Common use of Post-Distribution Transitional Arrangements Clause in Contracts

Post-Distribution Transitional Arrangements. (a) Continuance of Elections, Co-Payments and Maximum Benefits. ---------------------------------------------------------- (i) As of the Distribution Date (or such other date(s) as Catalytica and CESI may mutually agree in writing), CESI shall cause the CESI Health and Welfare Plans to recognize and maintain all coverage and contribution elections made by CESI Employees under the Catalytica Health and Welfare Plans and apply such elections under the CESI Health and Welfare Plans for the remainder of the period or periods for which such elections are by their terms applicable. The transfer or other movement of employment between Catalytica and CESI at any time upon or before the Distribution Date shall neither constitute nor be treated as a "status change" or termination of employment under the Catalytica Health and Welfare Plans or the CESI Health and Welfare Plans. (ii) On and after the Distribution Date, CESI shall cause the CESI Health Plans to recognize and give credit for (A) all amounts applied to deductibles, out-of-pocket maximums, co-payments and other applicable benefit coverage limits with respect to which such expenses have been incurred by CESI Employees under the Catalytica Health Plans for the remainder of the calendar year in which the Distribution Date occurs, and (B) all benefits paid to CESI Employees under the Catalytica Health Plans for purposes of determining when such persons have reached their lifetime maximum benefits under the CESI Health Plans.

Appears in 1 contract

Samples: Employee Matters Agreement (Catalytica Energy Systems Inc)

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Post-Distribution Transitional Arrangements. (a) Continuance of Elections, Co-Payments and Maximum Benefits. ---------------------------------------------------------- (i) As of the Distribution Date (or such other date(s) as Catalytica and CESI may mutually agree in writingagree), CESI shall cause the CESI Health and Welfare Plans to recognize and maintain all coverage and contribution elections made by CESI Employees under the Catalytica Health and Welfare Plans and apply such elections under the CESI Health and Welfare Plans for the remainder of the period or periods for which such elections are by their terms applicable. The transfer or other movement of employment between Catalytica and CESI at any time upon or before the Distribution Date shall neither constitute nor be treated as a "status change" or termination of employment under the Catalytica Health and Welfare Plans or the CESI Health and Welfare Plans. (ii) On and after the Distribution Date, CESI shall cause the CESI Health Plans to recognize and give credit for (A) all amounts applied to deductibles, out-of-pocket maximums, co-payments and other applicable benefit coverage limits with respect to which such expenses have been incurred by CESI Employees under the Catalytica Health Plans for the remainder of the calendar year in which the Distribution Date occurs, and (B) all benefits paid to CESI Employees under the Catalytica Health Plans for purposes of determining when such persons have reached their lifetime maximum benefits under the CESI Health Plans.

Appears in 1 contract

Samples: Employee Matters Agreement (Catalytica Energy Systems Inc)

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