SUMMARY PLAN DESCRIPTION. for the. 401(k) Plan and Trust. The Long Companies

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1 SUMMARY PLAN DESCRIPTION for the 401(k) Plan and Trust of The Long Companies January 1, 2016

2 TABLE OF CONTENTS (1) General (2) Identification of Plan... 1 (3) Type of Plan (4) Plan Administrator (5) Trustee/Trust Fund (6) Hours of Service (7) Eligibility to Participate (8) Employer's Contributions (9) Employee Contributions (10) Vesting in Employer Contributions (11) Payment of Benefits After Termination of Employment (12) Payment of Benefits Prior to Termination of Employment (13) Disability Benefits (14) Payment of Benefits upon Death (15) Disqualification of Participant Status - Loss or Denial of Benefits (16) Qualified Domestic Relations Order (QDRO) Procedure (17) Claims Procedure (18) Retired Participant, Separated Participant with Vested Benefit, Beneficiary Receiving Benefits (19) Participant's Rights under ERISA (20) Federal Income Taxation of Benefits Paid (21) Participant Loans (22) Participant Direction of Investment (23) Administrative Charges to a Participant s Account i

3 SUMMARY PLAN DESCRIPTION (1) General. The legal name, address and Federal employer identification number of the Employer are - Long Painting Company EIN: th Avenue S. Kent, WA The Employer has established a retirement plan ("Plan") to supplement your income upon retirement. In addition to retirement benefits, the Plan may provide benefits in the event of your death or disability or in the event of your termination of employment prior to normal retirement. If after reading this summary you have any questions, please ask the Plan Administrator. We emphasize this summary plan description is a highlight of the more important provisions of the Plan. If there is a conflict between a statement in this summary plan description and in the Plan, the terms of the Plan control. (2) Identification of Plan. The Plan is known as - 401(k) Plan and Trust of The Long Companies The Employer has assigned 006 as the Plan identification number. The plan year is the period on which the Plan maintains its records: January 1 through December 31. (3) Type of Plan. The Plan is commonly known as a 401(k) plan. Section (8), "Employer's Contributions," explains how you share in the Employer's annual contributions to the trust fund and the extent to which the Employer has an obligation to make annual contributions to the trust fund. Under this Plan, there is no fixed dollar amount of retirement benefits. Your actual retirement benefit will depend on the amount of your account balance at the time of retirement. Your account balance will reflect the annual allocations, the period of time you participate in the Plan and the success of the Plan in investing and reinvesting the assets of the trust fund. Furthermore, a governmental agency known as the Pension Benefit Guaranty Corporation (PBGC) insures the benefits payable under plans which provide for fixed and determinable retirement benefits. The Plan does not provide a fixed and determinable retirement benefit. Therefore, the PBGC does not include this Plan within its insurance program. (4) Plan Administrator. The Advisory Committee is the Plan Administrator. The Employer's telephone number is (253) The Committee has designated Alan Langer to assist the Employer with the duties of Plan Administrator. You may contact Alan Langer at the Employer's address. The Plan Administrator is responsible for providing you and other participants information regarding your rights and benefits under the Plan. The Plan 1

4 Administrator also has the primary authority for filing the various reports, forms and returns with the Department of Labor and the Internal Revenue Service. The name of the person designated as agent for service of legal process and the address where a processor may serve legal process upon the Plan are - John Fisher Long Painting Company th Avenue S. Kent, WA A legal processor may also serve the Trustee of the Plan or the Plan Administrator. The Plan permits the Employer to appoint an Advisory Committee to act as Plan Administrator and assist in the administration of the Plan. The Advisory Committee has the responsibility for making all discretionary determinations under the Plan and for giving distribution directions to the Trustee. If the Employer does not appoint an Advisory Committee, the Employer assumes these responsibilities. The members of the Advisory Committee may change from time to time. You may obtain the names of the current members of the Advisory Committee from the Employer. (5) Trustee/Trust Fund. The Employer has appointed Denica Bucklin c/o Long Painting Company Michael Cassidy th Avenue S. Alan Langer Kent, WA John Fisher Mike Lester Margo Rivera to hold the office of Trustee. The members of the Trust Committee may change from time to time. You may obtain the names of the current members of the Trust Committee from the Plan Administrator. The Trustee will hold all amounts the Employer contributes to it in a trust fund. Upon the direction of the Advisory Committee, the Trustee will make all distribution and benefit payments from the trust fund to participants and beneficiaries. The Trustee will maintain trust fund records on a plan year basis. (6) Hours of Service. The Plan and this summary plan description include references to hours of service. To become eligible to participate in the Plan, to advance on the vesting schedule or to share in the allocation of Employer contributions for a plan year, the Plan requires you to complete a minimum number of hours of service during a specified period. The sections covering eligibility to participate, vesting and employer contributions explain this aspect of the Plan in the context of those topics. However, hour of service has the same meaning for all purposes of the Plan. 2

