Common use of Effect of S Corporation Status on Shares Clause in Contracts

Effect of S Corporation Status on Shares. The CEO acknowledges that the Company has elected to be classified as an S Corporation for federal and state income tax purposes and agrees to provide to the Company, immediately upon the Company’s request, such properly signed consents or other documents as, in the opinion of counsel for the Company, may be necessary or useful to maintaining the Company’s status as an S Corporation. Except with the written consent of the Company specifically referring to this Section 5, the following provisions set forth in this Section 5 (the “S Corporation Provisions”) shall apply to the Shares until such time as the Company ceases to qualify as an S Corporation. The CEO further acknowledges that the Company may elect at any time to terminate its classification as an S Corporation and agrees to provide to the Company, immediately upon the Company’s request, such properly signed consents or other documents as, in the opinion of counsel for the Company, may be necessary or useful in assisting the Company to terminate its status as an S Corporation.

Effect of S Corporation Status on Shares. The CEO acknowledges that the Company has elected to be classified as an S Corporation for federal and state income tax purposes and agrees to provide to the Company, immediately upon the Company’s request, such properly signed consents or other documents as, in the opinion of counsel for the Company, may be necessary or useful to maintaining the Company’s status as an S Corporation. Except with the written consent of the Company specifically referring to this Section 5, the following provisions set forth in this Section 5 (the “S Corporation Provisions”) shall apply to the Remaining Shares until such time as the Company ceases to qualify as an S Corporation. The CEO further acknowledges that the Company may elect at any time to terminate its classification as an S Corporation and agrees to provide to the Company, immediately upon the Company’s request, such properly signed consents or other documents as, in the opinion of counsel for the Company, may be necessary or useful in assisting the Company to terminate its status as an S Corporation.