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Common use of Rule of Parity Clause in Contracts

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

Appears in 2 contracts

Sources: 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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