5 The Department of Labor, in its regulations, has prescribed various methods under which the Employer may credit hours of service. The Employer has selected the "actual" method for crediting hours of service. Under the actual method, you will receive credit for each hour for which the Employer pays you, directly or indirectly, or for which you are entitled to payment, for the performance of your employment duties. You also will receive credit for certain hours during which you do not work if the Employer pays you for those hours, such as paid vacation. If an employee's absence from employment is due to maternity or paternity leave, the employee will receive credit for unpaid hours of service related to his leave, not to exceed 501 hours. The Advisory Committee will credit these hours of service to the first period during which the employee otherwise would incur a 1-year break in service as a result of the unpaid absence. In addition, if your absence is due to qualified military service, the Advisory Committee will credit you with hours of service in accordance with the Uniformed Services Employment and Reemployment Rights Act ( USERRA ). Military Service. If you are a veteran and are reemployed under the Uniformed Services Employment and Reemployment Rights Act of 1994, your qualified military service may be considered service with the Employer. There may also be benefits for employees who die or become disabled while on active duty. Employees who receive wage continuation payments while in the military may benefit from law changes effective in If you think you may be affected by these rules, ask the Plan Administrator for further details. (7) Eligibility to Participate. To become a participant, an employee must complete one year of service and attain age 21. You do not have to complete any form for entry into the Plan. You will become a Participant on the first day of the quarter coincident with or immediately following your completion of the age and service requirement. The Plan defines "year of service" as a 12-month period in which you work at least 1,000 hours of service for the Employer. The first eligibility service period starts on your first day of employment with the Employer. For example, if you begin work on February 15 and work 1,000 hours from that February 15 through the following February 14, you would enter the Plan on the first day of the quarter immediately following the completion of the one year of service. After the first 12-month eligibility service period, the Plan will measure your eligibility service period on a plan year basis. In the prior example, on a plan year basis, the second 12-month period would begin with the first plan year starting after your February 15 employment date and other 12-month periods would be the following plan years. The Plan will need to measure more than one 12-month period, for example, if you do not complete a year of service in the first 12-month period. The example in the prior paragraph assumes you are at least age 21 when you complete the service requirement. If you have not attained age 21 when you complete the service requirement, then you will become a participant in the Plan on the first day of the quarter coincident with or immediately following your attainment of age 21. 3

6 Special rule for participation in 401(k) arrangement. As described in Section (8), this Plan includes a 401(k) arrangement. For participation in the 401(k) arrangement, the rules described in this Section (7) apply except you may participate immediately after you attain age 21. If, for a plan year, you are a participant only in the 401(k) arrangement, you will not be eligible for an allocation of Employer contributions, as described in Section (8), except for your deferral contributions. Automatic Deferral. If you are hired after December 31, 2013 you will become a participant immediately. The Employer automatically will deduct 3% from your Compensation and contribute this amount to the Plan as deferral contributions, unless you complete a salary reduction agreement electing not to defer for the plan year or electing to defer a smaller percentage of Compensation for the plan year, or a larger percentage of Compensation for the plan year. See Section (8). The Employer will deposit the deducted amounts into your account under the Plan. You may direct the investment of these amounts as provided in the Advisory Committee s policy. If you do not direct the investment of these amounts, the Plan Trustee will invest the amounts for you in certain default investments. The Notice the Advisory Committee provides to you explains these automatic deferrals and the default investments. Reemployed employee. If you terminate employment after becoming a Participant in the Plan and later return to employment, you will re-enter the Plan on your re-employment date. Also, if you terminate employment after satisfying the Plan's eligibility conditions but before actually becoming a participant in the Plan, you will become a participant in the Plan on the later of your scheduled entry date or your reemployment date. Excluded Employees. participation in the Plan: The Plan specifically excludes the following individuals from (a) (b) (c) (d) all employees working in a classification of employees covered by a collective bargaining agreement, all leased employees as defined in the Plan regardless of any reclassification or attempted reclassification by the Employer, Internal Revenue Service, court of law or other governing authority, and all independent contractors regardless of any reclassification or attempted reclassification by the Employer, Internal Revenue Service, court of law or other governing authority. All reclassified employees defined in the Plan as any person the Employer does not treat as a common law employee (including, but not limited to, independent contractors, persons the Employer pays outside of its payroll system and outsourced workers) regardless of any reclassification or attempted reclassification by the Employer, Internal Revenue Service, court of law or other governing authority. 4

