AVERA HEALTH TAX SHELTERED 403(b) PLAN

Transcription

1 AVERA HEALTH TAX SHELTERED 403(b) PLAN The Avera Health Tax Sheltered 403(b) Plan (the "Plan"), as established effective February 1, 1999, amended and restated January 1, 2011, and as subsequently amended, is hereby further amended and restated, effective January 1, 2017, by the Sisters of the Presentation of the Blessed Virgin Mary of Aberdeen, South Dakota, and Avera Health on behalf of the Participating Employers which have adopted this Plan as a sponsoring employer for the benefit of their eligible employees. ARTICLE I DEFINITIONS Sec Affiliate. "Affiliate" shall mean any trade or business entity or other organization under Common Control with a Participating Employer. A trade or business or organization (whether corporation, partnership, sole proprietorship or otherwise) is under "Common Control" with another trade or business entity (a) if both entities are corporations which are members of a controlled group of corporations as defined in Code section 414(b), if both entities are trades or businesses (whether or not incorporated) which are under common control as defined in Code section 414(c), including church-related organizations which are permissively aggregated pursuant to Code section 414(c)(2)(C), (c) if both entities are members of an "affiliated service group" as defined in Code section 414(m), or (d) if both entities are required to be aggregated pursuant to Income Tax Regulations under Code section 414(o). Participating Employers which are tax-exempt organizations which regularly coordinate their day-to-day exempt activities shall be under "Common Control" if such Participating Employers treat themselves as trades or businesses under Common Control as permitted by Income Tax Regulation 1.414(c)-5(c). Common Control also exists between Participating Employers if at least eighty percent (80%) of the directors or trustees of one organization are either representatives of or directly or indirectly controlled by the other organization in accordance with the provisions of Income Tax Regulation 1.414(c)-5(b). Common Control shall exist between organizations eligible to participate in a church plan if one organization provides, directly or indirectly, at least eighty percent (80%) of the operating funds for the other organization in a Plan Year and there is a degree of common management or supervision between the organizations such that the organization providing the operating funds is directly involved in the day-to-day operations of the other organization. Subject to the provisions of Sec. 1.20, service for all entities under Common Control shall be treated as service for a single employer; provided, however, that an individual shall not be a Participant by reason of this Section. Sec Annuity Contract. "Annuity Contract" shall mean a nontransferable contract as defined in Code section 403(b), established for each Participant by the Employer, or by each Participant individually, that is issued by an insurance company qualified to issue annuities. Sec Annuity Starting Date. "Annuity Starting Date" shall mean the first day of the first period for which an amount is payable as an annuity or in any other form. Sec Beneficiary. "Beneficiary" shall mean the person or persons (including a trust or estate) designated by the Participant to receive the proceeds of the Account upon the Participant's death. A Participant may designate a Beneficiary(ies) by delivering such written 1

2 designation to the Plan Administrator and may change or revoke any such designation by delivering another such designation; provided, however, that a Participant's designation of a Beneficiary other than his or her spouse shall not take effect unless: (1) the Participant's spouse consents in writing to such designation, which consent must acknowledge the effect of such designation and be witnessed by a notary public or Plan representative, or (2) the Participant establishes to the satisfaction of the Plan Administrator that the consent of the Participant's spouse cannot be obtained because there is no spouse or because the spouse cannot be located. Upon the Participant's death, if the Participant had not properly designated a Beneficiary in accordance with this Sec. 1.04, or if no Beneficiary survives the Participant, the Participant's Beneficiary shall be the Participant's spouse. In the event the Participant has no surviving spouse and has not designated a Beneficiary, the Beneficiary shall be the Participant's estate. Sec Code. "Code" shall mean the Internal Revenue Code of 1986, as amended from time to time. Sec Compensation. "Compensation" shall mean all cash compensation for services to the Employer, including salary, wages, fees, commissions, bonuses, and overtime pay, that is includible in the Employee's gross income for the calendar year, plus amounts that would be cash compensation for services to the Employer includible in the Employee's gross income for the calendar year but for a compensation reduction election under Code section 125, 132(f), 401(k), 403(b), or 457(b) (including an election under Sec made to reduce compensation in order to make Deferral Contributions under the Plan), but excluding severance pay and reimbursements or other expense allowances, fringe benefits (cash and non-cash), moving expenses, deferred compensation, and welfare benefits. In addition to other applicable limitations set forth in the Plan, and notwithstanding any other provision of the Plan to the contrary, the annual Compensation for each Participant taken into account under the Plan in determining allocations of Employer contributions for any Plan Year shall not exceed $270,000 (as adjusted on or after January 1, 2018 for increases in the cost of living in accordance with Code section 401(a)(17)(B)). The cost-of-living adjustment in effect for a calendar year applies to any period, not exceeding twelve (12) months, over which Compensation is determined (determination period) beginning in such calendar year. If a determination period for any Employer contribution other than Matching Contributions consists of fewer than twelve (12) months, the annual compensation limit will be multiplied by a fraction, the numerator of which is the number of months in the determination period, and the denominator of which is twelve (12). Any reference in this Plan to the limitation under Code section 401(a)(17) shall mean the annual compensation limit set forth above. Sec Contribution Period. "Contribution Period" shall mean the period for which Matching Contributions, Non-Elective Employer Contributions and Transition Contributions are made and calculated. The Contribution Period for Matching Employer Contributions, Non-Elective Employer Contributions and Transition Contributions is each Plan Year. Sec Custodial Account or Account. "Custodial Account or Account" shall mean the custodial account or accounts, as defined in Code section 403(b)(7), established for 2

