Common use of Establishment of Pension Trust Clause in Contracts

Establishment of Pension Trust. Effective as of the Closing Date, Constar shall establish or cause to be established with respect to the Constar Pension Plan, a trust(s) which shall be exempt from taxation under Code section 501(a) (the “Constar Pension Trust”). On the first business day of the month commencing immediately after the month in which the Closing Date occurs, Crown will cause the Crown Cork & Seal Company, Inc. Master Retirement Trust (the “Master Trust”) to transfer to the Constar Pension Trust an amount of cash equal to 90 percent of the value of the assets of the Crown Hourly Pension Plan for Constar Employees determined as of the last business day of the month immediately preceding the month in which the Closing Date occurs. As soon as practicable thereafter, the Parties will cause a final transfer, either from or to the Master Trust and the Constar Pension Trust, of the balance of the assets (either positive or negative) of the Crown Hourly Pension Plan for Constar Employees determined as of the last business day of the month in which the Closing Date occurs. Such transfer shall be in cash and shall be appropriately adjusted to account for benefit payments and administrative expenses. In addition, such transfer shall be appropriately adjusted for the liability and asset transfer provided for in Section 3.2(a)(iv) above.

Establishment of Pension Trust. Effective as of the Closing Date, Constar shall establish or cause to be established with respect to the Constar Pension Plan, a trust(s) which shall be exempt from taxation under Code section 501(a) (the “Constar Pension Trust”). On the first business day of the month commencing immediately after the month in which the Closing Date occurs, Crown will cause the Crown Cork & Seal Company, Inc. Master Retirement Trust (the “Master Trust”) to transfer to the Constar Pension Trust an amount of cash equal to 90 percent of the value of the assets of the Crown Hourly Pension Plan for Constar Employees determined as of the last business day of the month immediately preceding the month in which the Closing Date occurs. As soon as practicable thereafter, the Parties will cause a final transfer, either from or to the Master Trust and the Constar Pension Trust, of the balance of the assets (either positive or negative) of the Crown Hourly Pension Plan for Constar Employees determined as of the last business day of the month in which the Closing Date occurs. Such transfer shall be in cash and shall be appropriately adjusted to account for benefit payments and administrative expenses. In addition, such transfer shall be appropriately adjusted for the liability and asset transfer provided for in Section 3.2(a)(iv) above.