VERNAY LABORATORIES, INC. TAX DEFERRED SAVINGS PLAN Contribution & Employer Match

VERNAY LABORATORIES, INC. TAX DEFERRED SAVINGS PLAN Average Participant Retirement Account Value

VERNAY LABORATORIES, INC. TAX DEFERRED SAVINGS PLAN Estimated Average Employee Contribution Amount

• Employees are automatically enrolled at a 2% deferral rate upon becoming eligible to participate in the Plan and they may elect to change or discontinue deferrals at any time.
• Employee contributions automatically increase by 2% per year unless the employee has made an affirmative election otherwise until such time that the employee’s deferral rate reach 10%.
• Eligible employees may contribute any whole percent up to the lesser of 15% of their compensation or the maximum amount permitted by the Internal Revenue Code which is adjusted for inflation.
• Participants who have attained age 50 before the end of the Plan year are eligible to make catch-up contributions.

• The Employer also makes a safe harbor contribution equal to 100% of the first 3% of an employee’s eligible compensation plus 50% of the next 2% of an employee’s eligible compensation.

• Employee amounts credited to a participant’s account and earnings thereon, are 100% vested at all times.
• Employer discretionary contribution amounts credited to a participant’s account become fully vested over a period ranging from 25% after one year to 100% after four years of service.
• Employees are 100% vested in safe harbor contributions and earnings thereon at all times.