Common use of Post-Termination Insurance Coverage Clause in Contracts

Post-Termination Insurance Coverage. (a) Subject to section 4.2(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 and on behalf of the Executive and the Executive’s dependents and beneficiaries medical, dental, and hospitalization insurance coverage as in effect during and in accordance with the same schedule prevailing in the 12 months preceding the date of the Executive’s termination. The insurance benefits provided by this section 4.2(a) shall be reduced if the Executive obtains disability, medical, dental, and hospitalization insurance benefits through another employer, or eliminated entirely if the other employer’s insurance benefits are equivalent or superior to the benefits provided under this section 4.2(a). If the insurance benefits are reduced, they shall be reduced by an amount such that the Executive’s aggregate insurance benefits for the period specified in this section 4.2(a) are equivalent to the benefits to which the Executive would have been entitled had the Executive not obtained disability, medical, dental, and hospitalization insurance benefits through another employer. The medical, dental, and hospitalization insurance coverage shall continue until the first to occur of (w) the Executive’s return to employment with the Employer or another employer providing equivalent or superior insurance benefits, (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. This section 4.2 shall not be interpreted to limit any benefits to which the Executive or the Executive’s dependents or beneficiaries may be entitled under any of the Employer’s employee benefit plans, agreements, programs, or practices after the Executive’s employment termination, including without limitation retiree medical and life insurance benefits. (b) If (x) under the terms of the applicable policy or policies for the insurance benefits specified in section 4.2(a) it is not possible to continue the Executive’s coverage or (y) when employment termination occurs the Executive is a specified employee within the meaning of section 409A of the Internal Revenue Code of 1986, if any of the continued insurance benefits specified in section 4.2(a) would be considered deferred compensation under section 409A, and finally if an exemption from the six-month delay requirement of section 409A(a)(2)(B)(i) is not available for that particular insurance benefit, instead of continued insurance coverage under section 4.2(a) the Employer shall 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 that particular insurance benefit 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. The lump-sum payment shall be made 30 days after employment termination or, if section 4.1(b) applies and a six-month delay is required under Internal Revenue Code section 409A, on the first day of the seventh month after the month in which the Executive’s employment terminates. 4.3

Post-Termination Insurance Coverage. (a) Subject to section Section 4.2(b), if the Executive’s 's employment terminates involuntarily but is terminated by the Bank without Cause, Cause or by the Executive voluntarily but with Good Reason, or because of disability, the Employer Bank shall continue or cause to be continued at the Employer’s Bank's expense and on behalf of the Executive and the Executive’s 's dependents and beneficiaries medical, dental, medical and hospitalization dental insurance coverage as in effect during and in accordance with the same schedule prevailing in the 12 months preceding the date of the Executive’s 's termination. The medical and dental insurance benefits provided by this section Section 4.2(a) shall be reduced if the Executive obtains disability, medical, dental, and hospitalization medical or dental insurance benefits through another employer, or eliminated entirely if the other employer’s 's insurance benefits are equivalent or superior to the benefits provided under this section Section 4.2(a). If the insurance benefits are reduced, they shall be reduced by an amount such that the Executive’s 's aggregate insurance benefits for the period specified in this section 4.2(a) are equivalent to the benefits to which the Executive would have been entitled had the Executive not obtained disability, medical, dental, and hospitalization medical or dental insurance benefits through another employer. The medical, dental, medical and hospitalization dental insurance coverage and disability benefit shall continue until the first to occur of (w) the Executive’s 's return to employment with the Employer Bank or another employer providing equivalent or superior insurance benefits, (x) the Executive’s 's attainment of age 65, (y) the Executive’s 's death, or (z) the end of the term Term remaining under this Agreement when the Executive’s 's employment terminates. This section Section 4.2 shall not be interpreted to limit any benefits to which the Executive or the Executive’s 's dependents or beneficiaries may be entitled under any of the Employer’s Bank's employee benefit plans, agreements, programs, or practices after the Executive’s 's employment terminationterminates, including including, without limitation any limitation, any retiree medical and life insurance benefits. (b) If (x) under the terms of the applicable policy or policies for the insurance benefits specified in section 4.2(a) it is not possible to continue the Executive’s coverage or (y) when employment termination occurs the Executive is a specified employee within the meaning of section 409A of the Internal Revenue Code of 1986, if any of the continued insurance benefits specified in section 4.2(a) would be considered deferred compensation under section 409A, and finally if an exemption from the six-month delay requirement of section 409A(a)(2)(B)(i) is not available for that particular insurance benefit, instead of continued insurance coverage under section 4.2(a) the Employer shall 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 that particular insurance benefit 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. The lump-sum payment shall be made 30 days after employment termination or, if section 4.1(b) applies and a six-month delay is required under Internal Revenue Code section 409A, on the first day of the seventh month after the month in which the Executive’s employment terminates. 4.3.