Common use of Purchaser's Plans Clause in Contracts

Purchaser's Plans. Effective as of the Closing Date until January 1, 1999 Purchaser shall continue the same health plans currently provided by Seller to its employees with respect to each employee of Seller who is hired by Newco pursuant to Section 2.4(a) ("Transferring Employees"), and after January 1, 1999, Purchaser shall cause each Transferring Employee to be provided with benefits on a basis substantially similar to Purchaser's normal practice. Purchaser shall cause each Transferring Employee to be covered under a group health plan that (i) provides medical and dental benefits to the Transferring Employee, (ii) credits such Transferring Employee, for the year during which such coverage under such group health plan begins, with any deductibles and copayments already incurred during such year under the group health plan maintained by Seller listed on Schedule 3.13(a), and (iii) waives any preexisting condition restrictions to the extent necessary to provide immediate coverage and to the extent such restrictions did not apply under the group health plan maintained by Seller. Purchaser shall cause the employee benefit plans and programs maintained after the Closing by Purchaser to recognize each Transferring Employee's years of service and level of seniority prior to the Closing Date with Seller and its affiliates for purposes of terms of employment and eligibility, vesting and benefit determination under such plans and programs (other than benefit accruals under any defined benefit pension plan).