District Medical Group 401(k) match, vesting and fees

The Company may also elect to make a matching contribution up to 4% of eligible compensation for participants hired from January 1, 1999 to December 31, 2020 after being credited with a year of service. For the year ended December 31, 2024, the Company elected to match 100% of participant contributions up to 4% of the eligible participant’s compensation. Effective January 1, 2021, the Plan implemented a new employer match formula for new employees hired on or after January 1, 2021. The discretionary employer match is 2% in the first year of employment, 4% in the second year of employment, and 6% in the third year of employment and beyond.

D. Vesting - Participants are immediately vested in their contributions plus actual earnings thereon. Vesting in the Company contribution portion of their account plus earnings thereon is based on years of continuous service. Participants hired on or prior to December 31, 1998 vested on a 3 year vesting schedule. Participants hired on or after January 1, 1999 vest 40% after 2 years of service and then 20% more each year until fully vested after 5 years of service. Upon death, disability or attaining retirement age while employed, a participant becomes 100% vested.

Effective January 1, 2021, participants are automatically enrolled at a 2% pre-tax deferral, to be increased 2% per year until it reaches 10%, if the employee does not opt out or elect a different deferral rate. For participants hired prior to January 1, 2021, the pre-tax deferral continues to increase at a rate of 1% per year until it reaches 10%, if the employee does not opt out or elect a different deferral rate. Participants may also contribute on an after-tax basis. Automatic enrollment occurs on the first pay date at least 30 days after the employee becomes eligible.

B. Contributions - Each year, participants may contribute up to 100% of annual compensation on a pre-tax or Roth basis, subject to Internal Revenue Service (“IRS”) limitations.

E. Notes receivable from participants - Participants may borrow from their fund accounts a minimum of $1,000 up to a maximum equal to the lesser of $50,000 or 50% of their vested account balance. The loans are secured by the balance in the participant’s account and bear interest at a rate which is based on current interest charged by persons in the business of lending money or similar loans at the time the loan is made. The interest rates on notes receivable from participants at December 31, 2024 were 5.25% - 10.50%. Loan terms are 5 years or less. Principal and interest are paid ratably through semi-monthly payroll deductions. The Plan also implemented provisions of the CARES Act allowing borrowings up to a maximum equal to the lesser of $100,000 or 100% of a participant’s vested account balance in 2020.