Common use of Tax Reimbursement Payment Clause in Contracts

Tax Reimbursement Payment. In the event that any amount or benefit paid or distributed to Employee pursuant to this Agreement, taken together with any amounts or benefits otherwise paid or distributed to Employee by the Company or any affiliated company in connection with the Change in Control that are treated as parachute payments under Section 280G of the Internal Revenue Code of 1986, as amended (the “Code” and such payments, collectively, the “Covered Payments”), are or become subject to the tax (the “Excise Tax”) imposed under Section 4999 of the Code or any similar tax that may hereafter be imposed, Parent or Employer shall pay to Employee at the time specified in subparagraph 5(e)(5) below an additional amount (the “Tax Reimbursement Payment”) such that the net amount retained by Employee with respect to such Covered Payments, after deduction of any Excise Tax on the Covered Payments and any Federal, state and local income tax and Excise Tax on the Tax Reimbursement Payment provided for by this paragraph 5(e), but before deduction for any Federal, state or local income or employment tax withholding on such Covered Payments, shall be equal to the amount of the Covered Payments.