Effective Date of Contrary Election Sample Clauses
The 'Effective Date of Contrary Election' clause establishes the specific date on which a party's decision to opt out of or alter a default contractual provision becomes operative. In practice, this clause clarifies when a party's formal notice of a contrary election—such as choosing a different governing law or payment method—takes effect, ensuring all parties are aware of the timeline for the change. Its core function is to provide certainty and prevent disputes by clearly defining when the new terms or elections begin to apply.
Effective Date of Contrary Election. A Participant's Contrary Election generally is effective as of the first payroll period which follows the Participant's Contrary Election. However, a Participant may make a Contrary Election which is effective: (a) for the first payroll period in which he/she becomes a Participant if the Participant makes a Contrary Election within a reasonable period following the Participant's Entry Date and before the Compensation to which the Election applies becomes currently available; or (b) for the first payroll period following the Effective Date of the Automatic Deferral, if the Participant makes a Contrary Election not later than the Effective Date of the Automatic Deferral. A Participant who makes a Contrary Election is not thereafter subject to the Automatic Deferral or to any scheduled increases thereto, even if the Participant later revokes or modifies the Contrary Election. A Participant's Contrary Election continues in effect until the Participant subsequently changes his/her Salary Reduction Agreement.