Common use of COBRA Benefit Clause in Contracts

COBRA Benefit. If Executive participates in the Company’s group health insurance plans (i.e., major medical, dental and vision) on the date of Executive’s termination and timely elects continued coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (together with any state law of similar effect, “COBRA”), the Company will pay the COBRA premiums to continue such coverage (including for Executive and Executive’s eligible dependents who have elected and remain enrolled in such COBRA coverage) for a period (the “COBRA Payment Period”) beginning on the first day following the day that Executive’s active employee health coverage ends as the result of Executive’s termination, and ending on the earliest to occur of (i) twelve (12) months, (ii) the expiration of Executive’s eligibility for continuation coverage under COBRA and (iii) the first month for which Executive is eligible for health insurance coverage in connection with new employment or self-employment. Alternatively, the Company may elect to pay Executive a taxable cash payment in lieu of the continued coverage, equal to the amount that the Company would have otherwise paid for the COBRA premiums (based on the premium for the first month of coverage), which payment will be made regardless of whether Executive or Executive’s eligible dependents elect COBRA continuation coverage and will be paid in monthly installments for the COBRA Payment Period, except that payments shall commence (with any make-up payments) in the Company’s first regular payroll following the Release Deadline. Continued health coverage or payment of a taxable cash amount pursuant to the foregoing is referred to as the “COBRA Benefit”.