Change in Control

[Guest MJ1]

Can a change in control definition be more restrictive (with respect to factors other than the change in ownership/effective control percentage threshold) than under the regulations? For example, can a plan sponsored by a closely-held corporation require that a change in control be made to non-family members in order to qualify as a change in control?

I believe that this is permissible, and the 318 attribution applies so the rules would, in most cases, require such a change in order to qualify as a CIC.