7 If by reason of this exclusion, you should become ineligible to participate in the Plan, you may not receive an allocation of the Employer's contribution during the period of your exclusion, but during this period your account balance will continue to share in trust fund earnings or losses. (8) Employer's Contributions. 401(k) Arrangement. Automatic Deferral. The plan as adopted by the Employer is a profit sharing plan with a 401(k) arrangement. The 401(k) arrangement permits you to elect to have the Employer contribute on your behalf a certain amount to the Plan. The contributions the Employer makes under your election are "elective deferrals." The Advisory Committee will allocate your elective deferrals to a separate account designated by the Plan as your Deferral Contributions Account. References to elective deferrals mean both pre-tax deferrals and Roth 401(k) deferrals. Deferral Contributions. As a participant in the 401(k) arrangement, you may enter into a salary reduction agreement with the Employer. The Advisory Committee will provide you a salary reduction agreement form which will explain your salary reduction options and the effect of your salary reduction agreement. The Plan refers to the contributions the Employer makes on your behalf as deferral contributions. The Advisory Committee will allocate the deferral contributions the Employer makes on your behalf to your Deferral Contributions Account. If you do not complete a salary reduction agreement, the Employer automatically will deduct 3% from your Compensation and contribute this amount to the Plan as deferral contributions. If you do not wish to make deferral contributions to the Plan, you must complete a salary reduction agreement electing not to defer for the plan year. You may defer less than 3% of your Compensation (including zero) for any plan year; or, you may defer an amount which exceeds 3% of your Compensation, provided you do not defer more than the maximum amounts described below. If the Employer automatically enrolled you and you did not want to defer to the Plan, then the Employer will refund your deferrals to you if you notify the Employer within 90 days of the first payroll in which money was deferred. Automatic Increases in Deferral Contributions. Effective March 1, 2016, if you have not elected a contribution level at or above 6%, your deferral contributions will increase by 1% starting with your first paycheck after March 1, This means an additional 1% will be automatically deducted from your pay and contributed to your Plan account. If you do not want to be enrolled (if you are currently contributing zero) or defer an additional 1% according to the automatic increase, you need to make a contrary election by turning in a deferral election form to the Advisory Committee. Your contrary election will be effective as soon as the Advisory Committee reasonably can implement your election after receipt. Your salary reduction agreement (including automatic increases) will remain in effect unless and until you change it. If you do not turn in a completed new contribution election form before your first paycheck after March 1, an additional 1% of your eligible pay for each pay period will be deducted from your pay and contributed to the Plan. This will start with your first paycheck after March 1 and continue until you turn in a new contribution election form to change the amount. In subsequent years, your contribution level will increase as of March 1 by 1% each year (unless you choose a 5

8 different level), until it reaches 6% of your eligible pay. Even if you choose a different level (including zero) it will increase by 1% as of the next March 1 (unless you choose again to contribute at a different level). So you must make an election each year if you do not wish to participate in the automatic increases. Deferral Changes. Your salary reduction agreement remains in effect until you revoke the agreement. You may revoke your salary reduction agreement as of the first day of any payroll period. If you revoke your salary reduction agreement, you may file a new agreement with an effective date as of any subsequent payroll period. You may increase or decrease your salary reduction percentage or dollar amount as of any subsequent payroll period. Your salary reduction contributions may not exceed the maximum amount permitted annually by the Code, the IRS and the limitations set forth below. Deferral Limit. For any calendar year, your elective deferrals may not exceed a specific dollar amount as determined by the Internal Revenue Service. For example, for calendar year 2016, the maximum dollar amount is $18,000. This amount is indexed to increase in increments of $500 as published by the IRS. If your elective deferrals for a particular calendar year exceed the dollar limitation in effect for that calendar year, the Plan will refund the excess amount, plus any earnings (or loss) allocated to that excess amount. If you participate in another "401(k) arrangement" or in similar arrangements under which you elect to have an employer contribute on your behalf, your total elective deferrals may not exceed the dollar limitation in effect for that calendar year. The Form W-2 you receive from each employer for the calendar year will report the amount of your elective deferrals for that calendar year under that employer's plan. If your total exceeds the dollar limitation in effect for that calendar year you should decide which plan you wish to designate as the plan with the excess amount. If you designate this Plan as holding the excess amount for a calendar year, you must notify the Advisory Committee of that designation by March 1 of the following calendar year. The Trustee then will distribute the excess amount to you, plus earnings (or loss) allocated to that excess amount. Ability to make Roth 401(k) Deferrals. The Plan includes Roth 401(k) deferrals. The Roth 401(k) deferrals and, in most cases earnings will not be taxed when you take a Plan distribution. You will be able to continue making deferrals as you always have (these are pre-tax deferrals and are referred to as Pre-tax 401(k) deferrals), or you may make the new Roth 401(k) deferral or a combination. The elective deferral limits above apply to pre-tax, Roth 401(k) or any combination of these deferrals. If you make a Pre-tax 401(k) deferral, then your taxable income is reduced by the deferral contribution so you pay less in federal income taxes. Later, when the Plan distributes the deferrals and earnings, you will pay the taxes on those deferrals and the earnings. Therefore, with a Pre-tax 401(k) deferral, federal income taxes on the deferral contributions and on the earnings are only postponed. Eventually, you will have to pay taxes on these amounts. With a Roth 401(k) deferral, you must pay current income tax on the deferral contribution. If you elect to make Roth 401(k) deferrals, the deferrals are subject to federal income taxes in the year of deferral, but the deferrals and, in most cases, the earnings on the deferrals are not subject to 6

