Common use of Additional Transfer Clause in Contracts

Additional Transfer. In addition to, and within sixty (60) days following, the transfer of assets from the Abbott ARP to the Hospira ARP described in Section 4.1(b) of this Agreement, Abbott shall pay Hospira an amount equal to that amount which, if contributed by Hospira to the Hospira ARP immediately following the transfer of assets required by Section 4.1(b) of this Agreement, would cause the ABO Funded Ratio of the Hospira ARP and the Abbott ARP to be equivalent as of the Distribution Date. With respect to a plan, the ABO Funded Ratio shall equal the fair market value of assets of that plan divided by the Accumulated Benefit Obligation of that plan, as determined under FAS 87. In calculating the ABO Funded Ratio, the assets for the Hospira ARP shall include the amount transferred directly from the Abbott ARP in accordance with Section 4.1(b) of this Agreement and the amount to be paid by Abbott in accordance with this Section 4.1(c). The pro-rata share of the 2003 plan year contributions assigned to the Abbott ARP in 4.1(b), that are contributed following the Distribution Date, shall be taken into account for purposes of calculating the ABO Funded Ratio of the Abbott ARP as of the Distribution Date as if those contributions had been part of the assets of the Abbott ARP on the Distribution Date. Similarly, the pro-rata share of the 2003 plan year contributions assigned to the Hospira ARP in Section 4.1(b) of this Agreement, that are contributed following the Distribution Date, shall be taken into account for purposes of calculating the ABO Funded Ratio of the Hospira ARP as of the Distribution Date as if those contributions had been part of the assets of the Hospira ARP on the Distribution Date. With the exception of the discount rate, the Accumulated Benefit Obligation shall be calculated using the assumptions and methodology used to calculate ▇▇▇▇▇▇'▇ December 31, 2003, FAS 87 disclosure information. The discount rate shall be determined as of the Distribution Date using ▇▇▇▇▇▇'▇ FAS 87 discount rate setting methodology consistent with ▇▇▇▇▇▇'▇ past practices. Hospira shall not be required to reimburse Abbott for any tax benefit received by Hospira with respect to any contribution to the Hospira ARP.

Appears in 1 contract

Sources: Employee Benefits Agreement (Hospira Inc)

Additional Transfer. In addition to, and within sixty (60) days following, the transfer of assets from the Abbott ARP to the Hospira ARP described in Section 4.1(b) of this Agreement, Abbott shall pay Hospira an amount equal to that amount which, if contributed by Hospira to the Hospira ARP immediately following the transfer of assets required by Section 4.1(b) of this Agreement, would cause the ABO Funded Ratio of the Hospira ARP and the Abbott ARP to be equivalent as of the Distribution Date. With respect to a plan, the ABO Funded Ratio shall equal the fair market value of assets of that plan divided by the Accumulated Benefit Obligation of that plan, as determined under FAS 87. In calculating the ABO Funded Ratio, the assets for the Hospira ARP shall include the amount transferred directly from the Abbott ARP in accordance with Section 4.1(b) of this Agreement and the amount to be paid by Abbott in accordance with this Section 4.1(c). The pro-rata share of the 2003 plan year contributions assigned to the Abbott ARP in 4.1(b), that are contributed following the Distribution Date, shall be taken into account for purposes of calculating the ABO Funded Ratio of the Abbott ARP as of the Distribution Date as if those contributions had been part of the assets of the Abbott ARP on the Distribution Date. Similarly, the pro-rata share of the 2003 plan year contributions assigned to the Hospira ARP in Section 4.1(b) of this Agreement, that are contributed following the Distribution Date, shall be taken into account for purposes of calculating the ABO Funded Ratio of the Hospira ARP as of the Distribution Date as if those contributions had been part of the assets of the Hospira ARP on the Distribution Date. With the exception of the discount rate, the Accumulated Benefit Obligation shall be calculated using the assumptions and methodology used to calculate ▇▇▇▇▇▇'▇ December 31, 2003, FAS 87 disclosure information. The discount rate shall be determined as of the Distribution Date using ▇▇▇▇▇▇'▇ FAS 87 discount rate setting methodology consistent with ▇▇▇▇▇▇'▇ past practices. Hospira shall not be required to reimburse Abbott for any tax benefit received by Hospira with respect to any contribution to the Hospira ARP.. 16 <Page> (d)

Appears in 1 contract

Sources: Employee Benefits Agreement

Additional Transfer. In addition to, and within sixty (60) days following, the transfer of assets from the Abbott ARP to the Hospira ARP described in Section 4.1(b) of this Agreement, Abbott shall pay Hospira an amount equal to that amount which, if contributed by Hospira to the Hospira ARP immediately following the transfer of assets required by Section 4.1(b) of this Agreement, would cause the ABO Funded Ratio of the Hospira ARP and the Abbott ARP to be equivalent as of the Distribution Date. With respect to a plan, the ABO Funded Ratio shall equal the fair market value of assets of that plan divided by the Accumulated Benefit Obligation of that plan, as determined under FAS 87. In calculating the ABO Funded Ratio, the assets for the Hospira ARP shall include the amount transferred directly from the Abbott ARP in accordance with Section 4.1(b) of this Agreement and the amount to be paid by Abbott in accordance with this Section 4.1(c). The pro-rata share of the 2003 plan year contributions assigned to the Abbott ARP in 4.1(b), that are contributed following the Distribution Date, shall be taken into account for purposes of calculating the ABO Funded Ratio of the Abbott ARP as of the Distribution Date as if those contributions had been part of the assets of the Abbott ARP on the Distribution Date. Similarly, the pro-rata share of the 2003 plan year contributions assigned to the Hospira ARP in Section 4.1(b) of this Agreement, that are contributed following the Distribution Date, shall be taken into account for purposes of calculating the ABO Funded Ratio of the Hospira ARP as of the Distribution Date as if those contributions had been part of the assets of the Hospira ARP on the Distribution Date. With the exception of the discount rate, the Accumulated Benefit Obligation shall be calculated using the assumptions and methodology used to calculate ▇▇▇▇▇▇'▇ December 31, 2003, FAS 87 disclosure information. The discount rate shall be determined as of the Distribution Date using ▇▇▇▇▇▇'▇ FAS 87 discount rate setting methodology consistent with ▇▇▇▇▇▇'▇ past practices. Hospira shall not be required to reimburse Abbott for any tax benefit received by Hospira with respect to any contribution to the Hospira ARP.

Appears in 1 contract

Sources: Employee Benefits Agreement (Hospira Inc)