Payment Subject to Excise Tax Sample Clauses
The 'Payment Subject to Excise Tax' clause defines how payments under an agreement will be handled if they are subject to excise taxes. Typically, this clause specifies whether the payer or payee is responsible for covering any excise tax imposed on the transaction, and may outline procedures for calculating and remitting the tax. Its core function is to allocate responsibility for excise tax liabilities, ensuring both parties understand their obligations and preventing disputes over unexpected tax costs.
Payment Subject to Excise Tax. If it shall be determined that any payment or distribution made, or benefit provided, by the Company to or for the benefit of Executive (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise, but determined without regard to any additional payments required under this Section 10) (a "Payment") would be subject to the excise tax imposed by section 4999 of the Code (or any similar excise tax) or any interest or penalties are incurred by Executive with respect to such excise tax (such excise tax, together with any such interest and penalties, are referred to collectively as the "Excise Tax"), then Executive shall be entitled to receive an additional payment (a "Gross-Up Payment") in an amount such that after payment by Executive of all taxes (including any Excise Tax, income tax, or payroll tax) imposed upon the Gross-Up Payment and any interest or penalties imposed with respect to the taxes imposed upon the Gross Up Payment, Executive retains from the Gross-Up Payment an amount equal to the Excise Tax imposed upon the Payments.