Common use of Business Expenses and Reimbursements Clause in Contracts

Business Expenses and Reimbursements. Employee shall further be entitled to reimbursement by Company for other ordinary and necessary business expenses incurred by Employee in the performance of his duties hereunder, and further provided that: (a) Each such expenditure is of a nature qualifying it as a proper deduction on the federal and state income tax returns of the Company as a business expense and not as deductible compensation to the Employee; and (b) Employee furnishes the Company with adequate records and other documentary evidence required by federal and state statutes and regulations for the substantiation of such expenditures as deductible business expenses of the Company and not as deductible compensation to the Employee. Employee agrees that if, at any time, any payment made to the Employee by the Company as a business expense reimbursement for a particular item shall be disallowed in whole as a deductible expense to the Company by the appropriate taxing authorities, Employee shall reimburse Company to the full extent of such disallowance if so requested by the Company in writing.