Tax Allocation and Indemnity Agreement税金分配与补偿合同

-58-TaxAllocationandIndemnityAgreement税金分配与补偿合同核心提示：THISTAXALLOCATIONANDINDEMNITYAGREEMENT(thisAGREEMENT),ismadeandenteredintoasof_________(M/D/Y),byandbetweenAAACORPORATION,a_________(STATE)corporation,andBBBCORPORATION(f/n/aGamingCo.,Inc.),a_________(STATE)corporatiTHISTAXALLOCATIONANDINDEMNITYAGREEMENT(thisAGREEMENT),ismadeandenteredintoasof_________(M/D/Y),byandbetweenAAACORPORATION,a_________(STATE)corporation,andBBBCORPORATION(f/n/aGamingCo.,Inc.),a_________(STATE)corporationandwhollyownedsubsidiaryofAAA.WHEREAS,AAA,BBBandAAA’sothersubsidiarieshavejoinedinfilingconsolidatedfederalIncomeTaxReturnsandcertainconsolidated,combined,unitaryorsimilarstate,foreignandlocalTaxReturns;WHEREAS,pursuanttoaDistributionAgreementdatedasof_________(M/D/Y)byandamongAAAandBBB(theDistributionAgreement),AAAwilldistributetotheholdersofitscommonstockallofthesharesofcommonstockofBBB(theDistribution);WHEREAS,pursuanttotheDistributionAgreement,BBBwillleavetheAAAGroup(asdefinedherein);andWHEREAS,thepartiesheretowishtoprovidefor(i)theallocationof,andindemnificationagainst,certainliabilitiesforTaxes,(ii)thepreparationandfilingofTaxReturnsandthepaymentofTaxeswithrespecttheretoand(iii)certainrelatedmatters.NOWTHEREFORE,inconsiderationoftheforegoingandtherespectivecovenantsandagreementssetforthbelow,thepartiesagreeasfollows:ARTICLEI.DEFINITIONSWhenusedhereinthefollowingtermsshallhavethefollowingmeanings:AFFILIATE:withrespecttoanycorporation(thegivencorporation),eachentitythatdirectlyorindirectly,throughoneormoreintermediaries,controls,iscontrolledby,orisundercommoncontrolwith,thegivencorporation.Forpurposesofthisdefinition,controlmeansthepossession,directlyorindirectly,of50%ormoreofthevotingpowerorvalueofoutstandingequityinterests.AFFILIATEDGROUP:anaffiliatedgroupofcorporationswithinthemeaningofCodeSection1504(a)(andwithoutregardtotheexclusionscontainedinCodeSection1504(b))fortheTaxablePeriodor,forpurposesofanystate,foreignorlocalTaxmattersthatarefiledonaconsolidated,combined,unitaryorsimilarbasis,anyconsolidated,combined,unitaryorsimilargroupofcorporationswithinthemeaningofthecorrespondingprovisionsoftaxlawforthejurisdictioninquestion.AFTER-TAXBASIS:anyindemnitypaymentmadehereundershallgiveeffectto,andbeadjustedbythevalueof,anyandallTaxBenefit(s)forfederal,stateorotherIncomeTaxpurposesattributabletothepaymentoftheindemnifiedliability,whichvalueshallbedeterminedonanassumedbasisby(a)multiplyingtheamountofanyapplicabledeductions,losses,offsetsorotherTaxitems(suchamountdeterminedasifsuchdeductions,losses,offsetsorotherTaxitemswillgenerateanimmediatedeductionforthefullamountultimatelyavailable)by(i)39%or(ii)ifnostateTaxBenefitshallresulttherefrom(determinedonahypotheticalbasisbyusingthehighestmarginalcorporateTaxrate),35%(suchpercentagestoincreaseordecreaseonapercentage-for-percentagebasiswithanysubsequentincreasesordecreasesinthecurrent35%maximummarginalfederalIncomeTaxrateforcorporations,and100%minusthemaximummarginalfederalIncomeTaxrateforcorporations(E.G.,65%)ofanyincreasesordecreasesinthemaximummarginalstateorlocalIncomeTaxrateforcorporations)and(b)valuinganycreditsorotherdirectreductionsofTaxonadollar-for-dollarbasis.Forexample,ifadeductiblepaymentof$100isindemnifiedhereunder,theindemnificationpaymentwithrespectthereto(applyingthecharacterizationsetforthinSection4.2)shallbereducedby$39to$61.AUDIT:anyaudit,assessmentofTaxes,otherexaminationbyanyTaxingAuthority,proceedingorappealofsuchaproceedingrelatingtoTaxes,whetherjudicialoradministrative.CARRYFORWARDS:asdefinedinSection2.12ofthisAgreement.CLOSINGDATE:thedateonwhichtheDistributioniseffectedbyAAA.CODE:theInternalRevenueCodeof1986,asamended,oranysuccessorthereto,asineffectfortheTaxableYearinquestion.COMBINEDJURISDICTION:foranyTaxablePeriod,anystate,foreignorlocaljurisdictioninwhichAAAandaAAAAffiliate(ortwoormoreAAAAffiliates)forthatperiodjoininthefilingofaconsolidated,combined,unitaryorsimilarreturnforstate,foreignorlocalTaxpurposes.CORPORATESERVICESAGREEMENT:theAAACorporationCorporateServicesAgreemententeredintobyandbetweenAAAandBBBdatedasof_________(M/D/Y)whichprovides,amongotherthings,thatAAAshall,duringthetransitionperiodspecifiedtherein,prepareorcausetobeprepared,onBBB’sbehalf,certainTaxandInformationReturnsofBBBandBBBMembers.DISPUTERESOLUTIONPROCEDURE:aprocedurewhereby(i)AAAshallselectarepresentativeofanationallyrecognizedaccountingfirm;(ii)BBBshallselectarepresentativeofasecondnationallyrecognizedaccountingfirm;(iii)thetworepresentativessoselectedshalltogetherselectarepresentativeofathirdnationallyrecognizedaccountingfirm,providedhowever,thattherepresentativesoselectedshallnotbefromanyofthefollowingfirms:(a)ArthurAndersen,LLP,(b)ErnstYoung,LLP,or(c)anyotherfirmwhichshallhavereceivedmorethan$,_________infeesfromAAA,BBB,oranysuccessororpredecessorentityinanyoftheprecedingfiveyears;and(iv)thethreerepresentativestogether(or,iftheyareunabletoagree,amajorityofthem)shall,withinareasonableperiodoftime,decidetheissue(s)submittedtothem.AAAandBBBshalleachberesponsibleforthefeesoftheirrespectiverepresentative,andthefeesofthethirdrepresentativeshallbesharedequallybyAAAandBBB.AnydecisionrenderedpursuanttoaDisputeResolutionProcedureshallbefinalandbindingonallPost-DistributionMembersandBBBMembers.DISTRIBUTION:asdefinedinthePreamble.EFFECTIVETIME:thetimeatwhichtheDistributionbecomeseffective.FINALDETERMINATION:(i)adecision,judgment,decree,orotherorderbyacourtofcompetentjurisdiction,whichhasbecomefinalandunappealable;(ii)aclosingagreementoracceptedofferincompromiseunderCodeSections7121or7122,orcomparableagreementsunderthelawsofotherjurisdictions;(iii)anyotherfinalsettlementwiththeIRSorotherTaxingAuthority(includingtheexecutionofIRSForm870AD,oracomparableformunderthelawsofotherjurisdictions,butexcludinganysuchformthatreserves(whetherbyitstermsorbyoperationoflaw)therightofthetaxpayertofileaclaimforrefundand/ortherightoftheTaxingAuthoritytoassertafurtherdeficiency);(iv)theexpirationofanapplicablestatuteoflimitations;or(v)theallowanceofarefundorcredit,butonlyaftertheexpirationofallperiodsduringwhichsuchrefundorcreditmayberecovered(includingbywayofoffset).FINALAAAGROUPCOMBINEDTAXRETURN:asdefinedinSection2.7(c)ofthisAgreement.AAA:asdefinedinthepreambletothisAgreement.AAAGROUP:AAAandeachcorporationthatisamemberofanAffiliatedGroupwithrespecttowhichAAAisthecommonparent.INCOMETAX(ES):withrespecttoanycorporationorAffiliatedGroup,anyandallTaxesbaseduponormeasuredbynetincome(regardlessofwhetherdenominatedasanincometax,afranchisetaxorotherwise).INCOMETAXRETURN:aTaxReturnrelatingtothepaymentorreceiptofanyrefundofanyIncomeTax.INFORMATIONRETURN(S):withrespecttoanycorporationorAffiliatedGroup,anyandallreturns,reports,estimates,statements,declarationsandotherfilings(otherthanTaxReturns)requiredtobefiledorsuppliedtoanyTaxingAuthority.IRS:theInternalRevenueServiceoranysuccessorthereto,includingbutnotlimitedtoitsRepresentatives.IRSRULING:TheletterrulingissuedbytheIRSinresponsetotheRulingRequest.MERGERAGREEMENT:ThatcertainAgreementandPlanofMerger,datedasofJune30,1998byandamongAAA;BBB;GamingAcquisitionCorporation,aMinnesotacorporation;GrandCasinos,Inc.,aMinnesotacorporation;andLakesGaming,Inc.,aMinnesotacorporation.OVERDUERATE:avariablerateofinterestperannumequaltotheFederalshort-termrateasestablishedfromtimetotimepursuanttoCodeSection1274(d).BBB:asdefinedinthepreambletothisAgreement.BBBGROUP:BBBandeachcorporationthatwasaPre-DistributionMemberandwhichwouldbeamemberofanAffiliatedGroupwithrespecttowhichBBBwouldbethecommonparentduringanyPost-ClosingTaxablePeriod.ForpurposesofthisAgreement,theBBBGroupshallexistfromandafterthedayafterthecloseofbusinessontheClosingDate.Totheextentapplicabletoanystate,foreignorlocalTaxmattersthatarefiledonaconsolidated,combined,unitaryorsimilarbasis,theBBBGroupshallconsistofallcorporationsjoiningwithBBBinthefilingofaconsolidated,combined,unitaryorsimilarTaxReturnforthejurisdictioninquestion.BBBMEMBER:acorporationthatwouldbeamemberoftheBBBGroup.POST-CLOSINGSTRADDLEPERIOD:withrespecttoanyStraddlePeriod,theportionbeginningafterthecloseofbusinessontheClosingDateandendingonthelastdayofsuchTaxableYear.POST-CLOSINGTAXABLEPERIOD:aTaxableYearthatbeginsafterthecloseofbusinessontheClosingDate.POST-DISTRIBUTIONAAAGROUP:AAAandeachcorporationthatwasaPre-DistributionMemberandwhichwouldbeamemberofanAffiliatedGroupwithrespecttowhichAAAwouldbethecommonparentduringanyPost-ClosingTaxablePeriod.ForpurposesofthisAgreement,thePost-DistributionAAAGroupshallexistfromandafterthecloseofbusinessontheClosingDate.Totheextentapplicabletoanystate,foreignorlocalTaxmattersthatarefiledonaconsolidated,combined,unitaryorsimilarbasis,thePost-DistributionAAAGroupshallconsistofallcorporationsjoiningwithAAAinthefilingofaconsolidated,combined,unitaryorsimilarTaxReturnforthejurisdictioninquestion.POST-DISTRIBUTIONMEMBER:acorporationthatwasaPre-DistributionMemberandisamemberofthePost-DistributionAAAGroupafterthecloseofbusinessontheClosingDate.PRE-CLOSINGSTRADDLEPERIOD:withrespecttoanyStraddlePeriod,theportionbeginningonthefirstdayofsuchTaxableYearandendingonthecloseofbusinessontheClosingDate.PRE-CLOSINGTAXABLEPERIOD:aTaxableYearthatendsonorbeforetheClosingDate.PRE-DISTRIBUTIONAAAGROUP:AAAandeachcorporationthatwouldbeamemberofanAffiliatedGroupwithrespecttowhichAAAwouldbethecommonparentduringanyPre-ClosingTaxablePeriod.ForpurposesofthisAgreement,thePre-DistributionAAAGroupshallterminateatthecloseofbusinessontheClosingDate.Totheextentapplicabletoanystate,foreignorlocalTaxmattersthatarefiledonaconsolidated,combined,unitaryorsimilarbasis,thePre-DistributionAAAGroupshallconsistofallcorporationsjoiningwithAAAinthefilingofaconsolidated,combined,unitaryorsimilarTaxReturnforthejurisdictioninquestion.PRE-DISTRIBUTIONMEMBER:acorporationthatwasamemberofthePre-DistributionAAAGroupatthecloseofbusinessontheClosingDate.REPRESENTATIVE(S):withrespecttoanypersonorentity,anyofsuchperson’sorentity’sdirectors,officers,employees,agents,consultants,accountants,attorneysandotheradvisors.RULINGREQUEST:TheprivateletterrulingrequestfiledbyAAAwiththeIRS,assupplementedandamendedfromtimetotime,withrespecttocertainfederalIncomeTaxmattersrelatingtotheDistributionandotherrelatedmatters.STRADDLEPERIOD:anyTaxableYearbeginningbeforeandendingafterthecloseofbusinessontheClosingDate.TAXBENEFIT(S):(i)inthecaseofaTaxforwhichaconsolidatedfederal,oraconsolidated,combined,unitaryorsimilarstate,foreignorlocalTaxReturnisfiled,theamountbywhichtheTaxliabilityoftheAffiliatedGroupisreduced(bydeduction,entitlementtorefund,credit,offsetorotherwise,whetheravailableinthecurrentTaxableYear,asanadjustmenttotaxableincomeinanyotherTaxableYearorasacarryforwardorcarryback,andincludingtheeffectonotherTaxesofsuchreduction),plusanyinterestreceivedwithrespecttoanyrelatedTaxrefund,and(ii)inthecaseofanyotherTax,theamountbywhichtheTaxliabilityofacorporationisreduced(bydeduction,entitlementtorefund,credit,offsetorotherwise,whetheravailableinthecurrentTaxableYear,asanadjustmenttotaxableincomeinanyotherTaxableYearorasacarryforwardorcarryback,andincludingtheeffectonotherTaxesofsuchreduction),plusanyinterestreceivedwithrespecttoanyrelatedTaxrefund,determinedinthecaseofboth(i)and(ii)onabasisconsistentwiththecomputationofAfter-TaxBasis.TAXPRACTICES:themostrecentlyappliedpolicies,proceduresandpracticesemployedbytheAAAGroupinthepreparationandfilingof,andpositionstakenon,anyTaxReturnsofAAAoranyPre-DistributionMemberorAAAAffiliateforanyPre-ClosingTaxablePeriod.TAXRETURN(S):withrespecttoanycorporationorAffiliatedGroup,allreturns,reports,estimates,statements,declarationsandotherfilingsrelatingto,orrequiredtobefiledbyanytaxpayerinconnectionwith,thepaymentorreceiptofanyrefundofanyTax.TAXTREATMENT:asdefinedinSection3.3hereto.TAXABLEPERIOD:aPre-ClosingTaxablePeriod,aPost-ClosingTaxablePeriodoraStraddlePeriod.TAXABLEYEAR:ataxableyear(whichmaybeshorterthanafullcalendarorfiscalyear)orsimilarperiodwithrespecttowhichanyTaxmaybeimposed.TAX(ES):anyfederal,state,foreignorlocalincome,grossreceipts,license,payroll,employment,excise,severance,stamp,occupation,premium,windfallprofits,environmental,customsduties,capitalstock,franchise,profits,withholding,socialsecurity,unemployment,disability,realproperty,personalproperty,sales,use,transfer,registration,valueadded,alternativeoradd-onminimum,estimated,orothertaxofanykindwhatsoever,includinganyinterest,penaltyoradditionthereto;EXCLUDING,HOWEVER,anyTransactionTaxesasdefinedinSection6.05oftheDistributionAgreement.TAXINGAUTHORITY:theIRSoranyotherdomesticorforeigngovernmentalauthorityresponsiblefortheadministrationofanyTax.ARTICLEII.FILINGOFTAXRETURNSANDPAYMENTOFTAXESSection2.1PREPARATIONANDFILINGOFTAXRETURNS.