Prohibited Allocations Clause Samples
Prohibited Allocations. No portion of the assets of the Plan attributable to Company Stock acquired by the Plan in a sale to which Code Section 1042 applies may accrue to or be allocated, directly or indirectly, under any plan of the Sponsoring Company (or any Affiliated Company) meeting the requirements of Code Section 401(a), during the “non-allocation period,” for the benefit of: (i) any Participant who makes an election under Code Section 1042(a) with respect to Company Stock; or (ii) any individual who is related to such a Participant within the meaning of Code Section 267(b); or (iii) for the benefit of any other person who owns (after application of Code Section 318(a)) more than (x) 25% of any class of outstanding stock of the corporation which issued the Company Stock or of any corporation which is a member of the same controlled group of corporations (within the meaning of Code Section 409(l)(4)) as such corporation, or (y) 25% of the total value of outstanding stock of any such corporation. The “non-allocation period” shall be the period beginning on the date of the sale of the Company Stock and ending on the later of (i) the date which is 10 (ten) years after the sale of Company Stock; or (ii) the date of allocation attributable to the final payment under the Promissory Note incurred in connection with such sale. The Trustee may establish subaccounts that it deems necessary in order to comply with the provisions of this Section 21.04(3).
Prohibited Allocations. The provisions of this Article 10 (and other related provisions in this Agreement) pertaining to the allocation of items of Company income, gain, loss, deductions, and credits shall be interpreted consistently with Section 704 of the Code and the Treasury Regulations thereunder, and to the extent unintentionally inconsistent with such Section and Treasury Regulations, shall be deemed to be modified to the extent necessary to make such provisions consistent with the Treasury Regulations.
Prohibited Allocations. In the event the Plan should acquire Employer Stock in a transaction to which Section 1042 of the Code applies, during the Nonallocation Period no portion of the assets of the Plan attributable to (or allocable in lieu thereof) such Employer Stock shall be allocated to the following:
(a) Any seller who makes an election under Section 1042 of the Code;
(b) Except for certain lineal descendants as provided in Section 409(n) of the Code, any individual who is related to such seller (as determined under Section 267(b) of the Code); or
(c) Any Twenty-Five Percent Shareholder.
Prohibited Allocations. In the event the Trustee acquires Employer Securities in a sale to which Code Section 1042 or Code Section 2057 applies, the following provisions shall be applicable. No portion of the assets of the Trust Fund attributable to (or allocable in lieu of) Employer Securities so acquired may accrue (or be allocated directly or indirectly under any Plan of the Employer meeting the requirements of Code Section 401(a)) -
(a) During the non-allocation period, for the benefit of -
(i) Any taxpayer who makes an election under Code Section 1042(a) with respect to the Employer Securities or any decedent if the executor of the estate of such decedent makes a qualified sale to which Code Section 2057 applies,
(ii) Any individual who is related to the taxpayer or the decedent (within the meaning of Code Section 267(b)), or
(b) For the benefit of any other person who owns (after application of Code Section 318(a), applied without regard to the exception of Code Section 318(a)(2)(B)(i)) more than twenty-five percent (25%) of -
(i) Any class of outstanding stock of the Employer or of any corporation which is a member of the same controlled group of corporations (within the meaning of Code Section 409(l)(4)) of the Employer, or
(ii) The total value of any class of outstanding stock of any such corporation. For purposes of this Section 8.11, the term "non-allocation period" shall have such meaning as set forth in Code Section 409(n)(3)(C). Code Section 409(n)(3) (B) shall be applied to determine those persons who are twenty-five percent (25%) shareholders.