause", "offset": [3961, 3972]}, {"key": "determination-under", "type": "clause", "offset": [3980, 3999]}, {"key": "the-employer-shall", "type": "clause", "offset": [4019, 4037]}, {"key": "all-costs", "type": "definition", "offset": [4043, 4052]}, {"key": "in-connection-with", "type": "clause", "offset": [4086, 4104]}], "snippet": "(i) Notwithstanding anything in this Agreement to the contrary, in the event that any severance and other benefits provided to or for the benefit of the Employee or his legal representatives and dependents pursuant to this Agreement and any other agreement, benefit, plan, or policy of the Related Parties (this Agreement and such other agreements, benefits, plans, and policies collectively being referred to herein as the \u201cChange of Control Arrangements\u201d) constitute \u201cparachute payments\u201d within the meaning of Section 280G(b)(2) of the Code (such severance and other benefits being referred to herein as the \u201cChange of Control Payments\u201d) that would be subject to the excise tax imposed by Section 4999 of the Code (such excise tax referred to in this Agreement as the \u201cExcise Tax\u201d), then (i) if the shareholder approval exemption set forth in Section 280G(b)(5) is available, then the Employer and the Employee shall take all steps necessary, including, without limitation, waiver of rights by the Employee, to seek shareholder approval for such Change of Control Payments in accordance with Section 280G(b)(5) of the Code and the regulations promulgated thereunder; or (ii) if the shareholder approval exemption set forth in Section 280G(b)(5) is not available, then the Employer will provide the Employee with a computation of (A) the maximum amount of Change of Control Payments that could be made under the Change of Control Arrangements, without the imposition of the Excise Tax (said maximum amount being referred to as the \u201cCapped Amount\u201d); (B) the value of all Change of Control Payments that could be made pursuant to the terms of the Change of Control Arrangements (all said payments, distributions and benefits being referred to as the \u201cUncapped Payments\u201d); (C) the dollar amount of Excise Tax which the Employee would become obligated to pay pursuant to Section 4999 of the Code as a result of receipt of the Uncapped Payments; and (D) the net value of the Uncapped Payments after reduction by (1) the amount of the Excise Tax, (2) the estimated income taxes payable by the Employee on the difference between the Uncapped Payments and the Capped Amount, assuming that the Employee is paying the highest marginal tax rate for state, local and federal income taxes, and (3) the estimated hospital insurance taxes payable by the Employee on the difference between the Uncapped Payments and the Capped Amount based on the hospital insurance tax rate under Section 3101(b) of the Code (the \u201cNet Uncapped Amount\u201d). If the Capped Amount is greater than the Net Uncapped Amount, the Employee shall be entitled to receive or commence to receive the Change of Control Payments equal to the Capped Amount; or if the Net Uncapped Amount is greater than the Capped Amount, the Employee shall be entitled to receive or commence to receive the Change of Control Payments equal to the Uncapped Payments. If the Employee receives the Uncapped Payments, then the Employee shall be solely responsible for the payment of the Excise Tax due from the Employee and attributable to such Uncapped Payments, with no right of additional payment from any of the Related Parties as reimbursement for such taxes.\n(ii) Unless the Employer and the Employee otherwise agree in writing, any determination required under this Section 8(e) shall be made in writing by tax counsel or by an independent public accounting firm agreed to by the Employer and the Employee (the \u201cAuditor\u201d), whose determination shall be conclusive and binding upon the Employer and the Employee. For purposes of making the calculations required by this Section 8(e), the Auditor 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 Employer and the Employee shall furnish to the Auditor such information and documents as the Auditor may reasonably request in order to make a determination under this Section 8(e). The Employer shall bear all costs the Auditor may reasonably incur in connection with any calculations contemplated by this Section 8(e).", "samples": [{"hash": "jEyrWrbu19W", "uri": "/contracts/jEyrWrbu19W#code-section-280g", "label": "Employment Agreement (Legacy Reserves Inc.)", "score": 30.9575634003, "published": true}, {"hash": "g7EnWaO3P8v", "uri": "/contracts/g7EnWaO3P8v#code-section-280g", "label": "Employment Agreement (Legacy Reserves Inc.)", "score": 30.9575634003, "published": true}, {"hash": "bZIHmpUzFci", "uri": "/contracts/bZIHmpUzFci#code-section-280g", "label": "Employment Agreement (Legacy Reserves Inc.)", "score": 30.9575634003, "published": true}], "size": 70, "hash": "a1e758c42a00ff885009251e980eadf7", "id": 3}, {"snippet_links": [{"key": "benefit-received", "type": "clause", "offset": [18, 34]}, {"key": "by-executive", "type": "clause", "offset": [53, 65]}, {"key": "in-connection-with", "type": "clause", "offset": [66, 84]}, {"key": "change-in-ownership-or-control", "type": "definition", "offset": [88, 118]}, {"key": "meaning-of", "type": "clause", "offset": [147, 157]}, {"key": "agreement-or", "type": "definition", "offset": [231, 243]}, {"key": "any-other-plan", "type": "definition", "offset": [244, 258]}, {"key": "affiliate-of-the-company", "type": "definition", "offset": [308, 332]}, {"key": "payments-shall-be", "type": "clause", "offset": [442, 459]}, {"key": "to-the-extent", "type": "clause", "offset": [468, 481]}, {"key": "subject-to-the", "type": "definition", "offset": [528, 542]}, {"key": "tax-imposed", "type": "clause", "offset": [550, 561]}, {"key": "section-4999-of-the-code", "type": "clause", "offset": [565, 589]}, {"key": "net-after", "type": "definition", "offset": [636, 645]}, {"key": "tax-benefit", "type": "clause", "offset": [646, 657]}, {"key": "to-executive", "type": "clause", "offset": [658, 670]}, {"key": "section-12", "type": "definition", "offset": [775, 785]}, {"key": "the-total", "type": "clause", "offset": [826, 835]}, {"key": "all-payments", "type": "definition", "offset": [839, 851]}, {"key": "the-value", "type": "clause", "offset": [856, 865]}, {"key": "to-receive", "type": "definition", "offset": [927, 937]}, {"key": "from-the-company", "type": "clause", "offset": [938, 954]}, {"key": "income-taxes-payable", "type": "definition", "offset": [1099, 1119]}, {"key": "with-respect-to", "type": "clause", "offset": [1120, 1135]}, {"key": "the-foregoing", "type": "definition", "offset": [1136, 1149]}, {"key": "income-tax-rate", "type": "definition", "offset": [1185, 1200]}, {"key": "each-year", "type": "definition", "offset": [1205, 1214]}, {"key": "based-on", "type": "definition", "offset": [1266, 1274]}, {"key": "the-rate", "type": "definition", "offset": [1275, 1283]}, {"key": "in-effect", "type": "definition", "offset": [1284, 1293]}, {"key": "time-of-the", "type": "clause", "offset": [1353, 1364]}, {"key": "payment-of-the", "type": "clause", "offset": [1371, 1385]}, {"key": "excise-taxes", "type": "clause", "offset": [1423, 1435]}, {"key": "payments-and-benefits", "type": "clause", "offset": [1464, 1485]}, {"key": "nationally-recognized-accounting-firm", "type": "definition", "offset": [1584, 1621]}, {"key": "to-the-company", "type": "definition", "offset": [1694, 1708]}, {"key": "the-accounting-firm", "type": "clause", "offset": [1725, 1744]}, {"key": "substantial-authority", "type": "definition", "offset": [1787, 