{"component": "clause", "props": {"groups": [{"size": 2, "snippet_links": [{"key": "the-parties-agree-that", "type": "clause", "offset": [0, 22]}, {"key": "no-party", "type": "clause", "offset": [23, 31]}, {"key": "election-under", "type": "clause", "offset": [46, 60]}, {"key": "section-338", "type": "clause", "offset": [61, 72]}, {"key": "the-code", "type": "clause", "offset": [76, 84]}, {"key": "local-laws", "type": "definition", "offset": [167, 177]}, {"key": "with-respect-to", "type": "clause", "offset": [179, 194]}, {"key": "shares-of", "type": "clause", "offset": [215, 224]}], "samples": [{"hash": "ge4XBEzhC25", "uri": "/contracts/ge4XBEzhC25#338-election", "label": "Membership Unit Purchase Agreement (Aar Corp)", "score": 21.238193512, "published": true}], "snippet": "The Parties agree that no Party will make any election under section 338 of the Code (or any election corresponding to section 338 of the Code under foreign, state or local laws) with respect to the purchase of the shares of the AWS Subsidiaries.", "hash": "06c80dcaeee70fb78bd1fe31f017622c", "id": 7}, {"size": 1, "snippet_links": [{"key": "the-stockholders", "type": "clause", "offset": [0, 16]}, {"key": "election-under", "type": "clause", "offset": [51, 65]}, {"key": "the-code", "type": "clause", "offset": [83, 91]}, {"key": "foreign-tax-law", "type": "clause", "offset": [147, 162]}, {"key": "with-respect-to", "type": "clause", "offset": [164, 179]}, {"key": "stock-of-the-company", "type": "definition", "offset": [209, 229]}, {"key": "buyer-shall", "type": "clause", "offset": [260, 271]}, {"key": "responsible-for", "type": "clause", "offset": [275, 290]}, {"key": "form-of-election", "type": "definition", "offset": [305, 321]}, {"key": "buyer-and-the", "type": "clause", "offset": [386, 399]}], "samples": [{"hash": "lWJZK0AnTUo", "uri": "/contracts/lWJZK0AnTUo#338-election", "label": "Stock Purchase Agreement (Sapient Corp)", "score": 18.0, "published": true}], "snippet": "The Stockholders will join with Buyer in making an election under ss.338(h)(10) of the Code (and any corresponding elections under state, local or foreign tax law) with respect to the purchase and sale of the stock of the Company (a \"SS.338(H)(10) ELECTION\"). Buyer shall be responsible for preparing the form of election. Buyer shall be responsible for preparing the form of election. Buyer and the Stockholders shall cooperate fully in the making of such ss.338(h)", "hash": "e30f58ebc1b1354054d064652258b297", "id": 10}, {"size": 10, "snippet_links": [{"key": "of-the-stockholders", "type": "clause", "offset": [5, 24]}, {"key": "by-parent", "type": "clause", "offset": [47, 56]}, {"key": "parent-and-newco", "type": "clause", "offset": [71, 87]}, {"key": "election-under-section-338h", "type": "clause", "offset": [101, 129]}, {"key": "the-code", "type": "clause", "offset": [134, 142]}, {"key": "foreign-tax-law", "type": "clause", "offset": [199, 214]}, {"key": "with-respect-to", "type": "clause", "offset": [216, 231]}, {"key": "purchase-and-sale-of-the-company-stock", "type": "clause", "offset": [234, 272]}, {"key": "provided-however", "type": "clause", "offset": [274, 290]}, {"key": "no-election", "type": "clause", "offset": [297, 308]}, {"key": "the-election", "type": "clause", "offset": [342, 354]}, {"key": "adverse-tax", "type": "clause", "offset": [389, 400]}, {"key": "other-consequences", "type": "clause", "offset": [404, 422]}, {"key": "to-the-stockholders", "type": "definition", "offset": [467, 486]}], "samples": [{"hash": "cdLE4YGjOOv", "uri": "/contracts/cdLE4YGjOOv#338-election", "label": "Merger Agreement (Alliance Group Inc)", "score": 18.0, "published": true}, {"hash": "an8HbzAbBeO", "uri": "/contracts/an8HbzAbBeO#338-election", "label": "Merger Agreement (Alliance Group Inc)", "score": 18.0, "published": true}, {"hash": "agiorIiaMhm", "uri": "/contracts/agiorIiaMhm#338-election", "label": "Merger Agreement (Alliance Group Inc)", "score": 18.0, "published": true}], "snippet": "Each of the Stockholders agree, if so directed by