Common use of REGULAR FEDERAL INCOME TAX Clause in Contracts

REGULAR FEDERAL INCOME TAX. If the consolidated federal income tax liability of the Adaptec Group for any taxable year during which Roxio is a member of the group is determined on a regular tax basis, the amount of federal income taxes allocable to Roxio shall be determined using the method described in section 1.1502-32(b)(3)(iv)(D) of the Treasury regulations. Thus, Roxio shall be required to pay for any reduction in its separate company liability because of the absorption of losses, credits or other tax attributes of other members. Conversely, Roxio shall be entitled to compensation to the extent that the absorption of its losses, credits, or other tax attributes reduces the group's consolidated federal income tax liability.