Tax Covenants Sample Clauses
A Tax Covenants clause sets out the obligations and assurances between parties regarding tax matters related to a transaction or ongoing business relationship. Typically, it requires one party to guarantee that all relevant taxes have been paid or will be paid, and may include promises to indemnify the other party for any tax liabilities arising from periods before the transaction. This clause is essential for allocating the risk of unexpected tax liabilities, ensuring that each party is protected from unforeseen tax issues that could arise after the agreement is executed.
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Tax Covenants. (a) Notwithstanding anything to the contrary set forth in this Agreement, any and all transfer, sales, use, purchase, value added, excise, real property, personal property, intangible stamp, documentary, registration, business, occupation or similar Taxes imposed on, or resulting from, the transfer of any Purchased Assets pursuant to this Agreement (excluding any franchise taxes imposed on Seller) and all related penalties and interests (collectively “Transfer Taxes”) shall be paid one half by Seller and one half by Purchaser. To the extent any Transfer Taxes are imposed on, or incurred by, either Party in excess of such amount as set forth herein, the other Party shall promptly reimburse such first Party for one half of such Transfer Taxes. Seller and Purchaser shall reasonably cooperate to prepare and file all necessary Tax Returns and other documentation with respect to all such Transfer Taxes, and all costs of such preparation and filing shall be shared equally by Seller and Purchaser.
(b) Seller shall timely file Tax Returns in the jurisdictions that impose Taxes on Seller or where Seller has a duty to file Tax Returns of the transactions contemplated by this Agreement and the other Transaction Documents in the form and manner required by such taxing authorities. In Texas and New Mexico, Seller shall timely apply for any available tax clearance certificate (a “Tax Clearance Certificate”). Seller shall use reasonable efforts to obtain any such Tax Clearance Certificates prior to the Closing. If any taxing authority asserts that any such Tax is due, Seller shall either promptly dispute the asserted Taxes in any available administrative or judicial proceeding or promptly pay any and all such amounts and shall provide evidence to Purchaser that such Liabilities have been paid in full or otherwise satisfied.
(c) All real property Taxes, personal property Taxes and similar ad valorem obligations levied with respect to any Purchased Assets for a taxable period which includes (but does not end on) the Closing Date, whether or not imposed or assessed before or after the Closing Date, shall be apportioned between Seller, on one hand, and Purchaser, on the other hand, based on the number of days of such taxable period through the Closing Date (the “Pre-Closing Property Tax Period”) and the number of days of such taxable period after the Closing Date (the “Post-Closing Property Tax Period”). Seller shall be liable under this Section 4.9(c) for the proportionate a...
Tax Covenants. (a) Without the prior written consent of Buyer, Seller and SED (and, prior to the Closing, each member of the Company Group, its Affiliates and their respective Representatives) shall not, to the extent it may affect, or relate to, any member of the Company Group, make, change or rescind any Tax election, amend any Tax Return or take any position on any Tax Return, take any action, omit to take any action or enter into any other transaction that would have the effect of increasing the Tax liability or reducing any Tax asset of Buyer or any member of the Company Group in respect of any Post-Closing Tax Period. Each of Seller and SED agrees that neither Buyer nor DSS is to have any liability for any Tax resulting from any action of Seller, SED, any member of the Company Group, their Affiliates or any of their respective Representatives, and agrees to indemnify and hold harmless Buyer and DSS (and, after the Closing Date, any member of the Company Group) against any such Tax or reduction of any Tax asset.
(b) All transfer, documentary, sales, use, stamp, registration, value added and other such Taxes and fees (including any penalties and interest) incurred in connection with this Agreement and the Ancillary Documents (including any real property transfer Tax and any other similar Tax) shall be borne and paid by Seller when due. Seller shall, at its own expense, timely file any Tax Return or other document with respect to such Taxes or fees (and Buyer shall cooperate with respect thereto as necessary).
