AHC 401(k) PROFIT-SHARING PLAN SUMMARY PLAN DESCRIPTION

Transcription

1 AHC 401(k) PROFIT-SHARING PLAN SUMMARY PLAN DESCRIPTION Effective January 1, 2014

2 TABLE OF CONTENTS INTRODUCTION TO YOUR PLAN... 1 IMPORTANT TERMS... 1 ELIGIBILITY AND PARTICIPATION... 3 Plan Participation... 3 Designation of Beneficiary... 3 PRETAX CONTRIBUTIONS... 3 CATCH-UP CONTRIBUTIONS... 4 CHANGING YOUR PRETAX CONTRIBUTIONS... 4 Increasing or Decreasing Your Pretax Contributions... 4 Suspending Your Pretax Contributions... 4 EMPLOYER CONTRIBUTIONS ALLOCATED TO YOUR ACCOUNT... 4 Employer Matching Contributions... 4 Employer Discretionary Contributions... 5 IRS Required Contributions... 5 ROLLOVER CONTRIBUTIONS... 6 INVESTING YOUR SAVINGS... 6 Your Account in the Plan... 6 Selecting Your Investments... 6 Your Investment Responsibilities... 7 Investment Information, Expenses, and Fees... 7 Your Investment Decisions... 8 Changing Your Investments... 8 Your Personal Plan Statement... 8 VESTING... 8 DISTRIBUTION OF YOUR ACCOUNT... 9 Page Distribution of Account Upon Death, Disability, or Reaching Normal Retirement Age... 9 Distribution of Account Upon Severance From Employment... 9 Hardship Withdrawals Methods of Distribution i

3 TOP-HEAVY PLANS MISCELLANEOUS PROVISIONS Amendment or Termination of the Plan Benefits Not Insured Plan Account Not Assignable Qualified Domestic Relations Orders Interpretation of Plan Provisions Fluctuation of Account Values Deduction of Expenses and Fees from Account Mistaken Payments CLAIMS PROCEDURE First Claim Appealing Denied Claims GENERAL INFORMATION STATEMENT OF ERISA RIGHTS ii

4 INTRODUCTION TO YOUR PLAN American Health Companies, Inc. (the Company ) established the AHC 401(k) Profit-Sharing Plan (the Plan ) for the benefit of its employees who meet certain eligibility requirements. The Plan has been amended and/or restated several times. This Summary Plan Description reflects the current version of the Plan as of January 1, The Plan is a profit-sharing plan with a tax-favored savings feature qualified under section 401(k) of the Internal Revenue Code of 1986, as amended. Under this 401(k) feature, you may choose to contribute to the Plan a portion of your compensation on a pretax basis. This Summary Plan Description is a brief summary of the main features of the Plan, as well as of your benefits, obligations, and rights under the Plan. This Summary Plan Description is not intended to change, extend, or interpret the provisions of the Plan in any way. The precise provisions of the Plan may be determined only by reading the Plan document. IN THE EVENT OF ANY CONFLICT BETWEEN THIS SUMMARY PLAN DESCRIPTION AND THE PROVISIONS OF THE PLAN, THE PROVISIONS OF THE PLAN WILL GOVERN. A copy of the Plan is on file at the business office of your Employer and you or your beneficiaries may read it during normal business hours. You also may obtain your own copy for a small copying charge. If you have any questions regarding either the Plan or this Summary Plan Description, you should contact the Plan Administrator. IMPORTANT TERMS Take a few moments to become familiar with some terms used to describe the Plan and how it works. Account: Your Account is composed of an Employee Deferral Account, an Employer Contribution Account, a Matching Account, and a Rollover Account. Annual Compensation: Your total pay for the Plan Year including any pretax contributions you make to this Plan or to the cafeteria plan, but excluding bonuses and reimbursements for mileage. No more than the maximum amount permitted by law (as adjusted by the IRS each year) of your Annual Compensation may be taken into account for any purpose under the Plan. Break in Service: A Plan Year in which an Employee does not complete more than 500 Hours of Service. Company: American Health Companies, Inc. Disability: The Social Security Administration s determination that you have a disability within the meaning of the Social Security Act. The Plan Administrator will require proof of the Social Security Administration s determination in order to confirm the existence of a Disability. Employee: Any person whom an Employer employs, other than (i) a person who performs services for the Employer as or through an independent contractor, (ii) an employee covered by a

5 collective bargaining agreement, or (iii) a nonresident alien who receives no earned income within the United States from an Employer. Employee Deferrals: Any contribution you make on a pre-tax basis to your Employee Deferral Account. Employer: The Company, and any company that is an affiliate of the Company and that has adopted the Plan in accordance with its terms. Entry Date: January 1, April 1, July 1, or October 1. Hours of Service: If you are an hourly Employee, an Hour of Service is each hour for which you are paid, or entitled to pay, (including paid vacation, paid holidays, paid sick days, and days for which you are awarded back pay). If you are a salaried Employee, you receive 190 Hours of Service for each month that you work. Member: An Employee who is participating in the Plan and has not received a total distribution of his vested Account. Normal Retirement Age: The later of the date you attain age 65 or the fifth anniversary of the first Plan Year in which you began participating in the Plan. Plan: AHC 401(k) Profit-Sharing Plan. Plan Administrator: The Company. Plan Year: The calendar year. Vesting Service: Each Plan Year after you are age 18 during which you complete 1,000 Hours of Service for the Company or an Employer. 2

