**APPENDIX B**

> ANNUAL FUNDING NOTICE
>
> For
>
> \[*insert name of pension plan\]*

[Introduction]{.underline}

This notice includes important funding information about your pension
plan ("the Plan"). This notice also provides a summary of federal rules
governing multiemployer plans in reorganization and insolvent plans and
benefit payments guaranteed by the Pension Benefit Guaranty Corporation
(PBGC), a federal agency. This notice is for the plan year beginning
\[*insert beginning date*\] and ending \[*insert ending date*\]
(referred to hereafter as "Plan Year").

# [Funded Percentage]{.underline}

The funded percentage of a plan is a measure of how well that plan is
funded. This percentage is obtained by dividing the Plan's assets by its
liabilities on the valuation date for the plan year. In general, the
higher the percentage, the better funded the plan. The Plan's funded
percentage for the Plan Year and 2 preceding plan years is set forth in
the chart below, along with a statement of the value of the Plan's
assets and liabilities for the same period.

  ------------- -------------------- -------------------- --------------------
                \[insert Plan Year,  \[insert plan year   \[insert plan year 2
                e.g., 2011\]         preceding Plan Year, years preceding Plan
                                     e.g., 2010\]         Year, e.g., 2009\]

  Valuation     \[insert date\]      \[insert date\]      \[insert date\]
  Date                                                    

  Funded        \[insert             \[insert             \[insert
  Percentage    percentage\]         percentage\]         percentage\]

  Value of      \[insert amount\]    \[insert amount\]    \[insert amount\]
  Assets                                                  

  Value of      \[insert amount\]    \[insert amount\]    \[insert amount\]
  Liabilities                                             
  ------------- -------------------- -------------------- --------------------

*{Instructions: The plan's "funded percentage" is equal to a fraction,
the numerator of which is the value of the plan's assets (determined in
the same manner as under section 304(c)(2) of ERISA) and the denominator
of which is the accrued liability of the plan (determined in the same
manner as under section 304(c)(3) of ERISA, but taking into account
section 305(i)(8) of ERISA). Report the value of the plan's assets and
liabilities in the same manner as under section 304 of ERISA (but taking
into account section 305(i)(8) of ERISA with respect to liabilities) as
of the plan's valuation date for the plan year.}*

[Fair Market Value of Assets]{.underline}

Asset values in the chart above are actuarial values, not market values.
Market values tend to show a clearer picture of a plan's funded status
as of a given point in time. However, because market values can
fluctuate daily based on factors in the marketplace, such as changes in
the stock market, pension law allows plans to use actuarial values for
funding purposes. While actuarial values fluctuate less than market
values, they are estimates. As of \[*enter the last day and year of the
Plan Year*\], the fair market value of the Plan's assets was \[*enter
amount*\]. As of \[*enter the last day and year of the plan year
preceding the Plan Year*\], the fair market value of the Plan's assets
was \[*enter amount*\]. As of \[*enter the last day and year of the plan
year two years preceding the Plan Year*\], the fair market value of the
Plan's assets was \[*enter amount*\].

*{Instructions: Insert the fair market value of the plan\'s assets as of
the last day of the plan year. You may include contributions made after
the end of the plan year to which the notice relates and before the date
the notice is timely furnished but only if such contributions are
attributable to such plan year for funding purposes.}*

[Participant Information]{.underline}

The total number of participants in the plan as of the Plan's valuation
date was \[*insert number*\]. Of this number, \[*insert number*\] were
active participants, \[*insert number*\] were retired or separated from
service and receiving benefits, and \[*insert number*\] were retired or
separated from service and entitled to future benefits.

[Funding & Investment Policies]{.underline}

The law requires that every pension plan have a procedure for
establishing a funding policy to carry out the plan objectives. A
funding policy relates to the level of contributions needed to pay for
benefits promised under the plan currently and over the years. The
funding policy of the Plan is \[*insert a summary statement of the
Plan's funding policy*\].

Once money is contributed to the Plan, the money is invested by plan
officials called fiduciaries. Specific investments are made in
accordance with the Plan's investment policy. Generally speaking, an
investment policy is a written statement that provides the fiduciaries
who are responsible for plan investments with guidelines or general
instructions concerning various types or categories of investment
management decisions. The investment policy of the Plan is \[*insert a
summary statement of the Plan's investment policy*\].

