Fund Earning and Expenses

Investment Earnings

After the close of each Plan Year, the investment income of the Fund, at the direction of the Trustees, may be proportionally allocated to each participant’s account balance.

The amount of this income allocation is based on the prior year’s average closing balance in your account, multiplied by the percentage of income to be allocated.

For Example:

If your four quarterly closing balances in 1999 were:

1st Quarter 1999 $10,000

2nd Quarter 1999 11,050

3rd Quarter 1999 6,100

4th Quarter 1999 7,150

$34,300

Divide $34,300 by 4 for an average quarterly balance of $8,575.

If the Fund had investment earnings of 7%, your account balance would be credited with $600.25. (Average balance of $8,575 x 7%).

Administrative Charge

The general and administrative charges incurred by the Fund are deducted from each participant’s account on a per head basis. That is, each account is charged the same dollar amount, provided there is a sufficient balance to cover the charge. The amount of the charge is determined by dividing the total administrative expenses of the Fund by the number of account balances.

Pensioners with a balance of $2,500 or less after adding in their income allocation, are not subject to the administrative charge. Any Pensioner with a balance greater than $2,500 will be subject to the full administrative charge.

Both the income allocation and the administrative charge are posted to the second quarter statement of the following year. For example, the 1999 income allocation and administrative charge will be posted to your June 30, 2000 statement of earnings received by you in July of 2000.