{"component": "clause", "props": {"groups": [{"size": 41, "samples": [{"hash": "D6YCbeAo1q", "uri": "/contracts/D6YCbeAo1q#excise-tax", "label": "Employment Agreement (CRISPR Therapeutics AG)", "score": 32.7837104797, "published": true}, {"hash": "6nEaXU2Iggo", "uri": "/contracts/6nEaXU2Iggo#excise-tax", "label": "Employment Agreement (CRISPR Therapeutics AG)", "score": 30.1498966217, "published": true}, {"hash": "fdjzDOFeuWo", "uri": "/contracts/fdjzDOFeuWo#excise-tax", "label": "Employment Agreement (CRISPR Therapeutics AG)", "score": 29.1806983948, "published": true}], "snippet": "(i) Anything in this Agreement to the contrary notwithstanding, in the event that any compensation, payment or distribution by the Company to or for the benefit of the Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise (the \u201cParachute Payments\u201d), would be subject to the excise tax imposed by Section 4999 of the Code (the \u201cExcise Tax\u201d), the following provisions shall apply:\n(A) If the Parachute Payments, reduced by the sum of (1) the Excise Tax and (2) the total of the Federal, state, and local income and employment taxes payable by the Executive on the amount of the Parachute Payments which are in excess of the Threshold Amount, are greater than or equal to the Threshold Amount, the Executive shall be entitled to the full benefits payable under this Agreement.\n(B) If the Threshold Amount is less than (x) the Parachute Payments, but greater than (y) the Parachute Payments reduced by the sum of (1) the Excise Tax and (2) the total of the Federal, state, and local income and employment taxes on the amount of the Parachute Payments which are in excess of the Threshold Amount, then the Parachute Payments shall be reduced (but not below zero) to the extent necessary so that the sum of all Parachute Payments shall not exceed the Threshold Amount. In such event, the Parachute Payments shall be reduced in the following order: (1) cash payments not subject to Section 409A of the Code; (2) cash payments subject to Section 409A of the Code; (3) equity-based payments and acceleration; and (4) non-cash forms of benefits. To the extent any payment is to be made over time (e.g., in installments, etc.), then the payments shall be reduced in reverse chronological order.\n(ii) For the purposes of this Section 5(c), \u201cThreshold Amount\u201d shall mean three times the Executive\u2019s \u201cbase amount\u201d within the meaning of Section 280G(b)(3) of the Code and the regulations promulgated thereunder less one dollar ($1.00); and \u201cExcise Tax\u201d shall mean the excise tax imposed by Section 4999 of the Code, and any interest or penalties incurred by the Executive with respect to such excise tax.", "snippet_links": [{"key": "agreement-to", "type": "clause", "offset": [21, 33]}, {"key": "in-the-event", "type": "clause", "offset": [64, 76]}, {"key": "payment-or-distribution", "type": "definition", "offset": [100, 123]}, {"key": "by-the-company", "type": "clause", "offset": [124, 138]}, {"key": "of-the-executive", "type": "clause", "offset": [161, 177]}, {"key": "agreement-or", "type": "definition", "offset": [265, 277]}, {"key": "parachute-payments", "type": "clause", "offset": [294, 312]}, {"key": "subject-to-the", "type": "definition", "offset": [325, 339]}, {"key": "tax-imposed", "type": "clause", "offset": [347, 358]}, {"key": "section-4999-of-the-code", "type": "clause", "offset": [362, 386]}, {"key": "sum-of", "type": "clause", "offset": [491, 497]}, {"key": "the-total", "type": "clause", "offset": [525, 534]}, {"key": "taxes-payable", "type": "definition", "offset": [590, 603]}, {"key": "by-the-executive", "type": "clause", "offset": [604, 620]}, {"key": "threshold-amount", "type": "definition", "offset": [688, 704]}, {"key": "equal-to", "type": "definition", "offset": [726, 734]}, {"key": "benefits-payable", "type": "definition", "offset": [801, 817]}, {"key": "payments-shall-be", "type": "clause", "offset": [1177, 1194]}, {"key": "to-the-extent", "type": "clause", "offset": [1224, 1237]}, {"key": "cash-payments", "type": "clause", "offset": [1412, 1425]}, {"key": "payments-subject-to-section-409a-of-the-code", "type": "clause", "offset": [1476, 1520]}, {"key": "over-time", "type": "clause", "offset": [1642, 1651]}, {"key": "for-the-purposes-of", "type": "clause", "offset": [1755, 1774]}, {"key": "base-amount", "type": "clause", "offset": [1853, 1864]}, {"key": "meaning-of", "type": "clause", "offset": [1877, 1887]}, {"key": "the-regulations", "type": "clause", "offset": [1923, 1938]}, {"key": "with-respect-to", "type": "clause", "offset": [2123, 2138]}], "hash": "f756253d14b3437fb648afbc90052b93", "id": 10}, {"size": 172, "samples": [{"hash": "buHx4lmaHSy", "uri": "/contracts/buHx4lmaHSy#excise-tax", "label": "Terms and Conditions of Employment (Brunswick Corp)", "score": 36.1211509705, "published": true}, {"hash": "3sjgf5Brj57", "uri": "/contracts/3sjgf5Brj57#excise-tax", "label": "Employment Agreement (Brunswick Corp)", "score": 35.1245727539, "published": true}, {"hash": "jT1aX20Mu7v", "uri": "/contracts/jT1aX20Mu7v#excise-tax", "label": "Employment Agreement (Brunswick Corp)", "score": 33.1259422302, "published": true}], "snippet": "If it is determined (by the reasonable computation by an independent accounting or consulting firm chosen by the Company (the \u201cFirm\u201d), which determination shall be certified by the Firm and set forth in a certificate delivered to the Executive) that the aggregate amount of the payments, distributions, benefits and entitlements of any type paid or provided to the Executive under the terms of this Agreement or under any other plan, program, policy, or other arrangement, either alone or in combination with other elements of compensation and benefits paid or provided to the Executive (including any payment, distribution, benefit or entitlement made by any person or entity effecting a Change in Control), in each case, that could be considered \u201cparachute payments\u201d within the meaning of Section 280G of the Code (such payments, the \u201cParachute Payments\u201d) that, but for this Section 10 would be payable to the