9 federal income taxes when distributed to you. For the earnings to be distributed tax-free, there must be a qualified distribution from your Roth 401(k) deferral account. To be a qualified distribution, the distribution must occur after one of the following: (1) your attainment of age 59½, (2) your disability, or (3) your death. In addition, the distribution must occur after the expiration of a 5-year participation period. The 5-year participation period is the 5-year period beginning on the calendar year in which you first make a Roth 401(k) contribution to our Plan (or to another 401(k) Plan or 403(b) plan if such amount was rolled over into our Plan) and ending on the last day of the calendar year that is 5 years later. For example, if you make your first Roth deferral under this Plan on November 30, 2006, your participation period will end on December 31, It is not necessary that you make a Roth contribution in each of the five years. If a distribution from your Roth 401(k) deferral account is not a qualified distribution, the earnings distributed with the Roth 401(k) deferrals will be taxable to you at the time of distribution (unless you roll over the distribution to a Roth IRA or other 401(k) plan or 403(b) plan that will accept the rollover). In addition, in some cases, there may be a 10% excise tax on the earnings that are distributed. Whenever you receive a distribution, the Administrator will deliver to you a more detailed explanation of your options. However, the tax rules are very complex and you should consult with qualified tax counsel before making a choice. Special 401(k) Catch-up Contributions. Each participant who is eligible to make 401(k) elective deferrals under the Plan, and who has attained age 50 before the close of the Plan Year, is eligible to make catch-up contributions in accordance with special limitations announced annually by the IRS. These special catch-up contributions are in addition to the maximum dollar limitations described above and are currently $6,000 in As an example, assume that you are an eligible participant and defer $18,000 into your 401(k) account during the 2016 Plan Year. Assume also that you are age 50 as of September 1, 2010, and desire to make an additional $6,000 catch-up contribution under the provisions of this paragraph. Your total 401(k) deposits for 2016 would be $24,000 (which is permissible notwithstanding the limitations described above). You will always be 100% vested in any catch-up contributions you make to the Plan, and such contributions will be subject to the ordinary rules regarding 401(k) contributions with respect to deductibility from your current income and subject to employment taxes as would be the case for your ordinary 401(k) deposits. Distributions of these amounts will occur in the same manner as your 401(k) deferrals made under the Plan. Catch-up contributions are eligible for matching contributions. Matching Contributions. For each plan year, the Employer will contribute for each participant a matching contribution equal to 50% of the participant's "eligible contributions." A participant's "eligible contributions" equal the amount of the participant's elective deferrals for the plan year which does not exceed 6% of a Participant's Compensation for the Plan Year. The Advisory Committee allocates the matching contributions to your Regular Matching Contributions 7

10 Account (including matching contributions on Roth 401(k) deferrals). contributions, described above, are eligible for matching contributions. Note, catch-up Qualified nonelective contributions. The Plan permits the Employer to contribute a discretionary amount for a plan year which the Employer will designate as qualified nonelective contributions. If the Employer makes qualified nonelective contributions for a plan year, the Advisory Committee will allocate those contributions to the separate accounts of those participants who are eligible for an allocation for the plan year but who are not highly compensated employees for that plan year. The law defines highly compensated employees to include most owners and employees whose Compensation for the plan year exceeds certain dollar limitations prescribed by the Internal Revenue Service. The Advisory Committee will base a participant's allocation of qualified nonelective contributions upon the participant's share of the total Compensation paid during that plan year to all participants eligible for the allocation. For example, if your Compensation for a particular plan year equals 10% of total Compensation for all participants eligible for the allocation, the Advisory Committee would allocate 10% of the total qualified nonelective contributions to your Qualified Nonelective Contributions Account. Employer's Discretionary Profit Sharing contributions. Each plan year, the Employer will make profit sharing contributions to the Plan in the amount determined by the Employer at its discretion separately determined for each Participant. The Employer may choose not to make profit sharing contributions to the Plan for a particular plan year.for each plan year the Employer contributes to the Plan, the Advisory Committee will allocate the contribution for each Participant to the separate accounts maintained for each participant. The Advisory Committee will base your allocation upon your share of the total compensation paid during that plan year. Rollover contributions. A participant or an eligible employee, prior to becoming a participant, may make a rollover contribution to the Plan with the Employer s written approval. The Advisory Committee will allocate a rollover contribution to the participant s Rollover Contributions Account. Allocation of forfeitures. The Plan allocates participant forfeitures to pay reasonable plan expenses, reduce matching contributions or as if the forfeitures were Employer contributions for the plan year in which the forfeiture occurs and then if any remain to pay reasonable plan expenses or as an Employer contribution for the following plan year. Compensation. The Plan defines compensation as the total compensation paid to the employee for services rendered to the Employer, including elective deferrals, but excluding reimbursements or other expense allowances, fringe benefits (cash and noncash), moving expenses, deferred compensation and welfare benefits. The Plan includes compensation paid for regular compensation, unused accrued bona fide sick, vacation or other leave, if such amounts would have been included in compensation if paid prior to your termination of employment and you would have been able to use the leave if employment 8

