McKesson 2005 Annual Report Download - page 194

ending date, if a Covered Executive or Dependent is determined by the Social Security Administration to be disabled under Title II or XVI of
the Social Security Act at any time during the first 60 days of COBRA Continuation Coverage and notifies the Company of such determination
within 18 months following the loss of coverage due to the Qualifying Event then the disabled Executive or Dependent (and such person’s
family members who also have COBRA Continuation Coverage) is entitled to continue their COBRA Continuation Coverage for up to
29 months from the date of the Qualifying Event; provided, however, that if following the end of the initial 18 months of COBRA Continuation
Coverage, the disabled individual is determined by the Social Security Administration to no longer be disabled, COBRA Continuation
Coverage shall end on the first day of the month that is at least 30 days after the date of the final Social Security determination that the
individual is no longer disabled. Notwithstanding both of the above ending dates, if an individual incurs a subsequent Qualifying Event before
end of the initial 18-month period of COBRA Continuation Coverage and elects COBRA Continuation Coverage for that Qualifying Event,
COBRA Continuation Coverage for the prior Qualifying Event shall terminate immediately and coverage shall continue in accordance with
Section I.3.f. below.
d. Death of the Executive. If a Dependent’s first Qualifying Event is the death of the Executive, then the Dependent’s period of COBRA
Continuation Coverage shall end 36 months after the date coverage is lost due to the Executive’s death unless an earlier ending date is required
by Section I.3.a.
e. Loss of Status as a Dependent. If a Dependent’s first Qualifying Event is his or her loss of status as a Dependent for any reason,
including age, marriage, cessation of disability, cessation of financial dependence or divorce from the Executive, then the Dependent’s period
of COBRA Continuation Coverage will end 36 months after coverage is lost due to such loss of status, unless an earlier ending date is required
by Section I.3.a.
f. Special Rule for Multiple Qualifying Events. If COBRA Continuation Coverage of an Executive or a Dependent ceases under
Section I.3.a. due to a subsequent Qualifying Event which occurs coincident with or prior to the close of the 18-month period of COBRA
Continuation Coverage, such Executive or Dependent will be entitled to COBRA Continuation Coverage for the subsequent Qualifying Event;
provided, however, that the total period of COBRA Continuation Coverage for all Qualifying Events with respect to any individual shall not
exceed 36 months from the date coverage is lost due to the first Qualifying Event.
g. Executive’s Entitlement to Medicare. If an Executive becomes entitled to Medicare following the Executive’s termination of
employment, retirement or reduction in hours of employment, the Dependent’s period of COBRA Continuation Coverage for this event will
not be extended.
4. Election of COBRA Continuation Coverage; Notice Requirements.
a. Method of Election. An individual who is or will become eligible for COBRA Continuation Coverage under this Section I. may elect
such coverage by filing the
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