1808]}, {"key": "section-6662", "type": "clause", "offset": [1832, 1844]}, {"key": "executive-and-the-company", "type": "clause", "offset": [1892, 1917]}, {"key": "supporting-calculations", "type": "definition", "offset": [1955, 1978]}, {"key": "prior-to-the", "type": "clause", "offset": [2026, 2038]}, {"key": "as-soon-as-practicable", "type": "definition", "offset": [2106, 2128]}, {"key": "in-the-event", "type": "clause", "offset": [2129, 2141]}, {"key": "advance-notice", "type": "definition", "offset": [2198, 2212]}, {"key": "determine-whether", "type": "clause", "offset": [2279, 2296]}, {"key": "best-interest", "type": "clause", "offset": [2318, 2331]}, {"key": "to-waive", "type": "clause", "offset": [2332, 2340]}, {"key": "receipt-of", "type": "clause", "offset": [2345, 2355]}, {"key": "excess-parachute-payments", "type": "definition", "offset": [2397, 2422]}, {"key": "required-by", "type": "definition", "offset": [2482, 2493]}, {"key": "sole-and-absolute-discretion", "type": "definition", "offset": [2529, 2557]}, {"key": "the-company-shall", "type": "clause", "offset": [2739, 2756]}, {"key": "reduced-amount", "type": "definition", "offset": [2766, 2780]}, {"key": "provide-the", "type": "clause", "offset": [2832, 2843]}, {"key": "access-to", "type": "definition", "offset": [2860, 2869]}, {"key": "copies-of", "type": "clause", "offset": [2874, 2883]}, {"key": "possession-of", "type": "clause", "offset": [2925, 2938]}, {"key": "the-case", "type": "definition", "offset": [2968, 2976]}, {"key": "requested-by", "type": "definition", "offset": [2996, 3008]}, {"key": "cooperate-with", "type": "clause", "offset": [3044, 3058]}, {"key": "preparation-and", "type": "clause", "offset": [3102, 3117]}, {"key": "issuance-of-the", "type": "clause", "offset": [3118, 3133]}, {"key": "fees-and-expenses-of-the-accounting", "type": "clause", "offset": [3220, 3255]}, {"key": "by-the-company", "type": "clause", "offset": [3391, 3405]}, {"key": "the-balance", "type": "clause", "offset": [3411, 3422]}], "snippet": "If any payment or benefit received or to be received by Executive in connection with a \u201cchange in ownership or control\u201d of the Company (within the meaning of Section 280G of the Code), whether payable pursuant to the terms of this Agreement or any other plan, arrangement or agreement with the Company or an affiliate of the Company (the \u201cPayments\u201d), would constitute a \u201cparachute payment\u201d within the meaning of Section 280G of the Code, the Payments shall be reduced to the extent necessary so that no portion thereof shall be subject to the excise tax imposed by Section 4999 of the Code but only if, by reason of such reduction, the net after-tax benefit to Executive shall exceed the net after-tax benefit to Executive if no such reduction was made. For purposes of this Section 12, \u201cnet after-tax benefit\u201d shall mean (i) the total of all payments and the value of all benefits which Executive receives or is then entitled to receive from the Company that would constitute \u201cparachute payments\u201d within the meaning of Section 280G of the Code, less (ii) the amount of all federal, state and local income taxes payable with respect to the foregoing calculated at the maximum marginal income tax rate for each year in which the foregoing shall be paid to Executive (based on the rate in effect for such year as set forth in the Code as in effect at the time of the first payment of the foregoing), less (iii) the amount of excise taxes imposed with respect to the payments and benefits described in (i) above by Section 4999 of the code. The foregoing determination will be made by a nationally recognized accounting firm (the \u201cAccounting Firm\u201d) selected by Executive and reasonably acceptable to the Company, provided, that the Accounting Firm\u2019s determination shall be made based upon \u201csubstantial authority\u201d within the meaning of Section 6662 of the Code. The Accounting Firm shall provide Executive and the Company with its determinations and detailed supporting calculations with respect thereto at least 15 business days prior to the date on which Executive would be entitled to receive a Payment (or as soon as practicable in the event that the Accounting Firm has less than 15 business days advance notice that Executive may receive a Payment) in order that Executive may determine whether it is in Executive\u2019s best interest to waive the receipt of any or all amounts which may constitute \u201cexcess parachute payments.\u201d If the Accounting Firm determines that such reduction is required by this Section 12, Executive, in his sole and absolute discretion, may determine which of the Payments shall be reduced to the extent necessary so that no portion thereof shall be subject to the excise tax imposed by Section 4999 of the Code, and the Company shall pay such reduced amount to Executive. Executive and the Company shall each provide the Accounting Firm access to and copies of any books, records, and documents in the possession of Executive or the Company, as the case may be, reasonably requested by the Accounting Firm, and otherwise cooperate with the Accounting Firm in connection with the preparation and issuance of the determinations and calculations contemplated by this Section 12. The first $10,000 of fees and expenses of the Accounting Firm for its services in connection with the determinations and calculations contemplated by this Section 12 will be borne exclusively by the Company, and the balance of any such fees and expenses, if any shall be borne exclusively by Executive.", "samples": [{"hash": "eEnrInKWjiG", "uri": "/contracts/eEnrInKWjiG#code-section-280g", "label": "Executive Employment Agreement (Talon International, Inc.)", "score": 22.409992218, "published": true}, {"hash": "8a8NerFJPE2", "uri": "/contracts/8a8NerFJPE2#code-section-280g", "label": "Executive Employment Agreement (Talon International, Inc.)", "score": 22.409992218, "published": true}, {"hash": "9nVutznfaR5", "uri": "/contracts/9nVutznfaR5#code-section-280g", "label": "Executive Employment Agreement (Talon International, Inc.)", "score": 20.6071186066, "published": true}], "size": 70, "hash": "286ffb5ef9d3ef043348a4d5c8aa82ae", "id": 4}, {"snippet_links": [{"key": "agreement-to", "type": "definition", "offset": [37, 49]}, {"key": "in-the-event", "type": "clause", "offset": [64, 76]}, {"key": "payment-or-distribution", "type": "definition", "offset": [118, 141]}, {"key": "by-the-company", "type": "clause", "offset": [142, 156]}, {"key": "of-the-executive", "type": "clause", "offset": [179, 195]}, {"key": "agreement-or", "type": "definition", "offset": [260, 272]}, {"key": "subject-to-the", "type": "definition", "offset": [388, 402]}, {"key": "excise-tax", "type": "clause", "offset": [403, 413]}, {"key": "code-section-4999", "type": "clause", "offset": [444, 461]}, {"key": "prior-to-the", "type": "clause", "offset": [468, 480]}, {"key": "payments-to-the-executive", "type": "clause", "offset": [502, 527]}, {"key": "net-benefit", "type": "clause", "offset": [575, 586]}, {"key": "payment-of-the", "type": "clause", "offset": [627, 641]}, {"key": "to-the-extent", "type": "clause", "offset": [729, 742]}, {"key": "payments-shall-be", "type": "clause", "offset": [898, 915]}, {"key": "reduced-amount", "type": "definition", "offset": [995, 1009]}, {"key": "reduction-of", "type": "clause", "offset": [1017, 1029]}, {"key": "payments-due-hereunder", "type": "clause", "offset": [1034, 1056]}, {"key": "if-applicable", "type": "definition", "offset": [1058, 1071]}, {"key": "cash-payments", "type": "definition", "offset": [1105, 1118]}, {"key": "ratio-of", "type": "clause", "offset": [1202, 