DATAIR 401(k) with Cash Balance Plan Design 1

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Silvia Nora Harrington
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1 DATAIR 41(k) with Plan Design 1 DATAIR with 4(k) Plan Design 1 For the plan year 1/1/213 through 12/31/ N. Main Street Anytown, IL 1 (63) sales@datair.com Three Digit Plan Number: 2 Prepared By: DATAIR Employee Systems, Inc.

2 Plan Provisions DATAIR with 4(k) Plan Design 1 For the plan year 1/1/213 through 12/31/213 Employer: Type of Entity - DATAIR 41(k) with Plan Design 1 C-Corporation EIN: TIN: Plan #: 2 Plan Type: Dates: Effective - 1/1/213 Year end - 12/31/213 Valuation - 12/31/213 Eligibility: All employees excluding non-resident aliens and union Minimum age - 21 Months of service - 12 Hours Required for - Eligibility - 1 accrual - 1 Vesting - 1 Plan Entry - Retirement: Normal - Early - Average Compensation: Top Heavy Minimum - Plan s: Retirement - Pay Credits - First day of 1st or 7th month of plan year on or next following eligibility satisfaction First of month coincident with or next following attainment of age 62 and completion of 5 years of participation Not provided Current compensation Highest 5 consecutive years of participation Actuarial equivalent of the hypothetical account balance derived from annual Pay Credits and Interest Credits. txtminpaycredit Accrued - Hypothetical Account Balance Minimum - None Maximum - None Maximum allowable distribution is lump sum equivalent of normal form not to exceed 415 maximum allowable distribution, which is the lesser amount computed using a) 5.5% interest and the Applicable Mortality Table or b) plan actuarial equivalence interest and mortality Death - Top Heavy Minimum: IRS Limitations: Normal Form: Present Value of Vested Accrued None 415 Limits - Percent: 1 Dollar: $25, Maximum 41(a)(17) compensation - $255, Life Annuity Optional Forms: Vesting Schedule: Present Value of Accrued : Actuarial Equivalence: Lump Sum Joint with 5% or 1% Survivor 1% vested in 3 years. Service is calculated using all years of service, except years prior to age 18 Pre-Retirement - Interest - 4% Based on the Hypothetical Account Balance. Mortality Table - None Post-Retirement - Interest - Mortality Table - 4% G Group Annuity Reserving Proj 22, Scale AA (unisex)

3 Actuarial Assumptions and Methods DATAIR with 4(k) Plan Design 1 For the plan year 1/1/213 through 12/31/213 Valuation Date: 12/31/213 Funding Method: As prescribed in IRC Section 43 Age - Eligibility age at last birthday and other ages at last birthday Prospective Compensation - Current compensation Form of Payment - Assumed form of payment for funding is lump sum which is the Hypothetical Account Balance. Funding for lump sum is the current Hypothetical Account Balance projected to the assumed retirement date using the Interest Credit Rate discounted using appropriate segment rate. Lump sum on plan actuarial equivalence rates will not exceed 415 maximum allowable distribution, which is the lesser amount computed using a) 5.5% interest and the Applicable Mortality Table or b) plan actuarial equivalence interest and mortality Interest Rates - Segment rates for the Valuation Date as permitted under IRC 43(h)(2)(C) Segment rates as of September 3, 212 As permitted under IRC 43(h)(2)(C)(iv)(II) Segment # Year Rate % Segment # Year Rate % Segment Segment Segment Segment Segment 3 > Segment 3 > Pre-Retirement - Mortality Table - None Turnover/Disability - None Salary Scale - None Interest Credit Rate - 4. Expense Load - None Ancillary Ben Load - None Post-Retirement - Mortality Table - Cost of Living - 13A Funding - Annuitant - IRC 43(h)(3)(A) None Asset Valuation Method: Fair market value of assets adjusted for contributions under IRC 43(g)(4) Discrimination Test Assumptions: HCE Determination - Otherwise Excludable - Based on all employees Otherwise Excludable HCEs are included with the Not Otherwise Excludable employees 41(b)/41(a)(4) Testing: Pre-Retirement - Post-Retirement - Interest - Interest - Mortality Table - 8.5% 8.5% U Unisex Permissively Aggregated Plans - Compensation - Testing Age - Normal Form for MVAR - Not tested As Single Plan Use current compensation to calculate the benefit accrual rate (annual method) Normal retirement age or attained age, if older Joint with 5% Survivor s