3 each Participant by the Employer, or by each Participant individually, under one or more Custodial Agreements. The Custodial Accounts maintained for a Participant shall hold and invest all contributions, investments thereof, and earnings thereon are held by the Custodian for the benefit of the Participant. Sec Custodial Agreement. "Custodial Agreement" shall mean the agreement between Fidelity Management Trust Company and its successors and the Employer or a Participant, and any other agreement between a custodian other than Fidelity Management Trust Company and the Employer or a Participant, under which the assets of the Plan are comprised of shares of regulated investment companies, as defined in Code section 403(b)(7)(C). The provisions of the Custodial Agreement, to the extent consistent with the Plan, shall be considered an integral part of the Plan. Sec Custodian. "Custodian" shall mean Fidelity Management Trust Company or any successor custodian appointed by the Employer. Sec Deferral Contribution. "Deferral Contribution" shall mean any contribution made to the Plan by the Employer on behalf of a Participant in accordance with the provisions of Sec. 3.01, consisting of Pre-Tax Elective Deferrals, Roth Elective Deferrals or a combination of such Deferral Contributions. Sec Disabled. "Disabled" shall mean a Participant satisfies the requirements for Social Security disability benefits. Sec Eligibility Computation Period. "Eligibility Computation Period" means each 12-consecutive month period beginning with the Employment Commencement Date and each anniversary thereof or, in the case of Employee who before completing the eligibility requirements incurs a break in service for participation purposes and thereafter returns to the employ of the Employer or Affiliated Employer, each 12-consecutive month period beginning with the first day of reemployment and each anniversary thereof. "Break in service for participation purposes" shall mean an Eligibility Computation Period during which the Employee does not complete more than 500 Hours of Service with the Employer. Sec Eligible Employee. "Eligible Employee" shall mean an employee of a Participating Employer who meets the eligibility requirements of Sec of the Plan for participation in the Plan. Sec Employer. Employee. "Employee" shall mean any individual employed by an Sec Employer. "Employer" shall mean the Sisters of the Presentation of the Blessed Virgin Mary of Aberdeen, South Dakota and each other Participating Employer. Sec Employment Commencement Date. "Employment Commencement Date" shall mean the date on which an Employee first performs an Hour of Service. Sec Entry Date. "Entry Date" means the date an Employee begins participation in the Plan with respect to each type of contribution as provided in Sec

4 Sec Highly Compensated Employee. "Highly Compensated Employee" shall mean an Employee who is a highly compensated employee in accordance with Code section 414(q). Sec Hour of Service. "Hour of Service" means with respect to any Employee: (a) (b) Each hour for which the Employee is directly or indirectly paid, or entitled to payment, for the performance of duties for the Employer or an Affiliated Employer, each such hour to be credited to the Employee for the Eligibility Computation Period in which the duties were performed; Each hour for which the Employee is directly or indirectly paid, or entitled to payment, by the Employer or Affiliated Employer (including payments made or due from a trust fund or insurer to which the Employer contributes or pays premiums) on account of a period of time during which no duties are performed (irrespective of whether the employment relationship has terminated) due to vacation, holiday, illness, incapacity, disability, layoff, jury duty, military duty, or leave of absence, each such hour to be credited to the Employee for the Eligibility Computation Period in which such period of time occurs, subject to the following rules: (i) (ii) (iii) No more than 501 Hours of Service shall be credited under this paragraph (b) on account of any single continuous period during which the Employee performs no duties; Hours of Service shall not be credited under this paragraph (b) for a payment which solely reimburses the Employee for medically-related expenses, or which is made or due under a plan maintained solely for the purpose of complying with applicable workmen's compensation, unemployment compensation or disability insurance laws; and If the period during which the Employee performs no duties falls within two or more Eligibility Computation Periods and if the payment made on account of such period is not calculated on the basis of units of time, the Hours of Service credited with respect to such period shall be allocated between not more than the first two such Eligibility Computation Periods on any reasonable basis consistently applied with respect to similarly situated Employees; and (c) Each hour not counted under paragraph (a) or (b) of this Sec for which back pay, irrespective of mitigation of damages, has been either awarded or agreed to be paid by the Employer or an Affiliated Employer, each such hour to be credited to the Employee for the Eligibility Computation Period to which the award or agreement pertains, rather than the Eligibility Computation Period in which the award agreement or payment is made. For purposes of determining Hours of Service, Employees of the Employer and of all Affiliates of the Employer will be treated as employed by a single employer. Solely for purposes of determining whether a break in service for participation or vesting purposes has occurred in a computation period, an individual who is 4

