Status of Dividends. The Company agrees to treat the Series A Preferred as equity for all tax purposes unless the Company determines that there is no reasonable basis for such position. The Company shall take no action (other than as required by Law) that would jeopardize the availability of the dividends received deduction under Section 243(a)(1) of the Internal Revenue Code of 1986, as amended, for the distributions on Series A Preferred that are paid out of current or accumulated earnings and profits, if any.
Appears in 2 contracts
Samples: Preferred Stock Purchase Agreement (Pricesmart Inc), Preferred Stock and Warrant Purchase Agreement (Pricesmart Inc)
Status of Dividends. The Company agrees to treat the Series A B Preferred as equity for all tax purposes unless the Company determines that there is no reasonable basis for such position. The Company shall take no action (other than as required by Law) that would jeopardize the availability of the dividends received deduction under Section 243(a)(1) of the Internal Revenue Code of 1986, as amended, for the distributions on Series A B Preferred that are paid out of current or accumulated earnings and profits, if any.
Appears in 2 contracts
Samples: Series B Preferred Stock Purchase Agreement (Pricesmart Inc), Preferred Stock Purchase Agreement (Price Group LLC)
