| MEDICAL EXPENSE REIMBURSEMENT PLAN
Company Name;_________________________________________________ Address;_______________________________________________________. 1. PURPOSE The purpose of this plan is to encourage and help provide full and complete medical care for each participating employee and his/her spouse and dependents. For owners of the Company stock, this plan is intended to be a Single Employer Welfare Plan, and for employees who do not own stock in the Company, it is the intention of the company that this plan qualify as an accident and health plan within the meaning of Sections 105(e), and 125, of the Internal Revenue Code of 1986, as amended (“the Code”), and that the benefits payable under the plan be eligible for exclusion from gross income under Section 105(b) of the Code, and Section 125. 2. EFFECTIVE DATE The effective date of this plan shall be January 1, ____________. The records of the plan shall be kept on a calendar year basis. 3. ELIGIBILITY All full-time employees of the company shall be eligible to participate in this plan. A full-time employee is defined as any employee who customarily works forty hours or more per week and seven months or more per year. 4. PARTICIPATION Each employee who is eligible to participate in the plan under Section 3 (an “eligible employee”) shall become a participant in the plan (“a participant”) on the effective date of the plan if on the effective date he/she is at least eighteen years old and has completed at least one year of continuous employment with the company. Each other eligible employee shall become a participant on the first day of the month after he/she has both attained age eighteen and completed at least one year of continuous employment with the company. A participant who is discharged from employment with the company for cause shall forfeit all rights to reimbursement under this plan. 5. BENEFITS Only the cost of medical insurance is covered under the terms of this plan, and there will be no payments made in excess of the medical insurance premium costs 6. LIMITATION Only the cost of medical insurance is covered under the terms of this plan, and there will be no payments made in excess of the medical insurance premium costs, up to $5,000 per employee. 7. FORFEITURE OF UNUSED BALANCE In the event that a participant ceases to be an employee, any unused balance shall remain the property of the company, and the participant shall forfeit all rights with respect to such balance. 8. ADMINISTRATION The treasurer of the company shall have authority and responsibility to control and manage the operation and administration of this plan. 9. AMENDMENTS; TERMINATION This plan may be amended or terminated at any time provided that termination shall not affect the right of any participant to claim reimbursement for amounts expended for medical care prior to termination. 10. MISCELLANEOUS This plan shall not be deemed to constitute a contract between the company and any participant or to be a consideration or an inducement for the employment of any participant or employee. Nothing contained in this plan shall be deemed to give any participant or employee the right to be retained in the service of the company or to interfere with the right of the company to discharge any participant or employee at any time regardless of the effect which such discharge shall have upon him/her as a participant of this plan. 11. GOVERNING LAW This plan shall be construed and enforced according to the laws of the State of California, other than its laws respecting choice of law, to the extent not preempted by any federal law. 12. REIMBURSEMENTS When the medical insurance policy is in the name of the employee, or the owner, this corporation shall reimburse the employee for the cost of the medical insurance, or make the reimbursement by directly paying the medical insurance company premiums. Signed;_________________________, President of _______________________________, Inc. Date;_________________ |