Common use of Section 162(m) Limits Clause in Contracts

Section 162(m) Limits. Notwithstanding any other provision of this Agreement, if and to the extent that any remuneration payable by Applica to the Executive for any calendar year would exceed the maximum amount of such remuneration that Applica may deduct for that year by reason of Section 162(m) of the Code, payment of the portion of the remuneration for that year that would not be so deductible under Section 162(m) shall, in the sole discretion by the Board of Directors, be deferred so that it shall become payable at such time or times as the Board reasonably determines that it would first not be subject to loss of deduction by Applica under Section 162(m), with interest at the “short-term applicable federal rate” as such term is defined in Section 1274(d) of the Code.

Section 162(m) Limits. Notwithstanding any other provision of this Agreement, if and to the extent that any remuneration payable by Applica the Company to the Executive for any calendar year would exceed the maximum amount of such remuneration that Applica the Company may deduct for that year by reason of Section 162(m) of the Code, payment of the portion of the remuneration for that year that would not be so deductible under Section 162(m) shall, in the sole discretion by the Board of DirectorsBoard, be deferred so that it shall become payable at such time or times as the Board reasonably determines that it would first not be subject to loss of deduction by Applica the Company under Section 162(m), with interest at the “short-term applicable federal rate” as such term is defined in Section 1274(d) of the Code.