Change in Control Employment Agreement雇傭變更協(xié)議

-35-ChangeinControlEmploymentAgreement雇傭變更協(xié)議核心提示：AAAINDUSTRIESInc.InControlEmploymentAgreementTHISAMENDEDANDRESTATEDAGREEMENTismadebetweenAAAINDUSTRIESInc.,an_________(Placename)corporation(theCompany),and_________(theExecutive),datedthis_________dayof_________,_____AAAINDUSTRIESInc.InControlEmploymentAgreementTHISAMENDEDANDRESTATEDAGREEMENTismadebetweenAAAINDUSTRIESInc.,an_________(Placename)corporation(theCompany),and_________(theExecutive),datedthis_________dayof_________,_________.1.Purpose.TheCompanywishestoattractandretainwell-qualifiedexecutiveandkeypersonnel.TheCompanyandtheExecutivewishtoassurecontinuityofmanagementintheeventofanyactualorthreatenedChangeinControl(asdefinedinSection3)oftheCompany.TheAgreementisenteredintotoaccomplishthesepurposesandinconsiderationforthemutualcovenantshereincontained.2.OperationofAgreement.TheeffectivedateofthisAgreementshallbethefirstdateduringtheChangeinControlPeriod(asdefinedbelow)onwhichaChangeinControloccurs.ThisAgreementshallterminateiftheBoardofDirectorsoftheCompany(theBoard)determinesthattheExecutiveisnolongerakeyexecutivewhoshouldbecoveredbythisAgreementandsonotifiestheExecutive;provided,however,thatsuchadeterminationshallnotbemade,andifmadeshallhavenoeffect,(i)withintwoyearsaftertheChangeofControlor(ii)duringanyperiodoftimewhentheCompanyhasknowledgethatanythirdpersonhastakenstepsreasonablycalculatedtoeffectaChangeofControluntil,intheopinionoftheBoard,thethirdpersonhasabandonedorterminatedhiseffortstoeffectaChangeinControl.AnydecisionbytheBoardthatthethirdpersonhasabandonedorterminatedhiseffortstoeffectaChangeofControlshallbeconclusiveandbindingontheExecutive.TheChangeinControlPeriodshallmeantheperiodcommencingonthedatehereofandendingonthesecondanniversaryofthedatehereof;provided,however,thatcommencingonthedateoneyearafterthedatehereof,andoneachannualanniversaryofsuchdate(suchdateandeachannualanniversarythereofshallbehereinafterreferredtoastheRenewalDate),unlesspreviouslyterminated,theChangeinControlPeriodshallbeautomaticallyextendedsoastoterminatetwoyearsfromsuchRenewalDate,unlessatleast60dayspriortotheRenewalDatetheCompanyshallgivenoticetotheExecutivethattheChangeinControlPeriodshallnotbesoextended.3.ChangeinControl.ForthepurposesofthisAgreement,aChangeinControlshallmean:(a)Theacquisitionbyanyindividual,entityorgroup(withinthemeaningofSection13(d)(3)or14(d)(2)oftheSecuritiesExchangeActof1934,asamended(theExchangeAct))(aPerson)ofbeneficialownership(withinthemeaningofRule13d-3promulgatedundertheExchangeAct)of_________%ormoreofeither(i)thethenoutstandingsharesofcommonstockoftheCompany(theOutstandingCompanyCommonStock)or(ii)thecombinedvotingpowerofthethenoutstandingvotingsecuritiesoftheCompanyentitledtovotegenerallyintheelectionofDirectors(theOutstandingCompanyVotingSecurities);provided,however,thatforpurposesofthissubsection(a),thefollowingacquisitionsshallnotconstituteaChangeofControl:(i)anyacquisitiondirectlyfromtheCompany,(ii)anyacquisitionbytheCompany,(iii)anyacquisitionbyanyemployeebenefitplan(orrelatedtrust)sponsoredormain-tainedbytheCompanyoranycorporationcontrolledbytheCompanyor(iv)anyacquisitionbyanycorporationpursuanttoatransactionwhichcomplieswithclauses(i),(ii)and(iii