Lump Sum Distributions. The Company and each Subsidiary agrees to amend any Company or Subsidiary sponsored profit sharing plan that is intended to be qualified under Code Section 401(a), including any 401(k) plan, to provide that plan distributions shall be made solely in the form of a lump sum and any other forms of distribution shall cease to be available after the ninety (90) day period described in Treasury Regulation section 1.411(e)(1)(ii)(A). Such amendment shall be adopted prior to any termination of the plan pursuant to Section 4.15 and in no event later than the Closing Date. The Company agrees to provide or cause to be provided a summary of material modification describing the amendment to each plan participant as soon as administratively possible after the amendment is adopted.
Appears in 3 contracts
Sources: Merger Agreement (Verisity LTD), Merger Agreement (Cadence Design Systems Inc), Merger Agreement (Cadence Design Systems Inc)