Executive, exceeds the greatest amount of Parachute Payments that could be paid to the Executive without giving rise to any liability for any excise tax imposed by Section 4999 of the Code (or any successor provision thereto) or any similar tax imposed by state or local law, or any interest or penalties with respect to such tax (such tax or taxes, together with any such interest or penalties, being hereafter collectively referred to as the \u201cExcise Tax\u201d), then the aggregate amount of Parachute Payments payable to the Executive shall not exceed the amount which produces the greatest after-tax benefit to the Executive after taking into account any Excise Tax to be payable by the Executive as determined by the Firm upon discussion with, and reasonable approval by, the Executive. For the avoidance of doubt, this provision will reduce the amount of Parachute Payments otherwise payable to the Executive, if doing so would place the Executive in a better net after-tax economic position as compared with not doing so (taking into account the Excise Tax payable in respect of such Parachute Payments). The Executive shall be permitted to provide to the Company written notice specifying which of the Parachute Payments will be subject to reduction or elimination; provided, however, that to the extent that the Executive\u2019s ability to exercise such authority would cause any Parachute Payment to become subject to any Section 409A Tax, or if the Executive does not provide the Company with any such written notice, the Company shall reduce or eliminate the Parachute Payments by first reducing or eliminating the portion of the Parachute Payments that are payable in cash and then by reducing or eliminating the non-cash portion of the Parachute Payments, in each case in reverse order beginning with payments or benefits which are to be paid the furthest in time from the date of the Firm\u2019s determination. Except as set forth in the preceding sentence, any notice given by the Executive pursuant to the preceding sentence shall take precedence over the provisions of any other plan, arrangement or agreement governing the Executive\u2019s rights and entitlements to any benefits or compensation.", "snippet_links": [{"key": "independent-accounting", "type": "clause", "offset": [57, 79]}, {"key": "consulting-firm", "type": "clause", "offset": [83, 98]}, {"key": "by-the-company", "type": "clause", "offset": [106, 120]}, {"key": "certified-by", "type": "definition", "offset": [164, 176]}, {"key": "the-firm", "type": "clause", "offset": [177, 185]}, {"key": "to-the-executive", "type": "clause", "offset": [227, 243]}, {"key": "aggregate-amount", "type": "definition", "offset": [254, 270]}, {"key": "benefits-and-entitlements", "type": "clause", "offset": [303, 328]}, {"key": "agreement-or", "type": "definition", "offset": [399, 411]}, {"key": "any-other-plan", "type": "definition", "offset": [418, 432]}, {"key": "other-arrangement", "type": "definition", "offset": [454, 471]}, {"key": "in-combination", "type": "definition", "offset": [489, 503]}, {"key": "benefits-paid", "type": "clause", "offset": [544, 557]}, {"key": "person-or-entity", "type": "clause", "offset": [660, 676]}, {"key": "a-change-in-control", "type": "definition", "offset": [687, 706]}, {"key": "each-case", "type": "definition", "offset": [712, 721]}, {"key": "parachute-payments", "type": "clause", "offset": [749, 767]}, {"key": "meaning-of", "type": "clause", "offset": [780, 790]}, {"key": "section-10", "type": "definition", "offset": [877, 887]}, {"key": "payable-to", "type": "definition", "offset": [897, 907]}, {"key": "liability-for", "type": "clause", "offset": [1036, 1049]}, {"key": "tax-imposed", "type": "clause", "offset": [1061, 1072]}, {"key": "section-4999-of-the-code", "type": "clause", "offset": [1076, 1100]}, {"key": "successor-provision", "type": "clause", "offset": [1109, 1128]}, {"key": "by-state", "type": "clause", "offset": [1165, 1173]}, {"key": "local-law", "type": "clause", "offset": [1177, 1186]}, {"key": "with-respect-to", "type": "clause", "offset": [1217, 1232]}, {"key": "tax-or-taxes", "type": "clause", "offset": [1248, 1260]}, {"key": "tax-benefit", "type": "definition", "offset": [1506, 1517]}, {"key": "by-the-executive", "type": "clause", "offset": [1590, 1606]}, {"key": "approval-by", "type": "clause", "offset": [1670, 1681]}, {"key": "for-the-avoidance-of-doubt", "type": "clause", "offset": [1698, 1724]}, {"key": "net-after", "type": "definition", "offset": [1872, 1881]}, {"key": "tax-payable", "type": "definition", "offset": [1966, 1977]}, {"key": "in-respect-of", "type": "clause", "offset": [1978, 1991]}, {"key": "to-the-company", "type": "definition", "offset": [2062, 2076]}, {"key": "written-notice", "type": "clause", "offset": [2077, 2091]}, {"key": "subject-to", "type": "clause", "offset": [2143, 2153]}, {"key": "to-the-extent", "type": "clause", "offset": [2204, 2217]}, {"key": "ability-to-exercise", "type": "clause", "offset": [2239, 2258]}, {"key": "payment-to", "type": "clause", "offset": [2300, 2310]}, {"key": "section-409a-tax", "type": "clause", "offset": [2333, 2349]}, {"key": "provide-the", "type": "clause", "offset": [2380, 2391]}, {"key": "the-company-shall", "type": "clause", "offset": [2430, 2447]}, {"key": "payments-by", "type": "clause", "offset": [2482, 2493]}, {"key": "the-non", "type": "clause", "offset": [2623, 2630]}, {"key": "cash-portion", "type": "clause", "offset": [2631, 2643]}, {"key": "reverse-order", "type": "clause", "offset": [2687, 2700]}, {"key": "beginning-with", "type": "clause", "offset": [2701, 2715]}, {"key": "in-time", "type": "clause", "offset": [2771, 2778]}, {"key": "date-of", "type": "clause", "offset": [2788, 2795]}, {"key": "notice-given", "type": "clause", "offset": [2873, 2885]}, {"key": "pursuant-to-the", "type": "definition", "offset": [2903, 2918]}, {"key": "the-provisions-of", "type": "clause", "offset": [2965, 2982]}, {"key": "entitlements-to", "type": "clause", "offset": [3061, 3076]}], "hash": "3ea4c67057a3fb61b20352fb413f399f", "id": 1}, {"size": 120, "samples": [{"hash": "58hJQJ7B4Aw", "uri": "/contracts/58hJQJ7B4Aw#excise-tax", "label": "Cooperative