• 401(k) Overview
• 2000/2001 Qualified Plan Limitations

Eligibility and Entry:

Employees are eligible to participate in the plan if:

• Are at least 21 years old
• Have completed 12 months of service
• Work at least 1000 hours during a calendar year

Once you meet eligibility requirements you may enter the plan semi-annually (January and July).

Salary Deferral Contributions:

You may chose to contribute to the plan from 1% to 15% of your pay each pay period. Your taxable income is reduced by the amount you contribute to the plan. This lets you reduce your current federal income taxes. Your total salary deferral in 2000 may not be more than $10,500. Your maximum deferral percentage and/or dollar amount may also be limited by IRS regulations.

Salary Deferral Changes:

You may stop making salary deferral contributions at any time. You may adjust your salary deferral amount quarterly.

Pay:

Pay is defined as the annual income amount reportable by your employer for federal income tax purposes (including overtime, commissions and bonuses).

Company Contributions:

The employer may match 25% of the first 8% of the pay you contribute to the plan through salary deferral. Your employer may also make discretionary contributions at the end of the plan year in the form of additional Matching Dollars and/or Profit Sharing Dollars.

Company contributions are subject to change in the future.

Vesting:

Employees are always 100% vested in the deferral contributions.

Employees are vested in employer contributions based on:

• Years employee works at least 1000 hours
• Years of vesting service with the employer are as follows:

Benefit Reports & Account Access:

Quarterly Account Statements update you on your fund performance and account status. You also can call a 24 hour toll-free number or connect to the Internet for up-to-the date account information. You can speak to knowledgeable shareholder representatives and make investment changes.

When You Receive Plan Benefits:

• Normal Retirement (age 65)
• Early Retirement (age 55 with 6 years of service)
• Age 59 1/2-and still working
• Death
• Disability
• Termination of Employment
• Financial Hardship
• Loan Provision

If you leave your employer or take a distribution before age 59 1/2 and do not roll your money over to another qualified plan or IRA with in 60 days, you will pay a 10% IRS early withdrawal penalty plus regular income taxes.