Common use of Income Tax Liability Clause in Contracts

Income Tax Liability. NEON Optica shall also reimburse NU for any income tax liability incurred by NU as a result of its acquisition of NUNet. NEON Optica will supply NU, on request and no more frequently than quarterly, with the costs and other details of any additions to NUNet such that each separate party hereto can calculate its individual income tax liability. NU shall take reasonable efforts suggested by NEON Optica to minimize the amount of said income tax liability on its return(s), in accordance with applicable laws and regulations. The parties agree that Grantor’s tax liability to be reimbursed hereunder and under the 2002 Phase 2 Agreement through June 25, 2002 is in the amount of $1,425,439. This amount shall be deemed to be billed in full on July 1, 2004 and be due and payable by NEON Optica no later than December 31, 2004. NU shall, from time to time, calculate any additional income tax liability for NUNet acquired after June 25, 2002 and invoice NEON Optica. NEON Optica shall pay such amount within sixty (60) days of receiving such invoice. NEON Optica shall hold harmless, indemnify and defend NU in the event NU’s tax position with respect to NUNet is challenged by the IRS. In lieu of cash, NEON Optica shall provide said reimbursement in the form of additional fiber segments, engineering services, or other telecommunication services that NU may request from NEON Optica from time to time and which NEON Optica agrees to provide, which segments and/or services shall have a value (grossed up to take account of the time value of money and the timing of any actual tax payments) equivalent to NU’s tax liability described in this paragraph. In a given year, NEON Optica shall only be obligated to provide reimbursement valued up to an amount equal to the actual tax liability incurred by NU for the prior tax year, plus any unused reimbursement amounts from earlier years.

Income Tax Liability. NEON Optica Grantee shall also reimburse NU Grantor for any income tax liability incurred by NU Grantor as a result of its acquisition of NUNet. NEON Optica Grantee will supply NU, Grantor on request and no more frequently than quarterly, quarterly with the costs and other details of any additions to NUNet such that each separate party hereto Grantor operating company can calculate its individual income tax liability. NU Grantor shall take reasonable efforts suggested by NEON Optica Grantee to minimize the amount of said income tax liability on its return(s), in accordance with applicable laws and regulations. The parties agree that Grantor’s tax liability to be reimbursed hereunder and under the 2002 Phase 2 Agreement through June 25, 2002 is in the amount of $1,425,439. This amount shall be deemed to be billed in full on July 1, 2004 and be due and payable by NEON Optica Grantee no later than December 31, 2004. NU Grantor shall, from time to time, calculate any additional income tax liability for NUNet acquired after June 25, 2002 and invoice NEON OpticaGrantee. NEON Optica Grantee shall pay such amount within sixty (60) days of receiving such invoice. NEON Optica Grantee shall hold harmless, indemnify and defend NU Grantor in the event NUGrantor’s tax position with respect to NUNet is challenged by the IRS. In lieu of cash, NEON Optica Grantee shall provide said reimbursement in the form of additional fiber segments, engineering services, or other telecommunication services that NU Grantor may request from NEON Optica Grantee from time to time and which NEON Optica Grantee agrees to provide, which segments and/or services shall have a value (grossed up to take account of the time value of money and the timing of any actual tax payments) equivalent to NUGrantor’s tax liability described in this paragraph. In a given year, NEON Optica Grantee shall only be obligated to provide reimbursement valued up to an amount equal to the actual tax liability incurred by NU Grantor for the prior tax year, plus any unused reimbursement amounts from earlier years.

Income Tax Liability. NEON Optica Grantee shall also reimburse NU Grantor for any income tax liability incurred by NU Grantor as a result of its acquisition of NUNet. NEON Optica Grantee will supply NU, Grantor on request and no more frequently than quarterly, quarterly with the costs and other details of any additions to NUNet such that each separate party hereto Grantor operating company can calculate its individual income tax liability. NU Grantor shall take reasonable efforts suggested by NEON Optica Grantee to minimize the amount of said income tax liability on its return(s), in accordance with applicable laws and regulations. The parties agree that Grantor’s 's tax liability to be reimbursed hereunder and under the 2002 Phase 2 Agreement through June 25, 2002 is in the amount of $1,425,439. This amount shall be deemed to be billed in full on July 1, 2004 and be due and payable by NEON Optica Grantee no later than December 31, 2004. NU Grantor shall, from time to time, calculate any additional income tax liability for NUNet acquired after June 25, 2002 and invoice NEON OpticaGrantee. NEON Optica Grantee shall pay such amount within sixty (60) days of receiving such invoice. NEON Optica Grantee shall hold harmless, indemnify and defend NU Grantor in the event NU’s Grantor's tax position with respect to NUNet is challenged by the IRS. In lieu of cash, NEON Optica Grantee shall provide said reimbursement in the form of additional fiber segments, engineering services, or other telecommunication services that NU Grantor may request from NEON Optica Grantee from time to time and which NEON Optica Grantee agrees to provide, which segments and/or services shall have a value (grossed up to take account of the time value of money and the timing of any actual tax payments) equivalent to NU’s Grantor's tax liability described in this paragraph. In a given year, NEON Optica Grantee shall only be obligated to provide reimbursement valued up to an amount equal to the actual tax liability incurred by NU Grantor for the prior tax year, plus any unused reimbursement amounts from earlier years.

Income Tax Liability. NEON Optica shall also reimburse NU for any income tax liability incurred by NU as a result of its acquisition of NUNet. NEON Optica will supply NU, on request and no more frequently than quarterly, with the costs and other details of any additions to NUNet such that each separate party hereto can calculate its individual income tax liability. NU shall take reasonable efforts suggested by NEON Optica to minimize the amount of said income tax liability on its return(s), in accordance with applicable laws and regulations. The parties agree that Grantor’s 's tax liability to be reimbursed hereunder and under the 2002 Phase 2 Agreement through June 25, 2002 is in the amount of $1,425,439. This amount shall be deemed to be billed in full on July 1, 2004 and be due and payable by NEON Optica no later than December 31, 2004. NU shall, from time to time, calculate any additional income tax liability for NUNet acquired after June 25, 2002 and invoice NEON Optica. NEON Optica shall pay such amount within sixty (60) days of receiving such invoice. NEON Optica shall hold harmless, indemnify and defend NU in the event NU’s 's tax position with respect to NUNet is challenged by the IRS. In lieu of cash, NEON Optica shall provide said reimbursement in the form of additional fiber segments, engineering services, or other telecommunication services that NU may request from NEON Optica from time to time and which NEON Optica agrees to provide, which segments and/or services shall have a value (grossed up to take account of the time value of money and the timing of any actual tax payments) equivalent to NU’s 's tax liability described in this paragraph. In a given year, NEON Optica shall only be obligated to provide reimbursement valued up to an amount equal to the actual tax liability incurred by NU for the prior tax year, plus any unused reimbursement amounts from earlier years.