Parent, to join with Parent and Newco in making an election under Section 338(h) of the Code (and any corresponding elections under state, local, or foreign tax law) with respect to a purchase and sale of the Company Stock; PROVIDED HOWEVER, that no election shall be made if, as a result of the election, the Stockholders would incur any adverse tax or other consequences not otherwise reimbursed by Parent or Newco to the Stockholders.", "hash": "efb10faea33ead023dd39fef330091c0", "id": 1}, {"size": 4, "snippet_links": [{"key": "election-under", "type": "clause", "offset": [48, 62]}, {"key": "section-338", "type": "clause", "offset": [63, 74]}, {"key": "the-code", "type": "clause", "offset": [96, 104]}, {"key": "any-state", "type": "definition", "offset": [114, 123]}, {"key": "foreign-law", "type": "clause", "offset": [135, 146]}, {"key": "in-respect-of", "type": "clause", "offset": [158, 171]}, {"key": "the-transaction", "type": "clause", "offset": [172, 187]}, {"key": "pursuant-to-this-agreement", "type": "clause", "offset": [188, 214]}], "samples": [{"hash": "gAp0U3nhlrX", "uri": "/contracts/gAp0U3nhlrX#338-election", "label": "Equity Purchase Agreement (Schlumberger Limited/Nv)", "score": 36.1540031433, "published": true}, {"hash": "kQs7XUUqAPR", "uri": "/contracts/kQs7XUUqAPR#338-election", "label": "Equity Purchase Agreement (ChampionX Corp)", "score": 36.1512680054, "published": true}], "snippet": "Purchaser and its Affiliates shall not make any election under Section 338 or Section 336(e) of the Code or under any state, local, or foreign Law equivalent in respect of the transaction pursuant to this Agreement.", "hash": "5fa428d1d6df1b42d94a1c6422b166e2", "id": 2}, {"size": 4, "snippet_links": [{"key": "agreement-and-plan-of-merger", "type": "definition", "offset": [3, 31]}, {"key": "this-agreement", "type": "clause", "offset": [32, 46]}, {"key": "day-of", "type": "clause", "offset": [107, 113]}, {"key": "alliance-group", "type": "definition", "offset": [144, 158]}, {"key": "stockholders-of-the-company", "type": "clause", "offset": [400, 427]}], "samples": [{"hash": "4NPQosn9md1", "uri": "/contracts/4NPQosn9md1#338-election", "label": "Merger Agreement (Alliance Group Inc)", "score": 18.0, "published": true}], "snippet": "50 AGREEMENT AND PLAN OF MERGER THIS AGREEMENT AND PLAN OF MERGER (the \"Agreement\") is made as of the 10th day of March, 1999, by and among THE ALLIANCE GROUP, INC., an Oklahoma corporation (\"Parent\"), ALLIANCE ACQUISITION VIII CORP., an Oklahoma corporation (\"Newco\"), COMMERCIAL TELECOM SYSTEMS, INC., an Oklahoma corporation (the \"Company\"), and \u2587\u2587\u2587\u2587 \u2587\u2587\u2587\u2587\u2587\u2587\u2587 \u2587\u2587\u2587\u2587 \u2587\u2587\u2587\u2587\u2587\u2587\u2587 AND \u2587\u2587\u2587\u2587 \u2587\u2587\u2587\u2587\u2587, the only stockholders of the Company (collectively, the \"Stockholders\").", "hash": "3c393a3bd653d3469821476381209b0b", "id": 3}, {"size": 2, "snippet_links": [{"key": "for-us", "type": "clause", "offset": [0, 7]}, {"key": "tax-purposes", "type": "clause", "offset": [9, 21]}, {"key": "the-transactions-contemplated-by-this-agreement", "type": "clause", "offset": [23, 70]}, {"key": "to-qualify", "type": "clause", "offset": [84, 94]}, {"key": "qualified-stock-purchase", "type": "clause", "offset": [101, 125]}, {"key": "meaning-of", "type": "definition", "offset": [138, 148]}, {"key": "section-338", "type": "clause", "offset": [149, 160]}, {"key": "the-code", "type": "clause", "offset": [167, 175]}, {"key": "provisions-of", "type": "clause", "offset": [193, 206]}, {"key": "other-applicable-law", "type": "clause", "offset": [223, 243]}, {"key": "of-the-sellers", "type": "clause", "offset": [254, 268]}, {"key": "tax-return", "type": "definition", "offset": [328, 338]}, {"key": "the-purchaser", "type": "definition", "offset": [340, 353]}, {"key": "sole-discretion", "type": "definition", "offset": [397, 412]}, {"key": "an-election", "type": "clause", "offset": [419, 430]}, {"key": "pursuant-to-section", "type": "clause", "offset": [431, 