EXHIBIT 10
SANDY SPRING NATIONAL BANK OF MARYLAND
EXECUTIVE HEALTH INSURANCE PLAN
Effective January 1, 2002
ARTICLE I
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1.01 Establishment. Sandy Spring Bank originally established this Executive
Health Insurance Plan effective January 1, 1991, for the benefit of all Eligible
Employees, and has amended this Plan effective January 1, 2002.
1.02 Purpose. The Plan enables a participant to obtain individual or family
coverage with a Health Care Provider (as hereinafter defined) of his choice,
and, without incurring any taxable income, either to be reimbursed, within the
limits set forth in the Plan below, for the cost of Premium payments or to have
the Employer pay such Premiums directly to the Health Care Provider.
This Plan is intended to be a health plan within the meaning of Section
105(e) of the Code, and to comply with the provisions of Sections 104, 105 and
106 thereof.
1.03 Written Plan. This Plan shall serve as the written plan document
required under Section 102 of ERISA, and shall also serve as the summary plan
description required under Section 102 of ERISA.
ARTICLE II
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Definitions
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Whenever used in the Plan, the following words and phrases shall have
the meanings set forth below unless the context plainly requires a difference
meaning, and when the defined meaning is intended, the term is capitalized:
2.01 Administrator means the Plan Administrator under Article V.
2.02 Beneficiary means that person, estate or trust designated by the
Participant, pursuant to section 7.01 hereof.
2.03 Code means the Internal Revenue Code of 1986, as amended from time to
time, and regulations promulgated thereunder.
2.04 Effective Date means January 1, 1991.
2.05 Employee means a common law employee of the Employer.
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2.06 Eligible Employee means an Employee whom the board of directors of the
Employer (the "Board") has by written resolution determined to be eligible to
participate in the Plan, and who has entered into a contract of medical or
dental care coverage with a Health Care Provider as a condition precedent to
participation in the Plan.
2.07 Employer means Sandy Spring Bank.
2.08 Entry Date means the Effective Date and the first day of any calendar
month thereafter.
2.09 ERISA means the Employee Retirement Income Security Act of 1974, as
amended, and regulations promulgated thereunder.
2.10 Health Care Provider means any (a) indemnity type medical or dental
insurance plan, (b) health maintenance organization ("HMO"), or (c) preferred
provider organization ("PPO") of the Participant's choice.
2.11 Participant means a person who is an Eligible Employee on or after the
Effective Date and who satisfies the participation conditions of Article 3.
2.12 Plan means the Sandy Spring National Bank of Maryland Executive Health
Insurance Plan, as amended from time to time.
2.13 Plan Year means the twelve consecutive month period beginning on
January 1 and ending on December 31.
2.14 Premium means the amount paid as consideration for medical or dental
care coverage with a Health Care Provider.
2.15 Reimbursement Benefits means the amounts of Premium reimbursements
available under the terms of Section 4 of the Plan.
ARTICLE III
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Participation
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3.01 Eligibility and Participation. Each Eligible Employee who is employed
as of the Effective Date shall become a Participant upon the Effective Date.
Each Eligible Employee hired thereafter shall become a Participant on the Entry
Date coincident with or next following the commencement of his employment with
the Employer.
3.02 Termination of Participation. A Participant shall cease to be a
Participant as of the earliest of: (a) the date on which the Plan terminates,
or (b) the date on which the Board determines by written resolution that the
Participant is no longer an Eligible Employee. The Participant's retirement from
employment with the Employer will not automatically terminate his participation
in the Plan.
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ARTICLE IV
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ELECTION OF BENEFITS
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4.01 Choice of Health Care Provider. The Employee shall not enter into any
agreement with a Health Care Provider for the purpose of providing medical care
coverage for Participants under the Plan. However, the Employer may, at the
direction of a Participant, pay Premiums directly to the Health Care Provider
instead of paying Reimbursement Benefits hereunder.
4.02 Maximum Reimbursable Amounts. The maximum amount of Premium payments in
a Plan Year which the Employer shall reimburse to a Participant for Premium
payments made by the Participant to his Health Care Provider shall be Five
Thousand Dollars ($6,500), reduced by any amounts paid in the Plan Year to the
Participant under the Sandy Spring National Bank of Maryland Executive Health
Expense Reimbursement Plan.
4.03 Reimbursement Procedure. A Participant shall be reimbursed on June 30th
and December 31st of each Plan Year (each such date hereinafter the "Semi-Annual
Reimbursement Date") for his Reimbursement Benefits, provided the Participant
timely returns the Semi-Annual Certification that the Administrator may require.
If a Participant terminates employment in either semi-annual period of
a given Plan Year, prior to either such semi-Annual Reimbursement Date (the
"Semi-Annual Period"), the Administrator shall prorate the Reimbursement Benefit
for such Semi-Annual Period in such ratio that the number of days of such
Participant's participation in the Plan for the applicable semi-Annual Period
bears to 180 days.