1210]}, {"key": "parachute-value", "type": "definition", "offset": [1211, 1226]}, {"key": "present-value", "type": "definition", "offset": [1237, 1250]}, {"key": "date-of-the-change-of-control", "type": "clause", "offset": [1278, 1307]}, {"key": "determination-firm", "type": "definition", "offset": [1330, 1348]}, {"key": "section-6", "type": "definition", "offset": [1408, 1417]}, {"key": "in-accordance-with", "type": "definition", "offset": [1453, 1471]}, {"key": "control-of-the", "type": "clause", "offset": [1620, 1634]}, {"key": "parachute-payment", "type": "clause", "offset": [1679, 1696]}, {"key": "will-apply-to", "type": "clause", "offset": [1839, 1852]}, {"key": "an-independent", "type": "clause", "offset": [2153, 2167]}, {"key": "nationally-recognized-accounting-firm", "type": "definition", "offset": [2169, 2206]}, {"key": "consulting-firm", "type": "clause", "offset": [2223, 2238]}, {"key": "the-company-and-the", "type": "clause", "offset": [2262, 2281]}, {"key": "supporting-calculations", "type": "definition", "offset": [2348, 2371]}, {"key": "receipt-of-notice", "type": "definition", "offset": [2432, 2449]}, {"key": "payment-is-due", "type": "clause", "offset": [2476, 2490]}, {"key": "requested-by", "type": "definition", "offset": [2530, 2542]}, {"key": "expenses-of-the", "type": "clause", "offset": [2569, 2584]}, {"key": "upon-the-company", "type": "definition", "offset": [2703, 2719]}, {"key": "application-of", "type": "clause", "offset": [2777, 2791]}, {"key": "time-of-the", "type": "clause", "offset": [2817, 2828]}, {"key": "initial-determination", "type": "clause", "offset": [2829, 2850]}, {"key": "payments-hereunder", "type": "clause", "offset": [2908, 2926]}, {"key": "consistent-with-the", "type": "clause", "offset": [3000, 3019]}, {"key": "determine-the", "type": "clause", "offset": [3093, 3106]}, {"key": "with-interest", "type": "definition", "offset": [3264, 3277]}, {"key": "applicable-federal-rate", "type": "definition", "offset": [3285, 3308]}, {"key": "march-15", "type": "clause", "offset": [3368, 3376]}, {"key": "the-year", "type": "definition", "offset": [3380, 3388]}, {"key": "right-to", "type": "definition", "offset": [3488, 3496]}, {"key": "the-provisions-of", "type": "clause", "offset": [3545, 3562]}, {"key": "successor-provisions", "type": "definition", "offset": [3597, 3617]}, {"key": "no-further-force-or-effect", "type": "clause", "offset": [3678, 3704]}], "snippet": "6.1 Notwithstanding anything in this Agreement to the contrary, in the event it shall be determined that any benefit, payment or distribution by the Company to or for the benefit of the Executive (whether payable or distributable pursuant to the terms of this Agreement or otherwise) (such benefits, payments or distributions are hereinafter referred to as \u201cPayments\u201d) would, if paid, be subject to the excise tax (the \u201cExcise Tax\u201d) imposed by Code Section 4999, then prior to the making of any of the Payments to the Executive, a calculation shall be made comparing (i) the net benefit to the Executive, of the Payments after payment of the Excise Tax, to (ii) the net benefit to the Executive, if the Payments had been limited to the extent necessary to avoid being subject to the Excise Tax. If the amount calculated under (i) above is less than the amount calculated under (ii) above, then the Payments shall be limited to the extent necessary to avoid being subject to the Excise Tax (the \u201cReduced Amount\u201d). The reduction of the Payments due hereunder, if applicable, shall be made by first reducing cash Payments and then, to the extent necessary, reducing those Payments having the next highest ratio of Parachute Value to actual present value of such Payments as of the date of the change of control, as determined by the Determination Firm (as defined in subsection (b) below). For purposes of this Section 6, present value shall be determined in accordance with Code Section 280G(d)(4). For purposes of this Section 6, the \u201cParachute Value\u201d of a Payment means the present value as of the date of the change of control of the portion of such Payment that constitutes a \u201cparachute payment\u201d under Code Section 280G(b)(2), as determined by the Determination Firm for purposes of determining whether and to what extent the Excise Tax will apply to such Payment.\n6.2 All determinations required to be made under this Section 6, including whether an Excise Tax would otherwise be imposed, whether the Payments shall be reduced, the amount of the Reduced Amount, and the assumptions to be utilized in arriving at such determinations, shall be made by an independent, nationally recognized accounting firm or compensation consulting firm mutually acceptable to the Company and the Executive (the \u201cDetermination Firm\u201d) which shall provide detailed supporting calculations both to the Company and the Executive within 15 days of the receipt of notice from the Executive that a Payment is due to be made, or such earlier time as is requested by the Company. All fees and expenses of the Determination Firm shall be borne solely by the Company. Any determination by the Determination Firm shall be binding upon the Company and the Executive. As a result of the uncertainty in the application of Code Section 4999 at the time of the initial determination by the Determination Firm hereunder, it is possible that Payments hereunder will have been unnecessarily limited by this Section 6 (\u201cUnderpayment\u201d), consistent with the calculations required to be made hereunder. The Determination Firm shall determine the amount of the Underpayment that has occurred and any such Underpayment shall be promptly paid by the Company to or for the benefit of the Executive together with interest at the applicable Federal rate provided for in Code Section 7872(f)(2), but no later than March 15 of the year after the year in which the Underpayment is determined to exist, which is when the legally binding right to such Underpayment arises.\n6.3 In the event that the provisions of Code Section 280G and 4999 or any successor provisions are repealed without succession, this Section 6 shall be of no further force or effect.", "samples": [{"hash": "7Ufwt8n5JNY", "uri": "/contracts/7Ufwt8n5JNY#code-section-280g", "label": "Severance Agreement (Hilton Grand Vacations Inc.)", "score": 37.1533203125, "published": true}, {"hash": "j6hbgc3syT9", "uri": "/contracts/j6hbgc3syT9#code-section-280g", "label": "Severance Agreement (Hilton Grand Vacations Inc.)", "score": 31.8254623413, "published": true}, {"hash": "ceVvsGNuTB6", "uri": "/contracts/ceVvsGNuTB6#code-section-280g", "label": "Severance Agreement (Hilton Grand Vacations Inc.)", "score": 28.5865840912, "published": true}], "size": 55, "hash": "da8892b716ef64b270604b97268ac3a2", "id": 5}, {"snippet_links": [{"key": "agreement-to", "type": "definition", "offset": [37, 49]}, {"key": "of-the-company", "type": "clause", "offset": [85, 99]}, {"key": "initial-public-offering", "type": "definition", "offset": [102, 125]}, {"key": "in-the-event", "type": "clause", "offset": [127, 139]}, {"key": "to-receive", "type": "definition", "offset": [172, 182]}, {"key": "agreement-or", "type": "definition", "offset": [229, 241]}, {"key": "any-other-plan", "type": "definition", "offset": [248, 262]}, {"key": "any-person", "type": "definition", "offset": [307, 317]}, {"key": "a-change-in-control", "type": "clause", "offset": [342, 361]}, {"key": "person-affiliated-with", "type": "definition", "offset": [375, 397]}, {"key": "payments-and-benefits", "type": "clause", "offset": [435, 456]}, {"key": "total-payments", "type": "clause", "offset": [490, 504]}, {"key": "the-total", "type": "clause", "offset": [540, 