(c) Buyer shall prepare, or cause to be prepared, all Tax Returns required to be filed by any member of the Company Group after the Closing Date with respect to a Pre-Closing Tax Period. Any such Tax Return shall be prepared in a manner consistent with past practice (unless otherwise required by Law) and without a change of any election or any accounting method and shall be submitted by Buyer to Seller (together with schedules, statements and, to the extent requested by Seller, supporting documentation) at least 45 days prior to the due date (including extensions) of such Tax Return. If Seller objects to any item on any such Tax Return, it shall, within ten days after delivery of such Tax Return, notify Buyer in writing that it so objects, specifying with particularity any such item and stating the specific factual or legal basis for any such objection. If a notice of objection shall be duly delivered, Buyer and Seller shall negotiate in good faith and use their...
Tax Covenants. In order to preserve the exclusion of interest on the Bonds from gross income for federal income tax purposes and as an inducement to purchasers of the Bonds, the Lessee and the Lessor represent, covenant and agree that neither the Lessor nor the Lessee will take any action or fail to take any action with respect to the Bonds, this Lease or the Leased Premises that will result in the loss of the exclusion from gross income for federal tax purposes of interest on the Bonds under Section 103 of the Code, nor will they act in any other manner which will adversely affect such exclusion; and it will not make any investment or do any other act or thing during the period that the Bonds are outstanding which will cause any of the Bonds to be “arbitrage bonds” within the meaning of Section 148 of the Code. The covenants in this Section are based solely on current law in effect and in existence on the date of issuance of the Bonds. It shall not be an event of default under this Lease if interest on any Bonds is not excludable from gross income pursuant to any provision of the Code which is not in existence and in effect on the issue date of the Bonds. All officers, members, employees and agents of the Lessor and the Lessee are authorized to provide certifications of facts and estimates that are material to the reasonable expectations of the Lessor and the Lessee as of the date the Bonds are issued and to enter into covenants on behalf of the Lessor and the Lessee evidencing the Lessor’s and the Lessee’s commitments made herein. In particular, all or any members or officers of the Lessor and the Lessee are authorized to certify and enter into covenants regarding the facts and circumstances and reasonable expectations of the Lessor and the Lessee on the date the Bonds are issued and the commitments made by the Lessor and the Lessee herein regarding the amount and use of the proceeds of the Bonds. Notwithstanding any other provisions hereof, the foregoing covenants and authorizations (the “Tax Sections”) which are designed to preserve the exclusion of interest on the Bonds from gross income under federal income tax law (the “Tax Exemption”) need not be complied with if the Lessee receives an opinion of nationally recognized bond counsel that any Tax Section is unnecessary to preserve the Tax Exemption.
Tax Covenants. The Borrower further represents, warrants and covenants as follows:
Tax Covenants. (a) Contributor and the Operating Partnership shall provide each other with such cooperation and information relating to any of the Contributed Interests, the Contributed Entities, the Subsidiary Entities, the Property Entities or the Properties as the parties reasonably may request in (i) filing any Tax Return, amended Tax Return or claim for tax refund, (ii) determining any liability for taxes or a right to a tax refund, (iii) conducting or defending any proceeding in respect of taxes, or (iv) performing tax diligence, including with respect to the impact of this transaction on the REIT’s tax status as a REIT. Such reasonable cooperation shall include making employees available on a mutually convenient basis to provide additional information and explanation of any material provided hereunder. The Operating Partnership shall promptly notify Contributor upon receipt by the Operating Partnership or any of its affiliates of notice of (i) any pending or threatened tax audits or assessments with respect to the income, properties or operations of any of the Contributed Entities, the Subsidiary Entities, the Property Entities or their subsidiaries or with respect to any Property and (ii) any pending or threatened federal, state, local or foreign tax audits or assessments of the Operating Partnership or any of its affiliates, in each case, which may affect the liabilities for taxes of Contributor with respect to any tax period ending before or as a result of the Closing. Contributor shall promptly notify the Operating Partnership in writing upon receipt by Contributor or any of its affiliates of notice of any pending or threatened federal, state, local or foreign tax audits or assessments relating to the income, properties or operations of any of the Contributed Entities, the Property Entities or the Subsidiary Entities or with respect to any Property. Each of the Operating Partnership and Contributor may participate at its own expense in the prosecution of any claim or audit with respect to taxes attributable to any taxable period ending on or before the Closing Date; provided, that Contributor shall have the right to control the conduct of any such audit or proceeding or portion thereof for which Contributor has acknowledged liability (except as a partner of the Operating Partnership) for the payment of any additional tax liability, and the Operating Partnership shall have the right to control any other audits and proceedings. Notwithstanding the foregoing, nei...