In accordance with the Plan's investment policy, the Plan's assets were
allocated among the following categories of investments, as of the end
of the Plan Year. These allocations are percentages of total assets:

**Asset Allocations Percentage**

1.  Interest-bearing cash \_\_\_\_\_\_\_\_\_\_\_\_

2.  U.S. Government securities \_\_\_\_\_\_\_\_\_\_\_\_

3.  Corporate debt instruments (other than employer securities):

Preferred \_\_\_\_\_\_\_\_\_\_\_\_

All other \_\_\_\_\_\_\_\_\_\_\_\_

4.  Corporate stocks (other than employer securities):

Preferred \_\_\_\_\_\_\_\_\_\_\_\_

Common \_\_\_\_\_\_\_\_\_\_\_\_

5.  Partnership/joint venture interests \_\_\_\_\_\_\_\_\_\_\_\_

6.  Real estate (other than employer real property)
    \_\_\_\_\_\_\_\_\_\_\_\_

7.  Loans (other than to participants) \_\_\_\_\_\_\_\_\_\_\_\_

8.  Participant loans \_\_\_\_\_\_\_\_\_\_\_\_

9.  Value of interest in common/collective trusts
    \_\_\_\_\_\_\_\_\_\_\_\_

10. Value of interest in pooled separate accounts
    \_\_\_\_\_\_\_\_\_\_\_\_

11. Value of interest in master trust investment accounts
    \_\_\_\_\_\_\_\_\_\_\_\_

12. Value of interest in 103-12 investment entities
    \_\_\_\_\_\_\_\_\_\_\_\_

13. Value of interest in registered investment companies (e.g., mutual
    funds) \_\_\_\_\_\_\_\_\_\_\_\_

14. Value of funds held in insurance co. general account (unallocated
    contracts) \_\_\_\_\_\_\_\_\_\_\_\_

15. Employer-related investments:

Employer Securities \_\_\_\_\_\_\_\_\_\_\_\_

Employer real property \_\_\_\_\_\_\_\_\_\_\_\_

16. Buildings and other property used in plan operation
    \_\_\_\_\_\_\_\_\_\_\_\_

17. Other \_\_\_\_\_\_\_\_\_\_\_\_

[Critical or Endangered Status]{.underline}

Under federal pension law a plan generally will be considered to be in
"endangered" status if, at the beginning of the plan year, the funded
percentage of the plan is less than 80 percent or in "critical" status
if the percentage is less than 65 percent (other factors may also
apply). If a pension plan enters endangered status, the trustees of the
plan are required to adopt a funding improvement plan. Similarly, if a
pension plan enters critical status, the trustees of the plan are
required to adopt a rehabilitation plan. Rehabilitation and funding
improvement plans establish steps and benchmarks for pension plans to
improve their funding status over a specified period of time.

*{Instructions: Select and complete the appropriate option below.}*

*{Option one}*

The Plan was not in endangered or critical status in the Plan Year.

*{Option two}*

The Plan was in *\[insert "*endangered*" or "*critical*"\]* status in
the Plan Year because \[*insert summary description of why plan was in
this status based on statutory factors*\]. In an effort to improve the
Plan's funding situation, the trustees adopted \[*insert summary of
Plan's funding improvement or rehabilitation plan, including when
adopted and expected duration, and a description of any update to the
plan adopted during the plan year to which the notice relates\]*.

You may obtain a copy of the Plan's funding improvement or
rehabilitation plan and the actuarial and financial data that
demonstrate any action taken by the plan toward fiscal improvement by
contacting the plan administrator. \[*If applicable, insert: "*Or you
may obtain this information at \[*insert Intranet address of plan
sponsor (or plan administrator on behalf of the plan sponsor)*\].\]

[Events with Material Effect on Assets or Liabilities]{.underline}

Federal law requires trustees to provide in this notice a written
explanation of events, taking effect in the current plan year, which are
expected to have a material effect on plan liabilities or assets. For
the plan year beginning on \[*insert date*\] and ending on \[*insert
date*\], the following events are expected to have such an effect:
\[*insert explanation of any plan amendment, scheduled benefit increase
or reduction, or other known event taking effect in the current plan
year and having a material effect on plan liabilities and assets for the
year, as well as a projection to the end of the current plan year of the
effect of the amendment, scheduled increase or reduction, or event on
plan liabilities*\].