5 absent from work for maternity or paternity reasons shall receive credit for the hours of service which would otherwise have been credited to such individual but for such absence, or in any case in which such hours cannot be determined, 8 hours of service per day of such absence. For purposes of this paragraph, an absence from work for maternity reasons means an absence (1) by reason of the pregnancy of the individual, (2) by reason of a birth of a child of the individual, (3) by reason of the placement of a child with the individual in connection with the adoption of such child by such individual, or (4) for purposes of caring for such child for a period beginning immediately following such birth or placement. The hours of service credited under this paragraph shall be credited (1) in the computation period in which the absence begins if the crediting is necessary to prevent a break in service in that period, or (2) in all other cases, in the following computation period. Sec Includible Compensation. "Includible Compensation" shall mean an Employee's actual wages in box 1 of Form W-2 for a year for services to the Employer, but subject to a maximum of $270,000 (or such higher maximum as may apply on or after January 1, 2018 under Code section 401(a)(17)) and increased (up to the dollar maximum) by any compensation reduction election under Code sections 125, 132(f), 401(k), 403(b), or 457(b) (including any Deferral Contribution under the Plan). The amount of Includible Compensation is determined without regard to any community property laws. Sec Leased Employee. "Leased Employee" means any person (other than an employee of the recipient) who pursuant to an agreement between the recipient and any other person ("leasing organization") has performed services for the recipient (or for the recipient and related persons determined in accordance with Code section 414(n)(6)) on a substantially full time basis for a period of at least one year, and such services are performed under primary direction or control by the recipient employer. Sec Leave of Absence. "Leave of Absence" shall mean any absence authorized by a Participating Employer under the Participating Employer's standard personnel practices provided that all persons under similar circumstances must be treated alike in the granting of such Leaves of Absence and provided further that the Participant returns within the period of authorized absence. An absence due to service in the Armed Forces of the United States during any period of qualified military service as defined in Code section 414(u)(5), shall be considered a Leave of Absence; provided, that, the Participant shall have directly entered into such Armed Forces and shall have made application for employment within the applicable time period required under the Uniform Services Employment and Reemployment Rights Act after discharge or release from such Armed Forces. Sec Matching Contribution. "Matching Contribution" shall mean an Employer's contribution which is made on account of the Participant's Deferral Contributions in accordance with Sec Matching Contributions are subject to the Code section 401(m) limits under Sec of the Plan. Sec Non-Elective Employer Contribution. "Non-Elective Employer Contribution" shall mean an Employer's Discretionary Employer Contributions which are made for the benefit of the Participants employed by such Employer pursuant to Sec. 3.04(a) and an Employer's Special Employer Contributions which are made for the benefit of specific Participants employed by such Employer pursuant to Sec. 3.04(b). 5

6 Sec Non-Highly Compensated Employee. "Non-Highly Compensated Employee" means all Employees who are not Highly Compensated Employees. Sec retirement age of 65. Normal Retirement Age. "Normal Retirement Age" means the normal Sec Participant. "Participant" means each Eligible Employee or former Eligible Employee of the Employer who participates in the Plan. Sec Participating Employer. "Participating Employer" shall mean the Sponsor and any other Affiliate that is exempt from tax by reason of qualifying as an organization described in Code section 501(c)(3), which becomes a "Participating Employer" in the Plan with the consent of the Sponsor and by action of its Board of Directors, or duly authorized officer, as of a date specified by the Affiliate in its adoption of the Plan. As of January 1, 2017, the following organizations are Participating Employers in the Plan: (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) Avera Health Avera Holy Family Avera McKennan Avera Queen of Peace Avera St. Anthony's Avera St. Luke's Sacred Heart Health Services d/b/a Avera Sacred Heart Hospital St. Benedict Health Center d/b/a Avera St. Benedict Health Center Avera at Home d/b/a Home Avera St. Mary's Lewis & Clark Health Education and Service Agency, d/b/a Avera Education & Staffing Solutions By its adoption of the Plan, a Participating Employer shall be deemed thereby to have appointed the Sponsor as its exclusive agent to exercise on its behalf all of the power and authority conferred by this Plan upon the sponsoring employers. A Participating Employer shall be deemed to also delegate authority to Avera Health to amend or terminate the Plan as provided in Sec The Sponsor's authority to act as the exclusive agent of any Participating Employer shall continue until the Plan is terminated as to the Participating Employer. Sec Plan. The name of the Code section 403(b)(7) custodial account plan set forth herein is the "Avera Health Tax Sheltered 403(b) Plan." It is sometimes referred to as the "Plan". 6

7 Sec Plan Administrator. "Plan Administrator" means the Sisters of the Presentation of the Blessed Virgin Mary of Aberdeen, South Dakota, or other person designated by the Sponsor. Sec Plan Year. "Plan Year" means the calendar year. Sec Pre-Tax Elective Deferrals. Pre-Tax Elective Deferrals means a Participant s Deferral Contributions (including Catch-up Deferral Contributions) which are not included in the Participant s gross income at the time of deferral as a Pre-Tax Elective Deferral in the Participant s Salary Reduction Agreement. A Participant s Pre-Tax Elective Deferrals will be allocated to and separately accounted for, as will gains and losses attributable to those Pre- Tax Elective Deferrals in the Participant s Pre-Tax Elective Deferral Account. Sec Qualified Participant. "Qualified Participant" means a Participant excluding the following Employees: (a) For Plan Years before the Plan Year beginning January 1, 2017, Employees who were not in active employment with the following Participating Employers are not Qualified Participants: (i) (ii) (iii) (iv) (v) (vi) (vii) Sisters of the Presentation of the Blessed Virgin Mary of Aberdeen, South Dakota Avera Holy Family Avera McKennan Avera St. Luke's Avera Health Avera Queen of Peace Avera at Home d/b/a Home (b) (c) (d) For Plan Years before the Plan Year beginning January 1, 2017, individuals who were in employment with a Participating Employer on June 30, 2000, and who did not file a Discontinuance of Plan Participation with the Plan Administrator, of the Career Average Retirement Plan sponsored by the Sisters of the Presentation of the Blessed Virgin Mary of Aberdeen, South Dakota, prior to January 1, Individuals who are employed and working as a "PRN Status" Employee as determined under an Employer's employment classification policies. Individuals who are accruing, or eligible to accrue, benefits under any other pension or deferred compensation plan for which a Participating Employer makes a contribution, other than social security or the Cash Balance Retirement Plan for Employees of the Sisters of the Presentation of the Blessed Virgin Mary of Aberdeen, South Dakota. 7

