THIS AGREEMENT IS TERMINATED.
(C)
HEALTH AND LIFE INSURANCE COVERAGE - THE
HEALTH CARE (INCLUDING EXEC-U-CARE) AND GROUP TERM LIFE INSURANCE BENEFITS
COVERAGES PROVIDED TO EXECUTIVE AT HIS DATE OF TERMINATION SHALL BE CONTINUED
FOR THE SEVERANCE PERIOD AT THE SAME LEVEL AND IN THE SAME MANNER AS THEN
PROVIDED TO ACTIVELY EMPLOYED EXECUTIVE PARTICIPANTS AS IF HIS EMPLOYMENT UNDER
THIS AGREEMENT HAD NOT TERMINATED.
ANY ADDITIONAL COVERAGES EXECUTIVE HAD AT
TERMINATION, INCLUDING DEPENDENT COVERAGE, WILL ALSO BE CONTINUED FOR SUCH
PERIOD ON THE SAME TERMS, TO THE EXTENT PERMITTED BY THE APPLICABLE INSURANCE
POLICIES OR CONTRACTS.
ANY COSTS EXECUTIVE WAS PAYING FOR SUCH COVERAGES AT THE
TIME OF TERMINATION SHALL BE PAID BY EXECUTIVE BY SEPARATE CHECK PAYABLE TO THE
COMPANY EACH MONTH IN ADVANCE.
IF THE TERMS OF THE LIFE INSURANCE COVERAGE
REFERRED TO IN THIS SUBSECTION (C), OR THE LAWS APPLICABLE TO SUCH LIFE
INSURANCE COVERAGE DO NOT PERMIT CONTINUED PARTICIPATION BY EXECUTIVE, THEN THE
COMPANY WILL ARRANGE FOR OTHER LIFE INSURANCE COVERAGE AT ITS EXPENSE PROVIDING
SUBSTANTIALLY SIMILAR BENEFITS.
IF THE TERMS OF THE HEALTHCARE BENEFITS PROGRAM REFERRED TO IN THIS SUBSECTION
(C) DO NOT PERMIT CONTINUED PARTICIPATION BY EXECUTIVE AS REQUIRED BY THIS
SUBSECTION OR IF THE HEALTHCARE BENEFITS TO BE PROVIDED TO EXECUTIVE AND HIS
DEPENDENTS PURSUANT TO THIS SUBSECTION (C) CANNOT BE PROVIDED IN A MANNER SUCH
THAT THE BENEFIT PAYMENTS WILL CONTINUE TO BE TAX-FREE TO EXECUTIVE AND HIS
DEPENDENTS, THEN THE COMPANY SHALL (I) PAY TO EXECUTIVE WITHIN FIVE (5) DAYS
AFTER EXECUTIVE'S DATE OF TERMINATION A LUMP SUM AMOUNT EQUAL TO THE MONTHLY
RATE FOR COBRA COVERAGE AT EXECUTIVE'S TERMINATION DATE THAT IS THEN BEING PAID
BY FORMER ACTIVE EMPLOYEES FOR
6
THE LEVEL OF COVERAGE THAT APPLIES TO EXECUTIVE AND HIS DEPENDENTS, MINUS THE
AMOUNT ACTIVE EMPLOYEES ARE THEN PAYING FOR SUCH COVERAGE, MULTIPLIED BY THE
NUMBER OF MONTHS IN THE SEVERANCE PERIOD, AND (II) PERMIT EXECUTIVE AND HIS
DEPENDENTS TO ELECT TO PARTICIPATE IN THE HEALTHCARE PLAN FOR THE LENGTH OF THE
SEVERANCE PERIOD UPON PAYMENT OF THE APPLICABLE RATE FOR COBRA COVERAGE DURING
THE SEVERANCE PERIOD.
THE BENEFITS PROVIDED IN THIS SUBSECTION (C) SHALL CEASE IF EXECUTIVE OBTAINS
OTHER EMPLOYMENT AND, AS A RESULT OF SUCH OTHER EMPLOYMENT, HEALTH CARE AND LIFE
INSURANCE BENEFITS ARE AVAILABLE TO EXECUTIVE.
(D)
EMPLOYEE RETIREMENT PLANS - TO THE EXTENT
PERMITTED BY THE APPLICABLE PLAN, EXECUTIVE WILL BE ENTITLED TO CONTINUE TO
PARTICIPATE, CONSISTENT WITH PAST PRACTICES, IN ALL EMPLOYEE RETIREMENT AND
DEFERRED COMPENSATION PLANS MAINTAINED BY THE COMPANY IN EFFECT AS OF HIS DATE
OF TERMINATION, INCLUDING, TO THE EXTENT SUCH PLANS ARE STILL MAINTAINED BY THE
COMPANY, THE BLOUNT 401(K) PLAN AND THE BLOUNT EXCESS 401(K) PLAN.
EXECUTIVE'S
PARTICIPATION IN SUCH RETIREMENT PLANS SHALL CONTINUE FOR THE SEVERANCE PERIOD
AND THE COMPENSATION PAYABLE TO EXECUTIVE UNDER (A) AND (B) ABOVE SHALL BE
TREATED (UNLESS OTHERWISE EXCLUDED) AS COMPENSATION UNDER THE PLAN AS IF IT WERE
PAID ON A MONTHLY BASIS.
FOR PURPOSES OF THE BLOUNT 401(K) PLAN AND