Agreement", "score": 34.4347076416, "published": true}, {"hash": "au9KNBn21CS", "uri": "/contracts/au9KNBn21CS#excise-tax", "label": "Cooperative Agreement", "score": 34.4205360413, "published": true}, {"hash": "3W3TO8JBNzS", "uri": "/contracts/3W3TO8JBNzS#excise-tax", "label": "Cooperative Agreement", "score": 34.4047927856, "published": true}], "snippet": "The State of California is exempt from federal excise taxes and no payment will be made for any taxes levied on employees' wages. The CDFA will pay for any applicable State of California or local sales or use taxes on the services rendered or equipment or parts supplied pursuant to this Agreement. California may pay any applicable sales and use tax imposed by another State.", "snippet_links": [{"key": "the-state-of-california", "type": "clause", "offset": [0, 23]}, {"key": "taxes-and", "type": "clause", "offset": [54, 63]}, {"key": "no-payment", "type": "clause", "offset": [64, 74]}, {"key": "pay-for", "type": "definition", "offset": [144, 151]}, {"key": "applicable-state", "type": "definition", "offset": [156, 172]}, {"key": "sales-or-use-taxes", "type": "clause", "offset": [196, 214]}, {"key": "services-rendered", "type": "definition", "offset": [222, 239]}, {"key": "pursuant-to-this-agreement", "type": "clause", "offset": [271, 297]}, {"key": "use-tax-imposed", "type": "clause", "offset": [343, 358]}, {"key": "another-state", "type": "definition", "offset": [362, 375]}], "hash": "e20ef9258048dd240b4427c19eee5801", "id": 2}, {"size": 98, "samples": [{"hash": "eOmyiYFsuBe", "uri": "/contracts/eOmyiYFsuBe#excise-tax", "label": "Employment Agreement (Cadence Design Systems Inc)", "score": 24.3169059753, "published": true}, {"hash": "dRpbVn7qoUF", "uri": "/contracts/dRpbVn7qoUF#excise-tax", "label": "Employment Agreement (Cadence Design Systems Inc)", "score": 24.3127994537, "published": true}, {"hash": "gSRV6z2K1BR", "uri": "/contracts/gSRV6z2K1BR#excise-tax", "label": "Employment Agreement (Cadence Design Systems Inc)", "score": 23.1368923187, "published": true}], "snippet": "In the event that any benefits payable to Executive pursuant to the Transition Agreement (\u201cTermination Benefits\u201d) (i) constitute \u201cparachute payments\u201d within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the \u201cCode\u201d), or any comparable successor provisions, and (ii) but for this Section 5 would be subject to the excise tax imposed by Section 4999 of the Code, or any comparable successor provisions (the \u201cExcise Tax\u201d), then Executive\u2019s Termination Benefits hereunder shall be either (a) provided to Executive in full, or (b) provided to Executive as to such lesser extent which would result in no portion of such benefits being subject to the Excise Tax, whichever of the foregoing amounts, when taking into account applicable federal, state, local and foreign income and employment taxes, the Excise Tax, and any other applicable taxes, results in the receipt by Executive, on an after-tax basis, of the greatest amount of benefits, notwithstanding that all or some portion of such benefits may be taxable under the Excise Tax and Executive shall have no right to Termination Benefits in excess of the amount so determined. Unless the Company and Executive otherwise agree in writing, any determination required under this Section 5 shall be made in writing in good faith by a nationally recognized accounting firm selected by the Company (the \u201cAccountants\u201d). In the event of a reduction of benefits hereunder, Executive shall be given the choice of which benefits to reduce. If Executive does not provide written identification to the Company of which benefits he chooses to reduce within ten (10) days after written notice of the Accountants\u2019 determination, and Executive has not disputed the Accountants\u2019 determination, then the Company shall select the benefits to be reduced. For purposes of making the calculations required by this Section 5, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of the Code, and other applicable legal authority. The Company and Executive shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section 5. The Company shall bear the cost of all fees the Accountants charge in connection with any calculations contemplated by this Section 5.", "snippet_links": [{"key": "to-executive", "type": "clause", "offset": [39, 51]}, {"key": "pursuant-to-the", "type": "definition", "offset": [52, 67]}, {"key": "transition-agreement", "type": "definition", "offset": [68, 88]}, {"key": "termination-benefits", "type": "clause", "offset": [91, 111]}, {"key": "parachute-payments", "type": "clause", "offset": [130, 148]}, {"key": "meaning-of", "type": "clause", "offset": [161, 171]}, {"key": "internal-revenue-code-of-1986", "type": "definition", "offset": [192, 221]}, {"key": "as-amended", "type": "definition", "offset": [223, 233]}, {"key": "successor-provisions", "type": "clause", "offset": [266, 286]}, {"key": "section-5", "type": "definition", "offset": [310, 319]}, {"key": "subject-to-the", "type": "definition", "offset": [329, 343]}, {"key": "tax-imposed", "type": "clause", "offset": [351, 362]}, {"key": "section-4999-of-the-code", "type": "clause", "offset": [366, 390]}, {"key": "the-foregoing", "type": "clause", "offset": [700, 713]}, {"key": "income-and-employment-taxes", "type": "clause", "offset": [793, 820]}, {"key": "other-applicable-taxes", "type": "definition", "offset": [846, 868]}, {"key": "by-executive", "type": "clause", "offset": [893, 905]}, {"key": "tax-basis", "type": "clause", "offset": [919, 928]}, {"key": "amount-of-benefits", "type": "clause", "offset": [946, 964]}, {"key": "right-to-termination", "type": "clause", "offset": [1088, 1108]}, {"key": "benefits-in-excess", "type": "clause", "offset": [1109, 1127]}, {"key": "company-and-executive", "type": "clause", "offset": [1168, 1189]}, {"key": "in-writing", "type": "definition", "offset": [1206, 1216]}, {"key": "determination-required", "type": "clause", "offset": [1222, 1244]}, {"key": "in-good-faith", "type": "definition", "offset": [1291, 1304]}, {"key": "nationally-recognized-accounting-firm", "type": "definition", "offset": [1310, 