Coverage Ends Before the End of the Term Sample Clauses

Coverage Ends Before the End of the Term. If for any reason during the Term Xxxxxxx and his spouse do not remain eligible for the Interface group medical plan, Xxxxxxx shall be allowed to elect continued coverage under COBRA for himself and his spouse, with Xxxxxxx paying (on an after-tax basis) the amount an active employee pays for such coverage, and Interface paying the remainder of such cost of coverage. If COBRA ends before Xxxxxxx becomes covered by Medicare, Interface will either (A) allow Executive and his spouse to continue on Interface’s group medical benefits (as if they were still covered by COBRA), or (B) to the extent permitted by law, provide Xxxxxxx and his spouse with a fully-insured individual insurance policy, with either of such coverages to extend (i) for Xxxxxxx, until he becomes eligible for Medicare; and (ii) for Xxxxxxx’x spouse, until she becomes eligible for Medicare. For either type of post-COBRA coverage, Xxxxxxx will pay (on an after-tax basis) the amount an active employee would pay for similar coverage on an after-tax basis, and Interface will pay the remainder of the cost of that coverage. For continued, post-COBRA coverage under the Interface self-insured group medical plan, Interface will report the total amount of its payments as taxable income on Xxxxxxx’x Form W-2. For coverage under the individual medical insurance policy covering Executive and his spouse, the amount paid by Interface will be on a tax-free basis. However, in the event the tax or other laws change such that these payments and benefits, if continued or taxed in the above manner or under then current law, would have a materially adverse impact on Interface or Xxxxxxx, Interface may determine alternative means to tax or provide continued coverage for Xxxxxxx and his spouse during the period the benefits provided above would have been in effect.