6 ELIGIBILITY AND PARTICIPATION Plan Participation If you are an Employee, you will become a Member in the Plan on the first Entry Date after you both attain age 18 and complete six consecutive months in which you were credited with at least one Hour of Service in each month. If you are a former Employee who attained age 18 and completed six consecutive months of employment, but experienced a severance from employment before you became a Member, and an Employer employs you, you will become a Member on the latter of the date you are reemployed or the Entry Date you would have become a Member if you had not experienced a severance from employment. If you are employed by an Employer and you would be eligible to participate in the Plan (i.e. you have attained age 18 and completed six consecutive months of employment), except that you are covered by a collective bargaining agreement or a nonresident alien who receives no earned income within the United States from an Employer, you may become a Member in the Plan on the first day after you become an Employee (as defined on page 2). You will cease to be a Member in the Plan on the date you receive all the benefits you are entitled to under the Plan or the date on which the Plan terminates, if earlier. Designation of Beneficiary Upon becoming a Member in the Plan, you must designate a beneficiary to receive your Account in the event of your death. The Plan Administrator will provide you with a beneficiary designation form for this purpose. If you are married, your spouse (by law) is automatically your beneficiary, unless your spouse gives his or her notarized written consent to your designation of a different beneficiary. Subject to this spousal consent requirement, you may change your beneficiary designation at any time. In the event there is no valid beneficiary designation in force at the time of your death, your Account will be paid to your spouse, your children, or your estate, in that order. PRETAX CONTRIBUTIONS For each Plan Year, you may elect to contribute to the Plan on a pretax basis, in either dollar amounts of increments of five dollars or whole percentage of your Annual Compensation, up to the limit provided by law. The Federal government from time to time adjusts this limit for increases in the cost of living. These contributions are referred to as Employee Deferrals. Your gross pay will be reduced by the amount you elect, and this amount will be placed in your Employee Deferral Account under the Plan. This means that the amount you elect to contribute will be deposited in the Plan before any federal or state income taxes are withheld. You may authorize Employee Deferrals by completing an election form the Plan Administrator provides for this purpose. Your election will be effective as of the date you initially become a 3

7 Participant of the Plan. If you do not make an election at this time, you can elect to make Employee Deferrals effective as of any January 1, April 1, July 1 or October 1. CATCH-UP CONTRIBUTIONS If you are a Member in the Plan and will be at least 50 years old by the end of the Plan Year, you can make Employee Deferrals for any calendar year in addition to those described in the paragraph above. These additional Employee Deferrals are called catch-up contributions. The maximum catch-up contribution is provided by law. The Federal government from time to time adjusts this limit for increases in the cost of living. Your gross pay will be reduced by the amount you elect, and this amount will be placed in your Employee Deferral Account under the Plan. You may authorize a catch-up contribution by completing a special election form the Plan Administrator provides for this purpose. Your authorization will be effective as soon as administratively feasible after you return the form to the Plan Administrator. You are only able to make a catch-up contribution if you have made the maximum pretax contribution you otherwise are allowed to make under the Plan. CHANGING YOUR PRETAX CONTRIBUTIONS Increasing or Decreasing Your Pretax Contributions You may change the rate of your Employee Deferrals (including catch-up contributions) to the Plan effective as of any January 1, April 1, July 1 or October 1 by submitting a new election form to the Plan Administrator at least 30 days prior to that date. Suspending Your Pretax Contributions You may suspend your Employee Deferrals (including catch-up contributions, if any) at any time during a Plan Year. To suspend such Employee Deferrals to the Plan, you must notify the Plan Administrator in writing on a form the Plan Administrator provides for this purpose. Employee Deferrals will then be suspended as soon as administratively feasible after the date the Plan Administrator receives your written request for suspension, but they may be resumed by notifying the Plan Administrator in writing that you would like them to resume. Employee Deferrals will resume as of the January 1, April 1, July 1, or October 1 next following the date you notify the Plan Administrator in writing of your desire to resume making Employee Deferrals. Your Employer may make matching contributions to the Plan for each Plan Year. Your Employer will determine the amount thereof, which may vary from Plan Year to Plan Year. 4 EMPLOYER CONTRIBUTIONS ALLOCATED TO YOUR ACCOUNT Employer Matching Contributions

