Common use of Equalization Payment Clause in Contracts

Equalization Payment. If any of the Special Termination Payment will be subject to the tax (the "Excise Tax") imposed by Section 4999 of the Internal Revenue Code of 1986, as amended (the "Code") (or any similar tax that may hereafter be imposed), ASC shall pay to the Employee in cash an additional amount (the "Gross-Up Payment") such that the net amount retained by the Employee after deduction from the Payment and the Gross-Up Payment of any Excise Tax imposed upon the Special Termination Payment and any federal, state and local income tax and Excise Tax imposed upon the Gross-Up Payment shall be equal to the original amount of the Special Termination Payment, prior to deduction of any Excise Tax imposed with respect to the Special Termination Payment. Nothing in this Agreement shall be construed as requiring ASC to include in the Gross-Up Payment any amount relating to any federal income or other taxes on the Special Termination Payment (other than Excise Taxes) provided for under this Agreement, other than federal income or other taxes on any Gross-Up Payment. The Gross-Up Payment shall be paid to the Employee at such times as the Special Termination Payment is paid to the Employee, in the same proportions as any partial payments of the Special Termination Payment bear to the total Special Termination Payment.