In an effort to encourage savings for retirement, certain penalties are charged against early withdrawals or distributions from a qualified plan. The IRS imposes a nondeductible 10% additional tax on the entire taxable amount of the withdrawal or distribution. This tax is in addition to any income tax you might be liable for on the withdrawal or distribution. The penalty covers withdrawals and distributions due to termination from plan participation.

Under your Plan, the only exceptions to this rule are as follows:

• A distribution or withdrawal after you have reached age 59½;
• A distribution to your beneficiary due to your death;
• A distribution to you due to your total and permanent disability;
• A distribution to you if you have reached age 55 and elect early retirement under the Plan and actually do retire;
• A payment to an alternate payee pursuant to a Qualified Domestic Relations Order.

If the distribution or withdrawal qualifies, you have the option of rolling such amount over, within sixty (60) days, into an IRA account, or another qualified plan which accepts rollover contributions, to avoid current taxation and penalties.