Executive Health Expense Reimbursement Plan

SANDY SPRING BANK
EXECUTIVE HEALTH EXPENSE REIMBURSEMENT PLAN
AS AMENDED


Effective January 1, 2002


ARTICLE I


1.01 Establishment. Sandy Spring Bank originally established this Executive Health Expense Reimbursement 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 receive reimbursement for Health Expenses.


This Plan is not intended to be a health plan within the meaning of Section 105(e) of the Internal Revenue Code of 1986, as amended, and any benefits provided hereunder will constitute ordinary income of the Participant.


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


Definitions


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.


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.


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 Expense means any expense which is (i), ,treated as a medical expense under Sect1on 213(d) of the Code, (ii) incurred by the Participant, his spouse or dependent, and (iii) not covered by insurance or otherwise subject to indemnity


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 Bank Executive Health Expense Reimbursement 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.


ARTICLE III


Participation


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 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 will not automatically terminate his participation in the Plan.


ARTICLE IV


BENEFITS


4.01 Reimbursements. The Employer shall reimburse the Participant for Health Expenses in accordance with the terms of this Article.


4.02 Maximum Reimbursable Amounts. The maximum amount of Health Expenses for which the Employer shall reimburse a Participant shall be: (a) Five Thousand Dollars ($5,000) in any Plan Year ending before January 1, 2002; and (b) Six Thousand Five Hundred Dollars ($6,500) for any Plan Year ending after January 1, 2002, in each case reduced by any amounts paid in the Plan Year to the Participant under the Sandy Spring Bank Executive Health Insurance 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 Health Expenses, provided the Participant timely returns the Semi-Annual Certification that the Administrator may require.


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 Health Expenses for the Plan Year up to the applicable Semi-Annual Reimbursement Date.


4.05 Semi-Annual Certification Form. In order to receive reimbursement for Health Expenses, a Participant must complete, within a reasonable period of time prior to each Semi-Annual Reimbursement Date, the Semi-Annual Certification Form provided to the Participant by the Administrator.


Information to be provided on the Semi-Annual Certification Form shall include, but not be limited to: (a) proof of payment during the Plan Year; (b) the date payment(s) was/were made; (c) to whom the payment was paid; and (d) a sworn statement that the Participant has not been reimbursed for such Health Expenses from any other source. In addition, the Administrator may request t ...