Tax Detriment Amount

Tax Detriment Amount. Shall mean any and each of: (i) the amount of Escrowed Funds distributed to MB Bank or separately paid by the Principal Stockholders to MB Bank pursuant to this Agreement that is included or otherwise includable as income by MB or MB Bank for federal income tax purposes multiplied by 3 the Tax Rate, plus any penalties and interest thereon; (ii) the amount of any Restitution Payment included in the calculation of a Tax Benefit Amount that is determined by the Internal Revenue Service... to be non-deductible multiplied by the Tax Rate, plus penalties and interest thereon; and (iii) with respect to a prior distribution of funds by MB Bank to the Principal Stockholders pursuant to Section 5 of this Agreement, sixty percent (60%) of the amount of any Net Recovery Tax Detriment that was not taken into account in the calculation of the Net After-Tax Recovery upon which such distribution was based as a result of a subsequent determination by the Internal Revenue Service that a greater Net Recovery Amount is includable as income of MB or MB Bank, plus penalties and interest thereon. View More