549]}, {"key": "excise-tax", "type": "clause", "offset": [582, 592]}, {"key": "pursuant-to", "type": "definition", "offset": [593, 604]}, {"key": "code-section-4999", "type": "clause", "offset": [605, 622]}, {"key": "successor-provision", "type": "clause", "offset": [642, 661]}, {"key": "the-company-shall", "type": "clause", "offset": [682, 699]}, {"key": "to-executive", "type": "clause", "offset": [704, 716]}, {"key": "equal-to", "type": "definition", "offset": [783, 791]}, {"key": "minimum-amount", "type": "definition", "offset": [827, 841]}, {"key": "excess-parachute-payment", "type": "definition", "offset": [912, 936]}, {"key": "meaning-of", "type": "clause", "offset": [950, 960]}, {"key": "the-foregoing", "type": "definition", "offset": [1018, 1031]}, {"key": "by-executive", "type": "clause", "offset": [1063, 1075]}, {"key": "tax-basis", "type": "clause", "offset": [1089, 1098]}, {"key": "payments-notwithstanding", "type": "clause", "offset": [1132, 1156]}, {"key": "payments-may-be", "type": "clause", "offset": [1195, 1210]}, {"key": "subject-to-the", "type": "definition", "offset": [1211, 1225]}, {"key": "for-purposes-of", "type": "clause", "offset": [1238, 1253]}, {"key": "tax-benefit", "type": "clause", "offset": [1314, 1325]}, {"key": "receipt-of", "type": "clause", "offset": [1361, 1371]}, {"key": "state-and-local-taxes", "type": "definition", "offset": [1492, 1513]}, {"key": "in-respect-of", "type": "definition", "offset": [1547, 1560]}, {"key": "payments-shall-be", "type": "clause", "offset": [1604, 1621]}, {"key": "federal-income-taxes", "type": "definition", "offset": [1646, 1666]}, {"key": "rate-of", "type": "clause", "offset": [1682, 1689]}, {"key": "federal-income-taxation", "type": "clause", "offset": [1690, 1713]}, {"key": "to-individuals", "type": "clause", "offset": [1725, 1739]}, {"key": "in-effect", "type": "definition", "offset": [1748, 1757]}, {"key": "calendar-year", "type": "clause", "offset": [1766, 1779]}, {"key": "effective-date-of-the", "type": "clause", "offset": [1793, 1814]}, {"key": "state-and-local-income-taxes", "type": "clause", "offset": [1845, 1873]}, {"key": "in-the-state", "type": "definition", "offset": [1932, 1944]}, {"key": "on-the-effective-date", "type": "clause", "offset": [1983, 2004]}, {"key": "reduction-in", "type": "definition", "offset": [2050, 2062]}, {"key": "deduction-of", "type": "clause", "offset": [2112, 2124]}, {"key": "maximum-limitation", "type": "clause", "offset": [2217, 2235]}, {"key": "itemized-deductions", "type": "clause", "offset": [2250, 2269]}, {"key": "other-limitations", "type": "clause", "offset": [2300, 2317]}, {"key": "the-code", "type": "clause", "offset": [2384, 2392]}, {"key": "computations-and-determinations", "type": "clause", "offset": [2403, 2434]}, {"key": "section-34", "type": "clause", "offset": [2454, 2465]}, {"key": "independent-public-accounting-firm", "type": "definition", "offset": [2495, 2529]}, {"key": "independent-tax-counsel", "type": "definition", "offset": [2533, 2556]}, {"key": "by-the-company", "type": "clause", "offset": [2567, 2581]}, {"key": "the-firm", "type": "clause", "offset": [2623, 2631]}, {"key": "conclusive-and-binding", "type": "clause", "offset": [2664, 2686]}, {"key": "company-and-executive", "type": "clause", "offset": [2699, 2720]}, {"key": "supporting-calculations", "type": "definition", "offset": [2776, 2799]}, {"key": "to-the-company", "type": "definition", "offset": [2800, 2814]}, {"key": "days-after", "type": "definition", "offset": [2854, 2864]}, {"key": "employment-terminates", "type": "definition", "offset": [2877, 2898]}, {"key": "section-33", "type": "definition", "offset": [2943, 2954]}, {"key": "requested-by", "type": "definition", "offset": [2983, 2995]}, {"key": "determinations-under-this-section", "type": "clause", "offset": [3036, 3069]}, {"key": "good-faith", "type": "clause", "offset": [3108, 3118]}, {"key": "application-of", "type": "clause", "offset": [3150, 3164]}, {"key": "furnish-to", "type": "clause", "offset": [3226, 3236]}, {"key": "information-and-documents", "type": "clause", "offset": [3251, 3276]}, {"key": "reasonably-request", "type": "definition", "offset": [3293, 3311]}, {"key": "fees-and-expenses", "type": "clause", "offset": [3369, 3386]}, {"key": "in-connection-with", "type": "clause", "offset": [3407, 3425]}, {"key": "company-in", "type": "clause", "offset": [3604, 3614]}, {"key": "reasonable-discretion", "type": "clause", "offset": [3619, 3640]}, {"key": "reduction-of", "type": "clause", "offset": [3669, 3681]}, {"key": "code-section-409a", "type": "definition", "offset": [3721, 3738]}, {"key": "other-manner", "type": "clause", "offset": [3767, 3779]}], "snippet": "(a) Notwithstanding anything in this Agreement to the contrary, on or after the date of the Company\u2019s initial public offering, in the event that Executive becomes entitled to receive or receives any payment or benefit under this Agreement or under any other plan, agreement or arrangement with the Company, any person whose actions result in a Change in Control or any other person affiliated with the Company or such person (all such payments and benefits being referred to herein as the \u201cTotal Payments\u201d) and it is determined that any of the Total Payments will be subject to any excise tax pursuant to Code Section 4999, or any similar or successor provision (the \u201cExcise Tax\u201d), the Company shall pay to Executive either (1) the full amount of the Total Payments or (2) an amount equal to the Total Payments, reduced by the minimum amount necessary to prevent any portion of the Total Payments from being an \u201cexcess parachute payment\u201d (within the meaning of Code Section 280G) (the \u201cCapped Payments\u201d), whichever of the foregoing amounts results in the receipt by Executive, on an after-tax basis, of the greatest amount of Total Payments notwithstanding that all or some portion of the Total Payments may be subject to the Excise Tax. For purposes of determining whether Executive would receive a greater after-tax benefit from the Capped Payments than from receipt of the full amount of the Total Payments, (i) there shall be taken into account any Excise Tax and all applicable federal, state and local taxes required to be paid by Executive in respect of the receipt of such payments and (ii) such payments shall be deemed to be subject to federal income taxes at the highest rate of federal income taxation applicable to individuals that is in effect for the calendar year in which the effective date of the Change in Control occurs, and state and local income taxes at the highest rate of taxation applicable to individuals in the state and locality of Executive\u2019s residence on the effective date of the Change in Control, net of the maximum reduction in federal income taxes that could be obtained from deduction of such state and local taxes (as determined by assuming that such deduction is subject to the maximum limitation applicable to itemized deductions under Code Section 68 and any other limitations applicable to the deduction of state and local income taxes under the Code).\n(b) All computations and determinations called for by this Section 3.4 shall be made by a reputable independent public accounting firm or independent tax counsel appointed by the Company (the \u201cFirm\u201d). All determinations made by the Firm under this Section 3.4 shall be conclusive and binding on both the Company and Executive, and the Firm shall provide its determinations and any supporting calculations to the Company and Executive within ten (10) business days after Executive\u2019s employment terminates under any of the circumstances described in Section 3.3, or such earlier time as is requested by the Company. For purposes of making its determinations under this Section 3.4, the Firm may rely on reasonable, good faith interpretations concerning the application of Code Sections 280G and 4999. The Company and Executive shall furnish to the Firm such information and documents as the Firm may reasonably request in making its determinations. The Company shall bear all fees and expenses charged by the Firm in connection with its services.