8 (e) (f) (g) Individuals who are classified by the Participating Employer under its employment tax records as an independent contractor, regardless of the common law or tax classification of such individuals under the work relationship with the Participating Employer. Individuals who are classified by the Participating Employer as a Leased Employee. Employees covered by the provisions of a collective bargaining agreement between a Participating Employer and a representative of the collective bargaining unit, unless such agreement provides otherwise. Sec Related Employer. "Related Employer" shall mean the Employer and any other Affiliate of the Employer. Sec Rollover Contribution. "Rollover Contribution" means the transfer to this Plan of all or any portion of an eligible distribution from another Code section 403(b) plan, program or arrangement, an individual retirement account described in Code section 408(a) or an individual retirement annuity described in Code section 408(b), a qualified plan described in Code section 401(a), or an eligible plan under Code section 457(b), which is maintained by a state, political subdivision of a state, or an agency or instrumentality of a state or political subdivision of a state as a qualifying rollover under the Code. Sec Roth Elective Deferrals. Roth Elective Deferrals shall mean a Participant s Deferral Contributions (including Catch-up Deferral Contributions) that are includible in the Participant s gross income at the time deferred and have been irrevocably designated by the Participant at the time of deferral as Roth Elective Deferrals in the Participant s Salary Reduction Agreement. A Participant s Roth Elective Deferrals will be allocated to and separately accounted for, as will gains and losses attributable to those Roth Elective Deferrals, in the Participant s Roth Elective Deferral Account. The Plan shall also maintain a record of a Participant s investment in the contract (i.e., designated Roth Elective Deferrals that have not been distributed). Sec Salary Reduction Agreement. "Salary Reduction Agreement" means an agreement between a Participant and a Participating Employer in which the Participant agrees or is deemed to agree to a reduction in salary or wages or agrees in exchange for the agreement of the Participating Employer to make contributions on behalf of the Participant to an Account. A Salary Reduction Agreement shall be subject to, and deemed to incorporate the provisions of Sec and the following: (a) (b) (c) A Salary Reduction Agreement shall be in a form or format, including paperless formats, approved by the Plan Administrator and shall be subject to such uniform rules and regulations established by the Plan Administrator from time to time. Except as may be specifically provided in the Salary Reduction Agreement, the Salary Reduction Agreement shall, for all relevant periods, only apply to Compensation as defined in Sec A Salary Reduction Agreement shall apply only to amounts earned after the date of the Agreement and before the Agreement is terminated or amended. The Salary Reduction Agreement first filed after the Participant becomes eligible to 8

9 make a salary reduction election shall be effective as soon as administratively possible after the Agreement is filed with the Plan Administrator. A subsequent Agreement filed with the Plan Administrator shall take effect as soon as administratively feasible after the Agreement or amendment is filed with the Plan Administrator. (d) (e) (f) (g) A Salary Reduction Agreement shall remain in effect until it is terminated or a subsequent Agreement or amendment becomes effective. Elections to terminate a Salary Reduction Agreement shall be effective as soon as administratively feasible after they are filed or deemed to be filed with the Plan Administrator. Notwithstanding anything in this Section to the contrary, a Salary Reduction Agreement may be terminated at any time with respect to compensation earned after the date of termination through advance written notice to the Plan Administrator. Salary Reduction Agreements shall be irrevocable with respect to amounts already earned prior to their termination. The Plan Administrator may establish uniform rules and regulations for the making of salary reduction elections and amendments to existing salary reduction elections through telephonic, electronic, or other paperless systems, which elections shall be deemed to be filed with the Plan Administrator within an administratively practicable time of the transmission and confirmation of such election or amendment. All amounts contributed to the Plan pursuant to the Participants' Salary Reduction Agreements shall be delivered by the Participating Employers to the Custodian within an administratively reasonable period of time after the withholding of the salary reduction amount from the Participants pursuant to their Salary Reduction Agreements, but in no event later than the fifteenth (15 th ) business day of the month in which the salary reduction amount was withheld by the Participating Employer. The Salary Reduction Agreement may include the irrevocable designation of all or any portion of the Participant s Deferral Contributions (including Catch-up Deferral Contributions) as a Roth Elective Deferral. The Employer may, in operation, implement deferral election procedures for Roth Elective Deferrals under the Salary Reduction Agreement provided such procedures are communicated to the Participants and permit each Participant to modify his or her elections at least once each Plan Year. In the absence of such designation, all Deferral Contributions under the Salary Reduction Agreement shall be Pre- Tax Elective Deferrals. Sec Sponsor. "Sponsor" means the Sisters of the Presentation of the Blessed Virgin Mary of Aberdeen, South Dakota, which is the Plan's Sponsor and lead Employer. Sec Termination of Employment. "Termination of Employment" with respect to any employee means resignation, discharge, retirement, death, failure to return to active work at the end of an authorized leave of absence (including sabbatical leaves of absence) or the authorized extension or extensions thereof, failure to return to work when duly called following a temporary layoff, a severance of employment, or the happening of any other event or circumstances which, under the policy of the Participating Employer or Affiliate, as in effect from time to time, results in the termination of the employer-employee relationship between the 9

