Common use of Determination of Payments Clause in Contracts

Determination of Payments. (a) Whenever it may be necessary for purposes of this Article IX to determine the amount of any Income Inclusion, or the amount of any tax savings resulting from an Income Inclusion, such determination shall be made on the assumption that the Federal, state and local income taxes of Owner Participant are payable at the highest marginal statutory tax rates in effect for corporate taxpayers for the respective years to which such Income Inclusion or tax savings relate (the "Effective Rate"). When determining the amount of any Loss suffered by Owner Participant, or the amount of any tax savings resulting from a Loss, such determination shall be made on the basis of the assumption that the Federal income taxes of Owner Participant are payable at the rate set forth in Section 9.01(d) (the "Assumed Rate") and on the assumption that in computing its Federal income tax liability, Owner Participant can currently fully utilize the tax benefits that are the subject of any Loss or that result from a Loss against taxes payable at the Assumed Rate. In calculating the amount payable with respect to an Income Inclusion, or the tax savings resulting therefrom, it shall be conclusively presumed that, for any taxable year of Owner Participant, Owner Participant suffers a corresponding Income Inclusion for state and local income tax purposes in any circumstance in which it suffers an Income Inclusion (and realizes corresponding state and local income tax benefits resulting from an Income Inclusion when such benefits are available for Federal income tax purposes) respectively. For purposes of determining the amount of tax savings from any payment by the Owner Participant to Lessee, it shall be assumed that Federal, state and local taxes are payable by Owner Participant at the highest marginal statutory rates in effect for the relevant period. The determination of the amount payable to Owner Participant under this Article IX shall be made by Owner Participant, who shall furnish Lessee with a notice setting forth in reasonable detail the computations and methods used in computing such amount. Lessee agrees that it will not have the right to inspect the tax returns, books, records or any other documents of Owner Participant in connection with any computation pursuant to this Article IX. (b) At the request of Lessee, the calculation of any amount (but not the existence of any liability for payment under this Article IX) payable pursuant to this Article IX and any corresponding adjustment to stipulated Loss Value shall be verified or corrected by a nationally recognized accounting firm mutually acceptable to Owner Participant and Lessee that does not currently represent either Owner Participant or Lessee. The cost of such verification or correction will be borne by Lessee unless the initial calculation was incorrect in the Owner Participant's favor by more than 5% of the amount actually determined in which event the cost of such verification shall be borne by Owner Participant.

Determination of Payments. (a) Whenever it may be necessary for purposes of this Article IX to determine the amount of any Income Inclusion, or the amount of any tax savings resulting from an Income Inclusion, such determination shall be made on the assumption that the Federal, state and local income taxes of Owner Participant are payable at the highest marginal statutory tax rates in effect for corporate taxpayers for the respective years to which such Income Inclusion or tax savings relate (the "Effective Rate"). When determining the amount of any Loss suffered by Owner Participant, or the amount of any tax savings resulting from a Loss, such determination shall be made on the basis of the assumption that the Federal income taxes of Owner Participant are payable at the rate set forth in Section 9.01(d) (the "Assumed Rate") and on the assumption that in computing its Federal income tax liability, Owner Participant can currently fully utilize the tax benefits that are the subject of any Loss or that result from a Loss against taxes payable at the Assumed Rate. In calculating the amount payable with respect to an Income Inclusion, or the tax savings resulting therefrom, it shall be conclusively presumed that, for any taxable year of Owner Participant, Owner Participant suffers a corresponding Income Inclusion for state and local income tax purposes in any circumstance in which it suffers an Income Inclusion (and realizes corresponding state and local income tax benefits resulting from an Income Inclusion when such benefits are available for Federal income tax purposes) respectively. For purposes of determining the amount of tax savings from any payment by the Owner Participant to Lessee, it shall be assumed that Federal, state and local taxes are payable by Owner Participant at the highest marginal statutory rates in effect for the relevant period. The determination of the amount payable to Owner Participant under this Article IX shall be made by Owner Participant, who shall furnish Lessee with a notice setting forth in reasonable detail the computations and methods used in computing such amount. Lessee agrees that it will not have the right to inspect the tax returns, books, records or any other documents of Owner Participant in connection with any computation pursuant to this Article IX. (b) At the request of Lessee, the calculation of any amount (but not the existence of any liability for payment under this Article IX) payable pursuant to this Article IX and any corresponding adjustment to stipulated Loss Value shall be verified or corrected by a nationally recognized accounting firm mutually acceptable to Owner Participant and Lessee that does not currently represent either Owner Participant or Lessee. The cost of such verification or correction will be borne by Lessee unless the initial calculation was incorrect in the Owner Participant's favor by more than 5% of the amount actually determined in which event the cost of such verification shall be borne by Owner Participant.)