Parachute Indemnity Amount

Parachute Indemnity Amount. The amount determined with respect to a Participant as follows: (i) There shall first be determined, after giving effect to the payment of such Participant's Primary Benefit but not to such Participant's Secondary Benefit, the aggregate of such Participant's "excess parachute" payments within the contemplation of section 280G(b)(1) of the Code. (ii) There shall then be determined the amount of the aggregate taxes imposed upon such "excess parachute payments" by the provisions of section... 4999(a) of the Code. (iii) The amount determined in accordance with the provisions of clause (ii) shall then be multiplied by the fraction the numerator of which shall be one and the denominator of which shall be one minus such Participant's Effective Marginal Tax Rate with respect to the calendar year in which his employment by the Company shall terminate and such product shall be such Participant's Parachute Indemnity Amount. View More