GROSS-UP FOR TAXES ON REQUIRED PAYMENTS. If the receipt or accrual of any payment required by this Agreement is subject to any tax, the payor shall pay an additional amount so that the total amount received by the payee, net of any applicable taxes, equals the amount of the required payment. If a reasonable basis exists to treat a payment as not to subject to tax, no gross-up shall be required under this Section 4 unless the payment is finally determined to be subject to tax.
Appears in 2 contracts
Samples: Tax Sharing and Indemnity Agreement (Maxtor Corp), Tax Sharing and Indemnity Agreement (Maxtor Corp)
GROSS-UP FOR TAXES ON REQUIRED PAYMENTS. If the receipt or accrual of any payment required by this Agreement is subject to any tax, the payor shall pay an additional amount so that the total amount received by the payee, net of any applicable taxes, equals the amount of the required payment. If a reasonable basis exists to treat a payment as not to subject to tax, no gross-up shall be required under this Section 4 7 unless the payment is finally determined to be subject to tax.
Appears in 2 contracts
Samples: Tax Sharing and Indemnity Agreement (Ess Technology Inc), Tax Sharing and Indemnity Agreement (Vialta Inc)