450]}, {"key": "with-respect-to", "type": "clause", "offset": [536, 551]}, {"key": "the-acquisition", "type": "clause", "offset": [552, 567]}, {"key": "the-acquired-companies", "type": "clause", "offset": [571, 593]}, {"key": "if-required", "type": "definition", "offset": [595, 606]}, {"key": "will-provide", "type": "clause", "offset": [635, 647]}, {"key": "cooperation-with-the", "type": "clause", "offset": [659, 679]}], "samples": [{"hash": "TujmVFVOH2", "uri": "/contracts/TujmVFVOH2#338-election", "label": "Share Purchase Agreement", "score": 31.3408622742, "published": true}, {"hash": "bLJd3ZqMHV5", "uri": "/contracts/bLJd3ZqMHV5#338-election", "label": "Share Purchase Agreement (Yelp Inc)", "score": 21.8117733002, "published": true}], "snippet": "For U.S. tax purposes, the transactions contemplated by this Agreement are intended to qualify as a \u201cqualified stock purchase\u201d within the meaning of Section 338(d) of the Code (and any similar provisions of state, local or other applicable law) and none of the Sellers (or their Affiliates) will take a contrary position on any Tax return. The Purchaser and its Affiliates may, at the Purchaser\u2019s sole discretion, make an election pursuant to Section 338 of the Code (and any similar provisions of state, local or other applicable law) with respect to the acquisition of the Acquired Companies. If required, Sellers and Sellers\u2019 Agent will provide reasonable cooperation with the making of such elections.", "hash": "2745aa82516e00510421036ce3c93a11", "id": 4}, {"size": 2, "snippet_links": [{"key": "election-under", "type": "clause", "offset": [22, 36]}, {"key": "section-338", "type": "clause", "offset": [37, 48]}, {"key": "the-code", "type": "clause", "offset": [52, 60]}, {"key": "the-law", "type": "clause", "offset": [100, 107]}, {"key": "any-state", "type": "definition", "offset": [111, 120]}, {"key": "taxing-authority", "type": "clause", "offset": [130, 146]}, {"key": "with-respect-to-the-company", "type": "clause", "offset": [166, 193]}, {"key": "in-connection-with", "type": "clause", "offset": [221, 239]}, {"key": "contemplated-hereby", "type": "clause", "offset": [257, 276]}], "samples": [{"hash": "h7VxCPc7k0r", "uri": "/contracts/h7VxCPc7k0r#338-election", "label": "Merger Agreement (BakerCorp International, Inc.)", "score": 29.4982891083, "published": true}, {"hash": "gJqE6YVVsRB", "uri": "/contracts/gJqE6YVVsRB#338-election", "label": "Merger Agreement (United Rentals North America Inc)", "score": 29.4982891083, "published": true}], "snippet": "Parent agrees that an election under section 338 of the Code (or similar or comparable provision of the Law of any state or other Taxing Authority) shall not be made with respect to the Company or any of its Subsidiaries in connection with the transactions contemplated hereby.", "hash": "7247d141b299a54f2abea8765c64c27f", "id": 5}, {"size": 2, "snippet_links": [{"key": "seller-will", "type": "clause", "offset": [10, 21]}, {"key": "applicable-regulations", "type": "clause", "offset": [89, 111]}], "samples": [{"hash": "iZBExEky6bO", "uri": "/contracts/iZBExEky6bO#338-election", "label": "Stock Purchase Agreement (Envision Development Corp /Fl/)", "score": 18.0, "published": true}, {"hash": "61dsrr6A6b5", "uri": "/contracts/61dsrr6A6b5#338-election", "label": "Stock Purchase Agreement (E Com Ventures Inc)", "score": 18.0, "published": true}], "snippet": "Buyer and Seller will each execute and file the 338 Election in the manner prescribed by applicable regulations for doing so.", "hash": "bd77b822f14594383f2cd4c3a099f6c5", "id": 6}, {"size": 1, "snippet_links": [{"key": "buyer-and-seller", "type": "clause", "offset": [4, 20]}, {"key": "agree-to", "type": "clause", "offset": [21, 29]}, {"key": "with-respect-to", "type": "clause", "offset": [55, 70]}, {"key": "sale-and-purchase-of-units", "type": "clause", "offset": [75, 101]}, {"key": "election-under", "type": "clause", "offset": [139, 153]}, {"key": "the-code", "type": "clause", "offset": [176, 