401(k)

• Team Members become eligible after 30 days of service. Team members may contribute any percentage of pay to the plan on a pre-tax basis, subject to IRS annual limits. Numerous investment options are available for Team Member contributions.
• Sovereign matches 100% of the first 3% of pay contributed, then 50% of the next 2%. The match is invested in Sovereign stock, but may be moved into another fund within the plan.
• Team Members are always 100% vested in their account balances, including Sovereign's contributions.
• Team Members age 50 or older can make catch-up pre-tax contributions up to the IRS annual contribution limit.

Employee Stock Purchase Plan (ESPP)
Team Members can buy shares of Sovereign stock at a discounted rate without incurring broker's fees. This plan is separate from the Retirement Plan, and is available to Team Members who are regularly scheduled to work 20 or more hours per week and at least 5 months per year. Eligible Team Members may join the plan after 6 months of service.