Plan Year:

January 1 to December 31 (started in 2005).

Participant:

Employees and W2 consultants who have completed 1,000 hours of service during the plan year (retroactive to January 1).

Service:

This means the number of hours required to participate. TechProse requires employees and consultants work 1,000 hours before they can participate. Gaps in service of up to five years are allowed to remain in the plan.

Allocation:

Number of shares put into your account per year. Allocation is calculated based on your annual salary or W2. The limit for highly compensated employees and W2 consultants is up to $225,000.

Vesting:

Upon reaching six years of service you are 100% vested. You are fully vested at normal retirement age (65) or upon death or disability. You must complete 1,000 hours of service during a plan year to start vesting and 1,000 hours of service every year to continue the vesting process.

Valuation Date:

December 31 – this is the date our company value will be assessed each year.

Forfeiture:

Employment terminates before becoming fully vested. The non-vested portion of your account goes back into trust.

Benefits Distribution:

The amount paid when you leave the company. The value of your benefit depends on stock value upon pay out as well as how much you are vested. Your money is paid to you upon retirement or disability or to your beneficiary when you die.