Common use of Health Plans Clause in Contracts

Health Plans. If, at the time of separation from service, Executive is a "specified employee" within the meaning of Section 409A(a)(2)(B)(i) and the Treasury Regulations, Executive shall pay the full cost of coverage for Executive and his dependent(s) under Employer's health care and hospitalization plan(s), determined according to the rates for continuation coverage under COBRA (but excluding the additional two percent (2%) administrative fee) for the first six (6) months of coverage following Executive's separation from the service of Employer as defined in Code section 409A(a)(2)(A)(i) and the Treasury Regulations. Beginning with the seventh (7th) month following Executive's separation from the service of Employer as defined in Code section 409A(a)(2)(A)(i) and the Treasury Regulations if Executive is a "specified employee," or beginning with the first month of coverage if, at the time of separation from service, Executive is not a "specified employee," Executive shall pay the same cost for coverage under the health plan as active employees of Employer. Coverage for Executive and Executive's dependents shall terminate on the last day of the month in which Executive's 65th birthday shall occur. All claims made by Executive and Executive's dependents under the health plan shall be paid no later than the last day of the calendar year following the calendar year in which such claims were incurred. Executive agrees that he will promptly reimburse Employer for any claims that are paid after the last day of the calendar year following the calendar year in which such claims were incurred.