Common use of Payment of Welfare Benefits Clause in Contracts

Payment of Welfare Benefits. (a) For a period of thirty-six (36) full calendar months following the Effective Date of the Merger, New Haven agrees to cause to be continued life, health, dental and disability coverage pursuant to the policies offered to its employees for the Executive and any of his dependents covered by Connecticut Bancshares or Manchester immediately prior to the Effective Date of the Merger, except as set forth in Section 3(b) below. During such thirty-six (36) full calendar month period, the Executive shall continue to be responsible for paying the employee share of any premiums, copayments or deductibles. In the event the Executive’s participation in any such plan or program is barred, New Haven shall arrange to provide the Executive and his dependents with benefits substantially similar to those which the Executive and his dependents would otherwise have received under such plans and programs from which their continued participation is barred or provide their economic equivalent. (b) In lieu of receiving one or more of the coverages specified in Section 3(a) above, the Executive may elect to receive a cash payment equal to the present value of the cost to New Haven of providing such coverage, in which event (i) Section 3(a) shall no longer require such coverage to be provided by New Haven, (ii) the cash payment in lieu of such coverage shall be included in the amount set forth in Section 2(a)(i) hereof, and (iii) the present value of such coverage shall not be included in the deduction specified in Section 2(a)(ii) hereof. If the Executive desires to receive a cash payment in lieu of receiving one or more of the coverages specified in Section 3(a) above, the Executive shall give written notice of such election to New Haven on or before December 31, 2003. (c) The value of the benefits to be provided by New Haven pursuant to Section 3(a) above shall be discounted to present value in accordance with Section 280G of the Code, and an amount equal to 33% of such present value shall be added to the present value amount to cover anticipated premium increases over the 36 month period specified in Section 3(a) above. The present value calculations shall be based on the discount rates published by the Internal Revenue Service for the month in which the Effective Date of the Merger occurs. The aggregate present value of the coverages actually provided by New Haven pursuant to Section 3(a) hereof (excluding those coverages, if any, which the Executive has elected to receive a cash payment in lieu of such coverage), as determined as of the Effective Date of the Merger and as increased by the 33% factor set forth in the first sentence of this Section 3(c), is referred to herein as the “Initial Present Value Amount.” (d) In the event the costs to New Haven of providing the benefits set forth in Section 3(a) (excluding those coverages, if any, which the Executive has elected to receive a cash payment in lieu of such coverage) increase due to increases in premiums or otherwise and the effect of such increase is to increase the present value of the benefits provided by New Haven above the Initial Present Value Amount (the “Adjusted Present Value Amount”), then the Executive shall elect to either reduce one or more of his insurance coverages or pay a higher share of the total premium cost so that the Adjusted Present Value Amount does not exceed the Initial Present Value Amount.

Payment of Welfare Benefits. (a) For a period of thirty-six (36) full calendar months following the Effective Date of the Merger, New Haven agrees to cause to be continued life, health, dental medical and disability coverage pursuant to the policies offered to its employees for the Executive and any of his the Executive’s dependents covered by Connecticut Bancshares or Manchester immediately prior to the Effective Date of the Merger, except as set forth in Section 3(b) below. During such thirty-six (36) full calendar month period, the Executive shall continue to be responsible for paying the employee share of any premiums, copayments or deductibles. In the event the Executive’s participation in any such plan or program is barred, New Haven shall arrange to provide the Executive and his the Executive’s covered dependents with benefits substantially similar to those which the Executive and his the Executive’s covered dependents would otherwise have received under such plans and programs from which their continued participation is barred or provide their economic equivalent. (b) In lieu of receiving one or more of the coverages specified in Section 3(a) above, the Executive may elect to receive a cash payment equal to the present value of the cost to New Haven of providing such coverage, in which event (i) Section 3(a) shall no longer require such coverage to be provided by New Haven, (ii) the cash payment in lieu of such coverage shall be included in the amount set forth in Section 2(a)(i) hereof, and (iii) the present value of such coverage shall not be included in the deduction specified in Section 2(a)(ii) hereof. If the Executive desires to receive a cash payment in lieu of receiving one or more of the coverages specified in Section 3(a) above, the Executive shall give written notice of such election to New Haven on or before December 31, 2003. (c) The value of the benefits to be provided by New Haven pursuant to Section 3(a) above shall be discounted to present value in accordance with Section 280G of the Code, and an amount equal to 33% of such present value shall be added to the present value amount to cover anticipated premium increases over the 36 month period specified in Section 3(a) above. The present value calculations shall be based on the discount rates published by the Internal Revenue Service for the month in which the Effective Date of the Merger occurs. The aggregate present value of the coverages actually provided by New Haven pursuant to Section 3(a) hereof (excluding those coverages, if any, which the Executive has elected to receive a cash payment in lieu of such coverage), as determined as of the Effective Date of the Merger and as increased by the 33% factor set forth in the first sentence of this Section 3(c), is referred to herein as the “Initial Present Value Amount.” (d) In the event the costs to New Haven of providing the benefits set forth in Section 3(a) (excluding those coverages, if any, which the Executive has elected to receive a cash payment in lieu of such coverage) increase due to increases in premiums or otherwise and the effect of such increase is to increase the present value of the benefits provided by New Haven above the Initial Present Value Amount (the “Adjusted Present Value Amount”), then the Executive shall elect to either reduce one or more of his insurance coverages or pay a higher share of the total premium cost so that the Adjusted Present Value Amount does not exceed the Initial Present Value Amount.

Payment of Welfare Benefits. (a) For a period of thirty-six (36) full calendar months following the Effective Date of the Merger, New Haven agrees to cause to be continued life, health, dental and disability coverage pursuant to the policies offered to its employees for the Executive and any of his dependents covered by Connecticut Bancshares or Manchester immediately prior to the Effective Date of the Merger, except as set forth in Section 3(b) below. During such thirty-six (36) full calendar month period, the Executive shall continue to be responsible for paying the employee share of any premiums, copayments or deductibles. In the event the Executive’s 's participation in any such plan or program is barred, New Haven shall arrange to provide the Executive and his dependents with benefits substantially similar to those which the Executive and his dependents would otherwise have received under such plans and programs from which their continued participation is barred or provide their economic equivalent. (b) In lieu of receiving one or more of the coverages specified in Section 3(a) above, the Executive may elect to receive a cash payment equal to the present value of the cost to New Haven of providing such coverage, in which event (i) Section 3(a) shall no longer require such coverage to be provided by New Haven, (ii) the cash payment in lieu of such coverage shall be included in the amount set forth in Section 2(a)(i) hereof, and (iii) the present value of such coverage shall not be included in the deduction specified in Section 2(a)(ii) hereof. If the Executive desires to receive a cash payment in lieu of receiving one or more of the coverages specified in Section 3(a) above, the Executive shall give written notice of such election to New Haven on or before December 31, 2003. (c) The value of the benefits to be provided by New Haven pursuant to Section 3(a) above shall be discounted to present value in accordance with Section 280G of the Code, and an amount equal to 33% of such present value shall be added to the present value amount to cover anticipated premium increases over the 36 month period specified in Section 3(a2(a) above. The present value calculations shall be based on the discount rates published by the Internal Revenue Service for the month in which the Effective Date of the Merger occurs. The aggregate present value of the coverages actually provided by New Haven pursuant to Section 3(a) hereof (excluding those coverages, if any, which the Executive has elected to receive a cash payment in lieu of such coverage), as determined as of the Effective Date of the Merger and as increased by the 33% factor set forth in the first sentence of this Section 3(c), is referred to herein as the “"Initial Present Value Amount.”" (d) In the event the costs to New Haven of providing the benefits set forth in Section 3(a) (excluding those coverages, if any, which the Executive has elected to receive a cash payment in lieu of such coverage) increase due to increases in premiums or otherwise and the effect of such increase is to increase the present value of the benefits provided by New Haven above the Initial Present Value Amount (the “"Adjusted Present Value Amount”"), then the Executive shall elect to either reduce one or more of his insurance coverages or pay a higher share of the total premium cost so that the Adjusted Present Value Amount does not exceed the Initial Present Value Amount.

