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Before-Tax Contributions

As a participant in the Plan, you may voluntarily contribute up to 75% of your compensation to the Plan on a tax-deferred basis. However, you may not contribute an amount which exceeds the IRS limits (see current year limits). This gives you the opportunity to contribute funds to the Plan without paying income taxes on these contributions until the funds are distributed to you after you have terminated employment with the Company and all of its affiliated companies. Your taxable earnings are reduced by the amount of your contributions for federal and state income tax purposes, but not for social security taxes.

You may initiate, increase or decrease your election at any time. To be effective, an election must be made in accordance with procedures established by the Plan Administrator. Currently forms are completed and submitted electronically on the Directed Account Plan (DAP) recordkeeper’s website (www.dap401k.com). Such election shall be effective as of the first day of the payroll period following the date it is delivered to the DAP’s recordkeeper. Once you make an election, such election shall continue in effect until such time as you revoke or amend your election. You may discontinue contributions at any time during the Plan Year by making an electronic election at www.dap401k.com.

2011 Contribution Limits
401(k) elective deferral under age 50 $16,500
401(k) elective deferral age 50 and over $22,500
Annual compensation taken into account for qualified plans $245,000

Catch-Up Contributions

If you are age 50 or older during the Plan Year and you have contributed the maximum amount of Before-Tax contributions permissible for the Plan Year, you may choose to defer an additional amount of your compensation to the Plan. Your taxable earnings are reduced by the amount of your contributions for federal and state income tax purposes, but not for social security taxes.

Employer Matching Contributions

Your Employer will contribute as Employer Matching Contributions on your behalf for each payroll period during which you make Before-Tax or Catch-Up Contributions to the DAP an amount equal to 100% of your Before-Tax and Catch-Up Contributions not in excess of 6% of your compensation.

Examples:

A.      Carol makes $25,000 in 2011 and contributes 2% or $500 of her compensation. The Company will contribute $500 of her behalf (100% of $500). Carol will pay income taxes on only $24,500 of her earnings and will have a total of $1000 contributed to the Plan for 2011.

B.      Joe earns $45,000 in 2011. He elects to contribute 15% of  his compensation on a tax-deferred basis or $6,750 ($45,000 x 15%). The Company will contribute $2,700 on his behalf (100% maximum of 6% of earnings). Joe will pay income taxes on $38,250 and will have a total of $9,450 contributed to the Plan for 2011.

Profit-Sharing Contributions

Each Plan Year, CACU, in its sole discretion, may also decide to make a Profit Sharing Contribution to the DAP. If you are employed on the last day of the Plan Year and have completed a year of service during the Plan Year, you are entitled to receive a share of the Profit Sharing Contribution for that Plan Year. A “year of service” for purposes of receiving a Profit Sharing Contribution is a Plan Year during which you complete at least 1,000 hours of service. An “hour of service” is any hour for which you are paid or entitled to payment.

Your share of the Profit Sharing Contribution, if any, is based on a percentage determined by the amount of compensation you received that year while you were eligible to participate in the Plan over the total compensation received by all eligible Participants for that year. That percentage was then multiplied by the amount of the Profit Sharing Contribution for the Plan Year and that amount was your share of the Profit Sharing Contribution.

Your compensation, for purposes of the Directed Account Plan, means your total compensation subject to income tax withholding, plus the amount of your salary deferrals to this Plan, a cafeteria plan, or a qualified transportation plan minus fringe benefits not paid through the payroll system (for example, expense reimbursements). The tax laws limit the amount of compensation that may be taken into consideration on behalf of any Participant each year. The amount for the Plan Years beginning in 2011 is $245,000. This amount is indexed for inflation.

The tax laws also limit the total amount of contributions that may be made to the Plan on your behalf for a Plan Year. The total amount allocated to your Plan account each Plan Year – Before-Tax Contributions, Employer Matching Contributions and Profit Sharing Contributions – cannot exceed the lesser of $49,000 (for the Plan Year beginning in 2011 and indexed for inflation) or your total compensation for such Plan Year. If this limit applies to you, you will be notified by the Plan Administrator.

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