4.04 Form and Amount of Reimbursement. Reimbursement shall be made in the
form of a check payable to a Participant in an amount equal to that amount which
the Participant has demonstrated, through documentation required by the
Administrator pursuant to Section 4.05, to have paid in Premium payments for the
Plan Year up to the applicable Semi-Annual Reimbursement Date.
4.05 Semi-Annual Certification Form. In order to receive Reimbursement
Benefits, Participants must complete, within a reasonable period of time prior
to each Semi-Annual Reimbursement Date, the Semi-Annual Certification Form
provided to each Participant by the Administrator.
Information to be provided on the Semi-Annual Certification Form shall
include, but not be limited to: (a) proof of coverage under a contract offered
by a Health Care Provider and in effect during the Plan Year; (b) the name of
the Health Care Provider; (c) the policy or group number; (d) whether the
coverage is family or individual; (e) the date payment(s) was/were made; (f) to
whom the payment was paid; and (g) a statement that the Participant has not been
reimbursed for such Premium payments from any other source. In addition, the
Administrator may request that the Participant submit any additional
documentation which the Administrator may require in making a determination of
Reimbursement Benefits.
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4.06 Review of Denials. If any claim under the Plan is wholly or partially
denied, the claimant shall be given notice in writing of such denial within a
reasonable period of time, but not later than 60 days after the claim is filed.
Such notice shall set forth the following information:
(a) The specific reason or reasons for the denial;
(b) Specific reference to pertinent Plan provisions on which the
denial is based;
(c) A description of any additional material or information
necessary for the claimant to perfect the claim and an
explanation of why such material or information is necessary;
(d) An explanation that a full and fair review by the Administrator
of the decision denying the claim may be requested by the
claimant or his authorized representative by filing with the
Administrator, within 90 days after such notice of denial has
been received, a written request for such review; and
(e) If such request is so filed, the claimant or his authorized
representative may review pertinent documents and submit issues
and comments in writing within the same 90 day period specified
in subsection 4.06(d) above.
The decision of the Administrator on review shall be made promptly, but
not later than 60 days after the Administrator's receipt of the request for
review, unless special circumstances require an extension of time for
processing, in which case a decision shall be rendered as soon as possible, but
not later than 120 days after receipt of the request for review. The decision on
review shall be made in writing and shall include specific reasons for the
denial, written in a manner calculated to be understood by the claimant, and
shall include specific references to the pertinent Plan provisions on which the
denial is based.
Group health plans and health insurance issuers generally may not,
under Federal law, restrict benefits for any hospital length of stay in
connection with childbirth for the mother or newborn child to less than 48 hours
following a vaginal delivery, or less than 96 hours following a cesarean
section. However, Federal law generally does not prohibit the mother's or
newborn's attending provider, after consulting with the mother, from discharging
the mother or the newborn earlier than 48 hours (or 96 hours as applicable). In
any case, plans and issuers may not, under Federal law, require that a provider
obtain authorization from the plan or the issuer for prescribing a length of
stay not in excess of 48 hours (or 96 hours).
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ARTICLE V
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Administration
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5.01 Administration. The Plan shall be administered by the Employer, who
shall be the Administrator and the "Named Fiduciary" for purposes of ERISA.
5.02 Powers of the Administrator. The Administrator shall have the
powers necessary to administer the Plan, including, without limitation:
(a) The discretionary power to interpret and enforce the provisions
of the Plan for the purpose of determining eligibility and
amount of benefits.
(b) The power to administer the Plan for the exclusive benefit of
the Participants and without discrimination among similarly
situated Participants.
(c) The power to establish and maintain records reflecting the
reimbursement benefits paid to each Participant.
(d) The power to establish rules for administration of the Plan and
to prescribe any forms required to administer the Plan.
(e) The power to employ agents, attorneys, accountants or other
persons (who may also be employed by or represent the Employer)
for such purposes as the Administrator considers necessary
hereunder.
Notwithstanding the foregoing, any claim which arises under any policy
or plan offered by a Health Provider shall not be subject to review under this
Plan, and the Administrator's authority under this section 5.02 shall not extend
to any matter as to which the administrator of any other plan of the Employer,
if any, is empowered under any such plan to make determinations.
5.03 Actions of the Administrator. All determinations, interpretations,
rules, and decisions of the Administrator shall be conclusive and binding upon
all persons having or claiming to have any interest or right under the Plan.
5.04 ERISA Employee Rights. Every Participant shall be entitled to certain
rights and protections under ERISA. ERISA provides that all Participants shall
be entitled to:
(a) Examine, without charge, at the Administrator's office and possibly
at other specified locations (such as worksites), all Plan documents, including
insurance contracts, collective bargaining agreements and copies of all
documents filed by the Plan with the U.S. Department of Labor, such as detailed
annual reports and Plan descriptions.
