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© 2019 Hitesman & Wold, P.A. MEDSURETY, LLC Cafeteria Plan 1-888-816-4234, www.medsurety.com Basic Plan Document 10 ARTICLE V. ELECTION OF AVAILABLE BENEFITS 5.1 Initial Elections. Except as provided in Section 3.3(b), an Election must have been made prior to the date on which an Eligible Employee becomes a Participant. Unless otherwise specified in the Adoption Agreement, upon initial eligibility, Elections shall be made as follows: (a) Affirmative Elections. With respect to Optional Benefits other than those providing for premium payments for group coverage, an affirmative Election to participate is required as part of the application to participate described in 3.3. If the Election Period ends and an Election has not been received by the Plan Administrator, the Eligible Employee will be deemed to have elected not to participate in the above -referenced Optional Benefits, provided that any unused Employer Contribution shall be handled as provided in the Adoption Agreement. (b) Automatic Elections. With respect to Optional Benefits providing for premium payments for group coverage, an Eligible Employee is deemed to have elected to participate and to pay the Participant’s share of the cost of such Optional Benefits through salary reduction unless (1) the Eligible Employee specifically elects not to participate with respect to such Optional Benefit(s) and notifies the Plan Administ rator in writing on or before the close of the Election Period, or (2) such deemed Election is otherwise prohibited by law. 5.2 Subsequent Elections. During the Election Period prior to each subsequent Plan Year, each Participant shall be given the opportunity to make a new Election, including the following: (a) An Eligible Employee who is not participating may elect to begin participating by electing Optional Benefits during the Election Period; (b) A Participant may terminate participation in the Plan; or (c) A Participant may elect different Optional Benefits or different levels of Optional Benefits. An Election must have been made, or deemed to have been made, prior to the start of the Plan Year to which it relates. 5.3 Failure to Make Annual Election. Unless otherwise specified in the Adoption Agreement, if a Participant does not make a new Election during the Elect ion Period prior to each Plan Year, then: (a) Affirmative Elections. With respect to Optional Benefits other than those providing for premium payments for group coverage, the Participant shall be deemed to have elected not to participate in such Optional Bene fits for the upcoming Plan Year, provided that any unused Employer Contribution shall be handled as provided in the Adoption Agreement. (b) Automatic Elections. With respect to Optional Benefits providing for premium payments for group coverage, the Participant shall be deemed, unless prohibited by law, to have elected to pay any portion of the cost for which the Participant is responsible through salary reduction unless (1) the Eligible Employee specifically elects not to participate with respect to such Optional Benefit(s) and notifies the Plan Administrator in writing on or before the close of the Election Period, or (2) such deemed Election is otherwise prohibited by law.