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ARTICLE XI. <br /> GROUP TERM LIFE BENEFITS <br /> 11.1 Purpose. The purpose of this Article is to provide an opportunity to purchase Group Term Life <br /> Benefits under this Plan as a Core Benefit or Optional Benefit. The Employer provides Group <br /> Term Life Benefits through one or more"plans"within the meaning of Sections 79, 105, and 106 <br /> of the Code. <br /> Note: This Article does not permit pre-tax payment of Insurance Premiums for coverage other <br /> than Participant coverage (e.g., no spousal or dependent coverage). <br /> 11.2 Separate Written Plan. For purposes of Sections 79, 105 and 106 of the Code, this Article <br /> shall constitute a separate written plan providing for the reimbursement or direct payment of <br /> Insurance Premium expenses. To the extent necessary, other provisions of the Plan are <br /> incorporated by reference. <br /> 11.3 Definitions. <br /> (a) Group Term Life Benefits means the group term life insurance and accidental death <br /> and dismemberment coverage made available by the Employer through this Article to <br /> which the Insurance Premiums relate. It does not include individual insurance contracts. <br /> The Group Term Life Benefits that are Core Benefits include accidental death and <br /> dismemberment coverage. The Group Term Life Benefits that are Optional Benefits do <br /> not include accidental death and dismemberment coverage. <br /> (b) Insurance Contract means any insurance contract secured from an insurance company <br /> authorized to do business in the state in which such contract is issued, which has been <br /> obtained for the purpose of providing benefits under this portion of the Plan. <br /> (c) Insurance Premiums means the amount that must be paid on a periodic basis in <br /> return for group coverage under the Insurance Contract(s). <br /> 11.4 Terms, Conditions and Limitations. The Employer shall secure the necessary Insurance <br /> Contracts from third party providers, as identified in Exhibit A. Coverage shall begin, benefits <br /> shall be provided, and coverage shall terminate in accordance with the applicable Insurance <br /> Contracts. Such Insurance Contracts are expressly incorporated into and made part of this Plan. <br /> 11.5 Payments. The Plan Administrator shall make Insurance Premium payments for the Group <br /> Term Life Benefits on behalf of the Participant in an amount necessary to provide the benefit <br /> applicable to the Participant under this portion of the Plan for the applicable Plan Year. Such <br /> payments shall be made from Employer Contributions, if any, provided by the Employer under <br /> the Plan and, if necessary, contributions made in accordance with the salary deduction <br /> arrangement and other arrangements applicable to the Participant under the terms of the Plan. <br /> The appropriate portions shall depend on the coverage elected by the Participant. <br /> 11.6 Tax Consequences. It is intended that the Insurance Premiums paid by the Employer for <br /> Group Term Life Benefits that are Core Benefits shall be excluded from the Participant's gross <br /> income. It is intended that the Insurance Premiums paid by the Employer for Group Term Life <br /> Benefits that are Optional Benefits, including through the Participant's allocation of the Employer <br /> Contribution, shall be included in the Participant's gross income. <br /> 11.7 Continuation/Conversion of Coverage. The Group Term Life Benefits shall comply with <br /> applicable state law regarding continuation of coverage and conversion of coverage to the extent <br /> such state laws are not preempted by federal law. In addition, any continuation and conversion <br /> rights provided under the terms of the Insurance Contract(s) through which benefits are provided <br /> shall be available to the extent they are not prohibited or preempted by federal law. <br /> ©2012 Hitesman&Wold, P.A. 27 City of Elk River <br /> Flexible Benefits Plan <br />