(a)BYAAA.AAAshallprepareandtimelyfile(orcausetobepreparedandtimelyfiled):(i)allTaxandInformationReturnsoftheAAAGrouporanyPre-DistributionMemberorgroupofPre-DistributionMembersforallPre-ClosingTaxablePeriodsthatarerequiredtobefiledonorbeforetheClosingDate;(ii)allTaxandInformationReturnsoftheAAAGrouporanyPre-DistributionMemberorgroupofPre-DistributionMembersforallPre-ClosingTaxablePeriods(otherthansuchReturnsthatrelatesolelytoanyBBBMemberorgroupofBBBMembers)thatarenotrequiredtobefiledonorbeforetheClosingDate;and(iii)allTaxandInformationReturnsoftheAAAGrouporanyPost-DistributionMemberorgroupofPost-DistributionMembersforallStraddlePeriodsandPost-ClosingTaxablePeriods.(b)BYBBB.BBBshallprepareandtimelyfile(orcausetobepreparedandtimelyfiled):(i)allTaxandInformationReturnsthatrelatesolelytoanyBBBMemberorgroupofBBBMembersforallPre-ClosingTaxablePeriodsthatarenotrequiredtobefiledonorbeforetheClosingDate;and(ii)allTaxandInformationReturnsoftheBBBGrouporanyBBBMemberorgroupofBBBMembersforallStraddlePeriodsandPost-ClosingTaxablePeriods.PursuanttotheCorporateServicesAgreement,duringatransitionperiodspecifiedtherein,certainTaxandInformationReturnsdescribedinSection2.1(b)willbeprepared(orcausedtobeprepared)byAAAonBBB’sbehalf.Section2.2PROVISIONOFFILINGINFORMATION.BBB(orAAA,asthecasemaybe)shallcooperateandassistAAA(orBBB)inthepreparationandfilingofallTaxandInformationReturnssubjecttoSection2.1andanytaxplanningrelatedthereto,andshallsubmittoAAA(orBBB)(i)allnecessaryfilinginformationinamannerconsistentwithpastTaxPracticesand(ii)allotherinformationreasonablyrequestedbyAAA(orBBB)inconnectionwiththepreparationofsuchTaxReturnsandanysuchtaxplanningpromptlyaftersuchrequest,includingpermissiontocopyanyapplicabledocuments.ItisexpresslyunderstoodandagreedthatAAA’s(orBBB’s)abilitytodischargeitsTaxandInformationReturnpreparationandfilingresponsibilitiesiscontingentuponBBB(orAAA)providingAAA(orBBB)withallcooperation,assistanceandinformationreasonablynecessaryorrequestedforthefilingofsuchTaxandInformationReturnsandthatBBB(orAAA)shallindemnifyAAA(orBBB),if,andtotheextentthat,Taxesareincreasedasaresultofmaterialinaccuraciesinsuchinformationorfailurestoprovidesuchinformationandassistanceonatimelybasis.Section2.3TAXABLEYEAR.BBBandAAAagreethat,totheextentpermittedbyapplicablelaw,(i)theTaxableYearoftheBBBMembersincludedintheconsolidatedfederalIncomeTaxReturnoftheAAAGroupfortheTaxablePeriodthatincludestheClosingDate(andallcorrespondingconsolidated,combined,unitaryorsimilarstate,foreignorlocalIncomeTaxReturnsoftheAAAGroup)shallendatthecloseofbusinessontheClosingDate,and(ii)theBBBGroupandeachBBBMembershallbeginanewTaxableYearforpurposesofsuchfederal,state,foreignorlocalIncomeTaxesonthedayaftertheClosingDate.Thepartiesfurtheragreethat,totheextentpermittedbyapplicablelaw,allfederal,state,foreignorlocalTaxandInformationReturnsshallbefiledconsistentlywiththisposition.Section2.4ADVANCEREVIEWOFTAXRETURNS.Atleastthirty(30)dayspriortothefilingofanyfederalIncomeTaxReturn(includingamendmentsthereto)thatincludesaBBBMember,andatleastfifteen(15)dayspriortothefilingofanyotherTaxReturn(includingamendmentsthereto)thatincludesaBBBMember,AAAshallprovideBBBwiththeportionofsuchTaxReturnrelatedtotheBBBMember.InthecaseofeachTaxReturn(includingamendmentsthereto)subjecttotheconformityrequirementsofSection2.5andfiledpursuanttoSection2.1(b),BBBshallprovideAAAwithcopiesofanysuchTaxReturnatleastthirty(30)dayspriortothefilingthereof.BBBanditsRepresentatives(orAAAanditsRepresentatives,asthecasemaybe)shallhavetherighttoreviewallrelatedworkpaperspriortothefilingofanysuchTaxReturn.AAA(orBBB,asthecasemaybe)shallconsultwithBBB(orAAA)regardingitscommentswithrespecttosuchTaxReturnsandshallingoodfaith(A)consultwithBBB(orAAA)inanefforttoresolveanydifferenceswithrespecttothepreparationandaccuracyofsuchTaxReturnsandtheirconsistencywithpastTaxPracticesand(B)considerBBB’s(orAAA’s)recommendationsforalternativepositionswithrespecttoitemsreflectedonsuchTaxReturns;PROVIDED,HOWEVER,thatAAA(orBBB)shallnotberequiredtoconsideranysuchrecommendationiftheresultthereofwouldadverselyaffecttheTaxesoftheAAAGrouporanyPost-DistributionMember(ortheBBBGrouporanyBBBMember)foranyStraddlePeriodorPost-ClosingTaxablePeriod,andAAA(orBBB)mayconditiontheacceptanceofanysuchrecommendationuponthereceiptofappropriateindemnificationfromBBB(orAAA)foranyincreasesinTaxesthatmayresultfromtheadoptionoftherelevantalternativeposition.Section2.5CONSISTENTPOSITIONSONTAXRETURNS.AAA(orBBB,asthecasemaybe)shall(i)prepareallTaxReturnsfiledpursuanttothisAgreementforallTaxableYearsendedonorbefore_________(M/D/Y)inamannerconsistentwithpastTaxPractices,and(ii)prepareallTaxReturnsfiledpursuanttothisAgreementinamannerconsistentwiththeIRSRulingandtheRulingRequest,exceptineither(i)or(ii)asotherwiserequiredbychangesinapplicablelawormaterialunderlyingfactsorasthepartiesheretoshallotherwiseconsentinwriting,whichconsentshallnotbeunreasonablywithheld.Section2.6STRADDLEPERIODTAXES.ForpurposesofthisAgreement,TaxesattributabletoStraddlePeriodsshallbeallocatedbetweenthePre-andPost-ClosingStraddlePeriods,inAAA’sreasonablejudgmentwiththeconsentofBBB,inthefollowingmanner:(a)Totheextentnotimpractical,onthebasisoftheactualoperationsandtaxableincomeforeachsuchperiod,determinedbyclosingthebooksoftheentityatthecloseofbusinessontheClosingDate;or(b)Totheextentthatanallocationbasedonaclosingofthebooksisimpractical,onthebasisofallocationsoftaxableincome,loss,gain,deductionandcreditsmadefortheentityforfederalIncomeTaxpurposes.Section2.7PAYMENTOFTAXES(a)AAAshallpay(i)(A)allTaxesshowntobedueandpayableonallTaxReturnsasfiledpursuanttoSections2.1(a)and2.1(b)(i)hereofand(B)allTaxesshowntobedueandpayableonallTaxReturnsasfiledpursuanttoSection2.1(b)(ii)forStraddlePeriods,totheextentallocabletoPre-ClosingStraddlePeriods,and(ii)subjecttoArticleIIIbelow,alladditionalTaxesthatshallthereafterbecomedueandpayableasaresultofaFinalDeterminationwithrespecttoallTaxReturnsfiledbyAAApursuanttoSection2.1(a)hereof;PROVIDED,HOWEVER,thatBBBshallreimburseAAAfortheamountofanysuchadditionalTaxesrequiredtobepaidasaresultoftheoperationoftheforegoingSubsection2.7(a)(ii)within15daysofreceiptofnotificationfromAAA,ifandtotheextentthatsuchTaxReturnsincludeoneormoreBBBMembersandsuchadditionalTaxesareallocabletooneormoreBBBMembersassetforthinSection2.8herein.(b)BBBshallpay(i)allTaxesshowntobedueandpayableonallTaxReturnsfiledbyBBBpursuanttoSection2.1(b)(ii),(A)forStraddlePeriods,totheextentallocabletoPost-ClosingStraddlePeriods,and(B)forPost-ClosingTaxablePeriodsand(ii)subjecttoArticleIII,alladditionalTaxesthatshallthereafterbecomedueandpayableasaresultofaFinalDeterminationwithrespecttoallTaxReturnsfiledbyBBBpursuanttoSection2.1(b)hereof.