Common use of Cost Increase, Taxes and Change of Law Clause in Contracts

Cost Increase, Taxes and Change of Law. 4.5.1. In the event of a change in laws or regulations or the interpretations by the competent authorities thereof, or a request by the relevant authority, which result in: (a) the Banks having to pay taxes for transactions hereunder, or a change in the rate or bases of the taxes payable by the Borrower to the Banks pursuant to this Agreement (except for changes in the mandatory tax rate imposed on the net income of the Banks by the R.O.C. government or the jurisdiction of the incorporation of the Banks), (b) an increase or change in application of any reserve, special deposit or similar regulations with respect to the Facility, or (c) an increase in the costs for the Banks to perform or maintain Commitments hereunder, or a decrease in the amounts otherwise receivable by the Banks under this Agreement, and to the extent deemed material by the Majority Banks, the Borrower shall, upon demand of the Banks, pay such additional sums to the Banks as indemnity for the increase in costs or decease in revenue to the Banks. The impact of the above change of law shall be determined based upon the relevant documentary evidence so presented by the affected Bank(s).