Retirement Plan

ESI provides a 401K retirement plan. The plan is flexible, allowing you to determine whether to contribute a portion of your salary, how much to contribute, and how (within certain specified options) to invest the money. The plan requires you to complete at least three months of service with ESI International and attain the age of 21. Upon satisfying these requirements you will become eligible to participate in the plan on the first of any month.

How Money Is Invested
The 401K Plan is serviced by Fidelity Investments. Several investment options are available, including mutual funds, securities and bonds.

Contribution
Contributions can be made up to 100 percent of eligible compensation up to a maximum of $15,000 in calendar year 2006 (maximum adjusted by the Secretary of the Treasury). If you turn 50 years of age during the calendar year or are already over 50 you can contribute an additional $5,000 to your 401k.

Pretax contributions belong to you and cannot be forfeited for any reason. However, there are special IRS rules which must be satisfied and may require that the amount of your contributions be reduced. If a reduction in your contribution is necessary, you will be notified by the Plan Administrator.

ESI may make discretionary matching contributions of a percent, if any, to be determined annually based on your pretax contributions. In the year 2006, ESI will match contributions at a rate of 25 percent of the first 16 percent you contribute up to $1,500.

To be eligible for any matching contributions, employees must earn at least 1,000 hours of service and be employed as of the last day of the Plan year.