)ofsubsection(c)ofthisSection3;or(b)individualswho,asofthedatehereof,constitutetheBoard(theIncumbentBoard)ceaseforanyreasontoconstituteatleasttwo-thirdsoftheBoard;provided,however,thatanyindividualbecomingaDirectorsubsequenttothedatehereofwhoseelection,ornominationforelectionbytheCompany’sshareholders,wasapprovedbyavoteofatleastthree-quartersoftheDirectorsthencomprisingtheIncumbentBoardshallbeconsideredasthoughsuchindividualwereamemberoftheIncumbentBoard,butexcluding,forthispurpose,anysuchindividualwhoseinitialassumptionofofficeoccursasaresultofanactualorthreatenedelectioncontestwithrespecttotheelectionorremovalofDirectorsorotheractualorthreatenedsolicitationofproxiesorconsentsbyoronbehalfofaPersonotherthantheBoard;or(c)consummationofareorganization,mergerorconsolidationorsaleorotherdispositionofallorsubstantiallyalloftheassetsoftheCompany(aBusinessCombination),ineachcase,unless,followingsuchBusinessCombination,(i)allorsubstantiallyalloftheindividualsandentitieswhowerethebeneficialowners,respectively,oftheOutstandingCompanyCommonStockandOutstandingCompanyVotingSecuritiesimmediatelypriortosuchBusinessCombinationbeneficiallyown,directlyorindirectly,morethan_________%of,respectively,thethenoutstandingsharesofcommonstockandthecombinedvotingpowerofthethenoutstandingvotingsecuritiesentitledtovotegenerallyintheelectionofDirectors,asthecasemaybe,ofthecorporationresultingfromsuchBusinessCombination(including,withoutlimitation,acorporationwhichasaresultofsuchtransactionownstheCompanyorallorsubstantiallyalloftheCompany’sassetseitherdirectlyorthroughoneormoresubsidiaries)insubstantiallythesameproportionsastheirownership,immediatelypriortosuchBusinessCombinationoftheOutstandingCompanyCommonStockandOutstandingCompanyVotingSecurities,asthecasemaybe,(ii)noPerson(excludinganycorporationresultingfromsuchBusinessCombinationoranyemployeebenefitplan(orrelatedtrust)oftheCompanyorsuchcorporationresultingfromsuchBusinessCombination)beneficiallyowns,directlyorindirectly,_________%ormoreof,respectively,thethenoutstandingsharesofcommonstockofthecorporationresultingfromsuchBusinessCombinationorthecombinedvotingpowerofthethenoutstandingvotingsecuritiesofsuchcorporationexcepttotheextentthatsuchownershipexistedpriortotheBusinessCombinationand(iii)atleastamajorityofthemembersoftheBoardofDirectorsofthecorporationresultingfromsuchBusinessCombinationweremembersoftheIncumbentBoardatthetimeoftheexecutionoftheinitialagreement,oroftheactionoftheBoard,providingforsuchBusinessCombination;or(d)approvalbytheshareholdersoftheCompanyofacompleteliquidationordissolutionoftheCompany.4.Employment.(a)TheCompanyherebyagreestocontinuetheExecutiveinitsemployandtheExecutiveherebyagreestoremainintheemployoftheCompany,fortheperiodcommencingontheeffectivedateofthisAgreementandendingontheearliertooccurof(i)thesecondanniversaryofsuchdateor(ii)theExecutive’snormalretirementdateundertheCompany’sapplicableretirementplansorundersuchotheragreementastheCompanymayhavemadewiththeExecutive(theperiodcommencingontheeffectivedateofthisAgreementand,subjecttoSection6(c),endingontheearliertooccurofdatesspecifiedinclauses(i)and(ii)isreferredtohereinasthe(EmploymentPeriod).