1347]}, {"key": "by-the-company", "type": "clause", "offset": [1357, 1371]}, {"key": "in-the-event-of-a", "type": "clause", "offset": [1393, 1410]}, {"key": "reduction-of-benefits", "type": "clause", "offset": [1411, 1432]}, {"key": "to-the-company", "type": "definition", "offset": [1562, 1576]}, {"key": "days-after", "type": "definition", "offset": [1632, 1642]}, {"key": "the-accountants", "type": "clause", "offset": [1661, 1676]}, {"key": "the-company-shall", "type": "clause", "offset": [1761, 1778]}, {"key": "the-benefits", "type": "clause", "offset": [1786, 1798]}, {"key": "for-purposes-of", "type": "clause", "offset": [1814, 1829]}, {"key": "required-by", "type": "definition", "offset": [1854, 1865]}, {"key": "taxes-and", "type": "clause", "offset": [1971, 1980]}, {"key": "application-of-the-code", "type": "clause", "offset": [2047, 2070]}, {"key": "legal-authority", "type": "definition", "offset": [2093, 2108]}, {"key": "furnish-to", "type": "clause", "offset": [2142, 2152]}, {"key": "information-and-documents", "type": "clause", "offset": [2174, 2199]}, {"key": "reasonably-request", "type": "definition", "offset": [2223, 2241]}, {"key": "in-order-to", "type": "clause", "offset": [2242, 2253]}, {"key": "determination-under", "type": "clause", "offset": [2261, 2280]}, {"key": "cost-of", "type": "definition", "offset": [2324, 2331]}, {"key": "all-fees", "type": "clause", "offset": [2332, 2340]}, {"key": "in-connection-with", "type": "clause", "offset": [2364, 2382]}], "hash": "60b74bdec7aab5d8d74889886a317568", "id": 3}, {"size": 90, "samples": [{"hash": "cxbHKnyQB0c", "uri": "/contracts/cxbHKnyQB0c#excise-tax", "label": "Executive Employment Agreement (Red Rock Resorts, Inc.)", "score": 30.3470230103, "published": true}, {"hash": "e36h4UuhUhU", "uri": "/contracts/e36h4UuhUhU#excise-tax", "label": "Executive Employment Agreement (Red Rock Resorts, Inc.)", "score": 28.8548946381, "published": true}, {"hash": "82icbbirola", "uri": "/contracts/82icbbirola#excise-tax", "label": "Executive Employment Agreement (Station Casinos LLC)", "score": 28.603012085, "published": true}], "snippet": "8.1 Notwithstanding any other provisions in this Agreement, in the event that any payment or benefit received or to be received by the Executive (including any payment or benefit received in connection with a change in control of the Company or the termination of the Executive\u2019s employment, whether pursuant to the terms of this Agreement or any other plan, program, arrangement or agreement) (all such payments and benefits, together, the \u201cTotal Payments\u201d) would be subject (in whole or part), to any excise tax imposed under Section 4999 of the Code, or any successor provision thereto (the \u201cExcise Tax\u201d), then, after taking into account any reduction in the Total Payments provided by reason of Section 280G of the Code in such other plan, program, arrangement or agreement, the Company will reduce the Total Payments to the extent necessary so that no portion of the Total Payments is subject to the Excise Tax (but in no event to less than zero); provided, however, that the Total Payments will only be reduced if (i) the net amount of such Total Payments, as so reduced (and after subtracting the net amount of federal, state, municipal and local income and employment taxes on such reduced Total Payments and after taking into account the phase out of itemized deductions and personal exemptions attributable to such reduced Total Payments), is greater than or equal to (ii) the net amount of such Total Payments without such reduction (but after subtracting the net amount of federal, state, municipal and local income and employment taxes on such Total Payments and the amount of Excise Tax to which the Executive would be subject in respect of such unreduced Total Payments and after taking into account the phase out of itemized deductions and personal exemptions attributable to such unreduced Total Payments).\n8.2 In the case of a reduction in the Total Payments, the Total Payments will be reduced in the following order (unless reduction in another order is required to avoid adverse consequences under Section 409A of the Code, in which case, reduction will be in such other order): (i) payments that are payable in cash that are valued at full value under Treasury Regulation Section 1.280G-1, Q&A 24(a) will be reduced (if necessary, to zero), with amounts that are payable last reduced first; (ii) payments and benefits due in respect of any equity valued at full value under Treasury Regulation Section 1.280G-1, Q&A 24(a), with the highest values reduced first (as such values are determined under Treasury Regulation Section 1.280G-1, Q&A 24) will next be reduced; (iii) payments that are payable in cash that are valued at less than full value under Treasury Regulation Section 1.280G-1, Q&A 24, with amounts that are payable last reduced first, will next be reduced; (iv) payments and benefits due in respect of any equity valued at less than full value under Treasury Regulation Section 1.280G-1, Q&A 24, with the highest values reduced first (as such values are determined under Treasury Regulation Section 1.280G-1, Q&A 24) will next be reduced; and (v) all other non-cash benefits not otherwise described in clauses (ii) or (iv) will be next reduced pro-rata. Any reductions made pursuant to each of clauses (i)-(v) above will be made in the following manner: first, a pro-rata reduction of cash payment and payments and benefits due in respect of any equity not subject to Section 409A of the Code, and second, a pro-rata reduction of cash payments and payments and benefits due in respect of any equity subject to Section 409A of the Code as deferred compensation.