\n(c) In the event that Section 3.4(a) applies and a reduction is required to be applied to the Total Payments thereunder, the Total Payments shall be reduced by the Company in its reasonable discretion in the following order: (1) reduction of any Total Payments that are subject to Code Section 409A on a pro-rata basis or such other manner that complies with Code Section 409A, as determined by the Company, and (2) reduction of any Total Payments that are exempt from Code Section 409A.", "samples": [{"hash": "hV4NK28NsFC", "uri": "/contracts/hV4NK28NsFC#code-section-280g", "label": "Executive Employment Agreement (Avalara Inc)", "score": 29.3559207916, "published": true}, {"hash": "eEwKntcMEtg", "uri": "/contracts/eEwKntcMEtg#code-section-280g", "label": "Executive Employment Agreement (Avalara Inc)", "score": 29.3559207916, "published": true}, {"hash": "e7QIu4gnd8u", "uri": "/contracts/e7QIu4gnd8u#code-section-280g", "label": "Executive Employment Agreement (Avalara Inc)", "score": 29.3559207916, "published": true}], "size": 41, "hash": "b0d0311697ac5574a82c507a1c9b4196", "id": 6}, {"snippet_links": [{"key": "pursuant-to-a", "type": "definition", "offset": [50, 63]}, {"key": "corporate-transaction", "type": "definition", "offset": [64, 85]}, {"key": "from-the-company", "type": "clause", "offset": [86, 102]}, {"key": "parachute-payment", "type": "clause", "offset": [152, 169]}, {"key": "meaning-of", "type": "clause", "offset": [182, 192]}, {"key": "subject-to-the", "type": "definition", "offset": [247, 261]}, {"key": "tax-imposed", "type": "clause", "offset": [269, 280]}, {"key": "code-section-4999", "type": "clause", "offset": [284, 301]}, {"key": "the-company-shall", "type": "clause", "offset": [327, 344]}, {"key": "to-be-determined", "type": "definition", "offset": [351, 367]}, {"key": "the-payment", "type": "clause", "offset": [391, 402]}, {"key": "to-executive", "type": "clause", "offset": [412, 424]}, {"key": "tax-proceeds", "type": "definition", "offset": [494, 506]}, {"key": "payment-in-full", "type": "definition", "offset": [512, 527]}, {"key": "full-payment", "type": "clause", "offset": [568, 580]}, {"key": "payment-of", "type": "definition", "offset": [592, 602]}, {"key": "reduced-payment", "type": "clause", "offset": [731, 746]}, {"key": "tax-basis", "type": "clause", "offset": [811, 820]}, {"key": "for-purposes-of", "type": "clause", "offset": [949, 964]}, {"key": "taxes-and", "type": "clause", "offset": [1141, 1150]}, {"key": "marginal-rate", "type": "definition", "offset": [1206, 1219]}, {"key": "maximum-reduction", "type": "clause", "offset": [1232, 1249]}, {"key": "federal-income-taxes", "type": "definition", "offset": [1253, 1273]}, {"key": "deduction-of", "type": "clause", "offset": [1305, 1317]}, {"key": "state-and-local-taxes", "type": "definition", "offset": [1323, 1344]}, {"key": "to-the-extent", "type": "clause", "offset": [1412, 1425]}, {"key": "no-rights", "type": "clause", "offset": [1500, 1509]}, {"key": "additional-payments", "type": "definition", "offset": [1517, 1536]}, {"key": "reduction-in-payments", "type": "clause", "offset": [1588, 1609]}, {"key": "cash-payments", "type": "definition", "offset": [1675, 1688]}, {"key": "cancellation-of", "type": "clause", "offset": [1690, 1705]}, {"key": "accelerated-vesting-of-stock-awards", "type": "clause", "offset": [1706, 1741]}, {"key": "reduction-of-other-benefits", "type": "clause", "offset": [1747, 1774]}, {"key": "in-the-event", "type": "clause", "offset": [1776, 1788]}, {"key": "equity-awards", "type": "definition", "offset": [1840, 1853]}, {"key": "acceleration-of-vesting", "type": "clause", "offset": [1877, 1900]}, {"key": "order-of", "type": "clause", "offset": [1934, 1942]}, {"key": "date-of-grant", "type": "definition", "offset": [1947, 1960]}, {"key": "in-writing", "type": "definition", "offset": [1985, 1995]}, {"key": "independent-registered-public-accounting-firm", "type": "clause", "offset": [2036, 2081]}, {"key": "by-the-company-for", "type": "clause", "offset": [2090, 2108]}, {"key": "general-audit", "type": "clause", "offset": [2109, 2122]}, {"key": "the-day", "type": "definition", "offset": [2138, 2145]}, {"key": "effective-date-of-the", "type": "clause", "offset": [2159, 2180]}, {"key": "section-6", "type": "definition", "offset": [2264, 2273]}, {"key": "the-individual", "type": "clause", "offset": [2394, 2408]}, {"key": "nationally-recognized", "type": "definition", "offset": [2501, 2522]}, {"key": "with-respect-to", "type": "clause", "offset": [2652, 2667]}, {"key": "supporting-documentation", "type": "clause", "offset": [2922, 2946]}, {"key": "company-and-executive", "type": "clause", "offset": [2955, 2976]}, {"key": "days-after", "type": "definition", "offset": [3006, 3016]}, {"key": "right-to", "type": "definition", "offset": [3047, 3055]}, {"key": "other-time", "type": "clause", "offset": [3146, 3156]}, {"key": "requested-by", "type": "definition", "offset": [3160, 3172]}, {"key": "no-excise-tax", "type": "clause", "offset": [3255, 3268]}, {"key": "application-of-the", "type": "clause", "offset": [3334, 3352]}, {"key": "reduced-amount", "type": "definition", "offset": [3353, 3367]}, {"key": "an-opinion", "type": "clause", "offset": [3417, 3427]}, {"key": "good-faith-determinations", "type": "clause", "offset": [3532, 3557]}, {"key": "the-accounting-firm", "type": "clause", "offset": [3561, 3580]}, {"key": "binding-and-conclusive", "type": "clause", "offset": [3612, 3634]}, {"key": "upon-the-company", "type": "definition", "offset": [3635, 3651]}], "snippet": "If any payment or benefit Executive would receive pursuant to a Corporate Transaction from the Company or otherwise (\u201cPayment\u201d) would (i) constitute a \u201cparachute payment\u201d within the meaning of Code Section 280G, and (ii) but for this sentence, be subject to the excise tax imposed by Code Section 4999 (the \u201cExcise Tax\u201d), then the Company shall cause to be determined, before any amounts of the Payment are paid to Executive, which of the following two amounts would maximize Executive\u2019s after-tax proceeds: (i) payment in full of the entire amount of the Payment (a \u201cFull Payment\u201d), or (ii) payment of only a part of the Payment so that Executive receives the largest payment possible without the imposition of the Excise Tax (a \u201cReduced Payment\u201d), whichever amount results in Executive\u2019s receipt, on an after-tax basis, of the greater amount of the Payment notwithstanding that all or some portion of the Payment may be subject to the Excise Tax. For purposes of determining whether to make a Full Payment or a Reduced Payment, the Company shall cause to be taken into account all applicable federal, state and local income and employment taxes and the Excise Tax (all computed at the highest applicable marginal rate, net of the maximum reduction in federal income taxes which could be obtained from a deduction of such state and local taxes). If a Reduced Payment is made, (i) the Payment shall be paid only to the extent permitted under the Reduced Payment alternative, and Executive shall have no rights to any additional payments and/or benefits constituting the Payment, and (ii) reduction in payments and/or benefits shall occur in the following order: reduction of cash payments, cancellation of accelerated vesting of stock awards, and reduction of other benefits. In the event that acceleration of compensation from Executive\u2019s equity awards is to be reduced, such acceleration of vesting shall be canceled in the reverse order of the date of grant unless Executive elects in writing a different order for cancellation. The independent registered public accounting firm engaged by the Company for general audit purposes as of the day prior to the effective date of the Corporate Transaction shall make all determinations required to be made under this Section 6. 