This excerpt taken from the PBI 10-K filed Mar 13, 2006.
CERTAIN ADDITIONAL PAYMENTS
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Participant in writing prior to the expiration of such period that it desires to contest such claim, the Participant shall:
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(a) Excise Tax shall mean the excise tax imposed by Section 4999 of the Code, together with any interest or penalties imposed with respect to such excise tax.
(b) The Net After-Tax Amount of a Payment shall mean the Value of a payment net of all taxes imposed on the Participant with respect thereto under sections 1 and 4999 of the Code and applicable state and local law, determined by applying the highest marginal rates that are expected to apply to the Participants taxable income for the taxable year in which the Payment is made.
(c) Parachute Value of a Payment shall mean the present value as of the date of the event constituting the change of control for purposes of Section 280G of the Code of the portion of such Payment that constitutes a parachute payment under Section 280G(b)(2), as determined by the Accounting Firm for purposes of determining whether and to what extent the Excise Tax will apply to such Payment.
(within the meaning of Section 280G(b)(2) of the Code) to or for the benefit of a Participant, whether paid or payable pursuant to this Plan or otherwise.
(e) A Plan Payment shall mean a Payment paid or payable pursuant to this Plan (disregarding this Section 8).
(f) The Safe Harbor Amount means the maximum Parachute Value of all Payments that the Participant can receive without any Payments being subject to the Excise Tax.
(g) Value of a Payment shall mean the economic present value of a Payment as of the date of the event constituting the change of control for purposes of Section 280G of the Code, as determined by the Accounting Firm using the discount rate required by Section 280G(d)(4) of the Code.
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