(b)DuringtheEmploymentPeriodtheExecutive’sposition(includingtitles),authorityandresponsibilitiesshallbeatleastcommensuratewiththoseheld,exercisedandassignedduringthe90-dayperiodimmediatelyprecedingtheeffectivedateofthisAgreement.SuchservicesshallbeperformedatthelocationwheretheExecutivewasemployedimmediatelypriortotheeffectivedateofthisAgreement.(c)TheExecutiveagreesthatduringtheEmploymentPeriodheshalldevotesuchbusinesstimeduringnormalbusinesshoursexclusivelytothebusinessandaffairsoftheCompanyandusehisbesteffortstoperformfaithfullyandefficientlytheresponsibilitiesassignedtohimhereunder,ineachcase,totheextentnecessarytodischargetheresponsibilitiesassignedtohimhereunder,exceptfor(i)servicesoncorporate,civicorcharitableboardsorcommitteesnotsignificantlyinterferingwiththeperformanceofsuchresponsibilitiesand(ii)periodsofvacationandsickleavetowhichheisentitled.ItisexpresslyunderstoodandagreedthattheExecutive’scontinuingtoserveonanyboardsandcommitteeswithwhichheshallbeconnected,asamemberorotherwise,attheeffectivedateofthisAgreementshallnotbedeemedtointerferewiththeperformanceoftheExecutive’sservicestotheCompany.5.Compensation.(a)BaseSalary.DuringtheEmploymentPeriod,theExecutiveshallreceiveabasesalary(BaseSalary)atamonthlyrateatleastequaltothehighestmonthlysalarypaidtotheExecutivebytheCompanyoranyofitsaffiliatedcompanieswithinoneyearpriortotheeffectivedateofthisAgreement.TheBaseSalaryshallbereviewedatleastonceeachyearandshallbeincreasedatanytimeandfromtimetotimebyactionoftheBoardoftheCompanyoranycommitteethereoforanyindividualhavingauthoritytotakesuchactioninaccordancewiththeCompany’sregularpractices.AnyincreaseintheBaseSalaryshallnotservetolimitorreduceanyotherobligationoftheCompanyhereunder,andafteranysuchincreasetheBaseSalaryshallnotbereduced.AsusedinthisAgreement,thetermaffiliatedcompaniesmeansanycompanycontrolling,controlledby,orundercommoncontrolwiththeCompany.(b)AnnualBonus.InadditiontotheBaseSalarytheExecutiveshallbeawardedforeachfiscalyearduringtheEmploymentPeriodanannualbonus(AnnualBonus)(eitherpursuanttotheExecutiveBonusPlanoranyotherbonusorincentiveplanorprogramoftheCompanyorotherwise)incashatleastequaltothehighestbonuspaidorpayabletotheExecutiveinrespectofanyofthefiscalyearsduringthethreefiscalyearsimmediatelypriortotheeffectivedateofthisAgreement.EachsuchAnnualBonusshallbepayableonthelastdayofFebruaryoftheyearnextfollowingtheyearforwhichtheAnnualBonusisawarded.(c)IncentiveandSavingsPlans.InadditiontotheBaseSalaryandAnnualBonuspayableashereinaboveprovided,duringtheEmploymentPeriodtheExecutiveshallbeentitledtoparticipateinallapplicableincentiveandsavingsplansandprograms,including,whereapplicable,theExecutiveLong-TermIncentiveCompensationPlanandtheSalaryDeferralPlan,andinallapplicableretirementandpensionplans,including,whereapplicable,theAAAINDUSTRIESInc.Profit-SharingRetirementPlan,onabasisprovidinghimwiththeopportunitytoreceivecompensation(withoutduplicationoftheAnnualBonus)andbenefitsequaltothoseprovidedbytheCompanyanditsaffiliatedcompaniesfortheExecutiveundersuchplansandprogramsasineffectatanytimeduringthe90-dayperiodimmediatelyprecedingtheeffectivedateofthisAgreementor,ifmorefavorabletotheExecutive,asineffectatanytimethereafterwithrespecttoexecutiveswithcomparableresponsibilities.