8 Your Employer is not under any obligation to make any matching contributions. If your Employer does so, it will make them after the end of the Plan Year to which they relate. The Plan Administrator will allocate matching contributions to your Matching Contribution Account if you are making Employee Deferrals (or catch-up contributions) to the Plan and if you are either (i) an Employee on the last day of the Plan Year and earn 1,000 hours of service during the Plan Year, or (ii) experience a severance from employment on account of death, Disability, or retirement after you reach Normal Retirement Age. Regarding matching contributions made with respect to Employee Deferrals, as of the last day of the Plan Year the Plan Administrator will allocate matching contributions to the Matching Contribution Accounts of all eligible Members defined in the paragraph immediately above, according to the ratio that each such eligible Member s annual Employee Deferrals bears to the annual pretax contributions of all such eligible Members. However, no such matching contributions will be allocated to your Matching Contribution Account in excess of either your annual Employee Deferrals for the Plan Year or 8% of your Annual Compensation. Regarding matching contributions made with respect to catch-up contributions, as of the last day of the Plan Year the Plan Administrator will allocate matching contributions to the Matching Contribution Accounts of all eligible Members defined in the first paragraph above, according to the ratio that each such eligible Member s annual catch-up contributions bears to the annual catch-up contributions of all such eligible Members. However, no such matching contribution will be allocated to your Matching Contribution Account in excess of your annual catch-up contributions for the Plan Year. Employer Discretionary Contributions Your Employer may make a discretionary contribution to your Employer Contribution Account each Plan Year, if you either (i) earn 1,000 hours of service during the Plan Year, or (ii) experience a severance from employment on account of death, Disability, or retirement after you reach Normal Retirement Age. Your Employer will determine the amount of any discretionary contribution, and the amount may vary from Plan Year to Plan Year. Your Employer is not under any obligation to make any discretionary contributions. As of the last day of the Plan Year, the Plan Administrator will allocate discretionary contributions to the Employer Contribution Accounts of all eligible Members defined in the paragraph immediately above according to the ratio that each such eligible Member s Annual Compensation bears to the total Annual Compensation of all eligible Members. IRS Required Contributions Finally, your Employer may make other contributions to the Account of certain Members, if necessary, to pass certain IRS-imposed tests which prohibit discrimination in favor of highly compensated employees. 5

9 ROLLOVER CONTRIBUTIONS You may make a rollover contribution to the Plan of an eligible rollover distribution you receive from another tax-qualified retirement plan, certain individual retirement accounts, or certain other eligible plans, provided you roll over the distribution within 60 days of receipt. Such a rollover will be deposited to your Rollover Account. You should consult your tax advisor before attempting to make a rollover contribution. Your Account in the Plan INVESTING YOUR SAVINGS Amounts you set aside and amounts contributed on your behalf are recorded in bookkeeping subaccounts so that you and the Company can keep track of your retirement savings. The subaccounts maintained on your behalf are the following: An Employee Deferral Account, containing your Employee Deferrals (including catch-up contributions) and earnings or losses; A Matching Contribution Account, containing the matching contributions made on your behalf and earnings or losses; An Employer Contribution Account, containing any discretionary contributions made on your behalf and earnings or losses; and A Rollover Account, containing any rollover contributions, and earnings or losses. Contributions are credited to these subaccounts as soon as administratively feasible after they are deducted from your paycheck or contributed to the Plan. You have the responsibility for choosing how your Account will be invested in the various investment alternatives available. The earnings and losses that result from your investment decisions are credited or debited to your Account, along with various Plan expenses that the Company does not pay and certain fees associated with your investment decisions, as described below in the sections entitled Investment Information, Expenses, and Fees and Deduction of Expenses and Fees from Account. Selecting Your Investments When you enroll in the Plan, you will be asked how you want to invest your Account. The Company provides a variety of investment alternatives, called investment funds, through this Plan. You will be given information regarding these investment funds. It is important that you carefully review the information you receive regarding these investment funds prior to making investment decisions. The number and types of investment funds may be changed from time to time. You will be notified when changes occur. 6

10 Your Investment Responsibilities The Plan is intended to constitute a plan described in section 404(c) of the Employee Retirement Income Security Act of 1974 (ERISA) and section c-1 of Title 29 of the Code of Federal Regulations (CFR). This means that you have the responsibility for deciding how your Account will be invested. You bear the risk of investment loss. The fiduciaries of this Plan (i.e., the organizations and people that operate the Plan) are relieved of liability for any losses that are the direct and necessary result of investment instructions you give. Investment Information, Expenses, and Fees You will receive as part of the packet of information you receive when you first become eligible to participate in the Plan information prepared by ING Life Insurance and Annuity Company, Inc., the company that invests the money contributed to the Plan. This information will include a profile for each investment fund from which you may choose to invest your Account. In addition, you may access performance reports and investment fund profiles by visiting ING s website at Each profile provides you with a more detailed description of the investment objectives and return characteristics of each investment fund, including information relating to the type and diversification of assets comprising each such investment fund. Each investment fund s profile will also provide you with a description of expenses and fees that will be charged to your Account in connection with your investment in that specific investment fund (such as commissions, deferred sales charges, sales loads, and exchange or redemption fees). In addition, the information you receive will describe to you any expenses and fees that will be charged to your Account regardless of the specific investment funds you choose, such as an annual maintenance fee, and the annual fees referred to in the section entitled Deduction of Expenses and Fees From Account that Morningstar Associates, LLC may charge. If you do not receive this information, notify the Plan Administrator immediately. Finally, you will also receive a toll free telephone number you can use to obtain information about expenses and fees. Upon written request to the Plan Administrator, you may receive the following information, which will be based on the latest information available to the Plan: a description of the annual operating expenses of each investment fund (e.g., administrative fees, investment management fees, and transaction costs), which may reduce the rate of return to the Members, and the aggregate amount of these expenses expressed as a percentage of the investment fund s average net assets; copies of any financial statements, prospectuses, and reports, and of any other materials relating to any investment fund, to the extent this information is provided to the Plan; a list of assets comprising each investment fund s portfolio, which constitute Plan assets within the meaning of 29 CFR section , the value of each of these assets (or the proportion of the investment fund which it comprises), and, with respect to each of these assets that is a fixed-rate investment contract issued by a bank, savings and loan association, or insurance company, the name of the issuer of the contract, the term of the contract, and the rate of return on the contract; 7