Payment of Welfare Benefits. (a) For a period of thirty-six up to sixty (3660) full calendar months (as elected by the Executive) following the Effective Date of the Merger, New Haven Parent agrees to cause to be continued life, healthmedical, dental and disability coverage pursuant to the policies offered to its employees for the Executive and any of his dependents covered by Connecticut Bancshares the Company or Manchester the Bank immediately prior to the Effective Date of the MergerMerger (except that Parent may elect to continue or convert the existing life and/or disability insurance policies covering the Executive), except as set forth in Section 3(b) below. During such thirty-six sixty (3660) full calendar month period, the Executive shall continue to be responsible for paying the employee share of any premiums, copayments or deductibles. In the event the Executive’s participation in any such plan or program is barred, New Haven Parent shall arrange to provide the Executive and his dependents with benefits substantially similar to those which the Executive and his dependents would otherwise have received under such plans and programs from which their continued participation is barred or provide their economic equivalent. The Executive’s spouse and other dependents covered by the Company or the Bank immediately prior to the Effective Date of the Merger shall be entitled to continued medical and dental coverage for the remainder of the 60 month period (or such shorter period as elected by the Executive), with the Executive’s spouse and other dependents responsible for paying the employee share of any premiums, copayments or deductibles. (b) In lieu of receiving one or more of the coverages specified in Section 3(a) above, the Executive may elect to receive a cash payment equal to the present value of the cost to New Haven Parent of providing such coverage for any number of consecutive months the Executive elects not to receive coverage, in which event (i) Section 3(a) shall no longer require such coverage to be provided by New HavenParent, (ii) the cash payment in lieu of such coverage shall be included in the amount set forth in Section 2(a)(i) hereof, without any increase in such amount, and (iii) the present value of such coverage shall not be included in the deduction specified in Section 2(a)(ii) hereof; provided, however, that if the Executive will continue as an employee of Parent or its Subsidiaries subsequent to the Effective Date of the Merger, he will not be able to elect a cash payment for the period of time that he continues to serve as an employee. If the Executive desires to receive a cash payment in lieu of receiving one or more of the coverages specified in Section 3(a) above, the Executive shall give written notice of such election to New Haven Parent on or before December March 31, 20032005. (c) The value of the benefits to be provided by New Haven Parent pursuant to Section 3(a) above shall be discounted to present value in accordance with Section 280G of the Code, and an amount equal to 3350% of such present value shall be added to the present value amount to cover anticipated premium increases over the 36 60 month period specified in Section 3(a) above. The present value calculations shall be based on the discount rates published by the Internal Revenue Service for the month in which the Effective Date of the Merger occurs. The aggregate present value of the coverages actually provided by New Haven Parent pursuant to Section 3(a) hereof (excluding those coverages, if any, which the Executive has elected to receive a cash payment in lieu of such coverage), as determined as of the Effective Date of the Merger and as increased by the 3350% factor set forth in the first sentence of this Section 3(c), is referred to herein as the “Initial Present Value Amount.” (d) In the event the costs to New Haven Parent of providing the benefits set forth in Section 3(a) (excluding those coverages, if any, which the Executive has elected to receive a cash payment in lieu of such coverage) increase due to increases in premiums premiums, changes in coverage or otherwise and the effect of such increase is to increase the present value of the benefits provided by New Haven Parent above the Initial Present Value Amount (the “Adjusted Present Value Amount”), then the Executive shall elect to either reduce one or more of his insurance coverages or pay a higher share of the total premium cost so that the Adjusted Present Value Amount does not exceed the Initial Present Value Amount.

