R95-141 AUTHORIZING APPLICATIONS FOR GROUP HEALTH INSURANCE COVERAGE

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• However,the Employer acknowledges that the Claim Administrator may be required to reimburse the Host Plan only for Claim Payments which have been discounted pursuant to an agreement between the Host Plan and its Host Plan Provider including the Service Charges thereon. In any event, the Employer shall reimburse the Claim Administrator the amount paid by the Claim Administrator to the Host Plan for Claim Payments plus any Service Charges payable by the Claim Administrator to the Host Plan, in addition to all applicable Service Charges of the Agree- ment hereunder. XVI. ERISA A. As defined in Section 3 of ERISA, the term "employee welfare benefit plan" includes any plan, fund or program which is established or maintained by an employer or by an employee organiza- tion, or by both, to the extent that such plan, fund or program was established or is maintained for the purpose of providing for its participants or their beneficiaries, through the purchase of in- surance or otherwise,medical/surgical or hospital care or benefits,or benefits in the event of sick- ness, accident or disability. The Employer hereby acknowledges (i) that an employee welfare benefit plan must be established and maintained through a separate plan document which may include the terms hereof or incorporate the terms hereof by reference, and (ii) an employee wel- fare benefit plan document may provide for the allocation and delegation of responsibilities there- under. However, notwithstanding anything contained in the Plan or any other employee welfare benefit plan document of the Employer, the Employer agrees that no allocation or delegation of any fiduciary or non-fiduciary responsibilities under the Plan or any other employee welfare bene- fit plan of the Employer is effective with respect to or accepted by the Claim Administrator. B. The Claim Administrator is not the plan administrator of the Employer's separate ERISA welfare benefit plan. Rather, the "Plan Administrator" means the administrator of the separate ERISA � welfare benefit plan established by the Employer which is partially or fully implemented through this Agreement. "Named Fiduciary" means those persons appointed as such by the Employer under the separate ERISA welfare benefit plan established by it with certain fiduciary responsibi- lities with respect to the Employer's ERISA welfare benefit plan. The Claim Administrator is not a named fiduciary with respect to the Employer's separate ERISA welfare benefit plan. "Spon- sor" means the Employer, as the plan sponsor of its ERISA welfare benefit plan. C. Section 402(c)(2) of ERISA provides that an employee welfare benefit plan may provide that a named fiduciary or a fiduciary designated by a named fiduciary pursuant to a plan procedure (in- cluding a plan administrator) may employ one or more persons to render advice with regard to any responsibilities such fiduciary has under the ERISA welfare benefit plan. The Claim Adminis- trator's responsibilities hereunder are intended to be limited to those of a contract claims adminis- trator rendering advice to and administering claims on behalf of the plan administrator of the Em- ployer's plan. As such, the Claim Administrator is intended to be a service provider but not a fiduciary with respect to the Employer's ERISA welfare benefit plan. The Employer represents that its ERISA welfare benefit plan contains the plan procedure described above regarding the designation of responsibilities under a plan, and accordingly, the Claim Administrator may, pur- suant to Sections 402(c)(2) and 405(c)(1)(B) of ERISA, render advice with respect to claims and administer claims on behalf of the plan administrator of the Employer's ERISA benefit plan. The Claim Administrator has no other authority or responsibility with respect to Employer's employee benefit plan. • - 9 -