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 Corporate Transaction, the Company shall appoint a different 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. The independent registered public accounting firm engaged to make the determinations hereunder shall provide its calculations, together with detailed supporting documentation, to the Company and Executive within fifteen (15) calendar days after the date on which Executive\u2019s right to a Payment is triggered (if requested at that time by the Company or Executive) or at such other time as requested by the Company. If the independent registered public accounting firm determines that no Excise Tax is payable with respect to a Payment, either before or after the application of the Reduced Amount, it shall furnish the Company and Executive with an opinion reasonably acceptable to Executive that no Excise Tax will be imposed with respect to such Payment. Any good faith determinations of the accounting firm made hereunder shall be final, binding and conclusive upon the Company and Executive.", "samples": [{"hash": "cHBXXTXDuUN", "uri": "/contracts/cHBXXTXDuUN#code-section-280g", "label": "Executive Employment Agreement (DMK PHARMACEUTICALS Corp)", "score": 34.8672142029, "published": true}, {"hash": "jLTd4uLwlOA", "uri": "/contracts/jLTd4uLwlOA#code-section-280g", "label": "Executive Employment Agreement (DMK PHARMACEUTICALS Corp)", "score": 34.7960319519, "published": true}, {"hash": "6IakyEWIOaI", "uri": "/contracts/6IakyEWIOaI#code-section-280g", "label": "Executive Employment Agreement (DMK PHARMACEUTICALS Corp)", "score": 34.7960319519, "published": true}], "size": 39, "hash": "9533d8f3948d88903c5a5f6203c5b665", "id": 7}, {"snippet_links": [{"key": "to-the-extent", "type": "clause", "offset": [0, 13]}, {"key": "disqualified-individual", "type": "definition", "offset": [24, 47]}, {"key": "meaning-of", "type": "clause", "offset": 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"deliver-to", "type": "definition", "offset": [1894, 1904]}, {"key": "in-accordance-with", "type": "definition", "offset": [1984, 2002]}, {"key": "number-of-votes", "type": "clause", "offset": [2043, 2058]}, {"key": "benefits-will", "type": "clause", "offset": [2198, 2211]}, {"key": "notwithstanding-the-foregoing", "type": "clause", "offset": [2237, 2266]}, {"key": "term-sheet", "type": "definition", "offset": [2312, 2322]}, {"key": "other-arrangement", "type": "definition", "offset": [2332, 2349]}, {"key": "entered-into", "type": "clause", "offset": [2384, 2396]}, {"key": "by-acquiror", "type": "clause", "offset": [2397, 2408]}, {"key": "the-surviving-corporation", "type": "clause", "offset": [2410, 2435]}, {"key": "the-surviving-entity", "type": "clause", "offset": [2437, 2457]}, {"key": "respective-affiliates", "type": "definition", "offset": [2474, 2495]}, {"key": "in-connection-with", "type": "clause", "offset": [2528, 2546]}, {"key": "the-transactions-contemplated-by-this-agreement", "type": "clause", "offset": [2547, 2594]}, {"key": "acquiror-arrangements", "type": "definition", "offset": [2627, 2648]}, {"key": "a-copy-of", "type": "clause", "offset": [2675, 2684]}, {"key": "to-the-company", "type": "definition", "offset": [2753, 2767]}, {"key": "cooperate-with", "type": "clause", "offset": [2822, 2836]}, {"key": "in-good-faith", "type": "definition", "offset": [2864, 2877]}, {"key": "the-value", "type": "clause", "offset": [2913, 2922]}, {"key": "for-purposes-of-section", "type": "clause", "offset": [2924, 2947]}, {"key": "failure-to", "type": "clause", "offset": [3247, 3257]}, {"key": "the-acquiror", "type": "clause", "offset": [3266, 3278]}, {"key": "the-covenants", "type": "definition", "offset": [3348, 3361]}, {"key": "to-provide", "type": "definition", "offset": [3411, 3421]}, {"key": "before-the-closing-date", "type": "clause", "offset": [3533, 3556]}, {"key": "as-required", "type": "clause", "offset": [3674, 3685]}, {"key": "pursuant-to", "type": "definition", "offset": [3686, 3697]}, {"key": "in-no-event-shall", "type": "clause", "offset": [3717, 3734]}, {"key": "breach-of-this-section", "type": "clause", "offset": [3760, 3782]}, {"key": "by-the-company", "type": "clause", "offset": [3880, 3894]}, {"key": "stockholder-vote", "type": "definition", "offset": [3902, 3918]}, {"key": "time-period", "type": "definition", "offset": [4030, 4041]}, {"key": "by-the-parties", "type": "clause", "offset": [4111, 4125]}], "snippet": "To the extent that any \u201cdisqualified individual\u201d (within the meaning of Section 280G(c) of the Code and the regulations thereunder) of the Company has the right to receive or retain any payments or benefits that could be deemed to constitute \u201cparachute payments\u201d (within the meaning of Section 280G(b)(2)(A) of the Code and the regulations thereunder), then, the Company will: (a) solicit and use its commercially reasonable best efforts to obtain from each such \u201cdisqualified individual\u201d a waiver of such disqualified individual\u2019s rights to some or all of such payments or benefits (the \u201cWaived 280G Benefits\u201d) so that any remaining payments and/or benefits shall not be deemed to be \u201cexcess parachute payments\u201d (within the meaning of Section 280G of the Code and the regulations thereunder); and (b) no later than ten days prior to the Closing Date, with respect to each individual who agrees to the waiver described in clause (a), submit to a vote of the stockholders of the Company entitled to vote on such matters, in the manner required under Section 280G(b)(5) of the Code and the regulations promulgated thereunder, along with adequate disclosure intended to satisfy such requirements (including Q&A 7 of Section 1.280G-1 of such regulations), the right of any such \u201cdisqualified individual\u201d to receive the Waived 280G Benefits. Prior to, and in no event later than five days prior to soliciting such waivers and approval, the Company shall provide drafts of such waivers and approval materials to Acquiror for its review and comment. No later than two days prior to soliciting the waivers, the Company shall provide Acquiror with the calculations and related documentation to determine whether and to what extent the vote described in this Section 7.04 is necessary in order to avoid the imposition of Taxes under Section 4999 of the Code. Prior to the Closing Date, the Company shall deliver to Acquiror evidence that a vote of the stockholders of the Company was solicited in accordance with the foregoing and whether the requisite number of votes of the stockholders of the Company was obtained with respect to the Waived 280G Benefits or that the vote did not pass and the Waived 280G Benefits will not be paid or retained. Notwithstanding the foregoing, to the extent that any contract, agreement, term sheet, plan or other arrangement (whether written or unwritten) is entered into by Acquiror, the Surviving Corporation, the Surviving Entity or any of their respective Affiliates and a \u201cdisqualified individual\u201d in connection with the transactions contemplated