Deduction Limitations Clause Samples
The Deduction Limitations clause sets boundaries on the amount or types of deductions that can be made, typically from payments owed under a contract. In practice, this clause may restrict a party from deducting certain costs, damages, or set-offs beyond a specified threshold or for particular reasons, such as limiting deductions to only those that are undisputed or pre-approved. Its core function is to protect the receiving party from excessive or unexpected reductions in payment, thereby ensuring predictability and fairness in financial transactions between the parties.
Deduction Limitations. In the event that the compensation payable to Executive hereunder becomes (or is reasonably likely to become) subject to the deduction limitations of Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”), taking into account the application of any applicable transition period under Section 162(m) of the Code and the regulations promulgated thereunder, the parties agree to negotiate in good faith to implement as promptly as possible such revisions to the structure (including the timing, form and type) of such compensation so as to achieve to the greatest extent possible full tax deductibility of such compensation under Section 162(m) of the Code; provided, however, that in no event shall any such revisions result in a reduction in the aggregate amount of compensation otherwise contemplated to be payable to Executive hereunder.
Deduction Limitations. The Employer shall not be obligated to make dues deductions from any employee who, during any dues months involved, shall have failed to receive sufficient wages to make all legally required deductions in addition to the deduction of AFSCME dues.
Deduction Limitations. The annual Employer, Matching, and Elective Deferral Contributions and any other Employer contribution shall, in the aggregate, not exceed the greater of:
Deduction Limitations. The annual Employer, Matching, and Elective Deferral Contributions and any other Employer contribution shall, in the aggregate, not exceed the greater of:
(i) the Employer's "Primary Limitation" (as defined below) for the Taxable Year which ends with or within the Plan Year for which the Employer, Matching, and/or Elective Deferral Contribution and/or other Employer contribution is being made: or
(ii) the Employer's "Secondary Limitation" (as defined below) for the Taxable Year which ends with or within the Plan Year for which the Employer, Matching, and/or Elective Deferral Contribution and/or other Employer contribution is being made.
Deduction Limitations. No amount has been paid by MXP or any of its Affiliates, and no amount is expected to be paid by MXP or any of its Affiliates, which would be subject to the provisions of 162(m) of the Code such that all or a part of such payments would not be deductible by the payor.
Deduction Limitations. No amount has been paid by Spice or any of its Affiliates, and no amount is expected to be paid by the Spice or any of its Affiliates, which would be subject to the provisions of 162(m) of the Code such that all or a part of such payments would not be deductible by the payor.