Common use of Section 1377 Election Clause in Contracts

Section 1377 Election. Seller and Buyer hereby agree to make separate elections under Internal Revenue Code Section 1377 to terminate the taxable year of each Company as of the Closing Date, and to have the rules under Internal Revenue Code Section 1377(a)(2) applied as if the taxable year in which the Closing occurs consisted of two separate taxable years. Further, Buyer hereby agrees that it shall cause each Company to file said Section 1377 Election with the federal income tax return of the Company.