by this Agreement prior to the Closing Date (the \u201cAcquiror Arrangements\u201d), Acquiror shall provide a copy of such contract, agreement, plan or summary of such other arrangement to the Company at least ten days prior to the Closing Date and shall cooperate with the Company or its counsel in good faith in order to calculate or determine the value (for purposes of Section 280G of the Code) of any payments or benefits granted or contemplated therein, which may be paid, granted or provided in connection with the transactions contemplated by this Agreement that could constitute a \u201cparachute payment\u201d under Section 280G of the Code; provided, however, that the Company\u2019s failure to include the Acquiror Arrangements as Waived 280G Benefits shall not result in a breach of the covenants set forth in this Section 7.04 if Acquiror fails to provide a copy of such contract, agreement, plan or summary of such other arrangement to the Company at least ten days before the Closing Date and/or fails to cooperate with the Company or its counsel in good faith in order to calculate or determine the value as required pursuant to this Section 7.04. In no event shall the Company be deemed in breach of this Section 7.04 if any \u201cdisqualified individual\u201d refuses to execute a waiver that has been timely solicited by the Company or the stockholder vote is not obtained due to the Company\u2019s stockholder not approving such Waived 280G Benefits. With respect to each time period set forth in this Section 7.04, such period may be shorter as agreed by the Parties, with such agreement not to be unreasonably withheld.", "samples": [{"hash": "gmpvFniDYaf", "uri": "/contracts/gmpvFniDYaf#code-section-280g", "label": "Merger Agreement (KORE Group Holdings, Inc.)", "score": 32.9178657532, "published": true}, {"hash": "ewfTug8dhSS", "uri": "/contracts/ewfTug8dhSS#code-section-280g", "label": "Merger Agreement (KORE Group Holdings, Inc.)", "score": 32.7864494324, "published": true}, {"hash": "2jI4PYTCxe5", "uri": "/contracts/2jI4PYTCxe5#code-section-280g", "label": "Merger Agreement (Cerberus Telecom Acquisition Corp.)", "score": 32.1923332214, "published": true}], "size": 38, "hash": "45787f3046b361373e50b943ad1a9652", "id": 8}, {"snippet_links": [{"key": "present-value", "type": "definition", "offset": [7, 20]}, {"key": "all-payments", "type": "definition", "offset": [24, 36]}, {"key": "benefits-provided", "type": "definition", "offset": [56, 73]}, {"key": "the-participant", "type": "clause", "offset": [77, 92]}, {"key": "agreement-or", "type": "definition", "offset": [156, 168]}, {"key": "other-payments", "type": "definition", "offset": [239, 253]}, {"key": "parachute-payments", "type": "clause", "offset": [301, 319]}, {"key": "nine-percent", "type": "definition", "offset": [348, 360]}, {"key": "base-amount", "type": "clause", "offset": [390, 401]}, {"key": "lesser-amount", "type": "definition", "offset": [534, 547]}, {"key": "subject-to-the", "type": "definition", "offset": [629, 643]}, {"key": "tax-imposed", "type": "clause", "offset": [651, 662]}, {"key": "section-4999-of-the-code", "type": "clause", "offset": [666, 690]}, {"key": "the-foregoing", "type": "definition", "offset": [724, 737]}, {"key": "the-applicable", "type": "clause", "offset": [767, 781]}, {"key": "taxes-and", "type": "clause", "offset": [814, 823]}, {"key": "receipt-by-the", "type": "clause", "offset": [855, 869]}, {"key": "basis-of", "type": "clause", "offset": [898, 906]}, {"key": "by-the-company", "type": "clause", "offset": [976, 990]}, {"key": "code-section", "type": "definition", "offset": [1112, 1124]}, {"key": "the-regulations", "type": "clause", "offset": [1218, 1233]}, {"key": "in-accordance-with", "type": "definition", "offset": [1549, 1567]}, {"key": "order-of-priority", "type": "definition", "offset": [1572, 1589]}, {"key": "reduced-amount", "type": "definition", "offset": [1619, 1633]}, {"key": "benefits-will", "type": "clause", "offset": [1770, 1783]}, {"key": "reduction-of", "type": "clause", "offset": [1865, 1877]}, {"key": "cash-payments", "type": "definition", "offset": [1878, 1891]}, {"key": "cancellation-of", "type": "clause", "offset": [1897, 1912]}, {"key": "accelerated-vesting-of-equity-awards", "type": "clause", "offset": [1913, 1949]}, {"key": "employee-benefits", "type": "clause", "offset": [1972, 1989]}, {"key": "acceleration-of-vesting-of-equity", "type": "clause", "offset": [1994, 2027]}, {"key": "award-compensation", "type": "clause", "offset": [2028, 2046]}, {"key": "reverse-order", "type": "clause", "offset": [2120, 2133]}, {"key": "grant-of", "type": "clause", "offset": [2149, 2157]}], "snippet": "If the present value of all payments, distributions and benefits provided to the Participant or for the Participant\u2019s benefit pursuant to the terms of this Agreement or otherwise which constitute a \u201cparachute payment\u201d when aggregated with other payments, distributions, and benefits which constitute \u201cparachute payments,\u201d exceed two hundred ninety-nine percent (299%) of the Participant\u2019s \u201cbase amount,\u201d then such payments, distributions and benefits shall either be (i) paid and delivered in full, or (ii) paid and delivered in such lesser amount as would result in no portion of such payments, distributions and benefits being subject to the excise tax imposed by Section 4999 of the Code (the \u201cExcise Tax\u201d), whichever of the foregoing amounts (taking into account the applicable federal, state and local income taxes and the Excise Tax) results in the receipt by the Participant on an after-tax basis of materially larger payments, distributions and benefits as determined by the Company. As used herein, \u201cparachute payment\u201d has the meaning ascribed to it in Section 280G(b)(2) of the Code, without regard to Code Section 280G(b)(2)(A)(ii); and \u201cbase amount\u201d has the meaning ascribed to it in Code Section 280G and the regulations thereunder. If the \u201cpresent value\u201d as defined in Code Sections 280G(d)(4) and 1274(b) (2), of such aggregate \u201cparachute payments\u201d as determined by the Company exceeds the 299% limitation set forth herein and subparagraph (ii) above applies, such payments, distributions and benefits shall be reduced by the Company in accordance with the order of priority set forth below so that such reduced amount will result in no portion of the payments, distributions and benefits being subject to the Excise Tax. Such payments, distributions and benefits will be reduced by the Company in accordance with the following order of priority (A) reduction of cash payments; (B) cancellation of accelerated vesting of Equity Awards; and (C) reduction of employee benefits. If acceleration of vesting of Equity Award compensation is to be reduced, such acceleration of vesting shall be cancelled in the reverse order of the date of grant of the Participant\u2019s Equity Awards.", "samples": [{"hash": "jcT1j9SGcgE", "uri": "/contracts/jcT1j9SGcgE#code-section-280g", "label": "Employment Agreement (Six Flags Entertainment Corporation/New)", "score": 35.847366333, "published": true}, {"hash": "fv9ltlrMSKf", "uri": "/contracts/fv9ltlrMSKf#code-section-280g", "label": "Employment Agreement (Six Flags Entertainment Corporation/New)", "score": 35.847366333, "published": true}, {"hash": "fTLh60dvQfA", "uri": "/contracts/fTLh60dvQfA#code-section-280g", "label": "Employment Agreement (Six Flags Entertainment Corporation/New)", "score": 35.847366333, "published": true}], "size": 31, "hash": "fa0bdf82daef99dce954ee188d3ca21f", "id": 9}, {"snippet_links": [{"key": "agreement-to", "type": "definition", "offset": [44, 