\n8.3 For purposes of determining whether and the extent to which the Total Payments will be subject to the Excise Tax: (i) no portion of the Total Payments the receipt or enjoyment of which the Executive shall have waived at such time and in such manner as not to constitute a \u201cpayment\u201d within the meaning of Section 280G(b) of the Code will be taken into account; (ii) no portion of the Total Payments will be taken into account which, in the opinion of tax counsel (\u201cTax Counsel\u201d) reasonably acceptable to the Executive and selected by the accounting firm which was, immediately prior to the change in control, the Company\u2019s independent auditor (the \u201cAuditor\u201d), does not constitute a \u201cparachute payment\u201d within the meaning of Section 280G(b)(2) of the Code (including by reason of Section 280G(b)(4)(A) of the Code) and, in calculating the Excise Tax, no portion of such Total Payments will be taken into account which, in the opinion of Tax Counsel, constitutes reasonable compensation for services actually rendered, within the meaning of Section 280G(b)(4)(B) of the Code, in excess of the \u201cbase amount\u201d (as set forth in Section 280G(b)(3) of the Code) that is allocable to such reasonable compensation; and (iii) the value of any non-cash benefit or any deferred payment or benefit included in the Total Payments will be determined by the Auditor in accordance with the principles of Sections 280G(d)(3) and (4) of the Code.\n8.4 At the time that payments are made under this Agreement, the Company will provide the Executive with a written statement setting forth the manner in which such payments were calculated and the basis for such calculations, including any opinions or other advice the Company received from Tax Counsel or the Auditor. If the Executive objects to the Company\u2019s calculations, the Company will pay to the Executive such portion of the Total Payments (up to 100% thereof) as the Executive determines is necessary to result in the proper application of this Section 8. All determinations required by this Section 8 (or requested by either the Executive or the Company in connection with this Section 8) will be at the expense of the Company. The fact that the Executive\u2019s right to payments or benefits may be reduced by reason of the limitations contained in this Section 8 will not of itself limit or otherwise affect any other rights of the Executive under this Agreement.", "snippet_links": [{"key": "other-provisions", "type": "definition", "offset": [24, 40]}, {"key": "in-this-agreement", "type": "clause", "offset": [41, 58]}, {"key": "in-the-event", "type": "clause", "offset": [60, 72]}, {"key": "benefit-received", "type": "clause", "offset": [93, 109]}, {"key": "by-the-executive", "type": "clause", "offset": [128, 144]}, {"key": "change-in-control-of-the-company", "type": "definition", "offset": [209, 241]}, {"key": "termination-of-the-executive", "type": "definition", "offset": [249, 277]}, {"key": "agreement-or", "type": "definition", "offset": [330, 342]}, {"key": "any-other-plan", "type": "definition", "offset": [343, 357]}, {"key": "payments-and-benefits", "type": "clause", "offset": [404, 425]}, {"key": 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"published": true}], "snippet": "In the event that any payment or benefit received or to be received by Employee in connection with a termination of his employment with Employer would constitute a \"parachute payment\" within the meaning of Code Section 280G or any similar or successor provision to 280G and/or would be subject to any excise tax imposed by Code Section 4999 or any similar or successor provision then Employer shall assume all liability for the payment of any such tax and Employer shall immediately reimburse Employee on a \"grossed-up\" basis for any income taxes attributable to Employee by reason of such Employer payment and reimbursements.", "snippet_links": [{"key": "in-the-event", "type": "clause", "offset": [0, 12]}, {"key": "benefit-received", "type": "clause", "offset": [33, 49]}, {"key": "by-employee", "type": "clause", "offset": [68, 79]}, {"key": "in-connection-with", "type": "clause", "offset": [80, 98]}, {"key": "termination-of", "type": "clause", "offset": [101, 115]}, {"key": "employment-with-employer", "type": "clause", "offset": [120, 144]}, {"key": "parachute-payment", "type": "clause", "offset": [165, 182]}, {"key": "meaning-of", "type": "clause", "offset": [195, 205]}, {"key": "successor-provision", "type": "clause", "offset": [242, 261]}, {"key": "subject-to", "type": "clause", "offset": [286, 296]}, {"key": "tax-imposed", "type": "clause", "offset": [308, 319]}, {"key": "code-section-4999", "type": "clause", "offset": [323, 340]}, {"key": "liability-for", "type": "clause", "offset": [410, 423]}, {"key": "payment-of", "type": "definition", "offset": [428, 438]}, {"key": "income-taxes", "type": "clause", "offset": [534, 546]}, {"key": "employee-by", "type": "definition", "offset": [563, 574]}, {"key": "employer-payment", "type": "definition", "offset": [590, 606]}], "hash": "6fcadee80939261eaaf4af2c66cb30bf", "id": 5}, {"size": 70, "samples": [{"hash": "guJgMbZGh2b", "uri": "/contracts/guJgMbZGh2b#excise-tax", "label": "Employment Agreement (American Financial Realty Trust)", "score": 18.0, "published": true}, {"hash": "dxL2wSqsnSb", "uri": "/contracts/dxL2wSqsnSb#excise-tax", "label": "Employment Agreement (American Financial Realty Trust)", "score": 18.0, "published": true}, {"hash": "abAU5wlAYMl", "uri": "/contracts/abAU5wlAYMl#excise-tax", "label": "Employment Agreement (American Financial Realty Trust)", "score": 18.0, "published": true}], "snippet": "(i) In the event that any payment or benefit received or to be received by the Executive in connection with a change in control or a termination of the Executive's employment (whether pursuant to the terms of this Agreement or any other plan, arrangement or agreement with the Company, any person whose actions result in a change in control or any person affiliated with the Company or such person) (all such payments and benefits being hereinafter called \"Total Payments\"), such that the Executive will be subject (in whole or in part) to the excise tax imposed under Code Section 4999 (\"Excise Tax\") on such payments and benefits, then the Company shall pay to the Executive an additional amount (the \"Gross-Up Payment\") such that the net amount retained by the Executive, after deduction of the Excise Tax and any federal, state and local income tax on the Gross-Up Payment, will be equal to the total amount of payments required to be paid pursuant to this Agreement. For purposes of determining the amount of the Gross-Up Payment, the Executive shall be deemed to pay federal income taxes at the highest marginal rate of federal income taxation in the calendar year in which the Gross-Up Payment is to be made and state and local income taxes at the highest marginal rate of taxation in the state and locality of the Executive's residence on such date, net of the maximum deduction in federal income taxes which could be obtained from deduction of such state and local taxes.