Common use of Payment of After-Tax Amounts Clause in Contracts

Payment of After-Tax Amounts. If any amount paid by RJRN or Holdings under the Distribution Agreement results in any increased tax liability or reduction of any Tax Asset of Holdings or any member of the Nabisco Tax Group, in the case of RJRN, or any member of the RJRN Tax Group, in the case of Holdings, then the party making such payment shall, in addition to paying any amounts otherwise owed under the Distribution Agreement, indemnify the recipient of such payment against and hold it harmless from (i) such increased tax or the reduction of such Tax Asset, (ii) any interest or penalty attributable to such increased tax liability or the reduction of such Tax Asset and (iii) the After-Tax Amount.