Common use of Initial Participation Clause in Contracts

Initial Participation. Upon completion of the eligibility for Plan participation requirements specified in the Plan Agreement, an Employee shall begin participation in the Plan as of the entry date specified in the Plan Agreement, or as of the Effective Date, whichever is later; provided, however, that: (a) if the Plan is adopted as an amendment of a predecessor plan of the Employer, every Employee who was participating under the predecessor plan when it was so amended shall become a Participant in the Plan as of the Effective Date, whether or not he has satisfied the age and service requirements specified in the Plan Agreement; and (b) if the Employer so specifies in the Plan Agreement, any individual who is (i) a nonresident alien receiving no earned income from an Affiliated Employer which constitutes income from sources within the United States, (ii) included in a unit of Employees covered by a collective bargaining agreement between the Employer and Employee representatives (excluding from the term "Employee representatives" any organization of which more than half of the members are Employees who are owners, officers, or executives of an Affiliated Employer), if retirement benefits were the subject of good faith bargaining and no more than 2% of the Employees covered by the collective bargaining agreement are professionals as defined in Section 1.410(b)-9 of the Income Tax Regulations, (iii) is an Employee of an Affiliated Employer specified by the Employer in the Plan Agreement, (iv) is a Leased Employee, or (v) is a member of such other class of Employees specified by the Employer in the Plan Agreement, shall not participate in the Plan until the later of the date on which he ceases to be described in clause (i), (ii), (iii), (iv) or (v), whichever are applicable, or the entry date specified by the Employer in the Plan Agreement; and (c) if the Plan is not adopted as an amendment of a predecessor plan of the Employer, Employees on the Effective Date shall begin participation on the Effective Date, to the extent so elected by the Employer in the Plan Agreement; and (d) a Participant shall cease to participate in the Plan when he becomes a member of a class of Employees ineligible to participate in the Plan, and shall resume participation immediately upon his return to a class of Employees eligible to participate in the Plan. In the case of a Plan to which the CODA provisions of Article 5 apply and for which the Employer has elected in the Plan Agreement to apply different minimum service requirements for purposes of participation in Profit Sharing Contributions, for purposes of participation in the CODA provisions and/or for purposes of participation in Employer Matching Contributions, this Article 3 shall be applied separately with regard to participation under Article 4, with regard to participation under the CODA provisions of Article 5 and/or with regard to participation in Employer Matching Contributions under Article 5.