Common use of A U Clause in Contracts

A U. S. consolidated income tax return shall be filed by Parent for the tax year ended December 31, 1996, and for each subsequent taxable period in respect of which this Agreement is in effect and for which the Affiliated Group is required or permitted to file a consolidated tax return. Each Subsidiary, if not previously done, shall execute and file such consent, elections, and other documents that may be required or appropriate for the proper filing of such returns. 2. a. For each accounting period, each member of the Affiliated Group shall allocate tax expenses or benefits to the members of the group for financial reporting purposes based on each member's relative contribution to the group's consolidated tax liability. Each member of the Affiliated Group shall compute its deferred tax assets and liabilities in the same manner. This method is known as the Pro Rata Method under FASB Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes."