[Code of Federal Regulations]
[Title 26, Volume 15]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR36.3121(l)(5)-1]

[Page 451]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 36_CONTRACT COVERAGE OF EMPLOYEES OF FOREIGN SUBSIDIARIES--Table of Contents
 
Sec. 36.3121(l)(5)-1  Effect of termination.

    (a) Termination of entire agreement. (1) If the effective period of 
an agreement entered into by a domestic corporation as provided in Sec. 
36.3121(l)(1)-1 is terminated by the domestic corporation, pursuant to 
Sec. 36.3121(l)(3)-1(a), with respect to all foreign subsidiaries named 
in the agreement, including any amendment thereof, an agreement may not 
again be entered into by the domestic corporation under the provisions 
of section 3121(l)(1).
    (2) If the effective period of an agreement entered into by a 
domestic corporation as provided in Sec. 36.3121(l)(1)-1 is terminated 
by the Commissioner, pursuant to Sec. 36.3121(l)(4)-1 (a), an agreement 
may not again be entered into by the domestic corporation under the 
provisions of section 3121(l)(1).
    (3) If the effective period of an agreement entered into by a 
domestic corporation as provided in Sec. 36.3121(l)(1)-1 is terminated 
automatically by reason of a change in stock ownership (see Sec. 
36.3121(l)(3)-1(b)) with respect to all foreign corporations named in 
the agreement, including any amendment thereof, a new agreement may be 
entered into by the domestic corporation, as provided in Sec. 
36.3121(l)(1)-1, with respect to any foreign corporation which is a 
foreign subsidiary of the domestic corporation.
    (b) Partial termination of agreement. (1) If the effective period of 
an agreement entered into by a domestic corporation as provided in Sec. 
36.3121(l)(1)-1 is terminated by the domestic corporation, pursuant to 
Sec. 36.3121(l)(3)-1(a), with respect to one or more foreign 
subsidiaries named in the agreement, including any amendment thereof, 
the period for which the agreement is in effect will continue with 
respect to any other foreign subsidiary or subsidiaries named in the 
agreement (or amendment). However, the agreement may not thereafter be 
amended to include any foreign subsidiary with respect to which the 
effective period of the agreement has been terminated.
    (2) If the effective period of an agreement entered into by a 
domestic corporation as provided in Sec. 36.3121(l)(1)-1 is terminated 
automatically by reason of a change in stock ownership (see Sec. 
36.3121(l)(3)-1(b)) with respect to a foreign corporation which has 
ceased to be a foreign subsidiary of the domestic corporation, but the 
period for which the agreement is in effect continues with respect to 
one or more other foreign subsidiaries, the agreement may not thereafter 
be amended to include such foreign corporation even though the foreign 
corporation may again become a foreign subsidiary of the domestic 
corporation.