How the Benevolent Fund is funded and allocated.

The purpose of the Benevolent Fund is to advance the charitable mission of Newpath Medical Inc. by providing financial assistance and relief to individuals experiencing medical cost hardship.

The Benevolent Fund is established as a restricted charitable fund intended to support programs that reduce the financial burden of healthcare expenses, assist underserved or underinsured populations, and promote access to necessary medical care.

All Benevolent Fund activities shall be conducted in a manner consistent with the organization's tax-exempt purposes under Section 501(c)(3) of the Internal Revenue Code and applicable state nonprofit laws.

This policy establishes the governance framework, funding methodology, and permitted uses of the Benevolent Fund.

The policy applies to:

• The allocation of charitable funds derived from the organization's Net Care Surplus
• The administration and distribution of Benevolent Fund assistance
• Oversight and reporting responsibilities of the Board of Directors and oversight committees
• Eligibility considerations for both members of the organization and individuals from the general public

The Benevolent Fund may provide assistance to both members and non-members when doing so advances the charitable objectives of the organization. Assistance may include medical debt relief (directly and indirectly), hardship grants and financial assistance related to medical costs.

Nothing in this policy creates an entitlement to assistance. All distributions from the Benevolent Fund shall be made at the discretion of the Board of Directors or its delegated committee and must further the charitable mission of Newpath Medical Inc.

For purposes of this Resolution, “Net Care Surplus” shall mean:

Administrative expenses are excluded from this calculation.

Beginning with Fiscal Year 2026 and each fiscal year thereafter:

A minimum of ten percent (10%) of Net Care Surplus shall be allocated to the Benevolent Fund.

This allocation shall be restricted for charitable purposes.

Of the amount allocated to the Benevolent Fund:

No less than fifty percent (50%) shall be reserved for charitable assistance benefiting the general public, including:

• Retirement of medical debt for individuals not required to be members
• Hardship grants to non-members
• Assistance to underserved or underinsured individuals
• Collaboration with third-party charitable healthcare organizations

No membership status shall be required for eligibility under this subsection.

The remaining Benevolent Fund amounts may be used for:

• Membership fee suspension or waiver
• Catastrophic hardship assistance
• Extraordinary medical cost assistance (costs that generally wouldn't be covered by the members or the sharing guidelines)

All determinations shall be made pursuant to the Financial Assistance Policy.

The Board shall:

• Review Benevolent Fund allocations annually
• Report total allocations in annual financial statements
• Maintain documentation for books and records
• Ensure no private inurement occurs

The Independent Oversight & Compliance Committee shall monitor compliance quarterly.

In extraordinary circumstances (e.g., public health emergency, catastrophic event), the Board may temporarily adjust allocation percentages by two-thirds (2/3) vote.