(c)Withrespecttothe_________(YEAR)AAAGroupconsolidatedfederalIncomeTaxReturnandanyAAAGroupIncomeTaxReturnforanyCombinedJurisdictionfortheTaxablePeriodthatincludestheClosingDate(together,aFinalAAAGroupCombinedTaxReturn),within15daysofreceiptofnoticefromAAA,BBBshallreimburseAAAinanamountequaltofiftypercent(50%)of(i)anyadditionalpaymentofIncomeTaxesrequiredtobemadebyAAAwithanyrequestforextensionofanyFinalAAAGroupCombinedTaxReturnand(ii)anyadditionalpaymentofIncomeTaxesrequiredtobemadebyAAAwiththefilingofanyFinalAAAGroupCombinedTaxReturn.TotheextentthattheamountofIncomeTaxespreviouslypaidbyAAAwithrespecttotheTaxableYearreportedonanyFinalAAAGroupCombinedTaxReturnexceedstheIncomeTaxliabilityshownonsuchIncomeTaxReturn,AAAshallreimburseBBB,within15daysofthefilingofsuchTaxReturnanamountequaltofiftypercent(50%)ofsuchexcess.(d)WithrespecttoallTaxReturnsdescribedinSection2.7(a)(i)abovethatrelatesolelytoanyBBBMemberorgroupofBBBMembers,within15daysofreceiptofnoticefromAAA,BBBshallreimburseAAAinanamountequaltoonehundredpercent(100%)of(i)anyadditionalpaymentofTaxesrequiredtobemadebyAAAwithanyrequestforextensionoftheduedateofsuchTaxReturnsand(ii)anyadditionalpaymentofTaxesrequiredtobemadebyAAAwiththefilingofsuchTaxReturns.TotheextentthattheamountofTaxespreviouslypaidbyAAAwithrespecttotheTaxableYearreportedonanyTaxReturndescribedinSection2.7(a)(i)abovewhichrelatessolelytoanyBBBMemberorgroupofBBBMembersexceedstheTaxliabilityshownonsuchTaxReturn,AAAshallreimburseBBB,within15daysofthefilingofsuchTaxReturn,inanamountequaltoonehundredpercent(100%)ofsuchexcess.Section2.8ALLOCATIONOFADDITIONALTAXES.(a)ForpurposesofdeterminingthereimbursementobligationsofBBBpursuanttoSection2.7(a)withrespecttoadditionalTaxesrequiredtobepaidbyAAApursuanttoSection2.7(a)(ii),suchadditionalTaxesshallbeallocatedinthefollowingmanner:(i)AnyadditionalTaxesthatrelatetoTaxReturnsconsistingsolelyofoneormoreBBBMembersshallbeallocatedinfulltosuchBBBMembers.(ii)AnyadditionalTaxesthatrelatetoTaxReturnsconsistingsolelyofPre-DistributionMembers,noneofwhichareBBBMembers,shallbeallocatedinfulltosuchPre-DistributionMembers.(iii)WithrespecttoadditionalTaxesthatrelatetoTaxReturnsthatarefiledonaconsolidated,combined,unitaryorsimilarbasisandthatincludeatleastoneBBBMemberbutdonotconsistsolelyofBBBMembers,suchadditionalTaxesshallbeallocatedtotheBBBMemberstotheextentthatsuchadditionalTaxesresultinanincreaseintheseparatereturntaxliabilitiesoftheBBBMembersascomputedunderTreasuryRegulationSection1.1552-1(a)(2)(ii)inthecaseofaconsolidatedfederalIncomeTaxReturn.InthecaseoffederalTaxesotherthantheregularIncomeTax,similarprincipleswillapplywiththeapplicationdeterminedseparatelyforeachseparatetypeofTax.Similarly,inthecaseofconsolidated,combined,unitaryorsimilarstate,foreignorlocalTaxReturns,similarprincipleswillapplywiththeapplicationdeterminedseparatelyforeachseparatetypeofsuchTax.(b)NotwithstandinganyotherprovisionofthisAgreement,forpurposesofthisSection2.8,thepartiesheretointendthatthefollowingentitiesshallbetreatedasiftheywereBBBMembers,butonlywithrespecttoPre-ClosingTaxablePeriodsandPre-ClosingStraddlePeriods:Bally’sGrandInc.,aNevadacorporation;Bally’sGrandPropertySubI,Inc.,aNevadacorporation;Bally’sCasinoManagement,Inc.,a_________(STATE)corporation;AAAGamingCorporation,aNevadacorporation;ParisCasinoCorp.,aNevadacorporat