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5.3 FAILURE TO ELECT
<br />With regard to Benefits available under the Plan for which no Premium Expenses apply, any Participant who fails to
<br />complete a new benefit election form pursuant to Section 5.2 by the end of the applicable Election Period shall be deemed to have
<br />elected not to participate in the Plan for the upcoming Plan Year. No further Salary Redirections shall therefore be authorized or made
<br />for the subsequent Plan Year for such Benefits.
<br />With regard to Benefits available under the Plan for which Premium Expenses apply, any Participant who fails to complete a
<br />new benefit election form pursuant to Section 5.2 by the end of the applicable Election Period shall be deemed to have made the
<br />same Benefit elections as are then in effect for the current Plan Year. The Participant shall also be deemed to have elected Salary
<br />Redirection in an amount necessary to purchase such Benefit options.
<br />5.4 CHANGE IN STATUS
<br />(a) Change in status defined. Any Participant may change a Benefit election after the Plan Year (to which
<br />such election relates) has commenced and make new elections with respect to the remainder of such Plan Year if, under the
<br />facts and circumstances, the changes are necessitated by and are consistent with a change in status which is acceptable under
<br />rules and regulations adopted by the Department of the Treasury, the provisions of which are incorporated by reference.
<br />Notwithstanding anything herein to the contrary, if the rules and regulations conflict, then such rules and regulations shall
<br />control.
<br />In general, a change in election is not consistent if the change in status is the Participant's divorce, annulment or legal
<br />separation from a Spouse, the death of a Spouse or Dependent, or a Dependent ceasing to satisfy the eligibility requirements
<br />for coverage, and the Participant's election under the Plan is to cancel accident or health insurance coverage for any individual
<br />other than the one involved in such event. In addition, if the Participant, Spouse or Dependent gains or loses eligibility for
<br />coverage, then a Participant's election under the Plan to cease or decrease coverage for that individual under the Plan
<br />corresponds with that change in status only if coverage for that individual becomes applicable or is increased under the family
<br />member plan.
<br />Regardless of the consistency requirement, if the individual, the individual's Spouse, or Dependent becomes eligible
<br />for continuation coverage under the Employer's group health plan as provided in Code Section 4980B or any similar state law,
<br />then the individual may elect to increase payments under this Plan in order to pay for the continuation coverage. However, this
<br />does not apply for COBRA eligibility due to divorce, annulment or legal separation.
<br />Any new election shall be effective at such time as the Administrator shall prescribe, but not earlier than the first pay
<br />period beginning after the election form is completed and returned to the Administrator. For the purposes of this subsection, a
<br />change in status shall only include the following events or other events permitted by Treasury regulations:
<br />(1) Legal Marital Status: events that change a Participant's legal marital status, including marriage, divorce,
<br />death of a Spouse, legal separation or annulment;
<br />(2) Number of Dependents: Events that change a Participant's number of Dependents, including birth,
<br />adoption, placement for adoption, or death of a Dependent;
<br />(3) Employment Status: Any of the following events that change the employment status of the Participant,
<br />Spouse, or Dependent: termination or commencement of employment, a strike or lockout, commencement or return
<br />from an unpaid leave of absence, or a change in worksite. In addition, if the eligibility conditions of this Plan or other
<br />employee benefit plan of the Employer of the Participant, Spouse, or Dependent depend on the employment status of
<br />that individual and there is a change in that individual's employment status with the consequence that the individual
<br />becomes (or ceases to be) eligible under the plan, then that change constitutes a change in employment under this
<br />subsection;
<br />(4) Dependent satisfies or ceases to satisfy the eligibility requirements: An event that causes the Participant's
<br />Dependent to satisfy or cease to satisfy the requirements for coverage due to attainment of age, student status, or
<br />any similar circumstance; and
<br />(5) Residency: A change in the place of residence of the Participant, Spouse or Dependent, that would lead to
<br />a change in status (such as a loss of HMO coverage).
<br />For the Dependent Care Flexible Spending Account, a Dependent becoming or ceasing to be a "Qualifying
<br />Dependent" as defined under Code Section 21(b) shall also qualify as a change in status.
<br />Notwithstanding anything in this Section to the contrary, the gain of eligibility or change in eligibility of a child, as
<br />allowed under Code Sections 105(b) and 106, and guidance thereunder, shall qualify as a change in status.
<br />(b) Special enrollment rights. Notwithstanding subsection (a), the Participants may change an election for
<br />group health coverage during a Plan Year and make a new election that corresponds with the special enrollment rights
<br />provided in Code Section 9801(f) including those authorized under the provisions of the Children's Health Insurance
<br />Program Reauthorization Act of 2009 (SCHIP); provided that such Participant meets the sixty (60) day notice requirement
<br />imposed by Code Section 9801(f) (or such longer period as may be permitted by the Plan and communicated to
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