Common use of Income Tax Indemnification Clause in Contracts

Income Tax Indemnification. In the event that the Internal Revenue Service or other taxing authority determines that any amounts received by Employee constitute taxable income to the Employee rather than (i) expense reimbursements under an accountable reimbursement plan by the Company, or (ii) expense reimbursements for out of town travel, the Company will reimburse Employee, within 30 days of written notification from Employee of such determination and specification of the amounts due, the amount of any income tax and self-employment tax along with interest and penalties thereon required to be paid by the Employee. Such reimbursement will include the amounts of any incremental tax incurred as a result of the reimbursement. Employee agrees that he will take all reasonable steps necessary to prevent such a determination by the Internal Revenue Service or other taxing jurisdiction.