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ARTICLE XIII. <br /> LONG TERM DISABILITY BENEFITS <br /> 13.1 Purpose. The purpose of this Article is to provide for the payment opportunity for Long Term <br /> Disability Benefits under this Plan as an Optional Benefit. The Employer provides Long Term <br /> Disability Benefits through one or more 'plans" within the meaning of Sections 105 and 106 of <br /> the Code. <br /> 13.2 Separate Written Plan. For purposes of Sections 105 and 106 of the Code, this Article shall <br /> 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 /> 13.3 Definitions. <br /> (a) Insurance Contract means (1) any insurance contract secured from an insurance <br /> company authorized to do business in the state in which such contract is issued, which <br /> has been obtained for the purpose of providing benefits under this Plan; or (2) a self- <br /> insured plan administered by a third party. <br /> (b) Insurance Premiums means the amount that must be paid on a periodic basis in <br /> return for group coverage under the Insurance Contract. <br /> (c) Long Term Disability Benefits means the long term disability coverage made available <br /> by the Employer to which the Insurance Premiums relate. It does not include individual <br /> long term disability insurance contracts. <br /> 13.4 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, expressly incorporated into and made part of this Plan. <br /> 13.5 Payments. The Plan Administrator shall make Insurance Premium payments for the Long Term <br /> Disability 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 and, if necessary, contributions made in <br /> accordance with the salary deduction arrangements applicable to the Participant under the terms <br /> of the Plan. The appropriate portions shall depend on the coverage elected by the Participant. <br /> 13.6 Tax Consequences. It is intended that the Insurance Premiums paid by the Employer for a <br /> Participant's Long Term Disability Benefits shall be included in the Participant's gross income. <br /> Any benefits received as a result of the coverage under this portion of the Plan attributable to <br /> such after-tax Insurance Premiums shall be excluded from the recipient's gross income to the <br /> fullest extent permitted by law. <br /> ©2012 Hitesman&Wold, P.A. 29 City of Elk River <br /> Flexible Benefits Plan <br />