Payment of Welfare Benefits. (a) For a period of thirty-six sixty (3660) full calendar months following the Effective Date of the Merger, New Haven agrees to cause to be continued life, healthmedical, dental dental, long-term disability and disability employee assistance program coverage pursuant to the policies offered to its employees for Back to Contents the Executive and any of his the Executive’s dependents covered by Connecticut Bancshares Alliance or Manchester Tolland immediately prior to the Effective Date of the Merger, except as set forth in Section 3(b) below. During such thirty-six sixty (3660) full calendar month period, the Executive shall continue to be responsible for paying the employee share of any premiums, copayments or deductibles. Following completion of the sixty (60) full calendar month period, the Executive and the Executive’s covered dependents may elect to continue to participate in such plans at the Executive’s own cost and expense by advising New Haven in writing not later than sixty (60) days prior to the expiration of such sixty (60) month period. In the event the Executive’s participation in any such plan or program is barred, New Haven shall arrange to provide the Executive and his the Executive’s covered dependents with benefits substantially similar to those which the Executive and his the Executive’s covered dependents would otherwise have received under such plans and programs from which their continued participation is barred or or, at the election of the Executive, provide their economic equivalent.equivalent.3 (b) In lieu of receiving one or more of the coverages specified in Section 3(a) above, the Executive may elect to receive a cash payment equal to the present value of the cost to New Haven of providing such coverage, in which event (i) Section 3(a) shall no longer require such coverage to be provided by New Haven, (ii) the cash payment in lieu of such coverage shall be included in the amount set forth in Section 2(a)(i) hereof, and (iii) the present value of such coverage shall not be included in the deduction specified in Section 2(a)(ii) hereof. If the Executive desires to receive a cash payment in lieu of receiving one or more of the coverages specified in Section 3(a) above, the Executive shall give written notice of such election to New Haven on or before December 31, 2003. (c) The For purposes of Sections 2(a)(ii) and 2(b) of this Agreement, the value of the benefits to be provided by New Haven pursuant to Section 3(a) above shall be discounted to present value in accordance with Section 280G of the Code, and an amount equal to 33% of such present value shall be added to the present value amount to cover anticipated premium increases over the 36 60 month period specified in Section 3(a) above. The present value calculations shall be based on the discount rates published by the Internal Revenue Service for the month in which the Effective Date of the Merger occurs. The aggregate present value of the coverages actually provided by New Haven pursuant to Section 3(a) hereof (excluding those coverages, if any, which the Executive has elected to receive a cash payment in lieu of such coverage), as determined as of the Effective Date of the Merger and as increased by the 33% factor set forth in the first sentence of this Section 3(c), is referred to herein as the “Initial Present Value Amount.” (a) For a period of two (2) years following the Effective Date of the Merger, New Haven agrees to cause to be continued life, medical, dental, long-term disability and employee assistance program coverage pursuant to the policies offered to its employees for the Executive. During such two (2) year period, the Executive shall continue to be responsible for paying the employee share of any premiums, copayments or deductibles. In the event the Executive’s participation in any such plan or program is barred, New Haven shall arrange to provide the Executive and his dependents with benefits substantially similar to those which the Executive and his dependents would otherwise have received under such plans and programs from which their continued participation is barred or, at the election of the Executive, provide their economic equivalent.” Back to Contents (d) In the event the costs to New Haven of providing the benefits set forth in Section 3(a) (excluding those coverages, if any, which the Executive has elected to receive a cash payment in lieu of such coverage) increase due to increases in premiums or otherwise and the effect of such increase is to increase the present value of the benefits provided by New Haven above the Initial Present Value Amount (the “Adjusted Present Value Amount”), then the Executive shall elect to either reduce one or more of his insurance coverages or pay a higher share of the total premium cost so that the Adjusted Present Value Amount does not exceed the Initial Present Value Amount.