(d)BenefitPlans.TheExecutiveorhisspouse,asthecasemaybe,shallbeentitledtoreceiveemployeebenefits(including,withoutlimitation,allamountswhichheorhisspouseisorwouldhavebeenentitledtoreceiveasbenefitsunderallmedical,dental,disability,grouplife,accidentaldeathandtravelaccidentinsuranceplansandprogramsoftheCompanyanditsaffiliatedcompanies)asineffectatanytimeduringthe90-dayperiodimmediatelyprecedingtheeffectivedateoftheAgreement,orifmorefavorabletotheExecutive,asineffectatanytimethereafterwithrespecttoexecutiveswithcomparableresponsibilities.(e)Expenses.DuringtheEmploymentPeriodtheExecutiveshallbeentitledtoreceivepromptreimbursementforallreasonableexpensesincurredbytheExecutiveinaccordancewiththepoliciesandproceduresoftheCompanyasineffectduringthe90-dayperiodimmediatelyprecedingtheeffectivedateofthisAgreementor,ifmorefavorabletotheExecutive,asineffectatanytimethereafterwithrespecttoexecutiveswithcomparableresponsibilities.(f)VacationandFringeBenefits.TheExecutiveshallbeentitledtopaidvacationandfringebenefitsinaccordancewiththepoliciesoftheCompanyasineffectduringthe90-dayperiodimmediatelyprecedingtheeffectivedateofthisAgreementor,ifmorefavorabletotheExecutive,asineffectatanytimethereafterwithrespecttoexecutiveswithcomparableresponsibilities.6.Termination.(a)DeathorDisability.ThisAgreementshallterminateautomaticallyupontheExecutive’sdeath.TheCompanymayterminateExecutive’semployment,afterhavingestablishedtheExecutive’sDisability,bygivingtotheExecutivewrittennoticeofitsintentiontoterminatehisemployment,andhisemploymentwiththeCompanyshallterminateeffectiveonthe90thdayafterreceiptofsuchnotice(theDisabilityEffectiveDate)ifwithin90daysaftersuchreceipttheExecutiveshallfailtoreturntofull-timeperformanceofhisduties(andiftheExecutive’sDisabilityhasbeenestablishedpursuanttothedefinitionofDisabilitysetforthbelow).ForpurposesofthisAgreement,Disabilitymeansdisabilitywhichaftertheexpirationofmorethan26weeksafteritscommencementisdeterminedtobetotalandpermanentbyaphysicianselectedbytheCompanyoritsinsurersandacceptabletotheExecutiveorhislegalrepresentative(suchagreementtoacceptabilitynottobewithheldunreasonably).(b)Cause.TheCompanymayterminatetheExecutive’semploymentforCause.ForpurposesofthisAgreement,Causemeans(i)anactoractsofdisAAAestyontheExecutive’spartwhichareintendedtoresultinhissubstantialpersonalenrichmentattheexpenseoftheCompanyor(ii)repeatedviolationsbytheExecutiveofhisobligationsunderSection4ofthisAgreementwhicharedemonstrablywillfulanddeliberateontheExecutive’spartandwhichresultedinmaterialinjurytotheCompany.Forpurposesofthisprovision,noactorfailuretoact,onthepartoftheExecutive,shallbeconsideredtoconstituteCauseunlessitisdone,oromittedtobedone,bytheExecutiveinbadfaithorwithoutreasonablebeliefthattheExecutive’sactionoromissionwasinthebestinterestsoftheCompany.Anyact,orfailuretoact,baseduponauthoritygivenpursuanttoaresolutiondulyadoptedbytheBoardorupontheinstructionsoftheChiefExecutiveOfficeroraseniorofficeroftheCompanyorbasedupontheadviceofcounselfortheCompanyshallbeconclusivelypresumedtobedone,oromittedtobedone,bytheExecutiveingoodfaithandinthebestinterestsoftheCompany.ThecessationofemploymentoftheExecutiveshallnotbedeemedtobeforCauseunlessanduntilthereshallhavebeendeliveredtotheExecutiveacopyofaresolutiondulyadoptedbytheaffirmativevoteofnotlessthanthree-quartersoftheentiremembershipoftheBoardatameetingoftheBoardcalledandheldforsuchpurpose(afterreasonablenoticeisprovidedtotheExecutiveandtheExecutiveisgivenanopportunity,togetherwithcounsel,tobeheardbeforetheBoard),findingthat,inthegoodfaithopinionoftheBoard,theExecutiveisguiltyoftheconductdescribedinsubparagraph(i)or(ii)above,andspecifyingtheparticularsthereofindetail.(c)GoodReason.TheExecutivemayterminatehisemploymentforGoodReason.ForpurposesofthisAgreement,GoodReasonmeans:(i)withouttheexpresswrittenconsentoftheExecutive,(A)theassignmenttotheExecutiveofanydutiesinconsistentinanysubstantialrespectwiththeExecutive’sposition,authorityorresponsibilitiesascontemplatedbySection4(b)ofthisAgreement,or(B)anyothersubstantialchangeinsuchposition(includingtitles),authorityorresponsibilities;(ii)anyfailurebytheCompanytocomplywithanyoftheprovisionsofSection5ofthisAgreement,otherthananinsubstantialandinadvertentfailureremediedbytheCompanypromptlyafterreceiptofnoticethereofgivenbytheExecutive;(iii)theCompany’srequiringtheExecutivetobebasedatanyofficeorlocationotherthanthatatwhichtheExecutiveisbasedattheeffectivedateofthisAgreement,exceptfortravelreasonablyrequiredintheperformanceoftheExecutive’sresponsibilities;(iv)apurportedterminationbytheCompanyoftheExecutive’semploymentotherwisethanaspermittedbythisAgreement,itbeingunderstoodthatanysuchpurportedterminationshallnotbeeffectiveforanypurposeofthisAgreement;(v)anyfailurebytheCompanytoobtaintheassumptionandagreementtoperformthisAgreementbyasuccessorascontemplatedbySection16;or(vi)anygoodfaithdeterminationbytheExecutivethattheChangeinControlhasresultedinachangeofcircumstancesrenderingtheExecutivesubstantiallyunabletocarryoutauthoritiesorresponsibilitiesattachedtohispositionheldpriortotheChangeinControl.(d)NoticeofTermination.AnyterminationbytheCompanyforCauseorbytheExecutiveforGoodReasonshallbecommunicatedbyNoticeofTerminationtotheotherpartyheretogiveninaccordancewithSection12.ForpurposesofthisAgreement,aNoticeofTerminationmeansawrittennoticewhich(i)indicatesthespecificterminationprovisioninthisAgreementreliedupon,(ii)setsforthinreasonabledetailthefactsandcircumstancesclaimedtoprovideabasisforterminationoftheExecutive’semploymentundertheprovisionsoindicatedand(iii)iftheterminationdateisotherthanthedateofreceiptofsuchnotice,specifiestheterminationdateofthisAgreement(whichdateshallbenotmorethan15daysafterthegivingofsuchnotice).(e)DateofTermination.DateofTerminationmeansthedateofreceiptoftheNoticeofTerminationorthedatespecifiedtherein,asthecasemaybe.7.ObligationoftheCompanyuponTermination.(a)Death.IftheExecutive’semploymentisterminatedbyreasonoftheExecutive’sdeath,thisAgreementshallterminatewithoutfurtherobligationstotheExecutive’slegalrepresentativesunderthisAgreementotherthanthoseobligationsaccruedorvestedhereunderatthedateofhisdeath.(b)Disability.IftheExecutive’semploymentisterminatedbyreasonoftheExecutive’sDisability,theExecutiveshallbeentitledtoreceivedisabilityandotherbenefitsaftertheDisabilityEffectiveDateatleastequaltothoseprovidedinaccordancewithSection5(d).