4 Employee Census DATAIR with 4(k) Plan Design 1 For the plan year 1/1/213 through 12/31/213 Valuation Date: 12/31/213 Percent SVC Ages Dates Key Owner PS FS Gender PA AA ARA Birth Hire Part Retire Compensation Hours Worked HCE OEX Janie Ash -- new participant Cls- B 8 24 F /5/75 8/22/5 1/1/13 1/1/37 $59,5. * Taylor Birch -- new participant Cls- B 7 27 M /18/79 11/16/6 1/1/13 4/1/41 $49,5. * Sally Cypress -- new participant Cls- B F /8/63 1/3/2 1/1/13 5/1/25 $85,. * Todd Filbert -- new participant Cls- B 6 34 M /28/86 9/14/7 1/1/13 3/1/48 $55,. * Susie Ironwood -- new participant Cls- B 1 4 F /3/91 1/1/3 1/1/13 1/1/54 $44,5. * John Redbud -- new participant Cls- B M /19/67 7/3/2 1/1/13 9/1/29 $64,. * Sam Zelkova -- new participant Cls- A Y M /16/58 3/14/3 1/1/13 11/1/2 $44,. * Y Total: $797,5. Count Compensation Active Fully Vested s Active Partially Vested s Active Without Vested s Terminated with Vested s Terminated without Vested s Terminated with Deferred Vested s Terminated - Paid Out Currently Receiving s Inactives Ineligibles 7 $797,5 $ $ $ $ $ $ $ $ $ * Employee worked more than minimum hours required for service credit. Key: AA=Attained Age FS=Future Service HCE=Highly Compensated Employee OEX=Otherwise Excludable PA=Participation Age PS=Past Service ARA=Assumed Retirement Age

Account Balance Statement DATAIR with 4(k) Plan Design 1 For the plan year 1/1/213 through 12/31/213 Beginning Balance Gain (Loss) Contribution Forfeitures Allocated Adjustments Vested Amount Ending

5 Account Balance Statement DATAIR with 4(k) Plan Design 1 For the plan year 1/1/213 through 12/31/213 Beginning Balance Gain (Loss) Contribution Forfeitures Allocated Adjustments Vested Amount Ending Balance Percent Amount 6 Janie Ash -- new participant ***** Hit 415 Limit - PVAB 5 Taylor Birch -- new participant ***** Hit 415 Limit - PVAB 2 Sally Cypress -- new participant ***** Hit 415 Limit - PVAB 7 Todd Filbert -- new participant ***** Hit 415 Limit - PVAB.. 1, N/A. 1, , ,15.24 N/A. 1, , , N/A. 3, , ,1. N/A. 1,1. 1 1,1. 4 Susie Ironwood -- new participant ***** Hit 415 Limit - PVAB N/A John Redbud -- new participant ***** Hit 415 Limit - PVAB 1 Sam Zelkova -- new participant ***** Hit 415 Limit - PVAB.. 2,381.1 N/A. 2, , ,. N/A. 15,. 1 15,. Totals for each account:.. 16, , , Grand Total: $. $. $16, $. $. $16, $16,838.14

6 Schedule of s DATAIR with 4(k) Plan Design 1 For the plan year 1/1/213 through 12/31/213 Current Beg Year Acc Ben Monthly Compensation End Year Acc Ben Monthly Compensation Monthly Lump Ret Accrued Vest Pct Vested Accrued Present Value of Vested Accrued Death Janie Ash -- new participant. 4, , ,633 Taylor Birch -- new participant. 4, , ,184 Sally Cypress -- new participant. 7, , ,798 Todd Filbert -- new participant. 4, , ,136 Susie Ironwood -- new participant. 3, , John Redbud -- new participant. 5, , ,413 Sam Zelkova -- new participant. 21,25. 1, ,391 1, , ,984 Totals: $. $51,41.65 $1, $223,982 $1, $1, $162,38 Disclaimer: The PVVABs shown on this report should not be used for distribution purposes.

