Common use of Franchise or Margin Tax Clause in Contracts

Franchise or Margin Tax. If the A/E is subject to the Texas franchise tax, the A/E certifies that, upon the effective date of this Contract, it is either exempt from the obligation to pay franchise taxes or is not delinquent in the payment of franchise taxes. The A/E agrees that any false statement with respect to franchise tax status shall be a material breach hereof, and OWNER shall be entitled to terminate this Contract upon written notice thereof to the A/E.

Franchise or Margin Tax. If the A/E PROVIDER is subject to the Texas franchise tax, the A/E PROVIDER certifies that, upon the effective date of this Contract, it is either exempt from the obligation to pay franchise taxes or is not delinquent in the payment of franchise taxes. The A/E PROVIDER agrees that any false statement with respect to franchise tax status shall be a material breach hereof, and OWNER shall be entitled to terminate this Contract upon written notice thereof to the A/E.PROVIDER.