Common use of Penalty Taxes Clause in Contracts

Penalty Taxes. In the event that any payment or other compensation or benefits made or provided to or for the benefit of Executive in any way connected with employment of Executive by Corporation becomes subject to tax pursuant to section 4999 of the Code or any successor provision or any counterpart provision of state or local tax law (the “Penalty Taxes”), Corporation shall reimburse Executive for any Penalty Taxes and any additional Federal, state and local taxes (including, without limitation, income taxes and additional Penalty Taxes) required to be paid by Executive in respect of receipt of such reimbursement, provided any such reimbursement will be made by the end of Executive’s taxable year next following Executive’s taxable year in which Executive remits the related taxes. In addition, Corporation shall reimburse Executive for any expenses incurred by Executive due to a tax audit or litigation addressing the existence or amount of a tax liability, whether Federal, state, local, or foreign, relating to any Penalty Taxes, provided any such reimbursement will be made by the end of Executive’s taxable year following Executive’s taxable year in which the taxes that are the subject of the audit or litigation are remitted to the taxing authority, or where as a result of such audit or litigation no taxes are remitted, the end of Executive’s taxable year following Executive’s taxable year in which the audit is completed or there is a final and non-appealable settlement or other resolution of the litigation.