11 information concerning the value of shares or units in the investment funds, as well as the investment fund s past and current investment performances, determined on a reasonable and consistent basis net of expenses; and information concerning the value of shares or units in investment funds held in your Account. Your Investment Decisions The Trustee, the Company, the Plan Administrator, and ING cannot guarantee the future performance of any of the various investment funds. Your investment decisions must be based on your personal investment philosophy and evaluation of the risks involved in each investment. No one at the Company is authorized to give you investment advice. If you have questions or need help in making your investment decisions, you should consult a professional financial adviser. Changing Your Investments You may change your investment elections at any time. Investment elections may be made in increments of whole percentages of your Account, with your total election equaling 100%. Currently, ING provides all of the investment funds. One of them is the ING Fixed Account. However, you may only transfer to another investment fund up to 50% of the assets you have invested in the Fixed Account at the time of the transfer. You can choose whether your election will change the way future contributions will be invested or the way your existing Account currently is invested, or both. This change will affect all the subaccounts maintained on your behalf. Your Personal Plan Statement The value of your Account will go up or down depending upon how your investments perform. As of each business day, your Account will be adjusted to show investment earnings and losses. To help you keep track of your Account balances, you will receive a quarterly statement reflecting the activity in your Account and showing your total and vested Account balances. VESTING Being vested means having an unconditional right to benefits. Being vested does not mean that your Account balance cannot decrease in value. You always will be fully (100%) vested in your Employee Deferral Account and Rollover Account. You will become 100% vested in your Matching Contribution Account and your Employer Contribution Account upon your death, Disability, or attainment of Normal Retirement Age. If you experience a severance from employment with the Company for any reason other than death, Disability, or attainment of Normal Retirement Age, your vested percentage in your Matching Contribution Account and Employer Contribution Account will be determined as follows: 8

12 YEARS OF VESTING SERVICE VESTED PERCENTAGE Less than 2 0% 2 but less than 3 20% 3 but less than 4 40% 4 but less than 5 60% 5 but less than 6 80% 6 or more 100% If you do not have any vested interest in your Matching Contribution Account or your Employer Contribution Account on the date you experience a severance from employment, your nonvested Matching Contribution Account or your Employer Contribution Account balances will be forfeited immediately. Any amounts forfeited will be restored if an Employer reemploys you before you incur five consecutive Breaks-in-Service, provided that you repay to the Plan the 9 DISTRIBUTION OF YOUR ACCOUNT Distribution of Account Upon Death, Disability, or Reaching Normal Retirement Age You are entitled to the value of your Account upon your reaching Normal Retirement Age or experiencing a severance from employment due to Disability while an Employee. Your beneficiary is entitled to the value of your Account upon your death while an Employee. ING will determine the value of your Account on the business day on which ING receives from the Plan Administrator a written request from you for payment. The value of your Account will be distributed to you (or in the event of your death, to your designated beneficiary) in accordance with the section entitled Method of Distributions in this Summary Plan Description. Distribution of Account Upon Severance From Employment Your Plan is designed to encourage you to stay with your Employer until retirement. If you experience a severance from employment for reasons other than death while an Employee, Disability while an Employee, or retirement after the Normal Retirement Age, you will be entitled to receive only the vested percentage of the value of your Account and the remainder of your Account will be subject to forfeiture. Only the nonvested portion of your Matching Contribution Account and Employer Contribution Account is subject to forfeiture. If you receive a lump sum distribution of your vested Account, forfeiture of the nonvested amounts will occur immediately. Otherwise, forfeiture of the nonvested amounts will occur after you have had five Breaks in Service (unless within that time, you are reemployed). If you elect, the Plan Administrator will direct the Trustee to distribute your vested benefit to you before the date it would be distributed normally (i.e., upon your death while an Employee, Disability while an Employee, or retirement). You must give written consent before the distribution may be made. See the section of this Summary Plan Description entitled Method of Distributions for a further explanation of how benefits are paid from the Plan.

13 amount that was distributed to you on or before the earlier of the date you incur five one-year Breaks in Service after the distribution or five years from your date of reemployment. If you were partially vested in your Matching Contribution Account and your Employer Contribution Account on the date you experience a severance from employment, and you received a distribution upon your severance from employment, the balance of your Account that was forfeited will not be restored unless you repay the amount that was distributed to you before the earlier of the date you would have incurred five consecutive Breaks in Service or five years from the date of your reemployment. Hardship Withdrawals If you can demonstrate financial hardship, the balance in your Employee Deferral Account equals or exceeds $2,500, and you are actively employed by an Employer as of the date you request a hardship withdrawal, you may withdraw an amount from your Employee Deferral Account (except for that portion comprised of earnings) equal to the lesser of the amount necessary to meet your financial hardship, or the value of your Employee Deferral Account (less any previous hardship withdrawals). If you are eligible to receive a hardship withdrawal from your Employee Deferral Account and you are 100% vested in your Matching Contribution Account and your Employer Contribution Account, you may also withdraw once during any Plan Year all or any portion of your Matching Contribution Account and your Employer Contribution Account. The Internal Revenue Service defines financial hardship to mean an immediate and heavy financial need for which a Plan distribution is necessary. Immediate and heavy need includes (but is not necessarily limited to) money needed to: pay uninsured medical expenses for you, your spouse, your children, or any other beneficiary so long as you have designated that beneficiary to the Plan in writing; purchase your principal residence (excluding mortgage payments); pay tuition for the next semester or quarter of post-secondary education for you, your spouse, your children, or any other beneficiary so long as you have designated that beneficiary to the Plan in writing; prevent your eviction from your principal residence or foreclosure on the mortgage on your principal residence; pay for burial or funeral expenses for your deceased parent, spouse, children, or any other beneficiary so long as you have designated that beneficiary to the Plan in writing; pay for the repair of certain damages to your principal residence; or pay for other emergencies that the Plan Administrator recognizes. 10