Tax Covenants. (a) Without the prior written consent of Buyer, Sellers shall not, to the extent it may affect or relate to the Company: (i) make, change, or rescind any Tax election; (ii) amend any Tax Return; (iii) take any position on any Tax Return; or (iv) take any action, omit to take any action, or enter into any other transaction that would have the effect of increasing the Tax liability or reducing any Tax asset of Buyer or the Company, in respect of any taxable period that begins after the Closing Date or, in respect of any taxable period that begins before and ends after the Closing Date (each such period, a “Straddle Period”), the portion of any Straddle Period beginning after the Closing Date.
(b) All transfer, documentary, sales, use, stamp, registration, value added, and other such Taxes and fees (including any penalties and interest) incurred in connection with this Agreement and the other Transaction Documents shall be borne and paid by Sellers when due. Sellers shall, at their own expense, timely file any Tax Return or other document with respect to such Taxes or fees (and Buyer shall cooperate with respect thereto as necessary).
(c) Buyer shall prepare, or cause to be prepared, all Tax Returns required to be filed by the Company after the Closing Date with respect to any taxable period or portion thereof ending on or before the Closing Date and all Straddle Period Tax Returns. Any such Tax Return shall be prepared in a manner consistent with past practice (unless otherwise required by Law) and without a change of any election or any accounting method.
Tax Covenants. (a) The Parties agree that the income related to the Subject Interests for the period up to and including the Closing Date will be reflected on the federal income Tax Return of CONE Gathering and that the members of CONE Gathering shall bear the liability for any Taxes associated with such income. The Parties further agree that the income related to the Subject Interests for the period after the Closing Date will be reflected on the federal income Tax Return of the Partnership and that the partners of the Partnership shall bear the liability for any Taxes associated with such income.
(b) The Parties shall cooperate fully, and cause their Affiliates to cooperate fully, as and to the extent reasonably requested by the other Party, to accomplish the purposes of this Section 5.4, requests for the provision of any information or documentation within the knowledge or possession of the other Party as reasonably necessary to facilitate compliance with financial reporting obligations arising under ASC 740 (formerly FASB Statement No. 109) (including compliance with FIN 48) promulgated by the Financial Accounting Standards Board, and any audit, litigation or other proceeding (each a “Tax Proceeding”) with respect to Taxes. Such cooperation shall include access to, the retention and (upon the other Party’s request) the provision of records and information which are reasonably relevant to any Tax Return or Tax Proceeding, and making employees available on a mutually convenient basis to provide additional information and explanation of any material provided hereunder. The Partnership and the CONE Gathering will use their respective commercially reasonable efforts to retain all books and records with respect to Tax matters pertinent to the Subject Interests relating to any taxable period beginning before the Closing Date until the later of six years after the Closing Date or the expiration of the applicable statute of limitations of the respective taxable periods (including any extensions thereof), and to abide by all record retention agreements entered into with any Tax Authority. The Partnership and CONE Gathering each agree, upon request, to use their respective commercially reasonable efforts to obtain any certificate or other document from any Tax Authority or any other Person as may be necessary to mitigate, reduce or eliminate any Tax that could be imposed with respect to the transactions contemplated by this Agreement.
(c) To the extent an election under Section...
Tax Covenants. (a) For all tax periods that begin before the Closing Date and end on or before the Closing Date (the “Pre-Closing Period”), LGC shall or shall cause Lehigh GP to prepare all Tax Returns for Lehigh GP (each of the foregoing, a “Pre-Closing Period Return”), LGC shall or shall cause Lehigh GP to timely file such Pre-Closing Period Returns due before the Closing Date and LGC shall deliver to GP Buyer, and GP Buyer shall timely file, any Pre-Closing Period Returns due after the Closing Date. Each such Pre-Closing Period Return shall be prepared in a manner consistent with past practice, except as otherwise required by applicable Tax Law. LGC shall be responsible for the cost and expense of preparing and filing all Pre-Closing Period Returns and shall bear all Taxes for such Pre-Closing Period whether or not reflected on a Pre-Closing Period Return.
