Common use of Intended Tax Consequences Clause in Contracts

Intended Tax Consequences. The parties acknowledge that it is their intent that the Employee's Deferral Amount, the Employer's Additions and any earnings thereon while held by the Trust will not be subject to income taxes to the Employee until the Employee (or his Designated Beneficiary) receives any amount hereunder and will not be deductible by the Employer until payment hereunder. The Employee's Deferral Amount and the Employer's Additions may be subject to employment taxes, with respect to which the Employer shall report and withhold appropriately.