7 Limits (415, 416 & 417(e)) DATAIR with 4(k) Plan Design 1 For the plan year 1/1/213 through 12/31/213 s Lump Sum Values Projected Accrued Top Heavy 415 Max Projected 415 Max Accrued 415 Offset 415 Max Proj Lump Sum Plan PVAB 417(e) (Distributions Limited to 415 Limits) 415 Maximum PVAB Janie Ash -- new participant , , ,82 1,633 78,91 Taylor Birch -- new participant ,125. 1, ,634 1,184 65,666 Sally Cypress -- new participant , , ,55,432 3, ,677 Todd Filbert -- new participant , , ,926 1,136 46,652 Susie Ironwood -- new participant , , , ,988 John Redbud -- new participant , , ,678 2, ,627 Sam Zelkova -- new participant 1, , , , ,36,364 15, ,26 Totals: $1, $1, $6,475,385 $162,38 $667,727

8 Valuation Statement DATAIR with 4(k) Plan Design 1 For the plan year 1/1/213 through 12/31/213 Valuation Date: 12/31/213 Accrued Funding Increase Normal Cost Janie Ash -- new participant Taylor Birch -- new participant Sally Cypress -- new participant Todd Filbert -- new participant Susie Ironwood -- new participant John Redbud -- new participant Sam Zelkova -- new participant , ,751. 1, ,282 Totals: $. $ $1, $

9 Maximum Contribution 44(o) DATAIR with 4(k) Plan Design 1 For the plan year 1/1/213 through 12/31/213 Valuation Date: 12/31/213 Maximum Contribution 1) Funding 2) Normal Cost 3) 5% of the Funding 4) Increase in Funding Due to Salary Increases 5) Cushion Amount (3+4) 6) Total (1+2+5) 7) Funding as if At-Risk 8) Normal Cost as if At-Risk 9) Total (7+8) 16,22 16,22 16,837 16,837 1) Greater of 6 and 9 16,837 11) Assets 12) Undeducted Contributions 13) Maximum Contribution (IRC 44(o) (1-(11-12))) 16,837

10 Maximum Contribution 44(o) (Detail) DATAIR with 4(k) Plan Design 1 For the plan year 1/1/213 through 12/31/213 Valuation Date: 12/31/213 Projected Comp Accrued Projected Funding Funding Normal Cost 5% Funding Increase in Funding Cushion Amount Funding At-Risk Normal Cost Janie Ash -- new participant Taylor Birch -- new participant Sally Cypress -- new participant Todd Filbert -- new participant Susie Ironwood -- new participant John Redbud -- new participant Sam Zelkova -- new participant. 1,278 1, ,15. 3,777 3, , ,394 2, ,489 15, Totals: $. $ $ $16,22 $ $ $ $ $16,837

11 Valuation Results DATAIR with 4(k) Plan Design 1 For the plan year 1/1/213 through 12/31/213 Valuation Date: 12/31/213 Rates For: 1st Segment 2nd Segment 3rd Segment IRC % 6.15% 6.76% IRC % 4.5% 5.8% Effective Interest Rate: 6.19% Prior Year Effective Interest Rate:.% Current Year Actual Rate of Return: Prior Year Actual Rate of Return:.%.% Current Year Projection Rate: 4.% Prior Year Projection Rate: 4.% A. Valuation Results 1. Funding 2. Normal Cost 3. Assets 4. Undeducted Contributions 5. Funding as if At-Risk 6. Normal Cost as if At-Risk 16,837 B. Carryover and Prefunding Balances 1. Prior Year Balance 2. Balance Used to Offset Prior Year Funding Requirement 3. Amount Remaining (B1-B2) 4. Interest Using Prior Year Actual Rate of Return 5. Prior Year Excess Contribution 6. Interest at Prior Year Effective Rate 7. Total Available to Add to Prefunding Balance (B5+B6) 8. Portion of B7 to Add to Prefunding Balance 9. Reduction in Balance Due to Voluntary Election 1. Reduction in Balance Due to Deemed Election 11. Balance for Current Year (B3+B4+B8-B9-B1) 12. Balance Adjusted to Valuation Date C. Funding Shortfall and Shortfall Amortization Charge a. Carryover b. Prefunding Early Deemed Amortization of Shortfall 1. Funding (A1) 2. Assets (A3) 3. Carryover Balance (B12a) 4. Prefunding Balance (B12b) 5. Applicable Assets (IRC 43(f)(4)(B)(i) (C2-C3-C4)) 6. Funding Shortfall (IRC 43(c)(4) (C1-C5, not less than )) (if C6 is zero, all bases deemed to be fully amortized)

