Common use of Excise Tax Under Section 4999 Clause in Contracts

Excise Tax Under Section 4999. Employee understands that the payments Employee receives under this or other agreements, individually or combined, may be subject to an excise tax pursuant to Section 4999 of the Internal Revenue Code. Accordingly, if at any time, it is determined that any payments to Employee under this Agreement would be subject to such excise tax, the payments to Employee under this Agreement shall be reduced by any amount sufficient to eliminate the excise tax but only if the result is to give the Employee a larger after-tax return than if such payments were not reduced. The Employee shall have the right to designate which payments shall be reduced.

Excise Tax Under Section 4999. Employee understands that the payments Employee receives under this or other agreements, individually or combined, may be subject to an excise tax pursuant to Section 4999 of the the\ Internal Revenue Code. Accordingly, if at any time, it is determined that any payments to Employee under this Agreement would be subject to such excise tax, the payments to Employee under this Agreement shall be reduced by any amount sufficient to eliminate the excise tax but only if the result is to give the Employee a larger after-tax return than if such payments were not reduced. The Employee shall have the right to designate which payments shall be reduced.