Common use of Continuance of Health and Welfare Benefits Clause in Contracts

Continuance of Health and Welfare Benefits. For 36 months following the Date of Termination (the “Welfare Continuance Benefit Period”), the Executive, his spouse and his dependents will continue to be covered under all health and welfare plans and programs (“Welfare Plans”) in which the Executive, his spouse or his dependents were participating immediately prior to the Date of Termination (the “Welfare Continuance Benefit”). The Company will pay all or a portion of the cost of the Welfare Continuance Benefit for the Executive, his spouse and his dependents under the Welfare Plans on the same basis as applicable, from time to time, to active employees covered under the Welfare Plans and the Executive will pay any additional costs. If participation in any one or more of the Welfare Plans included in the Welfare Continuance Benefit is not possible under the terms of the Welfare Plan or any provision of law would create an adverse tax effect for the Executive or the Company due to such participation, the Company either shall provide substantially identical benefits directly or through an insurance arrangement or shall pay the Executive a lump sum equal to 1.4 times the estimated cost of maintaining such coverage. If the Executive dies while receiving a Welfare Continuation Benefit, the Executive’s spouse and other dependents will continue to be covered under all applicable Welfare Plans during the remainder of the applicable Welfare Continuance Benefit Period. The Executive, his spouse and his dependents will become eligible for COBRA continuation coverage as of the date the Welfare Continuance Benefit ceases for health benefits.