Common use of S Short Year Clause in Contracts

S Short Year. The parties hereto acknowledge that upon the closing of the transactions contemplated by this Agreement, the Company's status as an S-corporation for federal income tax purposes shall cease, that the taxable year of the Company in which such closing occur shall be divided into two (2) short taxable years (an S Short Year and C Short Year). Each of the parties hereto covenants and agrees to make all elections, consents, statements, and filings that may be required by the Internal Revenue Code of 1986 to close the Company's books on the last applicable day of the S Short Year.