Common use of Adjustments for Additional Amount Clause in Contracts

Adjustments for Additional Amount. If an Additional Amount is determined with respect to a Member for a Consolidated Return taxable year, then (i) the tentative Separate Tax Liability of that Member, as determined pursuant to paragraph (b), shall be increased by such Additional Amount; and (ii) the Separate Tax Liability of each of those Members whose tax attributes are absorbed shall be reduced by a pro rata portion of the Additional Amount allocated to such Member, which allocation shall be made in a manner that reasonably reflects the absorption of the tax attributes. This paragraph (c) and Section 3 hereof are intended to allocate Additional Amounts of Separate Return Tax Liability in accordance with the percentage method of Reg. (S)1.1502-33(d)(3) (using 100% for each Member) and shall be interpreted to comply in all material respects with that method.