Payment of Welfare Benefits. (a) For a period of thirty-six up to sixty (3660) full calendar months (as elected by the Executive) following the Effective Date of the Merger, New Haven Parent agrees to cause to be continued life, healthmedical, dental and disability coverage pursuant to the policies offered to its employees for the Executive and any of his dependents covered by Connecticut Bancshares the Company or Manchester the Bank immediately prior to the Effective Date of the MergerMerger (except that Parent may elect to continue or convert the existing life and/or disability insurance policies covering the Executive), except as set forth in Section 3(b) below. During such thirty-six sixty (3660) full calendar month period, the Executive shall continue to be responsible for paying the employee share of any premiums, copayments or deductibles. In the event the Executive’s participation in any such plan or program is barred, New Haven Parent shall arrange to provide the Executive and his dependents with benefits substantially similar to those which the Executive and his dependents would otherwise have received under such plans and programs from which their continued participation is barred or provide their economic equivalent. The Executive’s spouse and other covered dependents covered by the Company or the Bank immediately prior to the Effective Date of the Merger shall be entitled to continued medical and dental coverage for the remainder of the 60 month period (or such shorter period as elected by the Executive), with the Executive’s spouse and other dependents being responsible for paying the employee share of any premiums, copayments or deductibles. (b) In lieu of receiving one or more of the coverages specified in Section 3(a) above, the Executive may elect to receive a cash payment equal to the present value of the cost to New Haven Parent of providing such coverage for any number of consecutive months the Executive elects not to receive coverage, in which event (i) Section 3(a) shall no longer require such coverage to be provided by New HavenParent, (ii) the cash payment in lieu of such coverage shall be included in the amount set forth in Section 2(a)(i) hereof, without any increase in such amount, and (iii) the present value of such coverage shall not be included in the deduction specified in Section 2(a)(ii) hereof; provided, however, that if the Executive will continue as an employee of Parent or its Subsidiaries subsequent to the Effective Date of the Merger, he will not be able to elect a cash payment for the period of time that he continues to serve as an employee. If the Executive desires to receive a cash payment in lieu of receiving one or more of the coverages specified in Section 3(a) above, the Executive shall give written notice of such election to New Haven Parent on or before December March 31, 20032005. (c) The value of the benefits to be provided by New Haven Parent pursuant to Section 3(a) above shall be discounted to present value in accordance with Section 280G of the Code, and an amount equal to 3350% of such present value shall be added to the present value amount to cover anticipated premium increases over the 36 60 month period specified in Section 3(a) above. The present value calculations shall be based on the discount rates published by the Internal Revenue Service for the month in which the Effective Date of the Merger occurs. The aggregate present value of the coverages actually provided by New Haven Parent pursuant to Section 3(a) hereof (excluding those coverages, if any, which the Executive has elected to receive a cash payment in lieu of such coverage), as determined as of the Effective Date of the Merger and as increased by the 3350% factor set forth in the first sentence of this Section 3(c), is referred to herein as the “Initial Present Value Amount.” (d) In the event the costs to New Haven Parent of providing the benefits set forth in Section 3(a) (excluding those coverages, if any, which the Executive has elected to receive a cash payment in lieu of such coverage) increase due to increases in premiums premiums, changes in coverage or otherwise and the effect of such increase is to increase the present value of the benefits provided by New Haven Parent above the Initial Present Value Amount (the “Adjusted Present Value Amount”), then the Executive shall elect to either reduce one or more of his insurance coverages or pay a higher share of the total premium cost so that the Adjusted Present Value Amount does not exceed the Initial Present Value Amount.