14 Requests for hardship withdrawals must be on a form the Plan Administrator provides. To qualify for a hardship distribution, you must certify that your financial need cannot reasonably be relieved from the following: through reimbursement or compensation by insurance; by liquidation of assets; by ceasing to make pretax contributions to the Plan; or by borrowing from commercial sources on reasonable commercial terms If you cannot make this certification, you can still receive a hardship withdrawal, but for the six month period following your withdrawal, you may not make any Employee Deferrals to this Plan or any elective contributions to any other plan like this Plan that the Company maintains. You may however continue to make contributions to medical or other welfare benefit plans, or cafeteria plans with medical plan options.) Since any hardship withdrawal is subject to income taxation in the year in which you receive it (and may be subject to a 10% excise tax if you are under age 59½ when you receive the distribution), the Plan Administrator will include in your distribution the amount necessary to pay such taxes, if you request that this amount be included, and this amount, plus the amount necessary to meet your financial need, does not exceed the value of your Employee Deferral Account (less any previous hardship withdrawals). You should consult your tax advisor regarding the tax impact of your hardship distribution. Methods of Distribution If your Account balance is more than $1,000 (including your Rollover Account), it will not be distributed without your consent prior to your attaining Normal Retirement Age or dying. If your Account balance is $1,000 or less (including your Rollover Account) or if you have reached the Normal Retirement Age or died, your Account will be distributed whether or not you consent. If your Account balance is $5,000 or less (not including your Rollover Account), you will receive it in a lump sum payment. If your Account balance exceeds $5,000 (not including your Rollover Account), you may elect that it be distributed under one, or any combination, of the following methods: by payment in a lump sum; or by monthly, quarterly or annual installments over a fixed period of time not exceeding your life expectancy, or, if greater, the joint life expectancies of you and your beneficiary. Any election you make will be in writing on a form provided for this purpose. 11

15 You may be able to elect that a distribution you receive from this Plan be transferred to an IRA or the tax-qualified retirement plan of another employer as a direct rollover. You will receive more information about this transfer option and your eligibility to make these kinds of transfers at the time you receive any distribution that may be directly rolled over. TOP-HEAVY PLANS If this Plan becomes top-heavy, special rules will be applicable. It is unlikely that the Plan will ever be top heavy. Generally, a top-heavy plan is a plan in which the value of the accounts of all key employees (as defined in the Internal Revenue Code) exceeds 60% of the value of the accounts of all Employees. For Plan Years during which the Plan is top-heavy, an Employer must make minimum contributions to all of its non-key employees whom that Employer employs on the last day of the Plan Year. Other consequences may result during Plan Years in which this Plan is a top-heavy plan. For details as to these provisions, you should consult the Plan Administrator. Amendment or Termination of the Plan MISCELLANEOUS PROVISIONS The Company hopes to continue the Plan indefinitely. However, since the future is unforeseeable, the Company cannot guarantee that it will maintain the Plan forever without change. The Company therefore reserves the right at any time and for any reason to amend or terminate the Plan, and to amend or eliminate benefits available under the Plan that have not yet accrued as of the amendment or elimination. However, no Plan amendment will deprive any Member or beneficiary of his right to his Account under the Plan. Likewise, should the Plan ever terminate, either fully or partially, all affected Members would immediately become fully (100%) vested in their Account under the Plan. Benefits Not Insured You may have heard or read that the Pension Benefit Guarantee Corporation ( PBGC ) guarantees certain benefits under pension plans. Because this Plan is a 401(k) plan rather than a defined benefit pension plan, however, the PBGC does not guarantee any benefits under the Plan. Plan Account Not Assignable As a general rule, your Account under the Plan may not be alienated or assigned to anyone else. This means that your Account may not be sold, used as collateral for a loan, given away, or otherwise transferred. In addition, your creditors may not attach, garnish, or otherwise interfere with your Account. 12

