Common use of Post-Termination Insurance Coverage Clause in Contracts

Post-Termination Insurance Coverage. (a) Subject to the Employer’s right to elect to make an alternative cash payment under section 4.5(b), if the Executive’s employment terminates involuntarily but without Cause, voluntarily but with Good Reason, or because of disability, the Employer shall continue or cause to be continued at the Employer’s expense medical insurance benefits, the disability reimbursement and gross-up benefit under section 2.2(c), and the long-term care insurance benefit under section 2.2(d), in each case as in effect during the two years preceding the date of the Executive’s termination. The medical and disability (including income tax gross up) insurance benefits provided by this section 4.5 shall continue until the first to occur of (w) the Executive’s return to employment with the Employer or another employer, (x) the Executive’s attainment of age 65, (y) the Executive’s death, or (z) the end of the term remaining under this Agreement when the Executive’s employment terminates. The long-term care insurance benefit under section 2.2(d) shall continue until the policy is fully paid. If continued long-term care insurance benefits under section 2.2(d) constitute taxable income to the Executive, the Employer shall reimburse the Executive for federal and state income taxes imposed on the Executive that are attributable to continued maintenance of the long-term care insurance coverage, and the amount reimbursed by the Employer shall be grossed up to compensate the Executive for federal and state income taxes imposed as a result of the Employer’s reimbursement. (b) Instead of providing continued medical and disability (including income tax gross up) insurance benefits for the Executive under section 4.5(a), the Employer may elect to pay to the Executive in a single lump sum an amount in cash equal to the present value of the Employer’s projected cost to maintain the Executive’s medical and disability insurance benefits (including income tax gross up) had the Executive’s employment not terminated, assuming continued coverage for the lesser of 36 months or the number of months until the Executive attains age 65, (x) if under the terms of the applicable insurance policy or policies it is not possible to continue the Executive’s coverage or (y) if the Employer determines that continued coverage under any or all of the policies would be considered deferred compensation under section 409A of the Internal Revenue Code of 1986. The lump-sum payment shall be made 30 days after employment termination or, if section 4.4(b) applies, on the first day of the seventh month after the month in which the Executive’s employment terminates. Instead of providing the continued long-term care insurance benefit under section 4.5(a) (including income tax gross up), the Employer may elect to pay to the Executive in a single lump sum an amount in cash equal to the present value of the Employer’s projected cost to maintain the long-term care insurance policy (including income tax gross up) until the Executive attains age 65, (x) if under the terms of the policy it is not possible to continue the Executive’s coverage or (y) if the Employer determines that continued coverage would be considered deferred compensation under section 409A of the Internal Revenue Code of 1986. The lump-sum payment shall be made 30 days after employment termination or, if section 4.4(b) applies, on the first day of the seventh month after the month in which the Executive’s employment terminates.

Post-Termination Insurance Coverage. (a) Subject to the Employer’s right to elect to make an alternative cash payment under section 4.5(b), if the Executive’s employment terminates involuntarily but without Cause, voluntarily but with Good Reason, or because of disability, the Employer shall continue or cause to be continued at the Employer’s expense medical insurance benefits, the long-term care insurance benefit under section 2.2(d), and the disability reimbursement and gross-up benefit under section 2.2(c), and the long-term care insurance benefit under section 2.2(d2.2(e), in each case as in effect during the two years preceding the date of the Executive’s termination. The medical and disability (including income tax gross up) insurance benefits provided by this section 4.5 shall continue until the first to occur of (w) the Executive’s return to employment with the Employer or another employer, (x) the Executive’s attainment of age 65, (y) the Executive’s death, or (z) the end of the term remaining under this Agreement when the Executive’s employment terminates. The long-term care insurance benefit under section 2.2(d) shall continue until the policy is fully paid. If continued long-term care insurance benefits under section 2.2(d) constitute taxable income to the Executive, the Employer shall reimburse the Executive for federal and state income taxes imposed on the Executive that are attributable to continued maintenance of the long-term care insurance coverage, and the amount reimbursed by the Employer shall be grossed up to compensate the Executive for federal and state income taxes imposed as a result of the Employer’s reimbursement. (b) Instead of providing continued medical and disability (including income tax gross up) insurance benefits for the Executive under section 4.5(a), the Employer may elect to pay to the Executive in a single lump sum an amount in cash equal to the present value of the Employer’s projected cost to maintain the Executive’s medical and disability insurance benefits (including income tax gross up) had the Executive’s employment not terminated, assuming continued coverage for the lesser of 36 months or the number of months until the Executive attains age 65, (x) if under the terms of the applicable insurance policy or policies it is not possible to continue the Executive’s coverage or (y) if the Employer determines that continued coverage under any or all of the policies would be considered deferred compensation under section 409A of the Internal Revenue Code of 1986. The lump-sum payment shall be made 30 days after employment termination or, if section 4.4(b) applies, on the first day of the seventh month after the month in which the Executive’s employment terminates. Instead of providing the continued long-term care insurance benefit under section 4.5(a) (including income tax gross up), the Employer may elect to pay to the Executive in a single lump sum an amount in cash equal to the present value of the Employer’s projected cost to maintain the long-term care insurance policy (including income tax gross up) until the Executive attains age 65, (x) if under the terms of the policy it is not possible to continue the Executive’s coverage or (y) if the Employer determines that continued coverage would be considered deferred compensation under section 409A of the Internal Revenue Code of 1986. The lump-sum payment shall be made 30 days after employment termination or, if section 4.4(b) applies, on the first day of the seventh month after the month in which the Executive’s employment terminates.