12 Valuation Results DATAIR with 4(k) Plan Design 1 For the plan year 1/1/213 through 12/31/213 Valuation Date: 12/31/213 C. Funding Shortfall and Shortfall Amortization Charge (cont'd) Exemption from New Shortfall Amortization Base 7. Funding (A1) 8. Applicable Percentage (IRC 43(c)(5)(B)(ii)) 1% 9. Reduced Funding (C7*C8) 1. Assets (A3) Prior Year Amortization Installments 11. Prefunding Balance (B12b if IRC 43(f)(3) election made) a. Shortfall b. 412(c) Waiver 12. Applicable Assets (IRC 43(f)(4)(A) (C1-C11)) 18. Current Year 13. Funding Shortfall (IRC 43(c)(5) (C9-C12, not less than )) 19. PV Prior Yrs Amort (if C13 is zero, exempt from new shortfall base) 2. PV Prior Yrs Waiver Funding Shortfall 14. Reduced Funding (C9) 21. Amortization Base 22. Amortization Factor Applicable Assets (IRC 43(f)(4)(B)(i) (C5)) 23. Amortization Installment 16. Funding Shortfall (IRC 43(c)(3) (C14-C15, not less than ) 24. Prior Yr Installments 17. Shortfall Amortization Charge (C25a) 25. Amortization Charge (Waiver Installment applies next year) D. Minimum Required Contribution 1. Normal Cost (A2) 2. Funding Surplus (C5-A1, not less than ) 3. Reduced Normal Cost (D1-D2, not less than ) 4. Shortfall Amortization Charge (C17) 5. Waiver Amortization Charge 6. Minimum Contribution (D3+D4+D5) E. Maximum Contribution 1. Funding 2. Normal Cost 3. 5% of the Funding 16,22 4. Increase in Funding Due to Salary Increases 5. Cushion Amount (E3+E4) 6. Total (E1+E2+E5) 16,22 7. Funding as if At-Risk 8. Normal Cost as if At-Risk 9. Total (E7+E8) 16,837 16, Greater of E6 and E9 16, Assets (A3) 12. Undeducted Contributions (A4) 13. Maximum Contribution (IRC 44(o) (E1-(E11-E12))) 16,837

13 Contribution Requirements DATAIR with 4(k) Plan Design 1 For the plan year 1/1/213 through 12/31/213 Valuation Date: 12/31/213 A. Minimum Contribution 1. Minimum Required Contribution (MRC) at Valuation Date 2. Carryover Balance at Valuation Date 3. Prefunding Balance at Valuation Date 4. Minimum Contribution with Balances Applied (A1-A2-A3, not less than zero) Note: Balances may not be used when Prior Year Funding Percentage is less than 8% B. Maximum Contribution 16,837 C. Other Possible Contribution Amounts (cannot contribute less than Minimum or more than Maximum) 1. Contribution to Meet Termination Liability 162,38 2. Level Funding Contribution - Individual Aggregate Method 25,57 3. Level Funding Contribution - Aggregate Method 14,22 D. Funding Attainment Percentages (FTAP) 1. Prior Year Funding Percentage ((Assets reduced by PFB)/FT) 2. Funding Percentage ((Assets reduced by PFB)/FT) 3. FTAP Exempt 4. AFTAP.% 8.%.%.% E. Unpaid Minimum Required Contributions for Prior Years Unpaid Prior Year Contributions Due Date N/A Amount N/A Unpaid Prior Year Quarterly Contributions Due Date N/A Amount F. Quarterly Contribution Requirement. IRC Section 43(j) requires accelerated quarterly contributions if there is a funding shortfall in the prior plan year. Failure to contribute the amount required by the due dates will result in additional late interest charges, thereby increasing the minimum required contribution for the year. The late interest is measured from the due date of the quarterly contribution to the date of the actual contribution. The amount of the quarterly payment is one fourth of the lesser of the prior year MRC or 9% of the current year MRC. N/A a. Prior Plan Year MRC b. Current Plan Year MRC c. Required Annual Payment Quarterly Contribution Due Date Amount N/A N/A G. Full Payment is the single payment that will satisfy the MRC, any Quarterly Contributions, and any Unpaid Minimum Required Contributions and Quarterly Contributions for prior years. It includes interest from the valuation date to the date of payment. Contribution may be reduced by any Prefunding or Carryover Balance Used. Due Date Amount Due Date Amount 12/31/213 2/1/ ,7 3/1/ ,649 4/1/214 14,363 5/1/ ,58 6/1/ ,779 7/1/ ,481 8/1/ ,29 9/1/ ,942 9/15/ ,274