16 Qualified Domestic Relations Orders There is a significant exception to the general rule set out in the paragraph above. A court may require the Plan Administrator to recognize obligations you incur as a result of court-ordered child support or alimony payments. The Plan Administrator must honor a qualified domestic relations order. A qualified domestic relations order is a court decree, judgment, or order that a court issues and that obligates you to pay child support or alimony, or otherwise allocates a portion of your Account under the Plan to your spouse, former spouse, child, or other dependent. If the Plan Administrator receives a qualified domestic relations order, all or a portion of your Account may be used to satisfy the obligation. The Plan Administrator will determine if any domestic relations order it receives is a qualified domestic relations order. You can obtain from the Plan Administrator, without charge, a copy of the procedures that the Plan Administrator follows in determining whether a domestic relations order is a qualified domestic relations order. Interpretation of Plan Provisions The Plan Administrator will have the discretionary authority to determine eligibility for benefits and to construe all terms of the Plan, and any determination or construction the Plan Administrator makes will be administratively binding and final. Fluctuation of Account Values The value of your benefits from this Plan depends on the balance in your Account under the Plan. You bear the responsibility for the investment of the Account. The values of the investment funds in which you invest your Account fluctuate, and it is possible that the decline of the value of an investment fund could cause the value of your Plan benefits to decline. Deduction of Expenses and Fees from Account In addition to the expenses and fees deducted from your Account as described above in the section entitled Investment Information, Expenses, and Fees, your Account also will be reduced by your share of other Plan expenses, to the extent the Company does not pay those expenses, such as accountant s, lawyer s, and third-party administrator s fees, and the annual fees payable to Morningstar Associates, LLC for providing personal investment advice to you and to other Members in the Plan. Currently, the Company is paying these fees, but it can charge them to the Plan if it chooses to do so. If special expenses unique to your Account arise in the administration of your Account, these special expenses may be deducted from your Account as well. Mistaken Payments If you receive any payment from the Plan to which you are not entitled, you must promptly return the overpayment to the Plan. If you do not, any future payments due you may be offset by the amount of the overpayment. 13

17 CLAIMS PROCEDURE First Claim There is a formal procedure for resolving all claims that arise under the Plan. Usually, you will make a claim for benefits under the Plan only when you retire or otherwise terminate your employment. However, if you feel that you are being denied any rights as a Member in the Plan or if you believe the way you are being treated is contrary to the terms of the Plan document, you may file a claim in order to resolve the issue. All claims will be settled through the same procedure. If you retire or otherwise terminate employment and request that benefits be paid to you, or if you die and your beneficiary requests that benefits be paid to her or him, you or your beneficiary (called the claimant ) should complete a benefit application form, which is available from the Company. In order for the Plan Administrator to process a claimant s application quickly, he or she should attach any material that may assist the Plan Administrator in determining the Member s age and years of Vesting Service. The earlier the claimant makes a claim, the earlier the Plan Administrator can respond to it. If the claimant delays too long in filing a claim, it may be denied. A claim is filed when the Plan Administrator receives it. The claim, when submitted, should include all arguments and evidence that supports the claim. The Plan Administrator will issue a decision with respect to a claim within 90 days after the Plan Administrator receives the claim, unless special circumstances require an extension of time for processing the claim. The claimant will be notified of the extension within the original 90-day period, and the extension will be for no longer than 90 days from the end of the original 90-day period. If the Plan Administrator denies the claim (in whole or in part), it will furnish the claimant with a written or electronic notice of the denial within the time period described in this paragraph. The notice will contain the following information: the specific reason(s) for the denial; reference to the Plan provision(s) on which the denial is based; a description of any additional information or material necessary to perfect the claim, and an explanation of why additional information or material is necessary; an explanation of the appeal procedure discussed below, and the time limits applicable to such procedure; and a statement that the claimant has a right to bring a civil action under Section 502(a) of ERISA following an adverse benefit ruling on review. Appealing Denied Claims If the claimant is satisfied with the claim decision, or if the claimant is dissatisfied but takes no action within 60 days after receipt of the claim decision, the Plan Administrator s decision will 14

18 become administratively final. If the claim has been denied and the claimant wishes to appeal the denial, the claimant must follow the Plan s appeal procedure. Upon the denial of a claim, the claimant (or the claimant s counsel) must file a written request for a review with the Plan Administrator no later than 60 days after the claimant receives written notification of the denial of the claim. The claimant (or the claimant s counsel) may, upon request and free of charge, have reasonable access to and obtain copies of all documents, records, or other information relevant to the claim and submit to the Plan Administrator in writing any comments, documents, records, and other information the claimant may have relating to the claim. In reviewing the claim, the Plan Administrator will consider all of the material described above that the claimant or the claimant s authorized representative presents. The Plan Administrator must provide the claimant with written notice of its decision within 60 days after its receipt of the claimant s written request for review. There may be times when this 60-day period may be extended. However, an extension is permissible only if there are special circumstances (such as the need to hold a hearing) that are communicated to the claimant, along with the date by which the Plan Administrator expects to render its determination in writing, within the 60-day period. If there is an extension, a decision will be made no later than 120 days after the Plan Administrator s receipt of the claimant s request for review. The Plan Administrator s final decision on the claim will be communicated to the claimant in writing or electronically, and will include the following: specific references to the pertinent Plan provision(s) on which the decision is based; the specific reason(s) for the denial; a statement that the claimant may bring an action under Section 502(a) of ERISA; and a statement that the claimant may, upon request and free of charge, have reasonable access to and copies of all documents, records, and other information relevant to the claimant s request for review of the claim. The Plan Administrator has the discretionary and final authority under the Plan to determine the validity of a claim. Accordingly, any decision the Plan Administrator makes on the claimant s appeal will be administratively final. If the claimant disagrees with the final decision, he or she may sue. However, the claimant may not sue until his or her appeal under the Plan has been denied, unless the Plan Administrator, as applicable, does not comply with the Plan s claims procedures set forth in the Plan document and this Summary Plan Description, in which case the claimant may pursue any available remedies under Section 502(a) of ERISA. If the claimant fails to file an appeal according to the procedures set forth in the Plan document and this Summary Plan Description, the claimant will be deemed to have waived his or her right to benefits. Any lawsuit the claimant files will be judged only on those issues presented with the claim, and only on the evidence the claimant 15