56]}, {"key": "in-the-event", "type": "clause", "offset": [71, 83]}, {"key": "payable-to", "type": "definition", "offset": [101, 111]}, {"key": "section-62", "type": "clause", "offset": [131, 142]}, {"key": "pursuant-to", "type": "definition", "offset": [204, 215]}, {"key": "any-other-plan", "type": "definition", "offset": [216, 230]}, {"key": "parachute-payments", "type": "clause", "offset": [271, 289]}, {"key": "meaning-of", "type": "clause", "offset": [302, 312]}, {"key": "section-75", "type": "clause", "offset": [360, 371]}, {"key": "subject-to-the", "type": "definition", "offset": [381, 395]}, {"key": "tax-imposed", "type": "clause", "offset": [403, 414]}, {"key": "section-4999-of-the-code", "type": "clause", "offset": [418, 442]}, {"key": "successor-provisions", "type": "definition", "offset": [461, 481]}, {"key": "vesting-acceleration", "type": "definition", "offset": [511, 531]}, {"key": "the-foregoing", "type": "definition", "offset": [778, 791]}, {"key": "income-and-employment-taxes", "type": "clause", "offset": [871, 898]}, {"key": "other-applicable-taxes", "type": "definition", "offset": [924, 946]}, {"key": "tax-basis", "type": "clause", "offset": [991, 1000]}, {"key": "amount-of-benefits", "type": "clause", "offset": [1018, 1036]}, {"key": "registered-public-accounting-firm", "type": "definition", "offset": [1211, 1244]}, {"key": "by-the-company", "type": "clause", "offset": [1254, 1268]}, {"key": "supporting-calculations", "type": "definition", "offset": [1290, 1313]}, {"key": "to-the-company", "type": "definition", "offset": [1319, 1333]}, {"key": "date-of", "type": "clause", "offset": [1360, 1367]}, {"key": "the-applicable", "type": "clause", "offset": [1368, 1382]}, {"key": "change-in-control", "type": "definition", "offset": [1383, 1400]}, {"key": "payments-shall-be", "type": "clause", "offset": [1486, 1503]}, {"key": "compensation-to-be", "type": "clause", "offset": [1539, 1557]}, {"key": "to-the-executive", "type": "clause", "offset": [1567, 1583]}, {"key": "the-requirements", "type": "clause", "offset": [1714, 1730]}, {"key": "section-409a", "type": "definition", "offset": [1734, 1746]}, {"key": "equivalent-amounts", "type": "clause", "offset": [1774, 1792]}, {"key": "payable-at", "type": "definition", "offset": [1822, 1832]}, {"key": "pro-rata-basis", "type": "definition", "offset": [1885, 1899]}], "snippet": "Notwithstanding any other provision of this Agreement to the contrary, in the event that any amounts payable to you as a result of Section 6.2 or 6.3 hereof, either alone or together with amounts payable pursuant to any other plan, program or arrangement (a) constitute \u201cparachute payments\u201d within the meaning of Section 280G of the Code, and (b) but for this Section 7.5 would be subject to the excise tax imposed by Section 4999 of the Code or any comparable successor provisions (the \u201cExcise Tax\u201d), then the vesting acceleration provided in Section 6.2 or 6.3, as applicable, shall be either (a) provided to you in full, or (b) provided to you to such lesser extent that would result in no portion of the payments so accelerated being subject to the Excise Tax, whichever of the foregoing amounts, when taking into account applicable federal, state, local and foreign income and employment taxes, the Excise Tax, and any other applicable taxes, results in the receipt by you, on an after-tax basis, of the greatest amount of benefits, notwithstanding that all or some portion of such benefits may be subject to the Excise Tax. All determinations required to be made under this Section 7.5 shall be made by a registered public accounting firm selected by the Company, which shall provide supporting calculations both to the Company and you no later than the date of the applicable Change in Control. In the event that the Payments are to be reduced pursuant to this Section 7.5, such Payments shall be reduced such that the reduction of compensation to be provided to the Executive as a result of this Section 7.5 is minimized. In applying this principle, the reduction shall be made in a manner consistent with the requirements of Section 409A and where two economically equivalent amounts are subject to reduction but payable at different times, such amounts shall be reduced on a pro rata basis but not below zero.", "samples": [{"hash": "lk2PHw6IL7F", "uri": "/contracts/lk2PHw6IL7F#code-section-280g", "label": "Restricted Stock Rights Grant Agreement (Northrop Grumman Corp /De/)", "score": 36.3045845032, "published": true}, {"hash": "1OWpCWT1m55", "uri": "/contracts/1OWpCWT1m55#code-section-280g", "label": "Restricted Performance Stock Rights Grant Agreement (Northrop Grumman Corp /De/)", "score": 36.3045845032, "published": true}, {"hash": "cYxGqndUJYb", "uri": "/contracts/cYxGqndUJYb#code-section-280g", "label": "Restricted Stock Rights Grant Agreement (Northrop Grumman Corp /De/)", "score": 35.3134841919, "published": true}], "size": 29, "hash": "646110b577fcfe0790b4d93cc7950a9e", "id": 10}], "next_curs": "CloSVGoVc35sYXdpbnNpZGVyY29udHJhY3RzcjYLEhZDbGF1c2VTbmlwcGV0R3JvdXBfdjU2Ihpjb2RlLXNlY3Rpb24tMjgwZyMwMDAwMDAwYQyiAQJlbhgAIAA=", "clause": {"title": "Code Section 280G", "children": [["definitions", "Definitions"], ["overpayments-underpayments", "Overpayments; Underpayments"], ["certain-reductions-in-agreement-payments", "Certain Reductions in Agreement Payments"], ["accounting-firm-determinations", "Accounting Firm Determinations"], ["ordering-of-reduction", "Ordering of Reduction"]], "parents": [["miscellaneous", "Miscellaneous"], ["consequences-of-termination", "Consequences of Termination"], ["tax-matters", "Tax Matters"], ["limitations-on-payments", "Limitations on Payments"], ["taxes", "Taxes"]], "size": 1347, "id": "code-section-280g", "related": [["section-280g", "Section 280G", "Section 280G"], ["code-section-409a", "Code Section 409A", "Code Section 409A"], ["section-280g-of-the-code", "Section 280G of the Code", "Section 280G of the Code"], ["code-section-409a-compliance", "Code Section 409A Compliance", "Code Section 409A Compliance"], ["internal-revenue-code-section-409a", "Internal Revenue Code Section 409A", "Internal Revenue Code Section 409A"]], "related_snippets": [], "updated": "2026-05-06T04:38:42+00:00", "also_ask": ["What negotiation strategies can minimize or eliminate golden parachute excise taxes under Section 280G?", "Which drafting elements are essential to ensure compliance and maximize safe harbor protections?", "What are the most common pitfalls or fatal flaws that trigger adverse 280G consequences?", "How do 280G provisions compare to similar change-in-control rules in other jurisdictions?", "What evidence and documentation are most persuasive in defending 280G determinations if challenged in court?"], "drafting_tip": "Reference Code Section 280G explicitly to ensure compliance; define key terms to avoid ambiguity; specify calculation methods to prevent disputes.", "explanation": "The Code Section 280G clause addresses the tax implications of so-called \"golden parachute\" payments made to executives in connection with a change in control of a company. It typically outlines how the company and the executive will handle any excise taxes or loss of tax deductions that may arise if severance or other payments exceed certain thresholds set by the Internal Revenue Code. For example, the clause may specify whether the company will provide a gross-up payment to cover additional taxes or require the executive to forfeit excess amounts. Its core function is to allocate the financial risks and responsibilities associated with potential tax penalties, ensuring both parties understand their obligations and minimizing unexpected tax liabilities."}, "json": true, "cursor": ""}}