Common use of Additional Severance Benefits Clause in Contracts

Additional Severance Benefits. In addition to the severance payment due under paragraph (a) of this section 1, if the Executive is entitled to a lump-sum severance payment under paragraph (a) after employment termination Middlefield shall (x) cause the Executive to become fully vested in any qualified and non-qualified plans, programs, or arrangements in which the Executive participated if the plan, program, or arrangement does not address the effect of a change in control, (y) contribute or cause to be contributed to the Executive’s 401(k) plan account the matching and profit-sharing contributions, if any, that the Executive is entitled to based upon all W-2 income earned by the Executive for the plan year in which termination occurs, and (z) continue or cause to be continued life, health, and disability insurance coverage substantially identical to the coverage maintained for the Executive before termination. The insurance coverage may cease when the Executive becomes employed by another employer or 24 months after the Executive’s termination, whichever occurs first. At the end of the 24-month period, the Executive shall have the option to continue health insurance coverage at the Executive’s expense for a period not less than the number of months by which the Consolidated Omnibus Budget Reconciliation Act (COBRA) continuation period exceeds 24 months. But instead of providing continued life, health, and disability coverage for the Executive, Middlefield may elect to increase the lump-sum amount payable under paragraph (a) of this section 1 by an amount in cash equal to the present value of Middlefield’s projected cost to maintain the Executive’s life, health, and disability coverage for 24 months if under the terms of the life, health, or disability policy coverage maintained by Middlefield it is not possible to continue the Executive’s coverage after termination or if Middlefield determines that continued life, health, or disability coverage would be considered deferred compensation under section 409A of the Internal Revenue Code of 1986.