19 presented to the Plan Administrator in support of the claim. A lawsuit must be filed within one year of receipt of the Plan Administrator s final written denial of the claim, or within one year of the date the claimant has otherwise exhausted the administrative remedies available under the Plan, or the lawsuit will be forever barred. GENERAL INFORMATION Plan Name: Plan Sponsor: AHC 401(k) Profit-Sharing Plan American Health Companies, Inc. 52 West Eighth Street P.O. Box 10 Parsons, Tennessee Employer Identification Number: A complete list of all Employers adopting the Plan may be obtained by writing the Plan Administrator at the address listed below. Plan Number: The number assigned for government reporting purposes is 001. Funding Medium: The Trustee holds the Plan s assets in investment funds offered by ING Life Insurance and Annuity Company, Inc. Each Member s Account is invested in various ING investment funds in accordance with the Member s investment election. ING s address and phone number are: ING Life Insurance and Annuity Company, Inc. Access Plus 151 Farmington Avenue Hartford, Connecticut (800) Currently, the Trustee is: Bruce Buchanan c/o Tennessee Health Management, Inc. 52 West Eighth Street P.O. Box 10 Parsons, Tennessee (731) Contributions: The source of Employee Deferrals and rollover contributions to the Plan is the Members; the source of any matching contributions and discretionary contributions to the Plan is the Company. 16

20 Type of Plan: Plan Administrator: Type of Administration: Agent for Service of Legal Process: The Plan is a profit-sharing plan, with a cash or deferred arrangement under section 401(k) of the Internal Revenue Code, which is intended to comply with section 404(c) of ERISA. Tennessee Health Management, Inc. 52 West Eighth Street P.O. Box 10 Parsons, Tennessee (731) Administration through the 401(k) Plan Advisory Committee Kelly Thomas, Esq. Tennessee Health Management, Inc. 52 West Eighth Street P.O. Box 10 Parsons, Tennessee (731) Legal process may also be served upon the Plan Administrator or Trustee. Plan Year: Effective Date: The calendar year. The provisions described in this Summary Plan Description are generally effective as of January 1, STATEMENT OF ERISA RIGHTS As a Member in this Plan, you are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974 (ERISA). ERISA provides that all Plan Members shall be entitled to: Examine, without charge, at the Plan Administrator s office and at other specified locations, such as worksites, all Plan documents, including insurance contracts and collective bargaining agreements, and a copy of the latest annual report (Form 5500 series) the Plan filed with the U.S. Department of Labor and available at the Public Disclosure Room of the Employee Benefits Security Administration. Obtain, upon written request to the Plan Administrator, copies of all documents governing the operation of the Plan, including insurance contracts and collective bargaining agreements, and copies of the latest annual report (Forms 5500 series) and 17

21 updated summary plan description. The Plan Administrator may make a reasonable charge for the copies. Receive a summary of the Plan s annual financial report. The Plan Administrator is required to furnish each Participant with a copy of this summary annual report. Obtain a statement telling you whether you have a right to receive a benefit at your Normal Retirement Age, and, if so, what your benefit would be at Normal Retirement Age if you terminated employment now. If you do not have a right to a benefit, the statement will tell you how many more years you have to work to be entitled to a benefit. This statement must be requested in writing and is not required to be given more than once every twelve months. The Plan must provide the statement free of charge. In addition to creating rights for Plan Members, ERISA imposes duties upon the people who are responsible for the operation of the Plan. The people who operate your Plan, called fiduciaries of the Plan, have a duty to do so prudently and in the interest of you and other Plan Members and beneficiaries. Neither your Employer, nor any other persons, may terminate your employment or otherwise discriminate against you in any way to prevent you from obtaining a Plan benefit or exercising your rights under ERISA. If your claim for a Plan benefit is denied or ignored, in whole or in part, you have a right to know why this was done, to obtain without charge copies of documents relating to the decision, and to appeal any denial, all within certain time schedules. Under ERISA, there are steps you can take to enforce these rights. For instance, if you request a copy of Plan documents or the latest annual report from the Plan and do not receive them within 30 days, you may file suit in a federal court. In such a case, the court may require the Plan Administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the Plan Administrator. If you have a claim for benefits that is denied or ignored, in whole or in part, you may file suit in a state or federal court. In addition, if you disagree with the Plan s decision or lack thereof concerning the qualified status of a domestic relations order, you may file suit in federal court. If it should happen that Plan fiduciaries misuse the Plan s money, or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a federal court. If you file suit, the court will decide who should pay court costs and legal fees. If you are successful, the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous. If you have any questions about your Plan, you should contact the Plan Administrator. If you have questions about this statement or your rights under ERISA, or if you need assistance in obtaining documents from the Plan Administrator, you should contact the nearest office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephone 18

22 directory or the Division of Technical Assistance and Inquires, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Ave., N.W., Washington, D.C You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration. 19

