Common use of Penalties/Interest Clause in Contracts

Penalties/Interest. In the event that a change in the tax liability of the Group arising from an amended return, adjustment or assessment described in Section 4.1 results or will result in the receipt or payment of interest, or the payment or recovery of penalties in excess of the aggregate interest or penalties included in determining the aggregate Separate Return Tax Liability of all of the Members, such interest or penalties shall be allocated to each Member as follows: The total amount of such excess interest or penalty shall be multiplied by a fraction, the denominator of which is the amount of the change in the Group Tax Liability on which the interest or penalty is computed, and the numerator of which is the amount of the change in the Member’s allocated tax liability, in both cases with respect to the most recent prior computation of the Group Tax Liability and the Member’s Separate Return Tax Liability. Each Member shall pay to LSI Logic, or LSI Logic shall pay to each Member, as the case may be, the excess interest or penalties allocated to each Member pursuant to this Section 4.5 at the same time the amounts payable pursuant to Section 4.1 become payable.

Penalties/Interest. In the event that a change in the tax liability of the Group arising from an amended return, adjustment or assessment described in Section 4.1 results or will result in the receipt or payment of interest, or the payment or recovery of penalties in excess of the aggregate interest or penalties included in determining the aggregate Separate Return Tax Liability of all of the Members, such interest or penalties shall be allocated to each Member as follows: The total amount of such excess interest or penalty shall be multiplied by a fraction, the denominator of which is the amount of the change in the Group Tax Liability on which the interest or penalty is computed, and the numerator of which is the amount of the change in the Member’s 's allocated tax liability, in both cases with respect to the most recent prior computation of the Group Tax Liability and the Member’s 's Separate Return Tax Liability. Each Member shall pay to LSI Logic, or LSI Logic shall pay to each Member, as the case may be, the excess interest or penalties allocated to each Member pursuant to this Section 4.5 at the same time the amounts payable pursuant to Section 4.1 become payable.