Common use of Additional Payment to Account for Excise Taxes Clause in Contracts

Additional Payment to Account for Excise Taxes. If, as a result of a termination of employment in connection with a Change in Control, or with 12 months after a Change in Control, the Employee becomes entitled to the amount payable under subsection 10(a), or under any other benefit, compensation, or incentive plan (including, but not limited to, the LTIP) or arrangement of or with the Bank or First Financial Corporation (collectively, the “Total Benefits”), and if any part of the Total Benefits is subject to the Excise Tax under Code Sections 280G and 4999 (the “Excise Tax”), the Bank or First Financial Corporation shall pay to the Employee the following additional amounts, consisting of (A) a payment equal to the Excise Tax payable by the Employee on the Total Benefits under Code Section 4999 (the “Excise Tax Payment”), and (B) a payment equal to the amount necessary to provide the Excise Tax Payment net of all income, payroll and excise taxes. Together, the additional amounts described in clauses (A) and (B) are referred to herein as the “Gross-Up Payments.”