10 Participating Employer and the employee; provided, however, that a Termination of Employment shall not be deemed to occur upon a transfer between any combination of Participating Employers and Affiliates. Sec Transition Contribution. "Transition Contribution" shall mean the Employer's contribution made pursuant to Sec on behalf of a Transition Participant employed by the Employer. Sec Transition Participant. "Transition Participant" means a Participant who was an active participant of and eligible to accrue benefits under the Career Average Retirement Plan sponsored by the Sisters of the Presentation of the Blessed Virgin Mary of Aberdeen, South Dakota on December 31, Sec Year of Eligibility Service. "Year of Eligibility Service" means the completion of 1,000 Hours of Service by an Employee in an Eligibility Computation Period; provided, however, any Employee who is classified by an Employer as a "Senior Executive" under the Employer's employment policies shall be deemed to have completed a Year of Eligibility Service on such Employee's Employment Commencement Date. Sec Year of Vesting Service. "Year of Vesting Service" means that consecutive twelve-month period commencing on the Employment Commencement Date or Reemployment Commencement Date, and any consecutive twelve-month period commencing on an anniversary date thereof, during which the Employee has completed at least 1,000 Hours of Service. All Employees of all Employers under Common Control shall be treated as employed by a single employer for determining the Participant's Vesting Years of Service under the Plan. A Leased Employee (within the meaning of Code section 414(n)) of any organization that is under Common Control with the Sponsor shall be given credit for service with such other organization for purposes of Years of Vesting Service, even though such Leased Employee is not eligible to participate in this Plan. However, if a Participant incurs a Termination of Employment before accruing the number of Years of Vesting Service necessary to avoid forfeiting his or her Matching Contribution Account under the Plan, at the time of any One Year Break in Service (as defined below), Years of Vesting Service before such Break shall be disregarded if the number of the Participant's consecutive One Year Breaks in Service (as defined below) equals or exceeds the greater of five (5) or the aggregate number of his or her Years of Vesting Service prior to such break. The term One Year Break in Service means a Plan Year during which a Participant has completed 500 Hours of Service or less. ARTICLE II PARTICIPATION Sec General Eligibility. An Employee is qualified to become a Participant with respect to each type of contribution to the Plan as follows: (a) Deferral Contributions. An Employee of an Employer shall become a Participant and may make Deferral Contributions on the first Entry Date for Deferral Contributions (as defined in Sec. 2.02(a)) coincident with or next following the Employee's Employment Commencement Date, regardless of the Employee's age or years of service. An Employee who makes Deferral Contributions to the Plan shall not be a Participant (and not be eligible to receive an allocation of) with respect to the Employer's Matching Contribution, Non-Elective Employer Contribution, Special Employer Contribution or Transition Contribution unless 10

11 and until the Entry Date following the date the eligibility requirements of Sec. 2.01(b), in the case of the Employer's Matching Contributions, Sec. 2.01(c), in the case of the Non-Elective Employer Contributions, Sec. 2.01(c)(2) in the case of the Special Employer Contributions, and Sec. 2.01(d) in the case of the Transition Contributions, are satisfied. (b) Matching Contributions. An Employee of an Employer is qualified to become a Participant and receive the allocation of Employer Matching Contributions described in Sec on the first Entry Date for Matching Contributions (as defined in Sec. 2.02(b)) following the satisfaction of the following conditions: (1) the Employee is a Qualified Participant receiving Compensation as a salary or wage from an Employer; (2) the Employee has completed a Year of Eligibility Service; and (3) the Employee has attained the age, last birthday; of at least twenty-one (21) years. (c) Non-Elective Employer Contributions. An Employee of an Employer is qualified to become a Participant and receive the allocation of the Non-Elective Employer Contributions described in Sec. 3.04(a), or the Special Employer Contributions described in Sec. 3.04(b) as follows: (1) An Employee will be qualified to receive an allocation of the Discretionary Employer Contributions made by his or her Employer on the first Entry Date for Discretionary Employer Contributions (as defined in Sec. 2.02(c)) following the satisfaction of the following conditions: (A) (B) (C) the Employee must normally work twenty (20) or more hours per week for the Employer; the Employee is not a non-resident alien as described in Code section 410(b)(3)(C), and the Employee has attained the age, last birthday, of at least twenty-one (21) years. For purposes of condition (A) above, an Employee is considered to work fewer than twenty (20) hours per week for the Employer only if (i) for the 12-month period beginning on the date of the Employer's Employment Commencement Date the Employer reasonably expects the Employer to work fewer than 1,000 Hours of Service in such period; and (ii) for each Plan Year ending after the close of the initial 12-month period of employment, the Employee worked fewer than 1,000 Hours of Service in the preceding 12-month period. (2) An Employee of an Employer is qualified to become a Participant and receive an allocation of the Special Employer Contributions made by his or her Employer on the first Entry Date for Special Employer 11

