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ELIGIBILITY AND EFFECTIVE DATES OF BENEFITS <br />The Eligibility and Effective Dates of Benefits provisions that apply under this contract are set forth in the <br />Exhibits. <br />CONTRIBUTIONS <br />The Organization will not require a Member to contribute to the cost of Noncontributory Benefits. <br />The maximum amount that a Member may be required to contribute to the cost of Contributory Benefits will <br />not exceed the Prepayment Fee charged for the amounts of such benefits. <br />PREPAYMENTFEES <br />Initial Prepayment Fee <br />The initial Prepayment Fee is shown in the Exhibits. <br />Frequency of Prepayment Fee Payment <br />Prepayment Fees for this contract will be paid as shown on page 1. SafeGuard and the Organization may <br />agree that payment be made in advance every 3, 6, or 12 months. <br />Computation of the Prepayment Fee <br />The Prepayment Fee due on any Prepayment Fee Due Date is determined by the total amount of benefits <br />provided by this contract on such Prepayment Fee Due Date, multiplied by the appropriate Prepayment <br />Fee which is then in effect subject to any Prepayment Fee adjustments, if applicable. <br />SafeGuard may use any reasonable method to compute Prepayment Fees due under this contract. <br />Prepayment Fee for Changes in Benefits <br />For benefits that take effect after the first day of a Contract Month, the Prepayment Fee will be charged <br />from the first day of the next Contract Month. However, if a contract amendment is required for such <br />benefits, The Prepayment Fee will be charged as of the date such benefits take effect. <br />If this contract ends, or if benefits end for a class of persons, the Prepayment Fee will be charged to the <br />date benefits end. If benefits end for other reasons, the Prepayment Fee will be charged to the end of the <br />Contract Month in which benefits end. <br />Right to Change the Prepayment Fee <br />SafeGuard may change Prepayment Fees for changes which materially affect the risk assumed for the <br />benefits provided by this contract, as follows: <br />1. when this contract is amended or endorsed; <br />2. when a class of eligible persons is added to or deleted from this contract for any reason including <br />corporate restructuring, acquisition, spin-off or similar situations; <br />GPNP10-DHMO <br />25C-6 <br />Page 4 <br />