184]}, {"key": "tax-laws", "type": "clause", "offset": [249, 257]}, {"key": "each-group-company", "type": "definition", "offset": [263, 281]}, {"key": "domestic-corporation", "type": "definition", "offset": [303, 323]}, {"key": "for-us", "type": "clause", "offset": [324, 331]}, {"key": "federal-income-tax-purposes", "type": "clause", 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"type": "clause", "offset": [944, 957]}, {"key": "a-copy-of-the", "type": "clause", "offset": [1005, 1018]}, {"key": "to-seller", "type": "definition", "offset": [1067, 1076]}, {"key": "as-prescribed", "type": "definition", "offset": [1137, 1150]}, {"key": "applicable-provision", "type": "clause", "offset": [1201, 1221]}, {"key": "seller-and-buyer", "type": "clause", "offset": [1248, 1264]}, {"key": "cooperate-with", "type": "clause", "offset": [1271, 1285]}, {"key": "necessary-and-appropriate", "type": "definition", "offset": [1317, 1342]}, {"key": "mutually-agree", "type": "definition", "offset": [1463, 1477]}, {"key": "aggregate-deemed-sale-price", "type": "definition", "offset": [1488, 1515]}, {"key": "applicable-treasury-regulations", "type": "definition", "offset": [1535, 1566]}, {"key": "the-assets", "type": "clause", "offset": [1571, 1581]}, {"key": "the-group-companies", "type": "clause", "offset": [1585, 1604]}, {"key": "other-applicable", "type": "definition", "offset": [1640, 1656]}, {"key": "in-accordance-with", "type": "clause", "offset": [1717, 1735]}, {"key": "final-purchase-price-adjustment", "type": "definition", "offset": [1999, 2030]}, {"key": "pursuant-to-section", "type": "clause", "offset": [2031, 2050]}, {"key": "in-good-faith", "type": "definition", "offset": [2080, 2093]}, {"key": "received-by-seller", "type": "clause", "offset": [2144, 2162]}, {"key": "of-seller", "type": "clause", "offset": [2178, 2187]}, {"key": "receipt-of", "type": "clause", "offset": [2190, 2200]}], "samples": [{"hash": "geHuaZLOCMX", "uri": "/contracts/geHuaZLOCMX#338-election", "label": "Membership Interest Purchase Agreement (Eplus Inc)", "score": 36.4743326489, "published": true}], "snippet": "(a) Buyer and Seller agree to make or cause to be made with respect to the sale and purchase of Units, a timely, effective and irrevocable election under Section 338(h)(10) of the Code (and any corresponding election under applicable state or local Tax laws) for each Group Company that is treated as a domestic corporation for U.S. federal income tax purposes and to file such elections in the manner required by applicable rules and Treasury Regulations (the \u201cSection 338(h)(10) Elections\u201d). At the Closing, Seller shall deliver to Buyer IRS Form 8023 and any similar forms under state or local law (including any exhibits and attachments thereto) with respect to Buyer\u2019s purchase of Units (collectively, the \u201cSection 338(h)(10) Forms\u201d), which Section 338(h)(10) Forms shall have been duly executed by Seller. Buyer shall: (i) cause the applicable Section 338(h)(10) Forms to be duly executed by an authorized person for Buyer; (ii) complete the schedules required to be attached thereto; (iii) provide a copy of the executed Section 338(h)(10) Forms and schedules to Seller; and (iv) duly and timely file the Section 338(h)(10) Forms as prescribed by Treasury Regulations Section 1.338(h)(10)-1 or applicable provision under state or local law. Seller and Buyer shall cooperate with each other to take all actions necessary and appropriate (including filing Section 338(h)(10) Forms) to effect a timely Section 338(h)(10) Election.