12 Contributions (as defined in Sec. 2.02(c)), regardless of the Employee's age or period of service. (d) Transition Contributions. An Employee of an Employer is qualified to become a Participant and receive an allocation of the Transition Contributions made by his or her Employer on the Entry Date for Transition Contributions (as defined in Sec. 2.02(d)), if the following conditions are satisfied: (1) The Employee was an active Participant in the Retirement Plan for Employees of the Sisters of the Presentation of the Blessed Virgin Mary of Aberdeen, South Dakota on December 31, 2016; and (2) The Employee had attained the age of fifty (50) years on or before January 1, Sec Entry Dates for Participation. An Employee of an Employer who becomes qualified to become a Participant shall begin participation with respect to each type of contribution to be made to the Plan by the Employer on the following dates: (a) (b) Deferral Contributions. For purposes of becoming eligible to make Deferral Contributions pursuant to Sec of the Plan, an Employee shall be eligible to become a Participant in the Plan on the Employee's Employment Commencement Date. Matching Contributions. For purposes of becoming eligible to participate in the allocation of Matching Contributions pursuant to Sec. 3.02, an Employee shall be eligible to become a Participant and receive an allocation of the Employer's Matching Contribution as of the first day of the month coincident with or immediately following the date upon which he satisfies the qualification requirements of Sec. 2.01(b), provided the Employee continues to be a Qualified Participant and has not left the Employer's service between the time of satisfying such qualification requirements and such Entry Date. The Entry Date for Matching Contributions of an Employee who was not a Qualified Participant before January 1, 2017 under Sec. 1.34(a) or (b) shall be January 1, A former Participant shall become a Participant with respect to the Matching Contribution to the Plan immediately upon his or her return to the employ of an Employer as a Qualified Participant if (1) the former Participant's Years of Eligibility Service before his or her Termination of Employment exceeds the number of consecutive Breaks in service after such Termination of Employment; or (2) the number of the former Participant's consecutive one year Breaks in service after his or her Termination of Employment is less than five (5). (c) Non-Elective Discretionary and Special Employer Contributions. An Employee shall be eligible to become a Participant and receive an allocation of the Discretionary Employer Contributions pursuant to Sec. 3.04(a) as of the January 1 or July 1 coincident with or immediately following the date that the Employee satisfies the qualification requirements of Sec. 2.01(c)(1), provided the Employee has not left the Employer's service between the time of satisfying such 12

13 qualification requirements and such Entry Date. For purposes of participating in the allocation of the Special Employer Contributions described in Sec. 3.04(b), an Employee shall be eligible to be a Participant and receive an allocation of the Special Employer Contributions that may be made by the Employee's Employer pursuant to Sec. 3.04(b) on the Employee's Employment Commencement Date. (d) Transition Contributions. Transition Participants shall be eligible to receive an allocation of the Employer's Transition Contribution pursuant to Sec effective with the Plan Year beginning January 1, Sec Duration of Participation. An Employee who has become a Participant under the Plan will remain a Participant for as long as a Custodial Account is maintained under the Plan for his or her benefit, or until his or her death, if earlier. Notwithstanding the preceding sentence, no contributions shall be made with respect to a Participant who is not an Eligible Employee. Sec Omission of Eligible Employee. If any Employee who should be included as a Participant in the Plan is erroneously omitted and discovery of such omission is not made until after a contribution by his or her Employer for the year has been made, the Employer shall make a subsequent contribution, if necessary, so that the omitted Employee receives the total amount which the said Employee would have received had he not been omitted. For purposes of this Sec. 2.04, the term "contribution" shall not include Deferral Contributions and Matching Contributions made pursuant to Sec and 3.02, respectively. ARTICLE III CONTRIBUTIONS Sec Deferral Contributions. The Deferral Contributions to an Account of a Participant shall be determined in accordance with the Salary Reduction Agreement of the Participant. Deferral Contributions made under the Plan shall be subject to the following: (a) Compensation Reduction Elections. Each Participant who is eligible pursuant to Sec. 2.01(a) may elect for any taxable year in a Salary Reduction Agreement filed with the Employer to reduce his or her Compensation by a specified percentage or amount not exceeding the lesser of: (i) eighty percent (80%) of Compensation per payroll period, or (ii) the Deferral Contribution limitation of Sec. 3.01(c), as adjusted for any applicable catch-up contribution limit under Sec. 3.01(d). If such Salary Reduction Agreement is filed with the Plan Administrator upon an Employee's initial entry into the Plan, it shall become effective on the Participant's Entry Date for Deferral Contributions. If such Salary Reduction Agreement is filed with the Plan Administrator following an Employee's initial entry into the Plan, it shall become effective the first day of the month that begins at least thirty (30) days following the filing of such Agreement. A Participant (1) may increase or decrease, on a prospective basis, his or her Compensation reduction percentage as of the beginning of each payroll period that is at least thirty (30) days after a written request for a change is received by the Participant's Employer, and (2) a Participant may revoke on a prospective basis, a Salary Reduction Agreement at any time upon proper notice to the Plan Administrator but in such case may not file a new Salary Reduction Agreement that is effective before the beginning of a payroll period that is at least thirty (30) 13

14 days after a written request for a change is received by the Participant's Employer. The Plan Administrator may establish an annual minimum deferral amount no higher than $200, and may change such minimum to a lower amount from time to time. Any Employee who has not filed a Salary Reduction Agreement with the Plan Administrator or otherwise made an affirmative election against making a salary reduction election under the Plan shall be deemed to have filed a Salary Reduction Agreement, effective as of the date provided below, directing that his or her Compensation be reduced by two percent (2%) each payroll period of the Participating Employer for contribution as a Deferral Contribution under the Plan until such deemed Salary Reduction Agreement is revoked or a separate Salary Reduction Agreement is affirmatively made and filed by the Participant. The effective date of the deemed Salary Reduction Agreement shall be the first day of the month immediately following the Participant's completion of thirty (30) days of continuous employment after the Employee's Employment Commencement Date. All Deferral Contributions under a deemed Salary Reduction Agreement shall be Pre-Tax Elective Deferrals. The Employer shall make a Deferral Contribution on behalf of the Participant corresponding to the amount deemed elected or affirmatively elected by the Participant, subject to the restrictions set forth in this Sec Under no circumstances may a Salary Reduction Agreement be adopted retroactively. (b) (c) Changes to Compensation Reduction Election. A Participant may elect to change or discontinue the percentage under the Salary Reduction Agreement by which his or her Compensation is reduced by written notice to the Employer at least 30 days before the change or discontinuance is to be effective. Limit on Deferral Contributions. In no event shall a Participant be permitted to request in any Salary Reduction Agreement (or deemed Salary Reduction Agreement) that the Employer make contributions under this Plan during any taxable year in excess of Code section 415 limitations in effect with respect to such individual or the dollar limitation contained in Code section 402(g) (as increased under Code section 402(g)(7) and Income Tax Regulation 1.403(b)- 4(c)(3) for those Participants eligible to contribute under such provisions as provided in Sec. 3.01(d), if applicable). Plan contributions pursuant to a Salary Reduction Agreement (including a deemed Salary Reduction Agreement) shall cease when any of the above-described limits are reached. The limitations of this Section shall be applied as if this Plan and any other Code section 403(b) plan or contract maintained by the Employer were a single Code section 403(b) plan. The Custodian shall have no obligation to determine whether any contributions would exceed the Code section 415 limitations or the applicable deduction limit under Code section 402(g). The disposition of excess contributions shall be as directed by the Plan Administrator consistent with applicable law. (d) Age 50 Catch-up Deferral Contributions. Each Participant who is eligible to make Deferral Contributions under this Plan and who has attained age 50 before the close of the calendar year shall be eligible to make Catch-up Deferral 14

15 Contributions in accordance with, and subject to the limitations of Code section 414(v). Such Catch-up Deferral Contributions shall not be taken into account for purposes of the provisions of the Plan implementing the required limitations of Code sections 402(g) and 415. Catch-up Deferral Contributions shall be credited to the Participant's Deferral Contributions Account. Catch-up Deferral Contributions shall be limited to six-thousand dollars ($6,000) for the calendar year beginning January 1, 2017, and such limit shall be adjusted for cost-of-living for subsequent years to the extent provided in Code section 414(v). No eligible Participant shall be permitted to have Catch-up Deferral Contributions made under the Plan or any qualified Plan maintained by the Employer during any taxable year in excess of the dollar limitation contained in Code section 414(v) in effect at the beginning of such taxable year. (e) Excess Deferrals. Notwithstanding any other provisions of this Plan, Excess Deferrals for a calendar year and income or losses allocable thereto shall be allocated to a separate Excess Deferral Account under the Plan for Participants who claim such Excess Deferrals in accordance with Income Tax Regulation 1.403(b)-4(f) and the appropriate amounts shall then be distributed by the Custodian to such Participants no later than the following April 15, subject to the following: (1) For purposes of this Section, Excess Deferrals means the amount of Deferral Contributions made pursuant to Sec for a calendar year that the Participant claims pursuant to the procedure in subsection (2) because the total amount deferred for the calendar year exceeds the limit imposed on the Participant for that year under Code section 402(g) or Code section 415. (2) The Participant s written claim, specifying the Participant s Excess Deferral for the preceding calendar year, shall be submitted to his Employer or the Plan Administrator no later than March 1. The claim shall include the Participant s written statement that if such amounts are not distributed, such excess deferrals, when added to the amounts deferred under other plans or arrangements described in Code sections 401(k), 403(b) or 408(k), exceed the limit imposed on the Participant by Code section 402(g) for the year in which the deferral occurred. The Plan Administrator shall then notify the Custodian of the amount to be distributed from the Custodial Account to the Participant by April 15. The Custodian will distribute such amount plus any income or minus any losses allocable thereto, through the date of distribution. (f) Post-Severance Contributions. Deferral Contributions may be made with respect to Compensation, as defined by Sec. 1.06, received by a Participant after a Termination of Employment if such payments are made within two and one-half (2½) months after a severance from employment (as defined in Code section 401(k)(2)(B)(i)(I)) or, if later, by the end of the calendar year that includes such severance from employment and if they are payments that, absent a severance from employment, would have been paid to a Participant while he or she 15

