Parent Divided Nonqualified Plans Sample Clauses
The "Parent Divided Nonqualified Plans" clause defines how nonqualified retirement or deferred compensation plans are to be divided or allocated when a parent company undergoes a corporate restructuring, such as a spin-off or divestiture. In practice, this clause outlines the process for determining which employees' plan interests are transferred to the new entity and how plan liabilities and assets are split between the parent and the separated company. Its core function is to ensure a fair and orderly division of nonqualified plan obligations, preventing disputes and maintaining benefit continuity for affected employees during corporate changes.
Parent Divided Nonqualified Plans. Parent shall retain all Liabilities under the Parent Divided Nonqualified Plans for the benefits for Parent Group Employees and Former Parent Group Employees and their respective beneficiaries and/or alternate payees. From and after the Operational Separation, UpstreamCo Group Employees and Former UpstreamCo Group Employees shall cease to be participants in the Parent Divided Nonqualified Plans. All Parent Shares notionally credited to participants’ accounts under the Parent Divided Nonqualified Plans shall be adjusted so that, from and after the Effective Time, such notionally credited shares represent a number of notionally credited Parent Shares (rounded to the nearest whole number of shares) equal to the product obtained by multiplying (1) the number of such notionally credited Parent Shares immediately prior to the Effective Time, by (2) the Parent Ratio.
Parent Divided Nonqualified Plans. GasCo shall retain all Liabilities under the Parent Divided Nonqualified Plans for the benefits for GasCo Group Employees and Former Parent Group Employees and their respective beneficiaries and/or alternate payees. As of and after the Effective Time, CoalCo Group Employees and Former CoalCo Group Employees shall cease to be participants in the Parent Divided Nonqualified Plans.