PE Pension Plan Clause Samples

PE Pension Plan. Purchaser maintains the Progress Energy Pension Plan (the “PE Pension Plan”), which provides retirement benefits to certain current and former employees of the Plants. Seller is obligated under the OFA to pay its properly allocable ownership portion of certain costs associated with operating, administering and funding the PE Pension Plan, including, but not limited to, Service Costs and benefit funding expenses. (a) From the Effective Date through the Closing Date, Seller shall, in accordance with the OFA, pay Purchaser the lesser of (i) its properly allocable ownership portion of the Service Costs, or (ii) Seller’s properly allocable ownership portion of the actual contributions made to the PE Pension Plan by Purchaser. (b) In the event that on the last day of the plan year immediately preceding the Closing Date the PE Pension Plan’s funding status, as determined by the actuarial report performed for the PE Pension Plan for that plan year by the PE Pension Plan’s independent actuarial consultants, in a manner consistent with past practices, was below 100%, the Seller shall, within thirty (30) days prior to the Closing Date, pay Purchaser an amount equal to Seller’s properly allocable ownership portion of the aggregate contribution required to return the PE Pension Plan to 100% funded status as of the last day of the plan year preceding the Closing Date (such amount, the “Catch-Up Pension Contribution”). Notwithstanding the foregoing, in the event that the actuarial report for the plan year immediately preceding the Closing Date is incomplete as of the Closing Date, Seller shall pay Purchaser Seller’s Catch-Up Pension Contribution within thirty (30) days following receipt of written notice from Purchaser of the actuarial report’s finding with respect to the applicable year end funding level and an assessment of Seller’s properly allocable ownership portion of contributions required to return the PE Pension Plan to 100% funded status. (c) In the event that this Agreement is terminated in accordance with Section 6.1, Seller shall, within thirty (30) days of the termination, pay Purchaser an amount equal to (x) Seller’s properly allocable ownership portion of all PE Pension Plan expenses pursuant to the OFA minus (y) amounts actually paid in accordance with Section 4.7(a) above.