Common use of Failure to Qualify Clause in Contracts

Failure to Qualify. Notwithstanding anything in this Plan to the contrary, all contributions under the Plan made prior to the receipt by the Employer of a determination by the Internal Revenue Service to the effect that the Plan is qualified under Code Section 401 shall be made on the express condition that such a determination will be received, and in the event that the Internal Revenue Service determines upon initial application for a determination that the Plan is not so qualified or tax exempt, all contributions made by the Employer or Participants prior to the date of determination must be returned within one (1) year from the date of such determination, but only if the application for qualification is made by the time prescribed by law for filing the Employer's return for the taxable year in which the Plan is adopted or such later date as the Secretary of the Treasury may prescribe.