(b) Obtain copies of all Plan documents and other Plan information upon
written request to the Administrator. The Administrator may require a reasonable
charge for the copies.
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In addition to creating rights for Participants, ERISA imposes duties
upon the people who are responsible for the operation of the Plan. The people
who operate the Plan, called "fiduciaries" of the Plan, have a duty to do so
prudently and in the interest of all Plan Participants and beneficiaries. No
one, including the Employer, the Participant's union, if any, or any other
person, may terminate the Participant or otherwise discriminate against the
Participant in any way to prevent such Participant from obtaining a benefit or
exercising his rights under ERISA.
If a Participant's claim for a benefit is denied in whole or part, the
Participant must receive a written explanation of the reason for the denial. The
Participant has the right to have the Plan Administrator review and reconsider
the claim. Under ERISA, there are steps which the Participant can take to
enforce the above rights.
For instance, if the Participant requests material from the Plan and
does not receive them within 30 days, he may file suit in a Federal court. In
such a case, the court may require the Administrator to provide the materials
and pay such Participant up to $100 a day until such Participant receives the
material, unless the materials were not sent because of reasons beyond the
control of the Administrator.
If the Participant has a claim for Benefits which is denied or ignored,
in whole or in part, he may file suit in a State or Federal court. If it should
happen that the Participant is discriminated against for asserting his rights,
he may seek assistance from the U.S. Department of Labor, or he may file suit in
a Federal court. The court will decide who should pay court costs and legal
fees. If the Participant is successful, the court may order the person such
Participant has sued to pay these costs and fees. If the Participant loses, the
court may order such Participant to pay these costs and fees, for example, if it
finds the claim is frivolous.
If the Participant has any questions about this statement or about his rights
under ERISA, he should contact the nearest Area Office of the U.S. Labor
Management Services Administration, Department of Labor, listed in the telephone
directory or the Division of Technical Assistance and Inquiries, Pension and
Welfare Benefits Administration, U.S. Department of Labor, 200 Constitution
Avenue, NW, Washington, DC 20210.
ARTICLE VI
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Amendment and Termination
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6.01 Amendment. The Employer shall have the right to modify, alter or amend
this Plan from time to time to the extent that it may deem advisable, by
resolution of its Board of Directors. The Board shall have the right to amend
the Plan, with or without retroactive effect, to ensure the compliance of the
Plan with ERISA and qualification of the Plan under the applicable Code
provisions of the appropriate provisions of any subsequent revenue law.
6.02 Termination. The Employer expects the Plan to be permanent, but
reserves the right to terminate the Plan at any time.
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ARTICLE VII
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Miscellaneous Provisions
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7.01 Designation of Beneficiaries. Each Participant may designate from time
to time in writing one or more Beneficiaries, who will receive the Reimbursement
Benefit which the Participant would have received but for his death. If the
Participant dies without having made a Beneficiary designation, the
Administrator shall distribute such Reimbursement Benefit in the following order
of priority to the deceased Participant's: (a) spouse, (b) lineal descendants,
(c) parents, or (d) estate.
7.02 Applicable Law. The Plan and all rights hereunder shall be governed
by and construed according to the laws of the State of Maryland, except to the
extent such laws are preempted by federal law.
7.03 Limitation of Rights. Neither the establishment of the Plan nor any
amendment thereof nor the payment of any benefits shall be construed as giving a
Participant or any other person any legal or equitable right against the
Employer or the Administrator, except as provided herein. This Plan shall not be
deemed to constitute an employment contract between the Employer and any
Participant. Nothing contained in this Plan shall be deemed to give any
Participant the right to be retained in the service of the Employer or to
interfere with the right of the Employer to discharge any Participant at any
time regardless of the effect such discharge will have upon him as a Participant
in this Plan.
7.04 Gender and Number. Except as otherwise indicated by context, masculine
terminology used herein also includes the feminine and neuter, and terms used in
the singular may also include the plural.
7.05 Agent for Service of Process. The Administrator's agent for purposes of
service of legal process shall be Thomas 0. Keech.
7.06 Plan Information.
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Plan Name: Sandy Spring National Bank of Maryland
Executive Health Insurance Plan
Method of Funding: Employer contributions
Plan Number: 50__
Plan Year End: December 31
Employer: Sandy Spring Bank
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Employer's Address: 17801 Georgia Avenue
Olney, Maryland 20832
Employer's Telephone Number: (301) 774-8499
Employer Identification Number: ________________________
Plan Administrator: Employer
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WHEREFORE, the undersigned executes this Amended Plan the 1st day of
January, 2002.
SANDY SPRING BANK
Corporate
Seal By: ________________________________
Its: _________________________________
Attest:
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Secretary
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