11 had continued will be included. However, regardless of the preceding, these amounts will not be included if they are otherwise excluded from Plan compensation or if they are paid more than 2 ½ months after you terminate employment, or if later, the last day of the Plan Year in which you terminate employment. With limited exceptions, the Plan includes an employee's Compensation only for the part of the plan year in which he actually is a participant. Conditions for allocation. With limited exceptions, to be entitled to an allocation of Employer contributions, you must complete 1,000 hours of service during the plan year and you must be employed by the Employer on the last day of the plan year. The hours of service and employment condition for allocation does not apply to allocations of deferral contributions. Top-Heavy. The contribution allocations described in this Section (8) may vary for certain employees if the Plan is top heavy. Generally, the Plan is top heavy if more than 60% of the Plan's assets are allocated to the accounts of key employees (certain owners and officers). If the Plan is top heavy, any participant who is not a key employee and who is employed on the last day of the plan year, may not receive a contribution allocation which is less than a certain minimum. Usually that minimum is 3%, but if the contribution allocation for the plan year is less than 3% for all the key employees, the top heavy minimum is the smaller allocation rate. If you are a participant in the Plan, your allocation described in this Section (8) in most cases will be equal to or greater than the top heavy minimum contribution allocation. The Plan also may vary the definition of the top heavy minimum contribution to take into account another plan maintained by the Employer. Limit on Annual Additions. The law limits the amount of "additions" (other than trust earnings) which the Plan may allocate to your account under the Plan. Your additions may never exceed 100% of your compensation (as defined by the Tax Code) for a particular plan year, but may be less if 100% of your compensation exceeds a dollar amount announced by the Internal Revenue Service each year. The Plan may need to reduce this limitation if you participate (or have participated) in any other plans maintained by the Employer. The discussion of Plan allocations in this Section (8) is subject to this limitation. (9) Employee Contributions. The Plan does not permit nor require you to make employee contributions to the trust fund. The only sources of contributions under the Plan are the annual Employer contribution, including the "elective deferrals" made at your election under the 401(k) arrangement described in Section (8). "Elective deferrals" are not "employee contributions" for purposes of the Plan. (10) Vesting in Employer Contributions. Your interest in the contributions the Employer makes to the Plan for your benefit becomes 100% vested when you attain normal retirement age (as defined in Section (11)). Prior to normal retirement age, your interest in the contributions the employer makes on your behalf become vested in accordance with the following schedule: 9

12 Years of Service Percent of Nonforfeitable Interest Less than % % % % % 6 or more % 100% vesting for Deferral Contributions Account. The vesting schedule does not apply to your Deferral Contributions Account described in Section (8). Instead, you are 100% vested at all times in your Deferral Contributions Account. Special vesting rule for death or disability. If you die or become disabled while still employed by the Employer, your entire Plan interest becomes 100% vested, even if you otherwise would have a vested interest less than 100%. Year of service. To determine your percentage under a vesting schedule, a year of service means a 12-month vesting service period in which you complete at least 1,000 hours of service. The Plan measures the vesting service period as the plan year. If you complete at least 1,000 hours of service during a plan year, you will receive credit for a year of service even though you are not employed by the Employer on the last day of that plan year. You will receive credit for years of service with the Employer prior to the time the Employer established the Plan and for years of service prior to the time you became a participant in the Plan. The Plan provides two methods of vesting forfeiture which may apply before a participant becomes 100% vested in his entire interest under the Plan. The primary method of vesting forfeiture is the "forfeiture break in service" rule. The secondary method of forfeiture is the "cash out" rule. Also see Section (15) relating to loss or denial of benefits. Forfeiture Break in Service Rule. Termination of employment alone will not result in forfeiture under the Plan unless you do not return to employment with the Employer before incurring a "forfeiture break in service." A "forfeiture break in service" is a period of 5 consecutive vesting service periods in which you do not work more than 500 hours in each vesting service period comprising the 5 year period. Example. Assume you are 100% vested in your 401(k) and 60% vested in your remaining employer account balance. After working 400 hours during a particular vesting service period, you terminate employment and perform no further service for the Employer during the next 4 vesting service periods. Under this example, you would have a "forfeiture break in service" during the fourth vesting service period following the vesting service period in which you terminated employment because you did not work more than 500 hours during each vesting 10

