Common use of Personal Income Taxes Clause in Contracts

Personal Income Taxes. If [COUNTRY]’s taxing authorities impose income taxes on any compensation paid by MIT to any MIT personnel as a consequence of his or her performing activities under this Agreement, or if any such individual is required to file a tax return in [COUNTRY] as a consequence of performing activities under this Agreement, then Sponsor shall expeditiously pay MIT, for the benefit of the individual, an amount equal to the Additional Tax plus the Gross Up Amount. The “Additional Tax” is the difference between (a) the total amount that the affected individual would have been obligated to pay for federal and state income taxes in the relevant tax year in the U.S. and elsewhere if the individual had not performed activities under this Agreement, including, without limitation, interest and penalties and the cost to prepare and file any tax returns and (b) the total amount the affected individual is actually obligated to pay for federal and state income taxes in the relevant tax year in the U.S., [COUNTRY] and elsewhere, including, without limitation, interest and penalties and the cost to prepare and file any tax returns. The “Gross Up Amount” is an amount equal to the Additional Tax divided by 1 minus the sum of (i) the U.S. federal income tax rate and (ii) the state income tax rate that would be applied to the individual’s base compensation.

Personal Income Taxes. If [COUNTRY]’s taxing authorities impose income taxes on any compensation paid by MIT to any MIT personnel as a consequence of his or her performing activities under this Agreement, or if any such individual is required to file a tax return in [COUNTRY] as a consequence of performing activities under this Agreement, then Sponsor shall expeditiously pay MIT, for the benefit of the individual, an amount equal to the Additional Tax plus the Gross Up Amount. The “Additional Tax” is the difference between (a) the total amount that the affected individual would have been obligated to pay for federal and state income taxes in the relevant tax year in the U.S. and elsewhere if the individual had not performed activities under this Agreement, including, without limitation, interest and penalties and the cost to prepare and file any tax returns and (b) the total amount the affected individual is actually obligated to pay for federal and state income taxes in the relevant tax year in the U.S., [COUNTRY] and elsewhere, including, without limitation, interest and penalties and the cost to prepare and file any tax returns. The “Gross Up Amount” is an amount equal to the Additional Tax divided by 1 minus the sum of (i) the U.S. federal income tax rate and (ii) the state income tax rate that would be applied to the individual’s base compensation.]