Common use of Character and Effect of Payments Clause in Contracts

Character and Effect of Payments. The Parties agree that for income -------------------------------- and other Tax purposes all amounts paid pursuant to this Agreement by one Party to the other Party (other than interest payments pursuant to Section 9.2) shall be treated by the Parties as made directly to the third parties to which such payment is due. If, notwithstanding such treatment by the Parties, any payment by either Party is determined to be taxable to the other Party by any Taxing Authority, the payor shall also indemnify the other Party for the amount of any Taxes and related Expenses payable by the other Party by reason of the receipt of such payment. In addition, the amount of any indemnity payment due under this Agreement shall be computed by properly taking into account any Tax Benefit actually realized by the recipient from the payment of the item at issue (net of the Taxes and related Expenses described in the preceding sentence).

Character and Effect of Payments. The Parties parties agree that for income -------------------------------- and other Tax purposes all amounts paid pursuant to this Agreement by one Party to the other Party (other than interest payments pursuant to Section 9.26.2) shall be treated by the Parties as made directly to the third parties to which such payment is due. If, notwithstanding such treatment by the Parties, any payment by either Party is determined to be taxable to the other Party by any Taxing Authority, the payor shall also indemnify the other Party for fifty percent (50%) of the amount of any Taxes and related Expenses payable by the other Party by reason of the receipt of such payment. In addition, the amount of any indemnity payment due under this Agreement shall be computed by properly taking into account any Tax Benefit actually realized by the recipient from the payment of the item at issue (net of the Taxes and related Expenses described in the preceding sentence)issue.