13 service period of 5 consecutive vesting service periods. Consequently, you would forfeit the 40% non-vested portion of your account. If you had returned to employment with the Employer at any time during the 5 consecutive vesting service periods and worked more than 500 hours during any vesting service period within that 5-year period, you would not incur a forfeiture under the "forfeiture break in service" rule. Cash Out Rule. The cash out rule applies if you terminate employment and receive a total distribution of the vested portion of your account balance before you incur a forfeiture break in service. For example, assume you terminated employment during a particular vesting service period after completing 800 hours of service. Assume further the total value of your fully vested 401(k) is $10,000 and your remaining employer account balance is $6,000 in which you have a 60% vested interest. Before you incur a forfeiture break in service, you receive a distribution of the $10, (k) and the $3,600 vested portion ($6,000 X 60%) of your employer account balance. Upon payment of the $3,600 vested portion of your employer account balance, you would forfeit the $2,400 nonvested portion. If you return to employment before you incur a "forfeiture break in service," you may have the Plan restore your "cash out" forfeiture by repaying the amount of the distribution you received attributable to Employer contributions. This repayment right applies only if you do not incur a "forfeiture break in service." You must make this repayment no later than the date 5 years after you return to employment with the Employer. Upon your reemployment with the Employer, you may request the Advisory Committee to provide you a full explanation of your rights regarding this repayment option. If the vested portion of your account balance does not exceed $1,000, the Plan will distribute that vested portion to you in a lump sum, without your consent. In determining whether your vested account balance exceeds $1,000, the Plan includes any portion of your account you rolled over to the Plan from another plan or from an IRA, as well as any earnings on the rolled over portion. This summary refers to these rolled over amounts and related earnings as rollover contributions. This involuntary cash-out distribution will result in the forfeiture of your nonvested account balance, in the same manner as an employee who voluntarily elects a cash-out distribution. Also, upon reemployment you would have the same repayment option as an employee who elected a cash-out distribution, if you return to employment before incurring a "forfeiture break in service." If you are 0% vested in your entire interest in the Plan, the Plan will treat you as having received a cash-out distribution of $0. This "distribution" results in a forfeiture of your entire Plan interest. Normally, this forfeiture occurs on the date you terminate employment with the Employer. However, if you are entitled to an allocation of Employer contributions for the plan year in which you terminate employment with the Employer, this forfeiture occurs as of the first day of the next plan year. If you return to employment before you incur a forfeiture break in service, the Plan will restore this forfeiture, as if you repaid a cash-out distribution. (11) Payment of Benefits After Termination of Employment. After you terminate employment with the Employer, the time at which the Plan will commence distribution to you and the form of that distribution depends on whether your vested account balance exceeds $1,000 (including any rollover contributions). If you receive a distribution from the Plan before you attain age 59-1/2, the law imposes a 10% penalty on the amount of the distribution you 11

14 receive to the extent you must include the distribution in your gross income, unless you qualify for an exception from this penalty. You should consult a tax advisor regarding this 10% penalty. This summary makes references to your normal retirement age. Normal retirement age under this Plan is 62. Vested Account Not Exceeding $1,000. If your vested account balance does not exceed $1,000 (including any rollover contributions), the Plan will distribute that portion to you, in a lump sum, on the first distribution date after the date on which you terminate employment with the Employer or as soon as administratively practicable thereafter. If you already have attained normal retirement age when you terminate employment, the Plan must make this distribution no later than the 60th day following the close of the plan year in which your employment terminates, even if the normal distribution date would occur later. The Plan does not permit you to receive distribution in any form other than a lump sum if your vested account balance does not exceed $1,000 (including any rollover contributions). Vested Account Exceeding $1,000. If your vested account balance exceeds $1,000 (including any rollover contributions), the Plan will commence distribution to you at the time you elect to commence distribution. The Plan permits you to elect distribution as of any distribution date following your termination of employment with the Employer. A "distribution date" under the Plan means each day of the Plan Year. You may not actually receive distribution on the distribution date you elect. The Plan provides the Trustee an administratively reasonable time following a particular distribution date to make actual distribution to a participant. No later than 30 days prior to your earliest possible distribution date, the Advisory Committee will provide you a notice explaining your right to elect distribution from the Plan and the forms necessary to make your election. If you do not make a distribution election, the Plan will commence distribution to you in accordance with minimum distribution rules described below. To determine whether your vested account balance exceeds $1,000 (including any rollover contributions), the Plan normally looks to the last valuation of your account prior to the scheduled distribution date. Required Minimum Distributions. With limited exceptions, you may not commence distribution of your vested account balance later than April 1 of the calendar year following the calendar year in which you attain age 70-1/2, if you have terminated employment with the Employer. This required distribution date overrides any contrary distribution date described in this summary. If the Employer terminates the Plan before you receive complete distribution of your vested benefits, the Plan might make distribution to you before you otherwise would elect distribution. Upon Plan termination, if your vested account balance exceeds $1,000 (including any rollover contributions), you will receive an explanation of your distribution rights. Valuation of Account for Distribution. For purposes of making a distribution of any portion of your vested account balance, the Plan refers to the latest valuation of your account balance. The Plan requires valuation of the trust fund, and adjustment of participant's accounts, as of the last 12