*{Instructions: Include the preceding discussion, entitled Events with
Material Effect on Assets or Liabilities, only if applicable.}*

[Right to Request a Copy of the Annual Report]{.underline}

A pension plan is required to file with the US Department of Labor an
annual report (i.e., Form 5500) containing financial and other
information about the plan. Copies of the annual report are available
from the US Department of Labor, Employee Benefits Security
Administration's Public Disclosure Room at 200 Constitution Avenue, NW,
Room N-1513, Washington, DC 20210, or by calling 202.693.8673. Or you
may obtain a copy of the Plan's annual report by making a written
request to the plan administrator. \[*If the Plan's annual report is
available on an Intranet website maintained by the plan sponsor (or plan
administrator on behalf of the plan sponsor), modify the preceding
sentence to include a statement that the Form also may be obtained
through that website and include the website address.*\]

# [Summary of Rules Governing Plans in Reorganization and Insolvent Plans]{.underline}

Federal law has a number of special rules that apply to financially
troubled multiemployer plans. Under so-called "plan reorganization
rules," a plan with adverse financial experience may need to increase
required contributions and may, under certain circumstances, reduce
benefits that are not eligible for the PBGC's guarantee (generally,
benefits that have been in effect for less than 60 months).  If a plan
is in reorganization status, it must provide notification that the plan
is in reorganization status and that, if contributions are not
increased, accrued benefits under the plan may be reduced or an excise
tax may be imposed (or both).  The law requires the plan to furnish this
notification to each contributing employer and the labor organization.

Despite the special plan reorganization rules, a plan in reorganization
nevertheless could become insolvent. A plan is insolvent for a plan year
if its available financial resources are not sufficient to pay benefits
when due for the plan year. An insolvent plan must reduce benefit
payments to the highest level that can be paid from the plan's available
financial resources. If such resources are not enough to pay benefits at
a level specified by law (see Benefit Payments Guaranteed by the PBGC,
below), the plan must apply to the PBGC for financial assistance. The
PBGC, by law, will loan the plan the amount necessary to pay benefits at
the guaranteed level. Reduced benefits may be restored if the plan's
financial condition improves.

A plan that becomes insolvent must provide prompt notification of the
insolvency to participants and beneficiaries, contributing employers,
labor unions representing participants, and PBGC. In addition,
participants and beneficiaries also must receive information regarding
whether, and how, their benefits will be reduced or affected as a result
of the insolvency, including loss of a lump sum option. This information
will be provided for each year the plan is insolvent.

[Benefit Payments Guaranteed by the PBGC]{.underline}

The maximum benefit that the PBGC guarantees is set by law. Only vested
benefits are guaranteed. Specifically, the PBGC guarantees a monthly
benefit payment equal to 100 percent of the first \$11 of the Plan's
monthly benefit accrual rate, plus 75 percent of the next \$33 of the
accrual rate, times each year of credited service. The PBGC's maximum
guarantee, therefore, is \$35.75 per month times a participant's years
of credited service.

*Example 1*: If a participant with 10 years of credited service has an
accrued monthly benefit of \$500, the accrual rate for purposes of
determining the PBGC guarantee would be determined by dividing the
monthly benefit by the participant's years of service (\$500/10), which
equals \$50. The guaranteed amount for a \$50 monthly accrual rate is
equal to the sum of \$11 plus \$24.75 (.75 x \$33), or \$35.75. Thus,
the participant's guaranteed monthly benefit is \$357.50 (\$35.75 x 10).

*Example 2*: If the participant in Example 1 has an accrued monthly
benefit of \$200, the accrual rate for purposes of determining the
guarantee would be \$20 (or \$200/10). The guaranteed amount for a \$20
monthly accrual rate is equal to the sum of \$11 plus \$6.75 (.75 x
\$9), or \$17.75. Thus, the participant's guaranteed monthly benefit
would be \$177.50 (\$17.75 x 10).

The PBGC guarantees pension benefits payable at normal retirement age
and some early retirement benefits. In calculating a person's monthly
payment, the PBGC will disregard any benefit increases that were made
under the plan within 60 months before the earlier of the plan's
termination or insolvency (or benefits that were in effect for less than
60 months at the time of termination or insolvency). Similarly, the PBGC
does not guarantee pre-retirement death benefits to a spouse or
beneficiary (e.g., a qualified pre-retirement survivor annuity) if the
participant dies after the plan terminates, benefits above the normal
retirement benefit, disability benefits not in pay status, or
non-pension benefits, such as health insurance, life insurance, death
benefits, vacation pay, or severance pay.

[Where to Get More Information]{.underline}

For more information about this notice, you may contact \[*enter name of
plan administrator and if applicable, principal administrative
officer*\], at \[*enter phone number and address and insert email
address if appropriate*\]. For identification purposes, the official
plan number is \[*enter plan number*\] and the plan sponsor's employer
identification number or "EIN" is \[*enter EIN of plan sponsor*\].
For more information about the PBGC and benefit guarantees, go to
PBGC\'s website, [www.pbgc.gov](http://www.pbgc.gov/), or call PBGC
toll-free at 1-800-400-7242 (TTY/TDD users may call the Federal relay
service toll free at 1-800-877-8339 and ask to be connected to
1-800-400-7242).