Employee shall be liable for and shall pay all federal, state and local income or other similar taxes, and all related interest, penalties or other liabilities and costs, that may be due in connection with the payments to be made to Employee hereunder. The Employer shall have the right to withhold from any such payments all amounts necessary to satisfy its withholding obligations with respect thereto. Employee acknowledges that the Employer has not made representations or warranties of any kind regarding the tax consequence, if any, of any payments made hereunder.