15 day of each Plan Year. The Advisory Committee may also require a valuation on any other date. To the extent that the Trustee invests in daily (or other periodically) priced and/or unitized funds and utilizes a periodically priced record-keeping system, the term valuation date shall mean each business day (or other appropriate period) throughout the Plan Year in which such funds are reported and allocated by the Plan record-keeper. You will not receive any adjustment to your account balance for trust fund earnings after the latest valuation date. In general, the Plan allocates trust fund earnings, gains or losses for a valuation period on the basis of each participant s opening account balance at the beginning of the valuation period, less any distributions and charges to each participant s account during the valuation period. Forms of Benefit Payment. If your vested account balance exceeds $1,000 (including any rollover contributions), the Plan permits you to elect distribution only in the form of a lump sum. The benefit payment rules described in Sections (11) through (14) reflect the current Plan provisions. If an Employer amends its Plan to change benefit payment options, some options may continue for those participants or beneficiaries who have account balances at the time of the change. If an eliminated option continues to apply to you, the information you receive from the Advisory Committee at the time you are first eligible for distribution from the Plan will include an explanation of that option. (12) Payment of Benefits Prior to Termination of Employment. Prior to your termination of employment with the Employer, you may elect to withdraw all or any portion of your Plan accounts as described in the grid and the text below. The Advisory Committee will provide you a withdrawal election form. Other than the withdrawal right described in this Section (12) and in the case of required minimum distributions to certain owners of the Employer while employed, the Plan does not permit you to receive payment of any portion of your account balance for any other reason, unless you terminate employment with the Employer. Account At Any Time Age 59½ Qualified Reservist Distribution Elective Deferral (including X X Roth 401(k) Deferral Account)* Matching X** Profit Sharing X** Qualified Nonelective X Rollover (once per X calendar year) * However, in addition to meeting the conditions of this Section, you may only receive an in-service distribution from your Roth 401(k) deferral account if the distribution would also be considered a qualified distribution as described in Section (8). ** Up to your vested amount. 13

16 Qualified reservist distribution. If you: (i) are a reservist or National Guardsman; (ii) were/are called to active duty after September 11, 2001; and (iii) were/are called to duty for at least 180 days or for an indefinite period, you may take a distribution of your elective deferrals under the Plan while you are on active duty, regardless of your age. The 10% premature distribution penalty tax, normally applicable to Plan distributions made before you reach age 59 ½, will not apply to the distribution. You also may repay the distribution to an IRA, without limiting amounts you otherwise could contribute to the IRA, provided you make the repayment within two years following your completion of active duty. Distributions for deemed severance of employment. If you are on active duty for more than 30 days, then the Plan treats you as having severed employment for distribution purposes. This means that you may request a distribution from the Plan. If you request a distribution on account of this deemed severance of employment, then you are not permitted to make any contributions to the Plan for six (6) months after the date of the distribution. (13) Disability Benefits. If you are no longer employed because of disability, the Plan will pay your vested account balance to you in a lump sum at the same time as it would pay your vested account balance for any other termination of employment. However, if your vested account balance exceeds $1,000 (including any rollover contributions), the disability distribution rules are subject to any election requirements described in Section (11). (14) Payment of Benefits upon Death. If you die prior to receiving all of your benefits under the Plan, the Plan will pay the balance of your account to your beneficiary. If the Employer permits the Trustee to purchase life insurance on your life with a portion of your account balance, your account balance also will receive any life insurance proceeds payable by reason of your death. The Trustee will pay your vested account balances remaining in the Plan at the time of your death to your designated beneficiary. The Advisory Committee will provide you with an appropriate form for naming a beneficiary. If you are married, your spouse must consent to the designation of any nonspouse beneficiary. If your vested account balance payable to your designated beneficiary does not exceed $1,000 (including any rollover contributions), the Plan will pay the benefit, in a lump sum, to your designated beneficiary as soon as administratively practicable after your death. If your vested account balance payable to your designated beneficiary exceeds $1,000 (including any rollover contributions), the Plan will pay the benefit to your designated beneficiary, in the form and at the time elected by the beneficiary, unless, prior to your death, you specify the timing and form of the beneficiary's distribution. The benefit payment election generally must complete distribution of your vested account balance within five years of your death, unless distribution commences within one year of your death to your designated beneficiary or unless benefits had commenced prior to your death under the mandatory post-age 70 1/2 distribution requirements described in Section (11). (15) Disqualification of Participant Status - Loss or Denial of Benefits. There are no specific Plan provisions which disqualify you as a participant or which cause you to lose plan benefits, except as provided in Sections (7) and (10). However, if you become disabled and do 14