\n(b) Buyer and Seller hereby mutually agree that the \u201cAggregate Deemed Sale Price\u201d (as defined under applicable Treasury Regulations) of the assets of the Group Companies shall be allocated for federal and other applicable income Tax purposes among the assets of the Group Companies in accordance with Schedule 5.13.4 (the \u201cSection 338(h)(10) Allocation\u201d). Buyer shall prepare the Section 338(h)(10) Allocation in accordance with the preceding sentence and provide a draft copy of such statement to Seller within ninety (90) days following the determination of the Final Purchase Price Adjustment pursuant to Section 2.2(g). Buyer shall consider in good faith any comments to the Section 338(h)(10) Allocation received by Seller within 30 days of Seller\u2019s receipt of the draft Section 338(h)(10)", "hash": "6e0813fe86e492045027754c36277ff6", "id": 8}, {"size": 1, "snippet_links": [{"key": "understand-and-agree-that", "type": "clause", "offset": [12, 37]}, {"key": "an-election", "type": "clause", "offset": [38, 49]}, {"key": "the-us", "type": "clause", "offset": [87, 94]}, {"key": "internal-revenue-code", "type": "definition", "offset": [96, 117]}, {"key": "for-the-corporation", "type": "clause", "offset": [118, 137]}, {"key": "eligible-subsidiaries", "type": "definition", "offset": [153, 174]}, {"key": "a-us", "type": "clause", "offset": [221, 226]}, {"key": "tax-laws", "type": "clause", "offset": [259, 267]}, {"key": "agree-to", "type": "clause", "offset": [282, 290]}], "samples": [{"hash": "aBdNLFNJZbM", "uri": "/contracts/aBdNLFNJZbM#338-election", "label": "Arrangement Agreement (Cynapsus Therapeutics Inc.)", "score": 27.6666660309, "published": true}], "snippet": "The parties understand and agree that an election will be made under Section 338(g) of the U.S. Internal Revenue Code for the Corporation and any of its eligible subsidiaries (other than any subsidiary that is treated as a U.S. corporation under U.S. federal Tax laws). The parties agree to cooperate as reasonably required to effectuate said election.", "hash": "467b07f10f1db37921a22d77caaf48cb", "id": 9}], "next_curs": "ClUST2oVc35sYXdpbnNpZGVyY29udHJhY3RzcjELEhZDbGF1c2VTbmlwcGV0R3JvdXBfdjU2IhUzMzgtZWxlY3Rpb24jMDAwMDAwMGEMogECZW4YACAA", "clause": {"title": "338 Election", "size": 46, "children": [["documentation-and-delivery", "Documentation and Delivery"], ["indemnity", "Indemnity"], ["payment-filing", "Payment; Filing"], ["expenses", "Expenses"], ["submission-to-jurisdiction-consent-to-service-of-process", "Submission to Jurisdiction; Consent to Service of Process"]], "parents": [["general", "General"], ["tax-matters", "Tax Matters"], ["covenants", "Covenants"], ["additional-agreements", "Additional Agreements"], ["certain-tax-matters", "Certain Tax Matters"]], "id": "338-election", "related": [["section-338-election", "Section 338 Election", "Section <strong>338 Election</strong>"], ["section-754-election", "Section 754 Election", "Section 754 Election"], ["83b-election", "83(b) Election", "83(b) Election"], ["section-83b-election", "Section 83(b) Election", "Section 83(b) Election"], ["section-336e-election", "Section 336(e) Election", "Section 336(e) Election"]], "related_snippets": [], "updated": "2025-07-15T00:51:33+00:00", "also_ask": ["What strategic advantages or disadvantages arise from making a 338 election in M&A transactions?", "Which essential representations, warranties, or covenants must be included to support a 338 election clause?", "What are the primary tax and liability risks if the 338 election is improperly structured or executed?", "How does a 338 election compare to alternative tax structuring options in similar deals?", "What are the main enforceability challenges courts have addressed regarding 338 election provisions?"], "drafting_tip": "Specify the election procedure, clarify eligible parties, and set deadlines to ensure transparency, prevent disputes, and facilitate timely decision-making.", "explanation": "The 338 Election clause allows certain corporations to elect to have a stock purchase treated as an asset purchase for tax purposes. In practice, this means that when one corporation acquires another, they can choose to step up the tax basis of the acquired company's assets, potentially resulting in greater depreciation or amortization deductions. This clause is primarily used to optimize tax outcomes for the buyer, providing flexibility in structuring transactions and potentially reducing future tax liabilities."}, "json": true, "cursor": ""}}