14 Contribution Deposited/Due DATAIR with 4(k) Plan Design 1 For the plan year 1/1/213 through 12/31/213 Valuation Date: 12/31/213 A. B. Reconciliation of Unpaid Minimum Required Contribution for Prior Years 1. Unpaid Minimum Required Contribution for Prior Years 2. Discounted Contributions Applied to Unpaid MRC from Prior Years 3. Remaining Amount of Unpaid MRC from Prior Years (A1-A2) Contribution for Current Year at Valuation Date 1. Normal Cost (adjusted for excess assets) 2. Shortfall Amortization Installment 3. Waiver Amortization Installment 4. Less Waiver 5. Minimum Required Contribution (MRC) at Valuation Date (B1+B2+B3-B4) 6. Contributions Applied to MRC Adjusted to Valuation Date 7. Carryover Balance (COB) Used to Offset MRC 8. Prefunding Balance (PFB) Used to Offset MRC 9. Unpaid MRC for Current Year (B5-B6-B7-B8, not less than zero) $ $ $ C. Additional Contribution Due at Proposed Deposit Date: 9/15/ Unpaid MRC on Proposed Deposit Date 144, Unpaid MRC from Prior Years on Proposed Deposit Date 3. Additional Deposit Required if Paid on Proposed Deposit Date (C1+C2) $144,274 D. Excess Contribution 1. Contributions Applied to MRC Adjusted to Valuation Date (B6) 2. Minimum Required Contribution at Valuation Date (B5) 3. Excess Contribution for Possible Addition to Next Year's Prefunding Balance (D1-D2) $ E. Carryover and Prefunding Balances at Proposed Deposit Date: 9/15/ Remaining Unpaid MRC (C1) 2. Remaining Carryover Balance 3. Remaining Prefunding Balance 4. Remaining MRC with Balances Applied (E1-E2-E3, not less than zero) (Balances may not be used when Prior Year Funding Percentage is less than 8%) Prior Year Funding Percentage (Assets reduced by PFB)/FT:.% 144,274 $144, Remaining Unpaid Contribution from Prior Years (C2) 6. Additional Contribution with Balances Applied (E4+E5) $144,274 (Election must be made to Apply Balances)

15 Contribution Deposited/Due DATAIR with 4(k) Plan Design 1 For the plan year 1/1/213 through 12/31/213 Valuation Date: 12/31/213 F. Maximum Contribution at Valuation Date 1. Maximum Contribution (IRC 44(o)) 16, Deposited Contributions 3. Contributions to Avoid Restrictions 4. Interest Paid on MRC 5. Maximum Additional Contribution (F1-F2-F3+F4) $16,837 (Maximum contribution is never less than MRC adjusted to deposit date)

DATAIR 401(k) with Cash Balance Plan Design 1

DATAIR 401(k) with Cash Balance Plan Design 1 123 N. Main Street Anytown, IL 10000 (630) 325-2600 sales@datair.com www.datair.com Three Digit Plan Number: 100 Employee Census Key SVC Ages Dates Percent