17 not receive Compensation from the Employer, you will not receive an allocation of the Employer's contribution to the Plan during the period of disability. In addition, if your Plan benefits become payable after termination of employment and the Advisory Committee is unable to locate you at your last address of record, you may forfeit your benefits under the Plan. Therefore, it is very important that you keep the Employer apprised of your mailing address even after you have terminated employment. Finally, if the Employer terminates the Plan, which it has the right to do, you would receive benefits under the Plan based on your account balance accumulated to the date of the termination of the Plan. Termination of the Plan could occur before you attain normal retirement age. If the Employer terminates the Plan, your account will become 100% vested, if not already 100% vested, unless you forfeited the nonvested portion prior to the termination date. Plan Termination. The termination of the Plan does not permit you to receive a distribution from your account unless: (1) you otherwise have the right to a distribution, as described in Sections (11) and (12); or (2) the Employer does not maintain a successor plan. If you are able to receive a distribution only because the Employer does not maintain a successor plan, you must agree to take that distribution as part of a lump sum payment of your entire account balance under the Plan. The Trustee will transfer to the successor plan any portion of your interest the Plan is unable to distribute to you. Plan Amendment. The Employer may amend the Plan in any manner. If the Employer amends the Plan, you will receive written notice of any amendment the Employer adopts if that amendment affects your benefits under the Plan. The fact that the Employer has established this Plan does not confer any right to future employment with the Employer. Furthermore, you may not assign your interest in the Plan to another person or use your Plan interest as collateral for a loan from a commercial lender. (16) Qualified Domestic Relations Order ( QDRO ) Procedure. Under some circumstances, a qualified domestic relations order ( QDRO ) entered pursuant to a state domestic relations law may direct the Advisory Committee to pay some or all of your vested account balance to a spouse, former spouse, child or other dependent for child support, alimony payments or marital property rights. The Plan has established a procedure for processing QDROs. You may obtain, without charge, a copy of the current procedures for processing QDROs from the Advisory Committee. (17) Claims Procedure. You need not file a formal claim with the Plan Committee in order to receive your benefits under the Plan. When an event occurs which entitles you to a distribution of your benefits under the Plan, the Plan Committee automatically will notify you regarding your distribution rights. Initial Claim. If you believe that you are being denied rights or benefits under the Plan, you may file a claim in writing with the Plan Committee. This will be considered a claim for Plan benefits, and it will be subject to a full and fair review. If your claim is wholly or partially denied, the Plan Committee will furnish you with a written notice of this denial. This written 15

18 notice must be provided to you within a reasonable period of time (generally 90 days; 180 days if you receive a notice of extension due to special circumstances explained in the notice of extension) after the receipt of your claim by the Plan Committee. If your claim relates to disability benefits under the Plan and disability is determined by a physician, the Plan Committee will provide you with a written notice of denial within 45 days after receipt of your claim (subject to two possible 30 day extensions due to special circumstances explained in the notice of extension). The written notice must contain the following information: (a) (b) (c) (d) (e) the specific reason or reasons for the denial; reference to those specific Plan provisions on which the denial is based; a description of any additional information or material necessary to perfect your claim and an explanation of why such material or information is necessary; and a description of the Plan s review (appeal) procedures and the time limits applicable to a review (appeal) and of the right to bring an action in court under ERISA following denial of the appeal; and in the case of a disability claim where disability is determined by a physician: (i) if an internal rule, guideline, protocol, or other similar criterion was relied upon in making the adverse determination, either the specific rule, guideline, protocol, or other similar criterion; or a statement that such rule, guideline, protocol, or other similar criterion was relied upon in making the adverse determination and that a copy of the rule, guideline, protocol, or other similar criterion will be provided to you free of charge upon request, or (ii) if the adverse benefit determination is based on a medical necessity or experimental treatment or similar exclusion or limit, either an explanation of the scientific or clinical judgment for the determination, applying the terms of the Plan to your medical circumstances, or a statement that such explanation will be provided to you free of charge upon request. If notice of the denial of a claim is not furnished to you in accordance with the above within such period, the claim is considered denied and you may use the Plan s rules for appealing the denial. In addition, you will be considered to have exhausted your administrative remedies and you may file an action in court. Appeal of Denied Claim. If your claim has been denied, and you want to appeal your denied claim, you must follow the claims appeal procedure below. (a) YOU MUST FILE WITH THE PLAN COMMITTEE A WRITTEN CLAIM APPEAL NO LATER THAN 60 DAYS AFTER YOU HAVE RECEIVED WRITTEN NOTIFICATION OF THE DENIAL OF YOUR CLAIM FOR BENEFITS, OR IF NO WRITTEN DENIAL OF YOUR CLAIM WAS 16