Section 1. Rules of Application

1.1 If this Article applies, default salary reduction contributions will be made in accordance with this Article. To the extent that any other provision of the SIMPLE IRA Plan is inconsistent with the provisions of this Article, the provisions of this Article shall govern.

1.2 Subject to the limits on salary reduction contributions contained in this SIMPLE IRA Plan, default salary reduction contributions will only be made for an Eligible Employee who: ( select either a or b )

[ ] a. does not have an affirmative election regarding salary reduction contributions in effect on the effective date of the Automatic Contribution Arrangement or on the date the employee first becomes eligible to make salary reduction contributions, if later.

[ ] b. becomes eligible to make salary reduction contributions on or after the effective date of the Automatic Contribution Arrangement and who does not have an affirmative election regarding salary reduction contributions in effect on the date the employee first becomes eligible to make salary reduction contributions.

Default salary reduction contributions being made on behalf of an Eligible Employee will cease as soon as administratively feasible after the Eligible Employee makes an affirmative election.

1.3 The Default Percentage under the SIMPLE IRA Plan for an Eligible Employee described in Section 1.2 above is: ( Select either a or b and fill in the blanks. )

[ ] a. Fixed. The Default Percentage is [ ]%.

[ ] b. Increasing. The initial Default Percentage is [ ]%, and each calendar year, beginning with the second calendar year that begins after the Default Percentage first applies to the Eligible Employee, the Default Percentage will increase by [ ] ( insert a number ) percentage point(s) until the Default Percentage is [ ]%. ( Insert the highest Default Percentage that will apply. ) The increase will be effective beginning with the first pay period that begins in such calendar year.

1.4 No default salary reduction contributions will be made on an Eligible Employee’s behalf until after the 60-day election period.