(c)Cause.IftheExecutive’semploymentshallbeterminatedforCause,theCompanyshallpaytheExecutivehisfullBaseSalarythroughtheDateofTerminationattherateineffectatthetimeNoticeofTerminationisgiven,andtheCompanyshallhavenofurtherobligationstotheExecutiveunderthisAgreement,exceptthatsuchterminationshallnotmodifyoraffectinanywayanyaccruedrightoftheExecutivetoanyothercompensationpayablepursuanttoSection5ortoanyvestedoraccruedbenefitspayableinaccordancewithsuchSection.(d)GoodReason;OtherThanforCauseorDisability.(i)TerminationPayments.Subjecttoclause(ii)hereof,iftheCompanyshallterminatetheExecutive’semploymentotherthanforCauseorDisability,oriftheExecutiveshallterminatehisemploymentforGoodReason,theCompanyshallpaytotheExecutivethefollowingamountsandprovidehimwiththefollowingbenefits:(A)Ifnottheretoforepaid,theExecutiveshallbepaid(x)hisBaseSalarythroughtheDateofTerminationattherateineffect(or,ifgreater,theraterequiredbySection5(a))atthetimetheNoticeofTerminationwasgiven,and(y)alump-sumcashpaymentequaltoproductof(i)afraction,thenumeratorofwhichequalsthenumberofdayselapsedsincethebeginningofthefiscalyearinwhichtheExecutive’sDateofTerminationoccursthroughtheDateofTerminationandthedenominatorofwhichis365,and(ii)theaverageoftheAnnualBonuspaidtotheExecutiveforthetwoyearspriortotheyearinwhichtheDateofTerminationoccurs.(B)Alump-sumcashpaymentequaltotwotimesthesumof(x)theExecutive’sannualbasesalary(attherateineffectimmediatelypriortotheDateofTermination,or,ifgreater,theraterequiredbySection5(a))and(y)theaverageoftheAnnualBonusespaidtotheExecutiveforthetwoyearspriortotheyearinwhichtheDateofTerminationoccurs.(C)FortwoyearsaftertheDateofTermination,theExecutiveshallcontinuetoreceivebenefitsundertheCompany’semployeebenefitplansdescribedinSection5(d)and5(f)hereofasifheremainedemployedwiththeCompany,providedthatupontheExecutive’semploymentwithanotheremployerprovidingbenefitsdescribedinSection5(d),theCompany’scoverageshallbesecondary,andprovidedfurtherthattheCompanyshallcontinuetomakeavailabletotheExecutivebeyondthetwo-yearperiodandonthesamebasisastootheractivemembersallmedicalplansandprogramsforsolongasareasonablycomparableprogramisnotmadeavailabletotheExecutiveorhisspouseandminorchildrenthroughanotheremployer’sgroupplanoragovernmentsponsoredplan,suchasMedicare.(D)TheExecutiveshallbeconsideredfullyvestedinanycompensationorbenefitamountsaccrued,accruableorpayablebytheCompanytotheExecutiveunderanyCompanysponsoredcompensationorbenefitplan,whetherqualifiedorunqualified,includingbutnotlimitedtoSalaryDeferralPlans,ExecutiveBonusPlans,ExecutiveLong-TermIncentiveCompensationPlansandsuchotherplansasmayhavebeenineffectfortheExecutiveimmediatelypriortotheeffectivedateofthisAgreementand/orhisDateofTermination.(E)If,despitetheprovisionsofSections7(d)(i)(c)and7(d)(i)(d)above,benefitsorservicecreditsunderanysuchemployeebenefitplanshallnotbepayableorprovidedunderanysuchplantotheExecutive,orhisdependents,beneficiariesandestate,becauseheisnolongeranemployeeoftheCompany,theCompanyitselfshall,totheextentnecessary,payorprovideforpaymentofsuchbenefitsandservicecreditsforsuchbenefitstotheExecutive,hisdependents,beneficiariesandestate.