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Common use of Rule of Parity Clause in Contracts

Rule of Parity. If an Employee does not have any nonforfeitable right to the Account balance derived from Employer contributions, exclude eligibility service before a period of five (5) consecutive One-Year Breaks in Service/Periods of Severance.

Appears in 3 contracts

Sources: Adoption Agreement for 401(k)/Profit Sharing Plan, Adoption Agreement, Adoption Agreement

Related Clauses

  • Registration Limitation
  • Calculation of Number and Percentage of Beneficial Ownership of Outstanding Voting Shares
  • Distribution of Additional Shares, Rights, etc
  • Regulation S Global Note to Rule 144A Global Note
  • Rule 904 Transfers

Parent Clauses

  • Re-Hired Employees
  • Service Definitions for Eligibility Vesting and Allocations
  • Vesting Exclusions
  • Compensation for Permitted Disparity Purposes
  • Reemployment of an Employee After a Break In Service and Before Entry Date

Sub-Clauses

  • Participant Becomes an Excluded Employee
  • CONTRIBUTION TYPES
  • Rehired Eligible Employee Who Had Satisfied Eligibility
  • Allocation Conditions
  • Prototype Plan
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