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Employer; <br />h. pay approved flexible spending account claims from funds made available by the <br />Employer for that purpose. Claims shall be paid by check or, where authorized by a <br />claimant, by direct electronic deposit to a bank account of the claimant; <br />i. provide with each flexible spending account claim paid by check a statement of the <br />Participant's remaining account balance under the flexible spending account from which the <br />payment has been made; <br />j. before the end of each Plan Year of the Plan as described in the Plan document (the <br />"Plan Year"), provide to each Participant who elected any flexible spending account benefits <br />for that Plan Year a statement setting forth each of his or her flexible spending account <br />balances and advise of the potential forfeiture of any balances not used to reimburse the <br />Participant for eligible expenses incurred prior to the end of that Plan Year; <br />k. perform such benefits discrimination testing as P&A shall deem necessary to assure <br />the Plan's continuing compliance under Code Section 125; and <br />I, prepare any annual return (Form 5500 Series or equivalent) required by applicable <br />federal law with respect to the Plan for filing by the Employer with respect to each Plan Year <br />ending prior to the termination of this Agreement. <br />2. Compensation. As compensation for the services rendered hereunder, the Employer shall <br />pay P&A such fees as are set forth in Schedule A attached hereto and made a part hereof. P&A may <br />modify this fee schedule as of the beginning of any Plan Year commencing on or after the initial term of <br />the Agreement (as described in Section 5 hereof). P&A shall notify the Employer in writing of any <br />modification to the fee schedule not less than ninety (90) days before the beginning of the Plan Year in <br />which the modification is to become effective. Should the Employer be unwilling to accept any such <br />modification, it may exercise its right to terminate the Agreement in accordance with Section 5 below. <br />3. Employer Responsibilities. <br />a. The Employer shall notify P&A in writing of any event or occurrence that affects the <br />group of employees who are eligUe for reimbursement of expenses under the Plan (e.g., <br />hiring of a new employee, termination of an employee, change in hours worked) as soon as <br />is reasonably practicable. <br />b. The Employer shall provide P&A on a timely basis with such other information as P&A <br />reasonably shall request in furtherance of its responsibilities hereunder as soon as is <br />reasonably practicable. <br />C. The Employer shall provide P&A with the funds necessary to pay all claims that <br />qualify for reimbursement under the Plan. P&A shall not be obligated to advance funds to <br />59 <br />2 <br />