23 November 2014 AHC 401(k) PROFIT SHARING PLAN SUMMARY OF MATERIAL MODIFICATIONS TO SUMMARY PLAN DESCRIPTION This Summary of Material Modifications ( SMM ) announces certain changes to the AHC 401(k) Profit Sharing Plan (the Plan ). This SMM supplements the Plan s Summary Plan Description ( SPD ), and you should retain it with your copy of the SPD. Capitalized terms that are not defined in this document have the meanings ascribed to them in the Plan. Summary of Changes. The Trustee and Agent for Service of Legal Process are changed as follows: Funding Medium: The Trustee holds the Plan s assets in investment funds offered by ING Life Insurance and Annuity Company, Inc. Each Member s Account is invested in various ING investment funds in accordance with the Member s investment election. ING s address and phone number are: ING Life Insurance and Annuity Company, Inc. Access Plus 151 Farmington Avenue Hartford, Connecticut (800) Currently, the Trustee is: Bruce Buchanan c/o Tennessee Health Management, Inc. 52 West Eighth Street P.O. Box 10 Parsons, Tennessee (731) Agent for Service Of Legal Process: Agent for Service of Legal Process: Kelly Thomas, Esq. Tennessee Health Management, Inc. 52 West Eighth Street P.O. Box 10 Parsons, Tennessee (731) Legal process may also be served upon the Plan Administrator or Trustee. PLEASE KEEP THIS SUMMARY OF MATERIAL MODIFICATIONS WITH YOUR SPD FOR FUTURE REFERENCE. 7/

24 AHC 401(K) PROFIT SHARING PLAN SUMMARY OF MATERIAL MODIFICATIONS TO SUMMARY PLAN DESCRIPTION May 1, 2016 This Summary of Material Modifications ( SMM ) announces certain changes to the AHC 401(k) Profit Sharing Plan (the Plan ). It supplements the Plan s Summary Plan Description ( SPD ), and you should retain it with your copy of the SPD. Capitalized terms that are not defined in this document have the meanings ascribed to them in the Plan. Summary of Changes. The section on "Methods of Distribution" under DISTRIBUTIONS OF YOUR ACCOUNT is revised to read as follows: Methods of Distribution If your Account balance is more than $5,000 (excluding any Rollover Account), it will not be distributed without your consent prior to your attaining Normal Retirement Age or dying. If your Account balance is $5,000 or less (excluding any Rollover Account) or if you have reached the Normal Retirement Age or died, your Account balance will be distributed whether or not you consent. If your Account balance does not exceed $5,000 (excluding any Rollover Account), payment of your vested Account will be made in a lump sum in cash. However, unless you elect otherwise, a mandatory cashout of more than $1,000 (or such lesser amount as determined by the Plan Administrator in the case of lost or missing Members of Beneficiaries) will be directly rolled over to an individual retirement account ("IRA") chosen by the Plan Administrator. A mandatory cashout is a payment from the Plan to a Member made before age 62 (or Normal Retirement Age, if later) and without consent, where the Member's Account does not exceed $5,000 (excluding any Rollover Account). No direct rollovers are permitted if the amount is less than $200. Mandatory IRA distributions will be invested in an investment product designed to preserve principal and provide a reasonable rate of return and liquidity. Fees and expenses for the IRA will be borne by the account holder alone. For further information on automatic rollovers, the IRA provider, and fees and expenses for the IRA, contact the Plan Administrator. If your Account balance exceeds $5,000 (excluding your Rollover Account), you may elect that it be distributed under one, or any combination, of the following methods: by payment in a lump sum; or by monthly, quarterly or annual installments over a fixed period of time not exceeding your life expectancy, or, if greater, the joint life expectancies of you and your beneficiary. Any election you make will be in writing on a form provided for this purpose. 7/

25 You may be able to elect that a distribution you receive from this Plan be transferred to an IRA or the tax-qualified retirement plan of another employer as a "direct rollover." You will receive more information about this transfer option and your eligibility to make these kinds of transfers at the time you receive any distribution that may be directly rolled over. KEEP THIS SUMMARY OF MATERIAL MODIFICATIONS WITH YOUR SPD FOR FUTURE REFERENCE. 7/

26 April 2016 AHC 401(k) PROFIT SHARING PLAN SUMMARY OF MATERIAL MODIFICATIONS TO SUMMARY PLAN DESCRIPTION This Summary of Material Modifications ( SMM ) announces certain changes to the AHC 401(k) Profit Sharing Plan (the Plan ). This SMM supplements the Plan s Summary Plan Description ( SPD ), and you should retain it with your copy of the SPD. Capitalized terms that are not defined in this document have the meanings ascribed to them in the Plan. Summary of Changes. The Trustee and Agent for Service of Legal Process are changed as follows: Funding Medium: The Trustee holds the Plan s assets in investment funds offered by ING Life Insurance and Annuity Company, Inc. Each Member s Account is invested in various ING investment funds in accordance with the Member s investment election. ING s address and phone number are: ING Life Insurance and Annuity Company, Inc. Access Plus 151 Farmington Avenue Hartford, Connecticut (800) Currently, the Trustees are: James M. Smith and Michael D. Bailey c/o Tennessee Health Management, Inc Tennessee Avenue, North Parsons, Tennessee (731) Agent for Service Of Legal Process: Agent for Service of Legal Process: Kelly Thomas, Esq. Tennessee Health Management, Inc. 512 Autumn Springs Court, Suite A Franklin, TN (615) Legal process may also be served upon the Plan Administrator or Trustee. PLEASE KEEP THIS SUMMARY OF MATERIAL MODIFICATIONS WITH YOUR SPD FOR FUTURE REFERENCE. 7/

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