Common use of Payment of Liabilities and Taxes Clause in Contracts

Payment of Liabilities and Taxes. Pay, when due, all of its liabilities, and timely file all tax returns and pay and discharge promptly all taxes, assessments and governmental charges and levies upon Sun-Ex or upon Sun-Ex’s income, profits or property, except to the extent the amount or validity thereof is contested in good faith by appropriate proceedings so long as adequate cash reserves have been set aside therefor and enforcement of such contested indebtedness, liability or tax is stayed. Notwithstanding the foregoing covenant, the Solar Cell Owner shall indemnify and hold Sun- Ex harmless, on a pro rata basis (based on the Ownership Percentage) against any and all claims by any tax authority for any underpayment of sales, use, goods and services, value added or any other tax or levy and any penalties or interest levied thereon where such underpayment was made in the bona fide but mistaken belief that it was correct;