Common use of Timing Adjustment Clause in Contracts

Timing Adjustment. In the event that a final determination (which shall include the execution of an United States Internal Revenue Service Form 870-AD or successor or similar form) results in a timing difference (e.g., an acceleration of income or delay of deductions) that would increase EME's liability for Taxes pursuant to this Section 11.5 or results in a timing difference (e.g., an acceleration of deductions or delay of income) that would increase the Purchaser's liability for Taxes pursuant to this Section 11.5, the Purchaser or EME, as the case may be, shall promptly make payments to EME or the Purchaser as and when the Purchaser or EME, as the case may be, actually realizes any Tax benefits as a result of such timing difference (or under such other method for determining the present value of any such anticipated Tax benefits as agreed to by the Parties). Such Tax benefit for U.S. or foreign federal, state, provincial and local Income Tax purposes shall be computed for any year using Purchaser's or EME's, as the case may be, actual Tax liability with and without giving effect to such timing difference.