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To be eligible to contribute the entire statutory amount for the year, you must remain enrolled in the HSA for the entire following Plan Year. You may not have any other medical coverage that would provide basic medical care that is not also a High Deductible Health Plan. However, you may have dental and vision insurance or other limited-scope types of insurance (e.g., accident, disability, cancer, etc.). If you are eligible and opt to participate, a separate HSA account will be set up for you in your name at a government accepted HSA custodian or trustee. Contributions made to the HSA will be submitted to the custodian or trustee to be deposited into your HSA account. The 2009 annual HSA contribution limit for individuals with self-only HDHP coverage is $3,000 and for individuals with family HDHP coverage is $5,950. If you are age 55 to 65 and not enrolled in Medicare, you may be eligible for a"catch-up" contribution in addition to the annual contribution limit. For 2009, the "catch-up amount is $1,000. Contact the Plan Administrator for more information on "catch-up" contributions. The pre-set maximums may be changed in future years for inflation. You will be notified of any changes to these dollar limits. You may also check with the plan administrator for more information regarding contribution limits. Dollars in your HSA may be used and taken for medical purposes not otherwise covered by the High Deductible Plan or any other limited-scope plan. Examples of expenses that may be paid by the HSA include dental and vision care, physician exams, hospital treatment, prescriptions, contact solution, medical treatment, purchase of inedical equipment, etc. Amounts used for medical expenses will not be taxable under current law and may be taken for any medical expense incurred while participating after you enroll in the HSA or until your account is empty of all remaining funds. Amounts taken for non-medical purposes may be taken at any time but will be subject to ordinary income tax obligations. Amounts used for non-medical expenses will also be subject to a 10% penalty if you are under age 65. You will be responsible for determining whether the expense is a medical expense. In the end, you will have complete discretion in how to use your HSA dollars. SPECIAL RULES RELATING TO REIMBURSEMENT BENEFITS 1. Forfeitures. Federal tax laws require that your medical expense reimbursement and dependent care reimbursement benefits for each Plan Year operate on a"use it or lose it" basis. For this reason, if you do not use the entire amount available for reimbursement benefits for a Plan Year, YOU WILL FORFEIT the unused amount, and you will have no further claim to it. If not retained by the Employer, forfeitures may be used in one or more of the following ways: to reduce the required salary reduction amounts for the immediately following plan year on a reasonable and uniform basis; returned to the Participants on a reasonable and uniform basis; or, to defray expenses to administer the plan. 11