DEFINED BENEFIT

Who can establish this Plan?
Any employer with one or more employees

When must the Plan be established?
By the end of the fiscal year-end (12/31 for calendar year)

Are contributions mandatory?
Yes, the employer makes contributions as required by plan terms, and calculated by an enrolled actuary.

What are the employer contribution limits?
Based on actuarial assumptions (i.e. age, compensation, etc.), ($185,000 Annual Benefit Cap in 2008).

What are the employee contribution limits?
No employee contributions allowed.

What is the funding responsibility?
Funded by employer.

When must contributions be made?
Employer contributions must be deposited no later than 8 ½ months after the Plan Year End.

What are the eligibility requirements?
The maximum allowable eligibility requirements that can be imposed are 21 years of age and 1,000 hours of service in 2 preceding years. The employer has the option of reducing these requirements.

What are the vesting requirements?
Employer contributions may vest over time, typically a graded schedule with full vesting after 6 years.

Is the Plan subject to non-discrimination testing?
Yes. An Actuary will determine if the benefits meet non-discrimination testing.

Is the Plan subject to top heavy minimums?
Yes. If 60% or more of the plan assets are allocated to Key employees, then a contribution shall be made to the non-key employees. This shall be the lesser of 2% multiplied by Plan Years of Service or 20%.

When is an employee eligible to withdraw from the Plan?
Payment of benefits may be made only upon reaching normal retirement age, termination of employment, plan termination, disability or death.