(b) For all tax periods that begin before the Closing Date and end after the Closing Date (each, a “Straddle Period”), GP Buyer shall cause Lehigh GP to prepare and timely file all Tax Returns for Lehigh GP (each, a “Straddle Period Return”). Each such Tax Return shall be prepared in a manner consistent with past practice, except as otherwise required by applicable Tax Law. CST and GP Buyer shall deliver to LGC for LGC’s review, comment and approval any Straddle Period Return at least thirty (30) days before the due date (including extensions) for filing the Straddle Period Return. CST and GP Buyer shall be responsible for the cost and expense of preparing and filing the Straddle Period Returns. Lehigh GP shall make or cause to be made any changes in such Straddle Period Return as LGC may reasonably request, subject to CST and GP Buyer’s approval, which shall not be unreasonably withheld, conditioned or delayed. LGC shall bear all Taxes of Lehigh GP (whether or not reflected on Lehigh GP’s Return) for the portion of any Straddle Period ending on the Closing Date, and CST and GP Buyer shall bear all Taxes of Lehigh GP (whether or not reflected on Lehigh GP’s Return) for the portion of any Straddle Period beginning on the day after the Closing Date.
(c) For the Pre-Closing Period and for any Straddle Period, CST and GP Buyer shall cause Lehigh GP to specially allocate to IDR Sellers gross income or gain of the Partnership pursuant to Section 6.1(d)(iii)(B) of the Partnership Agreement to reflect the cumulative amount of all Incentive Distributions made to IDR Sellers (and their predecessors in interest) prior to the C...
Tax Covenants. (a) The Members shall prepare and timely file all Tax Returns with the appropriate federal, state, local and foreign Tax Authorities of the Company and the Company Subsidiaries for Tax periods ending on or prior to the Closing Date and shall timely pay all Taxes due with respect to such Tax Returns; provided, however, that any such Tax Returns shall be submitted to the Purchaser not later than 30 days prior to the due date for filing such Tax Returns (including extensions) for review and approval by the Purchaser, which approval may not be unreasonably withheld or delayed and which approval shall be deemed to have been given if the Purchaser does not respond within 15 days after such Tax Return was submitted. The Purchaser shall prepare and timely file, or cause to be prepared and timely filed, all Straddle Period Tax Returns required to be filed by the Company and the Company Subsidiaries and shall cause the Company and the Company Subsidiaries to pay the Taxes shown to be due thereon; provided, however, that (i) such Tax Returns shall be filed in a manner consistent with Applicable Law, (ii) such Tax Returns shall be submitted to the Members’ Representative not later than 30 days prior to the due date for filing such Tax Returns (including extensions) for review and approval by the Members’ Representative, which approval may not be unreasonably withheld or delayed and which approval shall be deemed to have been given if the Members’ Representative does not respond within 15 days after such Tax Return was submitted, and (iii) the Members shall promptly reimburse the Purchaser for the portion of such Taxes for the Pre–Closing Tax Period. The Members shall promptly furnish to the Purchaser all information and records reasonably requested by the Purchaser for use in preparation of any Straddle Period Tax Returns.
(b) In the case of any Straddle Period, (i) real, personal and intangible property Taxes of the Company and the Company Subsidiaries for the Pre–Closing Tax Period shall be equal to the amount of such Taxes for the entire Straddle Period multiplied by a fraction, the numerator of which is the number of days during the Straddle Period that are in the Pre–Closing Tax Period and the denominator of which is the number of days in the Straddle Period; and (ii) Taxes of the Company and the Company Subsidiaries, other than those covered in clause (i) of this Section 7.6(b), for the Pre–Closing Tax Period shall be computed as if such Straddle Period ended as...
Tax Covenants. Seek specific performance of, and enforce, the tax covenants of the Funding Loan Agreement, the Regulatory Agreement, the Tax Certificate and the Borrower Loan Agreement, injunctive relief against acts which may be in violation of any of the tax covenants, and enforce the Borrower’s obligation to pay amounts for credit to the Rebate Fund;