Payment of Welfare Benefits. (a) For a period of thirty-six (36) full calendar months following the Effective Date of the Merger, New Haven agrees to cause to be continued life, health, dental medical and disability coverage pursuant to the policies offered to its employees for the Executive and any of his the Executive's dependents covered by Connecticut Bancshares or Manchester immediately prior to the Effective Date of the Merger, except as set forth in Section 3(b) below. During such thirty-six (36) full calendar month period, the Executive shall continue to be responsible for paying the employee share of any premiums, copayments or deductibles. In the event the Executive’s 's participation in any such plan or program is barred, New Haven shall arrange to provide the Executive and his the Executive's covered dependents with benefits substantially similar to those which the Executive and his the Executive's covered dependents would otherwise have received under such plans and programs from which their continued participation is barred or provide their economic equivalent. (b) In lieu of receiving one or more of the coverages specified in Section 3(a) above, the Executive may elect to receive a cash payment equal to the present value of the cost to New Haven of providing such coverage, in which event (i) Section 3(a) shall no longer require such coverage to be provided by New Haven, (ii) the cash payment in lieu of such coverage shall be included in the amount set forth in Section 2(a)(i) hereof, and (iii) the present value of such coverage shall not be included in the deduction specified in Section 2(a)(ii) hereof. If the Executive desires to receive a cash payment in lieu of receiving one or more of the coverages specified in Section 3(a) above, the Executive shall give written notice of such election to New Haven on or before December 31, 2003.. D2-3 101 (c) The value of the benefits to be provided by New Haven pursuant to Section 3(a) above shall be discounted to present value in accordance with Section 280G of the Code, and an amount equal to 33% of such present value shall be added to the present value amount to cover anticipated premium increases over the 36 month period specified in Section 3(a) above. The present value calculations shall be based on the discount rates published by the Internal Revenue Service for the month in which the Effective Date of the Merger occurs. The aggregate present value of the coverages actually provided by New Haven pursuant to Section 3(a) hereof (excluding those coverages, if any, which the Executive has elected to receive a cash payment in lieu of such coverage), as determined as of the Effective Date of the Merger and as increased by the 33% factor set forth in the first sentence of this Section 3(c), is referred to herein as the “"Initial Present Value Amount.”" (d) In the event the costs to New Haven of providing the benefits set forth in Section 3(a) (excluding those coverages, if any, which the Executive has elected to receive a cash payment in lieu of such coverage) increase due to increases in premiums or otherwise and the effect of such increase is to increase the present value of the benefits provided by New Haven above the Initial Present Value Amount (the “"Adjusted Present Value Amount”"), then the Executive shall elect to either reduce one or more of his insurance coverages or pay a higher share of the total premium cost so that the Adjusted Present Value Amount does not exceed the Initial Present Value Amount.

Payment of Welfare Benefits. (a) For a period of thirty-six (36) full calendar months following the Effective Date of the Merger, New Haven agrees to cause to be continued life, health, dental and disability coverage pursuant to the policies offered to its employees for the Executive and any of his dependents covered by Connecticut Bancshares or Manchester immediately prior to the Effective Date of the Merger, except as set forth in Section 3(b) below. During such thirty-six (36) full calendar month period, the Executive shall continue to be responsible for paying the employee share of any premiums, copayments or deductibles. In the event the Executive’s participation in any such plan or program is barred, New Haven shall arrange to provide the Executive and his dependents with benefits substantially similar to those which the Executive and his dependents would otherwise have received under such plans and programs from which their continued participation is barred or provide their economic equivalent. (b) In lieu of receiving one or more of the coverages specified in Section 3(a) above, the Executive may elect to receive a cash payment equal to the present value of the cost to New Haven of providing such coverage, in which event (i) Section 3(a) shall no longer require such coverage to be provided by New Haven, (ii) the cash payment in lieu of such coverage shall be included in the amount set forth in Section 2(a)(i) hereof, and (iii) the present value of such coverage shall not be included in the deduction specified in Section 2(a)(ii) hereof. If the Executive desires to receive a cash payment in lieu of receiving one or more of the coverages specified in Section 3(a) above, the Executive shall give written notice of such election to New Haven on or before December 31, 2003. (c) The value of the benefits to be provided by New Haven pursuant to Section 3(a) above shall be discounted to present value in accordance with Section 280G of the Code, and an amount equal to 33% of such present value shall be added to the present value amount to cover anticipated premium increases over the 36 month period specified in Section 3(a2(a) above. The present value calculations shall be based on the discount rates published by the Internal Revenue Service for the month in which the Effective Date of the Merger occurs. The aggregate present value of the coverages actually provided by New Haven pursuant to Section 3(a) hereof (excluding those coverages, if any, which the Executive has elected to receive a cash payment in lieu of such coverage), as determined as of the Effective Date of the Merger and as increased by the 33% factor set forth in the first sentence of this Section 3(c), is referred to herein as the “Initial Present Value Amount.” (d) In the event the costs to New Haven of providing the benefits set forth in Section 3(a) (excluding those coverages, if any, which the Executive has elected to receive a cash payment in lieu of such coverage) increase due to increases in premiums or otherwise and the effect of such increase is to increase the present value of the benefits provided by New Haven above the Initial Present Value Amount (the “Adjusted Present Value Amount”), then the Executive shall elect to either reduce one or more of his insurance coverages or pay a higher share of the total premium cost so that the Adjusted Present Value Amount does not exceed the Initial Present Value Amount.

