DISQUALIFICATION OF PLAN Clause Samples
DISQUALIFICATION OF PLAN. It is intended that this Trust shall be tax exempt under section 501 of the Code and that the Plan referred to herein shall qualify under section 401(a) of the Code. However, notwithstanding any other provisions of the Trust, if the Internal Revenue Service is requested to issue to the Employer a favorable written determination or ruling with respect to the initial qualification of the Plan and exemption of the Trust from tax and such request is denied, the Trustee shall, after receiving a written direction from the Plan Administrator, pay to each Participant that portion of the Trust Fund applicable to said Participant's voluntary contributions, if any, and provided the Plan so states, pay to the Employer any part of the Trust Fund attributable to Employer contributions then remaining in the Trustee's possession. As a condition to such repayment, the Employer must execute, acknowledge, and deliver to the Trustee its written undertaking, in form satisfactory to the Trustee, to indemnify, defend, and hold the Trustee harmless from all claims, actions, demands, or liabilities arising in connection with such repayment, and provided further that such repayment shall occur within one year after the date the request for qualification is denied.
DISQUALIFICATION OF PLAN. If any adopting Employer receives notice that a Plan is no longer qualified under the provisions of Section 401 of the Internal Revenue Code or the corresponding provisions of any future Federal Revenue Act, the Company shall immediately cause a valuation to be made of the share of the ESOP Trust Fund which is held for the benefits of the persons having an interest therein under such Plan. The ESOP Trustee shall thereupon segregate, withdraw from the ESOP Trust Fund, and dispose of such share in accordance with the written direction of the Inland Plan Committee. The Inland Plan Committee may direct the ESOP Trustee to dispose of such share to itself, as trustee of a separate trust, the terms and conditions of which shall be substantially identical with those of this ESOP Trust, except that the Company, the ESOP Trustee and such Employer, if any, shall be the only parties thereto.
DISQUALIFICATION OF PLAN. The Named Fiduciary shall promptly notify the Trustee if any Plan has been or is likely to be disqualified under Section 401 of the Code. In that event, the Equitable Share of such Plan shall be treated as a Plan withdrawn pursuant to this Section 11(d).