401(k) Savings Plan Wilkinson/Ace has established a 401(k) savings plan to provide employees the potential for future financial security for retirement. To be eligible to join the 401(k) savings plan, you must complete 1 year of service and be 21 years of age or older. You may join the plan only during open enrollment periods. Eligible employees may participate in the 401(k) plan subject to all terms and conditions of the plan. The 401(k) savings plan allows you to elect how much salary you want to contribute and direct the investment of your plan account, so you can tailor your own retirement package to meet your individual needs. Wilkinson/Ace also contributes, as determined by management, an additional matching amount to each employee's 401(k) contribution. Currently the company matches 40% of the employees contribution up to an annualized maximum of $520. Because your contribution to a 401(k) plan is automatically deducted from your pay before federal and state tax withholdings are calculated, you save tax dollars now by having your current taxable amount reduced. While the amounts deducted generally will be taxed when they are finally distributed, favorable tax rules typically apply to 401(k) distributions. Complete details of the 401(k) savings plan are described in the Summary Plan Description provided to eligible employees. Contact the Human Resources Department for more information about the 401(k) plan. Policy No. 320