Common use of Tax Adjustment Payment Clause in Contracts

Tax Adjustment Payment. Within thirty (30) days after the Executive exercises a previously granted stock option to purchase 220,000 shares of Company common stock at a price of $5.25 per share and within thirty (30) days after the Executive notifies the Company of the subsequent sale or transfer of such underlying shares, the Company shall make payment to the Executive in the amount necessary to pay any taxes due upon exercise of such option and upon the subsequent sale or transfer thereof (the "Tax Payment Amount"). In addition, the Company shall pay to the Executive at the time of payment of the Tax Payment Amount, the amount necessary to pay Federal and state income tax with respect to the Executive's receipt of the Tax Payment Amount using the highest marginal individual rate (the "Gross-Up Amount").