M&A Boot Camp booklet 2023 - Flipbook - Page 129
4.5 Termination of Certain Employee Benefit Plans.
(a) Termination of 401(k) Plan. The Company shall take (or cause to be taken) all actions necessary or appropriate to terminate,
effective no later than the day immediately preceding the Closing Date, any Plan that contains a cash or deferred arrangement intended to
qualify under Section 401(k) of the Code (the “401(k) Plans”), unless Parent, in its sole and absolute discretion, agrees to sponsor and
maintain such 401(k) Plans by providing the Company with written notice of such election at least three days before the Effective Time.
Unless Parent provides such notice to the Company, Parent shall receive from the Company, prior to the Effective Time, evidence that the
Company’s board of directors has adopted resolutions to terminate the 401(k) Plans (the form and substance of which resolutions shall be
subject to review and approval of Parent), effective no later than the date immediately preceding the Closing Date. In the event that the
distributions of assets from the trust of a 401(k) Plan which is terminated is reasonably anticipated to trigger liquidation charges, surrender
charges, or other fees to be imposed upon the account of any participant or beneficiary of such terminated plan or upon any Company or
plan sponsor, then the Company shall take such actions as are necessary to reasonably estimate the amount of such charges and/or fees and
provide such estimate in writing to Parent prior to the Effective Time.
(b) Termination of Severance Plans. The Company shall take (or cause to be taken) all actions necessary or appropriate to terminate,
effective no later than the day immediately preceding the Closing Date, any group severance, separation or salary continuation Company
Employee Plans, programs or arrangements (the “Severance Plans”), unless Parent, in its sole and absolute discretion, agrees to sponsor and
maintain such Severance Plans by providing the Company with written notice of such election at least three days before the Effective Time.
Unless Parent provides such notice to the Company, Parent shall receive from the Company, prior to the Effective Time, evidence that the
Company’s board of directors has adopted resolutions to terminate the Severance Plans (the form and substance of which resolutions shall
be subject to review and approval of Parent), effective no later than the date immediately preceding the Closing Date.
4.6 Termination of Agreements. The Company shall use its commercially reasonable efforts to cause the agreements and benefit plan
identified on Schedule 4.6 to be terminated effective as of the Effective Time.
4.7 FIRPTA Matters. At the Closing: (a) the Company shall deliver to Parent a statement (in such form as may be reasonably requested by
counsel to Parent) conforming to the requirements of Section 1.897- 2(h)(1)(i) of the United States Treasury Regulations (the “FIRPTA
Statement”); and (b) the Company shall deliver to the Internal Revenue Service the notification required under Section 1.897- 2(h)(2) of the United
States Treasury Regulations (the “FIRPTA Notification”).
5.
CERTAIN COVENANTS OF THE PARTIES
5.1 Filings and Consents.
(a) Filings. Each party shall use commercially reasonable efforts to file, as soon as practicable after the date of this Agreement, all
notices, reports and other documents required to be filed by such party with any Governmental Body with respect to the Merger and the
other transactions
39.