(ii)Limitation.AnythinginthisAgreementtothecontrarynotwithstanding,intheeventitshallbedeterminedthatanypaymentordistributionbytheCompanytoorforthebenefitofExecutive(whetherpaidorpayableordistributedordistributablepursuanttothetermsofthisAgreementorotherwise)(aPayment)wouldbenondeductiblebytheCompanyforFederalincometaxpurposesbecauseofSection280GoftheInternalRevenueCodeof1986,asamended(theCode),thentheaggregatepresentvalueofamountspayableordistributabletoorforthebenefitofExecutivepursuanttothisAgreement(suchpaymentsordistributionspursuanttothisAgreementarehereinafterreferredtoasAgreementPayments)shallbereduced(butnotbelowzero)totheReducedAmount..TheReducedAmountshallbeanamountexpressedinpresentvaluewhichmaximizestheaggregatepresentvalueofAgreementPaymentswithoutcausinganyPaymenttobenondeductiblebytheCompanybecauseofSection280GoftheCode.PresentvalueshallbedeterminedinaccordancewithSection280G(d)(4)oftheCode.ThedeterminationoftheReducedAmountandthecomponentsthereofrequiredtobemadehereundershallbemadebyErnstYoung,oranyotheraccountingfirmwhich,immediatelypriortotheeffectivedateofthisAgreement,istheCompany’sindependentauditor(AccountingFirm)whichshallprovidedetailedsupportingcalculationsbothtotheCompanyandExecutivewithintenbusinessdaysoftheterminationofemploymentofExecutiveorsuchearliertimeasisrequestedbytheCompany.SuchdeterminationbyAccountingFirmshallbebindingupontheCompanyandExecutive.ExecutiveshalldeterminewhichandhowmuchoftheAgreementPayments(or,attheelectionofExecutive,otherPayments)shallbeeliminatedorreducedconsistentwiththedeterminationofReducedAmountbyAccountingFirm,providedthat,ifExecutivedoesnotmakesuchdeterminationwithinfivebusinessdaysofthereceiptofthecalculationsmadebyAccountingFirm,theCompanyshallelectwhichandhowmuchoftheAgreementPaymentsshallbeeliminatedorreducedconsistentwiththecalculationoftheReducedAmountandshallnotifyExecutivepromptlyofsuchelectionAspromptlyaspracticablethereafter,theCompanyshallpaytoordistributetoorforthebenefitofExecutivesuchamountsasarethenduetoExecutiveunderthisAgreementandshallpromptlypaytoordistributeforthebenefitofExecutiveinthefuturesuchamountsasbecomeduetoExecutiveunderthisAgreement.AsaresultoftheuncertaintyintheapplicationofSection280GoftheCodeatthetimeoftheinitialdeterminationbyAccountingFirmhereunder,itispossiblethatAgreementPaymentswillhavebeenmadebytheCompanywhichshouldnothavebeenmade(Overpayment)orthatadditionalAgreementPaymentswhichwillhavenotbeenmadebytheCompanycouldhavebeenmade(Underpayment),ineachcase,consistentwiththecalculationoftheReducedAmounthereunder.IntheeventthatAccountingFirmdeterminesthatanOverpaymenthasbeenmade,anysuchOverpaymentshallbetreatedforallpurposesasaloantoExecutivewhichExecutiveshallrepaytotheCompanytogetherwithinterestattheapplicableFederalrateprovidedforinSection7872(f)(2)oftheCode;provided,however,thatnoamountshallbepayablebyExecutivetotheCompany(orifpaidbyExecutivetotheCompanyshallbereturnedtoExecutive)ifandtotheextentsuchpaymentwouldnotreducetheamountwhichissubjecttotaxationunderSection4999oftheCode.IntheeventthatAccountingFirmdeterminesthatanUnderpaymenthasoccurred,anysuchUnderpaymentshallbepromptlypaidbytheCompanytoorforthebenefitoftheExecutivetogetherwithinterestattheapplicableFederalrateprovidedforinSection7872(f)(2)oftheCode.8.ConfidentialityandNoncompetition.TheExecutiveshallholdinafiduciarycapacityforthebenefitoftheCompanyallsecretorconfidentialinformation,knowledgeordatarelatingtotheCompanyoranyofitsaffiliatedcompanies,andtheirrespectivebusinesses,whichshallhavebeenobtainedbytheExecutiveduringhisemploy