Common use of Excise Tax Gross-Up Clause in Contracts

Excise Tax Gross-Up. In the event any payment described herein, when added to all other amounts or benefits provided to or on behalf of the Executive in connection with his Separation from Service would result in the imposition of an excise tax under Code Section 4999, the Employer will pay the Executive an additional cash payment (the “Gross-Up Payment”) in an amount such that the after-tax proceeds of the Gross-Up Payment (including any income tax or excise tax on the Gross-Up Payment) will be equal to the amount of the excise tax.

Excise Tax Gross-Up. In the event any payment described herein, when added to all other amounts or benefits provided to or on behalf of the Executive in connection with his Separation from Service would result in the imposition of an excise tax under Code Section 4999, the Employer will pay the Executive an additional cash payment (the “"Gross-Up Payment”") in an equal to the Executive's excise tax amount divided by (one minus the sum of {the penalty tax rate and the Executive's marginal income tax rate}), such that the after-tax proceeds of the Gross-Up Payment (including any income tax or excise tax on the Gross-Up Payment) will be equal to the amount of the excise tax.