Payment of Welfare Benefits. (a) For a period of thirty-six sixty (3660) full calendar months following the Effective Date of the Merger, New Haven agrees to cause to be continued life, healthmedical, dental dental, long-term disability and disability employee assistance program coverage pursuant to the policies offered to its employees for the Executive and any of his dependents covered by Connecticut Bancshares Alliance or Manchester Tolland immediately prior to the Effective Date of the Merger, except as set forth in Section 3(b) below. During such thirty-six sixty (3660) full calendar month period, the Executive shall continue to be responsible for paying the employee share of any premiums, copayments or deductibles. Following completion of the sixty (60) full calendar month period, the Executive and the Executive’s covered dependents may elect to continue to participate in such plans at the Executive’s own cost and expense by advising New Haven in writing not later than sixty (60) days prior to the expiration of such sixty (60) month period. In the event the Executive’s participation in any such plan or program is barred, New Haven shall arrange to provide the Executive and his dependents with benefits substantially similar to those which the Executive and his dependents would otherwise have received under such plans and programs from which their continued participation is barred or or, at the election of the Executive, provide their economic equivalent. (b) In lieu of receiving one or more of the coverages specified in Section 3(a) above, the Executive may elect to receive a cash payment equal to the present value of the cost to New Haven of providing such coverage, in which event (i) Section 3(a) shall no longer require such coverage to be provided by New Haven, (ii) the cash payment in lieu of such coverage shall be included in the amount set forth in Section 2(a)(i) hereof, and (iii) the present value of such coverage shall not be included in the deduction specified in Section 2(a)(ii) hereof. If the Executive desires to receive a cash payment in lieu of receiving one or more of the coverages specified in Section 3(a) above, the Executive shall give written notice of such election to New Haven on or before December 31, 2003.. 2 Sections 2(c), 4 and 5 will be deleted for Messrs. Xxxxxxxxx and Xxxxx. Back to Contents (c) The For purposes of Sections 2(a)(ii) and 2(b) of this Agreement, the value of the benefits to be provided by New Haven pursuant to Section 3(a) above shall be discounted to present value in accordance with Section 280G of the Code, and an amount equal to 33% of such present value shall be added to the present value amount to cover anticipated premium increases over the 36 60 month period specified in Section 3(a) above. The present value calculations shall be based on the discount rates published by the Internal Revenue Service for the month in which the Effective Date of the Merger occurs. The aggregate present value of the coverages actually provided by New Haven pursuant to Section 3(a) hereof (excluding those coverages, if any, which the Executive has elected to receive a cash payment in lieu of such coverage), as determined as of the Effective Date of the Merger and as increased by the 33% factor set forth in the first sentence of this Section 3(c), is referred to herein as the “Initial Present Value Amount.” (d) In the event the costs to New Haven of providing the benefits set forth in Section 3(a) (excluding those coverages, if any, which the Executive has elected to receive a cash payment in lieu of such coverage) increase due to increases in premiums or otherwise and the effect of such increase is to increase the present value of the benefits provided by New Haven above the Initial Present Value Amount (the “Adjusted Present Value Amount”), then the Executive shall elect to either reduce one or more of his insurance coverages or pay a higher share of the total premium cost so that the Adjusted Present Value Amount does not exceed the Initial Present Value Amount.