Special Rules for Flexible Spending Account. Seller agrees to, and Buyer agrees to cause Services Company to, coordinate the transition of Seller’s health care flexible spending account plan with respect to Affected Employees as described in Situation 2 of Internal Revenue Service Revenue Ruling 2002-32. Accordingly, the Affected Employees cease to be eligible for Seller’s Health Care Plans as of the Closing Date, except to the extent of any continuation coverage election under Consolidated Omnibus Budget Reconciliation Act (“COBRA”). Buyer agrees to cause Services Company to establish and maintain or make provision for, the establishment of a health care flexible spending account plan pursuant to Section 125 of the Internal Revenue Code applicable to Affected Employees and the election by any Affected Employee under Seller’s Health Care Plans shall be continued as an election as if made under Services Company’s health care flexible spending account from the beginning of Seller’s plan year. Services Company’s health care flexible spending account plan shall provide for reimbursement of medical care expenses incurred by the Affected Employees at any time during Seller’s plan year including claims incurred before the Closing Date, up to the amount of the Affected Employees’ election and reduced by amounts previously reimbursed by Seller. As soon as reasonably practicable, Seller shall provide Buyer with the Affected Employees’ election for the plan year, periodic salary reduction and expense reimbursement as of the Closing Date.
Special Rules for Flexible Spending Account. Seller will transfer the health flexible spending account balances and the dependent care flexible spending account balances of Non-Represented Affected Employees under its flexible spending program to the health flexible spending plan and dependent care flexible spending plan maintained by Buyer as soon as reasonably practicable following the Closing Date. The health flexible spending plan and dependent care flexible spending plan maintained by Buyer (or its Affiliates) shall provide for the health reimbursement and dependent care reimbursement benefits for the Non-Represented Affected Employees under those plans, respectively, for the remainder of the current plan years of those plans; provided, however, that each such Non-Represented Affected Employee receives the appropriate credit (or debit) for his or her transferred recordkeeping balances under Buyer’s applicable flexible spending plan for such year. Seller shall not be responsible for the provision of the health reimbursement and dependent care reimbursement benefits to the Non-Represented Affected Employees following the transfer of the health flexible spending account balances and dependent care flexible spending account balances of the Non-Represented Affected Employees to the Buyer’s plans.
Special Rules for Flexible Spending Account. The Parties agree to coordinate the transition of the Sellers’ health care flexible spending account plan with respect to Affected Employees as described in Situation 1 of Internal Revenue Service Revenue Ruling 2002-32. Accordingly, Sellers agree to cause the ChevronTexaco Health Care Program to permit the continued participation of Affected Employees without an additional contribution for the remainder of the calendar year including the Hire Date. Buyers agree to establish and maintain or make provision for, the establishment of a health care flexible spending account plan applicable to Affected Employees and that the election by any Affected Employee under the ChevronTexaco Health Care Program shall be continued as an election as if made under the Buyers’ health care flexible spending account. All benefits for the remainder of that calendar year will be paid by the ChevronTexaco Health Care Plan and not from the Buyers’ health care flexible spending account plan. In consideration of Affected Employees being able to participate in the ChevronTexaco Health Care Program for the remainder of that calendar year, Buyers will remit to Sellers all periodic salary reductions made by Affected Employees in Buyers’ health care flexible spending account plan after the Hire Date and during the remainder of the calendar year no later than five days after the month in which such salary reduction occurs.
