This plan and the trust created in connection
with the plan are based upon the condition precedent that they shall
be approved and qualified by the International Revenue Service as
meeting the requirements of the Federal Internal Revenue Code and
regulations issued thereunder with respect to employees' trusts, so
that the Town's contributions will not be currently taxable to the
participants as income. Accordingly, anything hereinabove contained
to the contrary notwithstanding, if a final ruling shall be received,
in writing, from the Internal Revenue Service that this plan and the
trust do not qualify under the terms of Sections 401 and 501 of the
Internal Revenue Code, there shall be no vesting in any participant
of any assets of the trust fund held by the trustee, and the trustee,
upon receipt of written notice from the Board, together with a copy
of such a ruling, shall transfer and pay over to the Town all of the
net assets in the trust fund remaining after deduction of proper expenses
of termination, and the trust fund shall thereupon terminate. For
the purposes of this article, "final ruling" shall mean either the
initial letter ruling from the District Director, in response to the
Town's original application for a ruling, or, if such letter ruling
is unfavorable and a written appeal is taken or protest filed with
60 days of the date of such letter ruling, it shall mean the ruling
received in response to such appeal or protest.