(10) Recognition of winnings agreement filed in accordance with subsection (k) (14) of this Section. In the case of a profit recognition agreement entered into in accordance with subsection (k) (14) of this Section, in addition to a provision or other event described in subsections (j) (1) to (9) of this Section- (A) General Rule. Immediately following the relevant transaction described in paragraph (o) (5) (i) of this Section, the aggregate basis of the transferred shares or securities received by the eligible recipient shall not exceed the aggregate basis of such shares or securities at the time of the first transfer (adjusted for the profit recorded by the U.S. transferor on the initial transfer of such shares or securities). For this purpose, the basis of the stock transferred into the hands of the qualified beneficiary shall be determined, without taking into account, on the basis of income inclusions in relation to the stock (e.g. .B. in accordance with Article 961 (a)). In the case of a distribution to which section 355 applies, any adjustment of the basis referred to in paragraph 1.367 (b) -5 (c) shall be made before determining whether the basic condition of this paragraph is met. (C) Alternative facts. Start from the same facts as in paragraph (q) (2) (vi) (A) of this section (the facts of this example 6), including paragraph (k) (14) of this section, which applies to the year 3 reorganization, so that USP enters into a new earnings recognition agreement with respect to the initial transfer of TFD shares in year 1 (GRA 1). and that USP has entered into, pursuant to Section 1.367(a) to 3(e), a separate profit adjustment agreement with respect to the first disposal of TFC shares by UST to FA, pursuant to the Year 3 Asset Reorganization (GRA 2).

In addition, consider that TFC sells 10% of TFD`s shares in 4 years following a transaction that constitutes a triggering event regarding GRA 1. The sale of TFD shares is not a triggering event for GRA 2, as the tfd shares sold do not represent all of TFC`s assets. In accordance with paragraphs (j) (1) and (c) (1) (i) of this section, USP must recognize a gain of $5x (10% of $50x) under GRA 1. In accordance with the provisions of paragraph (c) (4) (i) and (ii) of this Section, the basis of TFC shares or TFD shares is multiplied by five from the date of the first transmission (in respect of GRA 1). Pursuant to subsection (c) (1) (i) of this Section, the amount of profit subject to GRA 1 is reduced from $50x to $45x. As the transferred share is the TFC share for the purposes of GRA 2, the amount of profit subject to GRA 2 is reduced from 100x to 95x to reflect the increase in the base of the TFC share. (8) Complete liquidation of the transferred company. The allocation of all the assets of the transferred company to which Section 337 applies and the resulting exchange of transferred shares, to which Section 332 applies, do not constitute triggering events where the contemptuous American has entered into a new profit recognition agreement. If the transferred company is a national company, see § 1.367 (e)-2 and paragraph (o) (4) of this section. See point (q)(2)(ix) of this Section to illustrate the rules laid down in point (k)(8) of this paragraph.

(5) Conditions of a new profit recognition agreement – (1) Certain equivalent dividend withdrawals, which are treated as assignments.