RETIREMENT SAVINGS PLAN 401(k)

AOC offers a 401(k) savings plan. The plan will provide you with a unique opportunity to shelter part of your income from current taxes and accumulate savings in a most convenient and effective way, through payroll deduction.

Following are some frequently asked questions and answers regarding this type of retirement and savings plan. We urge you to read and review them carefully.

WHAT IS THE PLAN?

This savings plan, better known as a 401(k) plan, is qualified as a type of profit sharing plan under Section 401(k) of the Internal Revenue Code. Section 401(k) allows employees to make contributions on a pre-tax basis. It offers an ideal way to accumulate additional funds to satisfy longer term savings or retirement needs while receiving significant up front tax advantages.

WHAT BENEFITS CAN I DERIVE FROM THE 401(k) PLAN?

-Contribution Limits - You may elect to contribute not less than 1% or more than 15% of your total compensation, up to a maximum per year set by the federal government.

-Company Match - As a supplement to your savings, the company currently will match 30% of the first 12% of your salary that you put into your account. The company match percentage is subject to change or elimination at the Companies' discretion.

-Pre-Retirement Death Benefit - Your account value will be paid to your beneficiary should you die before retirement.

-Immediate Tax Reduction - Since you are contributing with pre-tax dollars, you do not pay state and federal taxes on your contributions other than social security taxes.

-Tax Deferred Investment Income - All investment income will accumulate on a tax deferred basis, thus growing more quickly.

-Hardship Withdrawals Not Allowed - The Plan does not allow for Hardship Withdrawls.

WHO WILL ADMINISTER THE PLAN?

The plan will be administered by National City or its successor.

WHEN AM I ELIGIBLE TO PARTICIPATE?

All employees who work a minimum of 1,000 hours per year will be eligible to participate, provided the employee attained age 21 and has completed at least 1 year of service. Upon meeting these requirements an employee may become a participant on the first day of the calendar quarter (January 1, April 1, July 1, or October 1) coinciding with, or following the date the employee met the requirements.

HOW ARE CONTRIBUTIONS INVESTED?

All contributions may be directed at your option to any of the investment vehicles offered under the plan.

MAY I TEMPORARILY SUSPEND MY CONTRIBUTIONS?

Contributions may be suspended at any time, at the beginning of any pay period, upon written notice, prior to the commencement of the pay period. Contributions may be resumed at any time, at the beginning of any pay period, upon written notice, prior to the commencement of the pay period.

HOW OFTEN MAY I CHANGE MY INVESTMENT ELECTION FOR CURRENT DEPOSITS?

A participant may change his/her investment election at any time.

MAY I CHANGE MY CONTRIBUTION PERCENTAGE?

An employee may change his/her contribution percentage at any time, at the beginning of any pay period, upon written notice, prior to the commencement of the pay period.

WHAT PERCENTAGE OF THE COMPANY CONTRIBUTIONS ARE MINE?

Ownership or VESTING refers to the amount in a participants account which you are entitled to receive upon leaving the company. A participant is always 100% vested in his/her pre-tax contributions. The companies' matching contributions are vested in accordance with the following schedule:

                           Less than 1 year 0%
                              1 year 25%
                              2 years 50%
                              3 years 75%
                              4 years 100%

WHEN DO I QUALIFY FOR A PLAN PAYOUT?

Plan benefits are payable in the event of termination, retirement, death or total disability. Payment can be in the form of lump sum cash, monthly income, or combination of the two. Any distribution of $3,500 or less must be taken as a lump sum.

CAN I WITHDRAW MONEY WHILE I'M STILL EMPLOYED?

No.

WHAT IF I DIE PRIOR TO RETIREMENT?

Should a participant die prior to retirement, a participant's beneficiary will receive 100% of your account value.

MAY I BORROW FROM MY ACCOUNT?

With approval, a participant may borrow from his/her account. The minimum amount is $1,000. Among other restrictions, a loan cannot exceed the lesser of $50,000 or 50% of a participant's vested account balance. Only one loan may be outstanding at a time and it must be repaid over a period of time not to exceed 5 years, unless the proceeds are being used to purchase a primary residence. In that situation, the loan must be repaid in a reasonable length of time, not to exceed the length of your primary mortgage. All loans will bear an interest rate and be subject to such other terms and conditions as a similar loan from a lending institution would require. Loan repayments and interest repayments will be deposited directly back into your own account. Interest repayments on loans from your 401 (k) account are no longer deductible from your personal income taxes, unless the loan was used to purchase a participant's primary residence.

HOW WILL I KNOW HOW MUCH I SAVED AND WHAT THE INVESTMENT GAINS ARE?

A participant will receive periodic participant statements, summarizing all the activity, and the status of a participant's account. In addition, a participant will have 24 hour access to National City which will provide a current summary of your account.

A FINAL NOTE

This summary has reviewed the highlights of our plan. Every effort has been made to accurately describe plan provisions which are contained in the Plan's legal documents. If there is a difference between this summary and the Plan's legal documents, the legal documents will govern.  If you are interested in the 401(k) Plan, and meet the eligibility requirements, notify your Manager, the General Manager or the President.