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© 2019 Hitesman & Wold, P.A. MEDSURETY, LLC Cafeteria Plan 1-888-816-4234, www.medsurety.com Basic Plan Document 38 ARTICLE XI. HEALTH FLEXIBLE SPENDING ACCOUNT 11.1 Separate Written Plan. For purposes of Section 105 of the Code, this Article shall constitute a separate written plan providing for the reimbursement of certain Medical Expenses. To the extent necessary, other provisions of the Plan are incorporated by reference. 11.2 Purpose. The purpose of this Article is to provide Participants with the opportunity to be reimbursed for certain eligible Medical Expenses. This Article is intended to qualify as a self - insured medical reimbursement plan under Section 105(h) of the Code so that payments received under this portion of the Plan are excludable from the gross income of the Participant under Section 105(b) of the Code. 11.3 Definitions. (a) Account means the record keeping account established by the Plan Administrator for each Plan Year for each Participant from whom an Electi on to create such an account is received. (b) Claims Run-Out Period means the period of time specified in the Adoption Agreement that begins on the first day following the close of the Plan Year or, if applicable, the Grace Period. (c) Dependent means, unless otherwise specified in the Adoption Agreement, Tax Dependent. (d) Grace Period means the period described in Section 11.12(a). (e) Highly Compensated Individual means an individual who is highly compensated as defined in Section 105(h)(5) of the Code. (f) Medical Expense means, unless otherwise limited in the Adoption Agreement, an expense incurred during the applicable Plan Year by a Participant, Spouse, or Dependent for medical care as defined in Sections 213(d) and 106(f) of the Code, excluding premiums for any health coverage (e.g., medical, dental, vision, etc.) and long-term care insurance or coverage. Medical care generally refers to the diagnosis, cure, treatment, or prevention of disease or for the purpose of affecting any structure or function of the body. Also included, are reasonable transportation expenses for and essential to medical care. 11.4 Credits and Debits to Account. The Account will be credited with the amount elected by the Participant and the amount of carry over, if any, at the beginning of the Pla n Year. A Participant’s Account will be decreased from time to time in the amount of payments made to the Participant for eligible Medical Expenses incurred d uring the Plan Year and the Grace Period, if applicable. 11.5 Claims for Reimbursement. Claim submission, determination, and appeals shall be handled in accordance with Article VI. 11.6 Incurred Expenses. To be reimbursable, an eligible Medical Expense must have b een incurred after participation in this portion of the Plan began and during the Plan Year for w hich reimbursement is claimed or the Grace Period related to such Plan Year, if applicable. An expense is “incurred” when the Participant is provided with the care which gives rise to the eligible Medical Expense, not when the service is billed or paid. Reimbursement shall not be made for future projected expenses. Notwithstanding the foregoing, pursuant to and in