Common use of Initial Qualification Clause in Contracts

Initial Qualification. All Employer contributions are conditioned upon the initial qualification of the Plan and Trust under Code sections 401 and 501. The contributions of the Employer (or of a Participating Employer) to the Trust for all Plans Years, with the gains and losses thereon, shall be returned by the Plan to the Employer (or such Participating Employer), within one year in the event that the Commissioner of the Internal Revenue Service either issues an adverse determination on the initial qualification of the Plan and Trust or fails to rule that the Plan and Trust were as of such date qualified and tax-exempt (within the meaning of Code sections 401 and 501); and