A. Valuation, Earnings, and Periodic Statements

1. Valuation. The Plan determines the value of your Individual Account as of midnight, December 31 of each year. The Plan credits Employer contributions to your Individual Account when they are received by the Plan. The value of your Individual Account will be the amount of the Employer contributions made on your behalf (since the prior Valuation), and your pro rata share of the Plan's earnings and any asset appreciation, minus your share of the Plan's expenses and any asset depreciation.
   
   
2. Expenses. The Plan incurs expenses for Plan administration, data processing, legal, auditing and other services. (Investment expenses are deducted from the investment returns prior to determining the Plan's yield.) The expenses are paid on an ongoing basis from the Plan's assets. Each Individual Account that is in existence at the beginning and the end of the calendar year is assessed an equal share of the Plan expenses.
   
   New accounts that were established during the year are charged a set-up fee (currently set at $20.00). The Plan Office totals all of the Plan expenses after deducting the set-up fees for new accounts and distributes the balance equally among the remaining accounts that were not terminated during the year. (An Individual Account is considered terminated in the month in which the last payment has been made.) The expenses will vary each year and certain expenses attributable to one person may be assessed against that person's Individual Account.
   
   
3. Earnings. To maximize earnings, maintenance of individual accounts is only for accounting purposes. The amount credited to each Individual Account is aggregated for investment purposes to take advantage of greater
   rates of return that larger sums usually command.
   
   The formula the Plan Office uses to determine the amount of "earnings" to be distributed is as follows:
   
   1. Total Fund Balance at the end of the calendar year, less
      
   2. The total sum of all accounts at the beginning of the year, plus contributions credited to individual accounts during the year, minus administrative expenses incurred during the year (this does not include investment expenses which are deducted from the investment returns prior to determining the Plan's yield) minus benefits and other distributions (such as transfers made pursuant to industry reciprocity) that were paid out during the year.
      
   The procedure ensures that the sum of all individual accounts at the end of the year equals the total of the Fund's Assets as reflected in the year-end Financial Statements prepared by the Fund's Accountants.
   
   The total earnings are then allocated on a pro-rata basis to all existing accounts, excluding those that were reduced to a zero balance because of withdrawals or otherwise. (An Individual Account is considered terminated in the month in which the last payment has been made.) The earnings are allocated based on the previous year's ending balance and, therefore, without regard to any new Employer Contributions. Thus, no earnings are allocated to any new accounts that are established during the year. Accounts with monthly or periodic withdrawals that were not terminated as of the end of the year will receive a share of the earnings based on the average monthly balance, without taking any current year contribution activity into account.
   
   
4. Periodic Statements. The Plan provides quarterly statements showing the Employer contributions made to the Plan on your behalf and the value of your Individual Account as of the end of the quarter. Quarterly statements are as of the end of March, June and September. You should receive your quarterly statements within 8-10 weeks after the end of the quarter.
   
   The Plan provides an annual statement as of December 31, the Plan's annual Valuation Date. Within a reasonable period, usually by May 31 of each year, the Plan will furnish you with a statement showing your benefits as of the end of the year. Your statement sets forth the contributions made on your behalf during the year. The statement also records the hours for which contributions were made during the year.
   
   The annual Valuation measures the value of your Individual Account as of a specific date but does not create any right to receive that amount in the future. Because the amount in your account at retirement depends upon the Plan's unforeseeable future earnings and expenses, the Plan cannot guarantee a fixed amount at retirement.
   
   You should notify the Plan Office immediately if you notice any errors or you have any questions regarding your statements.
   
5. Benefits for Certain Armed Services under Federal Law. Pursuant to various military veterans' laws, an authorized leave of absence due to certain military service in the U.S. Armed Forces is considered Covered Employment provided that you comply with all of the requirements of applicable federal law, the Plan, and any rules established by the Board of Trustees. This Plan provides benefits only for military service which is required to be granted under applicable federal law.
   
   To be entitled to such benefits, you must have been working as a Covered Employee during the 90 days prior to your commencement in the Armed Service, have returned to work as a Covered Employee within 90 days following your discharge from the Armed Service, have been honorably discharged and served more than 90 days but less than 5 years. The Board of Trustees has the absolute discretion to determine whether you meet the military service requirements and may require that you certify your periods of employment and provide any other pertinent information or documentation.
   
   In determining the level of benefits to which you are entitled for the designated military service, the Plan will calculate the Employer contributions that were made to the Plan on your behalf based on the average of the contributions made on your behalf during the two Plan Years immediately preceding the date you commenced such service, or if greater, by using the Plan Year in which you entered the Armed Services.
   
   If your military service did not exceed 90 days, you may be entitled to credit for that period under the Uniform Services Employment and Reemployment Rights Act of 1994.