16 continued in employment with a Participating Employer and are regular compensation for services during the Participant's regular working hours; compensation for services outside the Participant's regular working hours (such as overtime); and commissions, bonuses, or other similar compensation. Any payments not described above may not be contributed to the Plan pursuant to the Participant's Salary Reduction Agreement, except for payments to the Participant who is absent by reason of qualified military service (as defined under Code section 414(u)) to the extent these payments would have been received if the individual had continued to perform services for the Participant Employer but for the qualified military service. Back pay within the meaning of Income Tax Regulation 1.415(c)-2(g)(8), shall be treated as Compensation for the limitation year to which the back pay relates to the extent the back pay represents wages and compensation that would otherwise be included in this definition. If Compensation for any prior determination period is taken into account in determining a Participant s contributions or benefits for the current Plan Year, the Compensation for such prior determination period is subject to the applicable annual compensation limit in effect for that determination period. (g) (h) (i) Adjustments of Deferral Contributions. In order for the Plan to comply with the requirements of Code sections 402(g) and 415 and the Income Tax Regulations promulgated thereunder, at any time in a Plan Year the Plan Administrator may reduce the rate of Deferral Contributions to be made on behalf of any Participant, or class of Participants, for the remainder of that Plan Year, or the Plan Administrator may require that all Deferral Contributions to be made on behalf of a Participant be discontinued for the remainder of that Plan Year. Upon the close of the Plan Year or such earlier date as the Plan Administrator may determine, any reduction or discontinuance in Deferral Contributions shall cease until the Plan Administrator again determines that such a reduction or discontinuance of Deferral Contributions is required. Notice of Automatic Salary Reduction. Prior to the first date on which a Deferral Contribution is made under a deemed Salary Reduction Agreement, a Participant shall receive a notice that explains the deemed Salary Reduction Agreement and the Participant's right to elect to have no Deferral Contributions made to the Plan or to alter the amount of his or her Deferral Contributions, including the procedure for exercising that right and the timing of implementation of any such election. Each Participant participating in the Plan under a deemed Salary Reduction Agreement will then be notified annually of the deemed Deferral Contribution election and his or her right to change the percentage, including the procedure for exercising that right and the timing for implementation of any such election; provided, however, an Employee who has affirmatively elected not to make Deferral Contributions to the Plan shall not be entitled to receive any further notices of his or her eligibility to participate in the Plan. Contribution of Deferral Contributions. Deferral Contributions under the Plan shall be transferred by the Employer to the applicable Custodial Account within an administratively reasonable time after withholding the corresponding Compensation from the Participant pursuant to his or her Salary Reduction 16

17 Agreement, but in no event later than the fifteenth (15th) business day of the month following the month in which the Deferral Contribution was withheld by the Participating Employer. (j) Roth Elective Deferrals. Beginning January 1, 2011, the Salary Reduction Agreement may include the irrevocable designation of all or any portion of the Participant s Deferral Contributions (including Catch-up Deferral Contributions) as a Roth Elective Deferral. The Plan Administrator may, in operation, implement deferral election procedures for Roth Elective Deferrals under the Salary Reduction Agreement provided such procedures are communicated to the Participants and permit each Participant to modify his or her elections at least once per each Plan Year. In the absence of such designation, all Deferral Contributions under the Salary Reduction Agreement shall be Pre-Tax Elective Deferrals. Sec Matching Contributions. Each Participating Employer shall make a Matching Contribution each payroll period on behalf of each Qualified Participant employed by such Employer who has made Deferral Contributions (including Catch-up Deferral Contributions) during the payroll period. Effective with the Plan Year beginning January 1, 2017, and subject to the true-up of Matching Contributions pursuant to Sec. 3.02(a) below, the amount of the Matching Contribution on behalf of each Qualified Participant shall be onehundred percent (100%) of the Deferral Contributions made by the Qualified Participant on the first five percent (5%) of the Qualified Participant's Compensation in such payroll period. To be eligible to receive Matching Contributions, the Qualified Participant must be employed by the Employer on the last day of the Contribution Period and still be a Qualified Participant on such date. (a) (b) True-up of Employer Contributions. Notwithstanding the foregoing provisions of this Sec. 3.02, effective for Plan Years beginning on and after January 1, 2017, the Participating Employer shall contribute, as of the end of the Plan Year, such additional Matching Contribution, if any, as required so that the applicable Matching Contribution for the Plan Year of each Qualified Participant employed by such Employer during the Plan Year equals the amount of the Matching Contribution as calculated and determined on the basis of the Participant's Deferral Contributions and Compensation for that Plan Year. Any additional Matching Contribution that is required for any Plan Year under the foregoing provisions shall be paid to the Custodial Account of the Participant as soon as practicable following the close of the Plan Year. Limitations on Matching Contributions. Such Matching Contributions will be subject to the limitations set forth in Sec of the Plan. Notwithstanding the foregoing, no Matching Contributions will be made (and any such Matching Contributions shall be forfeited) with respect to any portion of a Qualified Participant's Deferral Contributions that are Excess Deferrals (as defined in Sec. 3.01(e)) and must be returned to the Participant to meet the requirements of Code sections 402(g) or 415. Sec Limit on Matching Contributions. In no event shall the Average Contribution Percentage (hereinafter "ACP") for Participants who are Highly Compensated Participants (as defined below) for each Plan Year exceed the amount specified under the ACP Test below: 17