No Tax Consequences Sample Clauses
The "No Tax Consequences" clause ensures that the actions or transactions contemplated by the agreement will not result in adverse tax effects for the parties involved. In practice, this clause typically applies to mergers, asset transfers, or other business arrangements, specifying that neither party will incur additional tax liabilities as a result of the agreement. Its core function is to protect parties from unexpected tax burdens, thereby providing certainty and reducing financial risk associated with the transaction.
POPULAR SAMPLE Copied 1 times
No Tax Consequences. The Company makes no representation, warranty or guarantee of any federal, state or local tax consequences concerning any Option, including, but not limited to, under Section 409A of the Code. Accordingly, in the event that any Option or this Agreement shall be deemed not to comply with Section 409A of the Code, the Company and its directors, officers, employees and agents shall not be liable to Participant or other person for such failure. Instead, Participant is solely responsible and liable for the satisfaction of all taxes and penalties that may arise in connection with the Options and their exercise pursuant to this Agreement (including any taxes or penalties arising under Section 409A of the Code), and the Company shall not have any obligation to indemnify or otherwise hold Participant harmless from any or all of such taxes and penalties.