Common use of Tax Costs Clause in Contracts

Tax Costs. In the event that any United States federal, state or local income tax or any Canadian federal or provincial income or other tax is payable by the Indemnified Party in respect of any payment made by the Indemnifying Parties to the Indemnified Party under this Agreement, the Indemnifying Parties shall pay to the Indemnified Party an amount sufficient to provide the Indemnified Party with the net after tax amount to which the Indemnified Party would otherwise have been entitled, provided that in calculating such net after tax amount, the benefit of any tax deduction available to the Indemnified Party in connection therewith shall be deducted.