\n(ii) The Executive or the Company may request, prior to the time any payments under this Agreement are made, a determination of whether any or all of the Total Payments will be subject to the Excise Tax and, if so, the amount of such Excise Tax and the federal, state and local income tax imposed on the Gross-Up Payment. If such a determination is requested, it shall be made promptly, at the Company's expense, by tax counsel selected by the Executive and approved by the Company (with such approval not being unreasonably withheld), and such determination shall be conclusive and binding on both parties. The Company agrees to provide any information reasonably requested by such tax counsel. Tax counsel may engage accountants or other experts, at the Company's expense, to the extent deemed necessary or advisable for them to reach a determination. For these purposes, the term \"tax counsel\" shall mean a law firm with expertise in federal income tax matters.", "snippet_links": [{"key": "in-the-event", "type": "clause", "offset": [4, 16]}, {"key": "benefit-received", "type": "clause", "offset": [37, 53]}, {"key": "by-the-executive", "type": "clause", "offset": [72, 88]}, {"key": "in-connection-with-a-change-in-control", "type": "clause", "offset": [89, 127]}, {"key": "termination-of-the-executive", "type": "definition", "offset": [133, 161]}, {"key": "agreement-or", "type": "definition", "offset": [214, 226]}, {"key": "any-other-plan", "type": "definition", "offset": [227, 241]}, {"key": "any-person", "type": "clause", "offset": [286, 296]}, {"key": "person-affiliated-with", "type": "definition", "offset": [348, 370]}, {"key": "payments-and-benefits", "type": "clause", "offset": [409, 430]}, {"key": "total-payments", "type": "definition", "offset": [457, 471]}, {"key": "tax-imposed", "type": "clause", "offset": [551, 562]}, {"key": "code-section-4999", "type": "clause", "offset": [569, 586]}, {"key": "the-company-shall", "type": "clause", "offset": [638, 655]}, {"key": "to-the-executive", "type": "clause", "offset": [660, 676]}, {"key": "additional-amount", "type": "definition", "offset": [680, 697]}, {"key": "amount-retained", "type": "clause", "offset": [741, 756]}, {"key": "deduction-of", "type": "clause", "offset": [781, 793]}, {"key": "the-gross", "type": "clause", "offset": [856, 865]}, {"key": "equal-to", "type": "definition", "offset": [886, 894]}, {"key": "payments-required", "type": "clause", "offset": [915, 932]}, {"key": "pursuant-to-this-agreement", "type": "clause", "offset": [944, 970]}, {"key": "for-purposes-of", "type": "clause", "offset": [972, 987]}, {"key": "to-pay", "type": "clause", "offset": [1066, 1072]}, {"key": "federal-income-taxes", "type": "definition", "offset": [1073, 1093]}, {"key": "rate-of", "type": "clause", "offset": [1118, 1125]}, {"key": "federal-income-taxation", 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"published": true}], "snippet": "(A) Notwithstanding anything to the contrary set forth in this Agreement, in no event shall a Severance Benefit payable pursuant to this Paragraph 6(d) exceed an amount equal to the lesser of (i) 2.99 times the \"base amount\" (as defined in Section 280G(b)(3) of the Internal Revenue Code) of Executive's compensation, or (ii) such other amount which would constitute a \"parachute payment\" (as defined in Section 280G of the Code). In the event that it shall be determined that any Severance Benefit to Executive (whether paid or payable or distributed or distributable) would be subject to the excise tax imposed by Section 4999 of the Code, or any successor provision thereto (the \"Excise Tax\"), then Executive shall be entitled to receive from the Company an additional payment (the \"Gross-Up Payment\u201d) in an amount such that the net amount of the Severance Benefit and the Gross-Up Payment retained by the Executive after calculation and deduction of all Excise Taxes (including any interest or penalties imposed with respect to such taxes) or the Gross-Up Payment provided for in this Section, and taking into account any lost or reduced tax deductions on account of the Gross-Up payment, shall be equal to the Severance Benefit.\n(B) Executive shall notify the Company in writing of any claim by the Internal Revenue Service that, if successful, would require the payment by the Company of the Gross-Up Payment. Such notification shall be given as soon as practicable after Executive is informed in writing of such claim and shall apprise the Company of the nature of such claim and the date on which such claim is requested to be paid. Executive shall not pay such claim prior to the expiration of the 30-day period following the date on which Executive gives such notice to the Company (or such shorter period ending on the date that any payment of taxes, interest and/or penalties with respect to such claim is due). If the Company notifies Executive in writing prior to the expiration of such period that it desires to contest such claim, Executive shall:\n(1) give the Company any information reasonably requested by the Company relating to such claim;\n(2) take such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney reasonably selected by the Company;\n(3) cooperate with the Company in good faith in order to effectively contest such claim; and\n(4) permit the Company to participate in any proceedings relating to such claims; provided, however, that the Company shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such contest and shall indemnify Executive for and hold Executive harmless from, on an after-tax