Common use of Limited Restriction on Payments and Benefits to Avoid Excise Tax Clause in Contracts

Limited Restriction on Payments and Benefits to Avoid Excise Tax. Notwithstanding the provisions of Subsection (c), if (i) it is determined that the payments to be provided to the Executive hereunder would subject him to the excise tax provisions of Code Section 4999, but (ii) a 5% reduction in the present value (as determined pursuant to the provisions of Code Section 280G) of such payments would result in no such excise tax being owed, then such payments will be reduced or eliminated by the smallest amount necessary to avoid the imposition of such excise tax. The Executive will be entitled, within a reasonable period of time, to specify which payments will be reduced or eliminated.

Limited Restriction on Payments and Benefits to Avoid Excise Tax. Notwithstanding the provisions provision of Subsection (c), if (i) it is determined that the payments to be provided to the Executive hereunder would subject him to the excise tax provisions of Code Section 4999, but (ii) a 5% reduction in the present value (as determined pursuant to the provisions of Code Section 280G) of such payments would result in no such excise tax being owed, then such payments will be reduced or eliminated by the smallest amount necessary to avoid the imposition of such excise tax. The Executive will be entitled, within a reasonable period of time, to specify which payments will be reduced or eliminated.