The Hartford 2008 Annual Report Download - page 510

(B) the value of any non-cash benefits or any deferred payment or benefit shall be determined by the Accountants
in accordance with the principles of Section 280G of the Code.
(iii) Additional Rules. For purposes of determining the amount of the Tax Reimbursement Payment, the Executive
shall be deemed to pay: (A) Federal income taxes at the highest applicable marginal rate of Federal income taxation for
the calendar year in which the Tax Reimbursement Payment is to be made, and (B) any applicable state and local
income and other taxes at the highest applicable marginal rate of taxation for the calendar year in which the Tax
Reimbursement Payment is to be made, net of the maximum reduction in Federal incomes taxes which could be
obtained from the deduction of such state or local taxes if paid in such year.
(iv) Repayment or Additional Payment in Certain Circumstances.
(A) Repayment. In the event that the Excise Tax is subsequently determined by the Accountants or pursuant to
any proceeding or negotiations with the Internal Revenue Service to be less than the amount taken into account
hereunder in calculating the Tax Reimbursement Payment made, Executive shall repay to the Company, at the
time that the amount of such reduction in the Excise Tax is finally determined, the portion of such prior Tax
Reimbursement Payment that would not have been paid if such lesser Excise Tax had been applied in initially
calculating such Tax Reimbursement Payment. Notwithstanding the foregoing, in the event any portion of the Tax
Reimbursement Payment to be repaid to the Company has been paid to any Federal, state or local tax authority,
repayment thereof shall not be required until actual refund or credit of such portion has been made to Executive by
the applicable tax authority. Executive and the Company shall mutually agree upon the course of action to be
pursued (and the method of allocating the expenses thereof) if Executive’s good faith claim for refund or credit is
denied.
(B) Additional Tax Reimbursement Payment. In the event that the Excise Tax is later determined by the
Accountants or pursuant to any proceeding or negotiations with the Internal Revenue Service to exceed the
amount taken into account hereunder at the time the Tax Reimbursement Payment is made (including, but not
limited to, by reason of any payment the existence or amount of which cannot be determined at the time of the Tax
Reimbursement Payment), the Company shall make an additional Tax Reimbursement Payment in respect of such
excess (plus any interest or penalty payable with respect to such excess) at the time that the amount of such excess
is finally determined.
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Source: HARTFORD FINANCIAL S, 10-K, February 12, 2009