basis, any Excise Tax or income tax (including interest and penalties with respect thereto) imposed as a result of such representation and payment of all related costs and expenses. Without limiting the foregoing provisions of this section, the Company shall control all proceedings taken in connection with such contest and, at its sole option, may pursue or forgo any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim and may, at its sole option, either direct Executive to pay the tax claimed and \u2587\u2587\u2587 for a refund or contest the claim in any permissible manner, and Executive agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided, however, that if the Company directs Executive to pay such claim and \u2587\u2587\u2587 for a refund, the Company shall advance the amount of such payment to Executive, on an interest-free basis, and shall indemnify Executive for and hold Executive harmless from, on an after-tax basis, any Excise Tax or income tax (including interest or penalties with respect thereto) imposed with respect to such advance or with respect to any imputed income with respect to such advance (including as a result of any forgiveness by the Company of such advance); provided, further, that any extension of the statute of limitations relating to the payment of taxes for the taxable year of Executive with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the Company's control of the contest shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and Executive shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority.", "snippet_links": [{"key": "notwithstanding-anything-to-the-contrary", "type": "clause", "offset": [4, 44]}, {"key": "in-this-agreement", "type": "clause", "offset": [55, 72]}, {"key": "in-no-event-shall", "type": "clause", "offset": [74, 91]}, {"key": "severance-benefit", "type": "definition", "offset": [94, 111]}, {"key": "pursuant-to", "type": "definition", "offset": [120, 131]}, {"key": "equal-to", "type": "definition", "offset": [169, 177]}, {"key": "lesser-of", "type": "definition", "offset": [182, 191]}, {"key": "base-amount", "type": "clause", "offset": [212, 223]}, {"key": "defined-in-section", "type": "clause", "offset": [229, 247]}, {"key": "internal-revenue-code", "type": 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[{"hash": "qffX7c7yDP", "uri": "/contracts/qffX7c7yDP#excise-tax", "label": "Employment Agreement (Libbey Inc)", "score": 21.0, "published": true}, {"hash": "kXCKMHiFQo7", "uri": "/contracts/kXCKMHiFQo7#excise-tax", "label": "Employment Agreement (Libbey Inc)", "score": 21.0, "published": true}, {"hash": "fYwlY0jc3Yw", "uri": "/contracts/fYwlY0jc3Yw#excise-tax", "label": "Employment Agreement (Libbey Inc)", "score": 21.0, "published": true}], "snippet": "(i) Anything in this Agreement to the contrary notwithstanding, if it shall be determined that any payment or distribution to the Executive or for the Executive\u2019s benefit (whether paid or payable or distributed or distributable) pursuant to the terms of this Agreement or otherwise (the \u201cPayment\u201d) would be subject to the excise tax imposed by section 4999 of the Code or any successor provision (the \u201cExcise Tax\u201d), then the Executive shall be entitled to receive from the Company an additional payment (the \u201cGross-Up Payment\u201d) in an amount such that the net amount of the Payment and the Gross-Up Payment retained by the Executive after the calculation and deduction of all Excise Taxes (including any interest or penalties imposed with respect to such taxes) on the payment and all federal, state and local income tax, employment tax and Excise Tax (including any interest or penalties imposed with respect to such taxes) on the Gross-Up Payment provided for in this Section 5(g), and taking into account any lost or reduced tax deductions on account of the Gross-Up Payment, shall be equal to the Payment;\n(ii) Notwithstanding any provision of this Agreement to the contrary, but giving effect to any redetermination of the amount of Gross-Up payments otherwise required by this Section 5(f), if but for this sentence the Company would be obligated to make a Gross-Up Payment to the Executive, and the aggregate \u201cpresent value\u201d of the \u201cparachute payments\u201d to be paid or provided to the Executive under this Agreement or otherwise does not exceed 1.10 multiplied by three times the Executive\u2019s \u201cbase amount,\u201d then the payments and benefits to be paid or provided under this Agreement will be reduced (or repaid to the Company, if previously paid or provided) to the minimum extent necessary so that no portion of any payment or benefit to the Executive, as so reduced or repaid, constitutes an \u201cexcess parachute payment.\u201d For purposes of this Section 5(f)(ii), the terms \u201cexcess parachute payment,\u201d \u201cpresent value,\u201d \u201cparachute payment,\u201d and \u201cbase amount\u201d have the meanings assigned to them by Section 280G of the Code. The determination of whether any reduction in or repayment of such payments or benefits to be provided under this Agreement is required pursuant to this Section 5(f)(ii) will be made at the expense of the Company, if requested by the Executive or the Company, by the Accountants (as defined in Section 5(f)(iii)). Appropriate adjustments will be made to amounts previously paid to the Executive, or to amounts not paid pursuant to this Section 5(f)(ii), as the case may be, to reflect properly a subsequent determination that the Executive owes more or less Excise Tax than the amount previously determined to be due. If a Payment intended to be provided under the Agreement is required to be reduced pursuant to this Section 5(f)(ii), the payments shall be reduced in the following order of priority: payments pursuant to Section 5(b)(iv), payments pursuant to Section 5(b)(v) and payments pursuant to Section 5(b)(ii), with any Equity Compensation having an option feature being the last payments to be subject to reduction.