Common use of Inadvertent termination Clause in Contracts

Inadvertent termination. If the company’s S corporation election is terminated and the termination is inadvertent within the meaning of IRC § 1362(f), each member must make any adjustments required by the Internal Revenue Service in order for the company to be treated as if its S corporation election remained in effect. But no member is required to make any adjustment that will adversely affect the member, considering the position the member would have been in had the company’s S corporation election not terminated, unless the company or the other members indemnify and hold the member harmless against the adverse consequences. The obligations of this subsection are binding on all members who are parties to this agreement or become members of the company in the future, whether or not any such member holds ownership shares at the time the required adjustments are to be made.

Inadvertent termination. If the companyCompany’s S corporation election is terminated and the termination is inadvertent within the meaning of IRC I.R.C. § 1362(f), each member Member must make any adjustments required by the Internal Revenue Service in order for the company Company to be treated as if its S corporation election remained in effect. But no member Member is required to make any adjustment that will adversely affect the memberMember, considering the position the member Member would have been in had the companyCompany’s S corporation election not terminated, unless the company Company or the other members Members indemnify and hold the member Member harmless against the adverse consequences. The obligations of this subsection are binding on all members Members who are parties to this agreement or become members Members of the company Company in the future, whether or not any such member Member holds ownership shares interest at the time the required adjustments are to be made.

Inadvertent termination. If the company’s S corporation election is terminated and the termination is inadvertent within the meaning of IRC § 1362(f), each member of the members must make any adjustments required by the Internal Revenue Service in order for the company to be treated as if its S corporation election remained in effect. But no However, a member is not required to make any adjustment that such adjustments if the adjustments will adversely affect the member, considering the position the member would have been in had the company’s S corporation election not terminated, unless the company or the other members indemnify and hold the member harmless against the adverse consequences. The obligations of this subsection are binding on all members who are parties to this agreement or become members of the company in the future, whether or not any such member holds ownership shares at the time the required adjustments are to be made.