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responsibilities are the sole obligation of Employer. Generally, COBRA requires all employers of 20 or more employees to offer to continue group health coverage for up to l8 months to employees and their Dependents who lose coverage due to termination of employment (except for gross misconduct) or reduction in hours worked, and for up to 36 months to Dependents who lose coverage due to the death of the employee, divorce or legal separation from the employee or to children who no longer qualify as covered Dependents. "Extended" coverage of up to 29 months is available to certain COBRA beneficiaries who are disabled at the time of their qualifying event. Continuation of group coverage rights under COBRA continue until either the exhaustion of the previously mentioned maximum continuation periods or a "terminating event" occurs (e.g., termination of all group plans provided by Employer, failure of the Member to pay monthly prepayment fees when due, the Member is or becomes covered under any other group plan without limitation as to a preexisting condition, or the Member is or becomes entitled to Medicare coverage). Benefits of the continuation plan are identical to this group plan. The cost to the Member who elects such coverage will be 102% of the then current applicable group rate (including any portion previously paid by Employer) during the period of basic COBRA coverage and 150% of the then current applicable group rate during the period of "extended" coverage (Le., 19th through 29th month). Employer must notify OHS of the occurrence and related date of any qualifying event within 60 days of the incidence thereof. IV. CONSIDERATION PAYABLE BY EMPLOYER In consideration of the services to be performed pursuant to this Agreement by OHS, Employer shall pay to OHS the prepayment fees in the amounts and manner specified in Addendum Two. V. COVERED SERVICES Subject to the limitations, exclusions, terms and conditions stated in the Evidence of Coverage and this Group Agreement, Covered Services are as set forth in the Evidence of Coverage. VI. GENERAL PROVISIONS A. Endorsement of Change No agent of OHS is authorized to change the form or content of this Agreement in any manner or degree other than by duly executed endorsement issued to form a part hereof. - 4 - 'r----