Common use of Unreasonable Compensation Clause in Contracts

Unreasonable Compensation. It is agreed that in the event all or any part of the compensation paid to the employee shall be disallowed by the Internal Revenue Service as a deduction by the Company under section 162 of the Internal Revenue Code of 1986, as amended, (or shall be disallowed as a deduction for state or local income tax purposes) and such disallowance becomes final, the Federal, state or local income tax deficiency and interest or other tax "costs" to the Company, as the case may be, attributable to said disallowance shall be determined and shall be a debt payable on demand by the Employee to the Company which the Company may recover as a setoff against future compensation.

Unreasonable Compensation. It is agreed that in the event all or any part of the compensation paid to the employee Employee hereunder shall be disallowed by the Internal Revenue Service as a deduction by the Company under section Section 162 of the Internal Revenue Code of 1986, as amended, (or shall be disallowed as a deduction for state or local income tax purposes) and such disallowance becomes final, the Federal, state or local income tax deficiency and interest or other tax "“costs" ” to the Company, as the case may be, attributable to said disallowance shall be determined and shall be a debt payable on demand by the Employee to the Company Company, which the Company may recover as a setoff against future compensation.