Common use of Grossing-up for taxes Clause in Contracts

Grossing-up for taxes. If a Security Party is required by law to make a tax deduction from any payment: (a) such Security Party shall notify the Agent as soon as it becomes aware of the requirement; (b) such Security Party shall pay the tax deducted to the appropriate taxation authority promptly, and in any event before any fine or penalty arises; and (c) except if the deduction is for collection or payment of a Non-indemnified Tax of a Creditor Party, the amount due in respect of the payment shall be increased by the amount necessary to ensure that each Creditor Party receives and retains (free from any liability relating to the tax deduction) a net amount which, after the tax deduction, is equal to the full amount which it would otherwise have received.