Common use of Payment of Excise Tax Clause in Contracts

Payment of Excise Tax. If a reduction in compensation that results in no Excise Tax being payable does not result in Xx. Xxxxxx having a more positive after-tax financial position than he would have enjoyed without the reduction but with the resulting application of the Excise Tax, then, at the option of Xx. Xxxxxx, he can choose to pay the amount of the Excise Tax and avoid the reduction in compensation. The amount of the Excise Tax shall be determined by the Accounting Firm using such formulas as the Accounting Firm deems appropriate. In the event the Xx. Xxxxxx chooses to pay the Excise Tax, he will have no right of reimbursement or payment of additional compensation from the Company.

Payment of Excise Tax. If a reduction in compensation that results in no Excise Tax being payable does not result in Xx. Xxxxxx Xxxxxxx having a more positive after-tax financial position than he would have enjoyed without the reduction but with the resulting application of the Excise Tax, then, at the option of Xx. XxxxxxXxxxxxx, he can choose to pay the amount of the Excise Tax and avoid the reduction in compensation. The amount of the Excise Tax shall be determined by the Accounting Firm using such formulas as the Accounting Firm deems appropriate. In the event the Xx. Xxxxxx Xxxxxxx chooses to pay the Excise Tax, he will have no right of reimbursement or payment of additional compensation from the Company.