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ALIMONY AMOUNT shall be deemed taxable to the Wife and
deductible by the Husband for federal income tax
purposes, it is the intent of the parties that all
amounts received by the Wife pursuant to Paragraph
6.6(B), although they may operate to ultimately reduce
the alimony amount payable by the Husband, shall not be
deemed taxable to the Wife as income nor deductible by
the Husband for federal income tax purposes. It is
intended by the parties that the * * * [guaranteed
payment under paragraph 6.6B for $300,000 due on or
before December 31, 1998], upon being paid, will create
a principal sum for the Wife which, if invested at the
rate of eight percent (8%), will create sufficient
income to reduce her need for permanent alimony
contemplated by this Agreement, based upon the
aforementioned terms.
Paragraph 6.6E contained another offset provision. This
provision related to compensation received by Mr. Hoffman for his
performance of all services related to SCC and WLI or other
investments. Paragraph 6.6E provided that decedent was to
receive 35 percent of any and all posttax amounts received by Mr.
Hoffman as direct or indirect compensation in connection with his
employment, to the extent that such compensation amounts exceeded
$600,000 for any 1 calendar year. To the extent decedent
received any payments pursuant to this provision, the amounts
received would constitute partial satisfaction of Mr. Hoffman’s
guaranty obligation under paragraph 6.6B. At such time as Mr.
Hoffman paid all the amounts as required under paragraph 6.6B,
the obligation that Mr. Hoffman pay decedent the excess
compensation over $600,000 annually would terminate.
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Last modified: May 25, 2011