CompUSA 2014 Annual Report Download - page 137

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(h)
The Estimated Balance Sheet, the Estimated Working Capital, the Estimated Cash, the Closing Date Balance Sheet,
Closing Date Working Capital and Closing Date Cash shall be prepared in accordance with IFRS and on a basis consistent with the preparation
of each of the Companies December 31, 2013 balance sheets.
2.5 Effective Time of Purchase. The time on the Closing Date at which all of the conditions to Closing have been satisfied or
waived will be the “Effective Time”; provided, however, that if the Closing occurs and if permitted by applicable Law, for Tax,
accounting and other computational purposes, the Effective Time will be deemed to have occurred as of 11:59 p.m. on the Closing
Date.
2.6 Tax Treatment. The Parties agree to treat the purchase and sale of the membership interests of the U.S. Companies as a
purchase and sale of the assets of such entities for U.S. federal and state income Tax purposes. The Buyer agrees that it will not make or
cause to be made any election under Section 338 of the Code with respect to any of the transactions contemplated by this Agreement.
2.7 Allocation. The Buyer and the Seller agree that the Purchase Price shall be
allocated among the Purchased Equity and the
Mexican Purchased Equity, and among the assets of the U.S. Companies, in accordance with Section 1060 of the Code and the regulations
promulgated thereunder, and in the manner set forth in Exhibit C. Within sixty (60) following completion of the Final Closing Date Balance
Sheet, the Buyer shall submit a final purchase price allocation to the Seller which shall set forth the amount allocated to the various assets using
the methodology set forth in Exhibit C. If the Seller disagrees with any aspect of the allocation, the Seller shall give written notice to the Buyer
within thirty (30) days of receipt of such allocation. If the Parties are unable to resolve any disagreements within fifteen (15) days of the Seller ’
s notice to the Buyer, such disputed items may be submitted to the Independent Accountants and such dispute shall be administered in
accordance with the procedures set forth in Section 2.4. The allocation shall be considered final upon the earliest to occur of: (i) the Seller failing
to provide timely notice of any objections to the Buyer; (ii) the Buyer and the Seller agreeing upon the allocation; or (iii) the Independent
Accountants ’ final decision (the “Final Allocation”).
Neither the Seller nor the Buyer (or any of their respective Affiliates) shall file any Tax
Return (including IRS Form 8594) or, without the consent of the other (such consent not to be unreasonably withheld, conditioned or delayed),
take any position in any Tax Return, refund claim, litigation or otherwise that is inconsistent with the Final Allocation. If the Final Allocation is
disputed by any Taxing authority, the Party receiving notice of such dispute shall promptly notify the other Party hereto. The Seller and the
Buyer agree to cooperate in good faith in responding to any such challenge to preserve the effectiveness of the Final Allocation.
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