\n(iii) All determinations required to be made under this Section 5, including whether and when the Gross-Up Payment is required and the amount of such Gross-Up Payment, and the assumptions to be utilized in arriving at such determinations, shall be made in good faith by the Accountants (as defined below), which shall provide the Executive and the Company with detailed supporting calculations with respect to such Gross-Up Payment within fifteen (15) business days of the receipt of notice from the Executive or the Company that has received or will receive a Payment. For the purposes of this Section 5(f), the \u201cAccountants\u201d shall mean the Company\u2019s independent certified public accountants serving immediately prior to the change in control that with other events results in the imposition of the Excise Tax. If the Accountants are also serving as accountant or auditor for the individual, entity or group effecting a change in control that with other events results in the imposition of the Excise Tax, the Company shall appoint another recognized public accounting firm to make the determinations required hereunder (which accounting firm shall also be referred to herein as the \u201cAccountants\u201d). All fees and expenses of the Accountants shall be borne solely by the Company. For the purposes of determining whether any of the Payments will be subject to the Excise Tax and the amount of such Excise Tax, such Payments will be treated as \u201cparachute payments\u201d within the meaning of section 280G of the Code, and all \u201cparachute payments\u201d in excess of the \u201cbase amount\u201d (as defined under section 280G(b)(3) of the Code) shall be treated as subject to the Excise Tax, unless and except to the extent that in the opinion of the Accountants such Payments (in whole or in part) either do not constitute \u201cparachute payments\u201d or represent reasonable compensation for services actually rendered (within the meaning of section 280G(b)(4) of the Code) in excess of the \u201cbase amount,\u201d or such \u201cparachute payments\u201d are otherwise not subject to such Excise Tax. For purposes of calculating whether the Excise Tax is applicable and determining the amount of the Gross-Up Payment, (A) to the extent not otherwise specified herein, reasonable assumptions and approximations may be made, (B) good faith interpretations of the Code may be relied upon and (C) the Executive shall be deemed to pay Federal income taxes at the highest applicable marginal rate of Federal income taxation for the calendar year in which the Gross-Up Payment is to be made, net of the maximum reduction in Federal income taxes which could be obtained from the deduction of such state or local taxes if paid in such year (determined without regard to limitations on deductions based upon the amount of the Executive\u2019s adjusted gross income), and to have otherwise allowable deductions for Federal, state and local income tax purposes at least equal to those disallowed because of the inclusion of the Gross-Up Payment in the Executive\u2019s adjusted gross income. Any determination by the Accountants shall be binding upon the Company and the Executive. As a result of uncertainty in the application of section 4999 of the Code at the time of the initial determination by the Accountants hereunder, it is possible that the Gross-Up Payment made will have been an amount less than the Company should have paid pursuant to this Section 5(f) (the \u201cUnderpayment\u201d). If the Company exhausts its remedies pursuant to Section 5(f) and the Executive is required to make a payment of any Excise Tax, the Underpayment shall be promptly paid by the Company to the Executive or for his benefit; and", "snippet_links": [{"key": "agreement-to", "type": "clause", "offset": [21, 33]}, {"key": "payment-or-distribution", "type": "definition", "offset": [99, 122]}, {"key": "agreement-or", "type": "definition", "offset": [259, 271]}, {"key": "subject-to-the", "type": "definition", "offset": [307, 321]}, {"key": "tax-imposed", "type": "clause", "offset": [329, 340]}, {"key": "successor-provision", "type": "clause", "offset": [376, 395]}, {"key": "to-receive", "type": "definition", "offset": [453, 463]}, {"key": "from-the-company", "type": "clause", "offset": [464, 480]}, {"key": "additional-payment", "type": "definition", "offset": [484, 502]}, {"key": "net-amount", "type": "clause", "offset": [555, 565]}, {"key": "the-payment", "type": "clause", "offset": [569, 580]}, 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"Change in Control"]], "id": "excise-tax", "related": [["excise-tax-payments", "Excise Tax Payments", "<strong>Excise Tax</strong> Payments"], ["excise-taxes", "Excise Taxes", "<strong>Excise Taxes</strong>"], ["excise-tax-payment", "Excise Tax Payment", "<strong>Excise Tax</strong> Payment"], ["excise-tax-gross-up", "Excise Tax Gross-Up", "<strong>Excise Tax</strong> Gross-Up"], ["excise-tax-limitation", "Excise Tax Limitation", "<strong>Excise Tax</strong> Limitation"]], "related_snippets": [], "updated": "2026-05-28T04:23:29+00:00", "also_ask": ["What negotiation leverage exists regarding excise tax allocation between parties?", "Which drafting elements are essential to clearly define excise tax responsibility?", "What are the main risks if excise tax obligations are ambiguously drafted?", "How do excise tax clauses differ across jurisdictions or industries?", "What factors determine enforceability of excise tax clauses in court?"], "drafting_tip": "Specify the applicable excise taxes, allocate payment responsibility, and outline reimbursement procedures to prevent disputes and ensure compliance with tax laws.", "explanation": "An Excise Tax clause defines how excise taxes\u2014government-imposed taxes on specific goods, services, or transactions\u2014are handled within a contract. Typically, this clause specifies which party is responsible for paying any applicable excise taxes, such as those on fuel, alcohol, or certain manufacturing processes, and may outline procedures for reimbursement or tax documentation. Its core practical function is to allocate financial responsibility for excise taxes between the parties, thereby preventing disputes and ensuring compliance with tax regulations."}, "json": true, "cursor": ""}}