Whitaker Construction Group Employee Health Benefit Tr

TO COLLECT AND TRACK DEPOSITS FROM THE EMPLOYER (PLAN SPONSOR) BY EMPLOYEE,FOR AMOUNTS EARNED THROUGH PREVAILING WAGE (PER CA DIR) OR CONTRIBUTIONS MADE IN ADDITION TO BY THE EMPLOYER, AND TRACK PAYMENTS MADE FROM THE EMPLOYEE BENEFIT TRUST PLAN (EBT) TO OUR EMPLOYER-DESIGNATED HEALTH AND DENTAL PLANS.

THE VAST MAJORITY OF REVENUES AND EXPENSES ARE GENERATED BY THEOPERATIONS OF THE EMPLOYEE BENEFIT TRUSTS (EBT) PLAN SPONSOR(EMPLOYER). THE REVENUE NOTED ABOVE CONSISTS OF DEPOSITS MADE BY THEEMPLOYER TO THE EBT ACCOUNT, WHICH IS TRACKED BY EMPLOYEE. THECALCULATION OF THE AMOUNTS DEPOSITED BY THE EMPLOYER ARE BASED ON THEAPPLICABLE RATES SET FORTH BY THE CALIFORNIA DEPARTMENT OF INDUSTRIALRELATIONS (CA DIR). CA DIR RATES DEPEND ON THE CRAFT PERFORMED BY THEEMPLOYEE ON PREVAILING WAGE-BASED JOBS. CONTRACTS THAT REQUIREPREVAILING WAGE RATES PAID TO THEIR EMPLOYEES ARE USUALLY WITHMUNICIPALITIES THAT RECEIVE THEIR PROJECT FUNDING FROM TAXPAYERDOLLARS. THE HEALTH PORTION OF THESE FRINGE BENEFITS ARE CALCULATED,ACCRUED, AND DEPOSITED TO THE EBTS BANK ACCOUNT MONTHLY BY THE EMPLOYER (EVEN THOUGH DEPOSITS ARE ONLY REQUIRED TO BE MADE QUARTERLY).THESE INDIVIDUALLY TRACKED FUNDS ARE THEN USED TO PAY FOR THEEMPLOYEES HEALTH AND DENTAL INSURANCE PREMIUMS. THE EMPLOYEE ALSOCONTRIBUTES AN ADDITIONAL AMOUNT BASED ON THE PERCENTAGE OF PRIVATEWAGE-BASED HOURS WORKED, DUE TO THE FACT THAT THE CA DIR SPECIFIES THATTHE PREVAILING WAGE BENEFITS EARNED CANNOT BE USED TO PAY FOR THEENTIRE PORTION OF THE EMPLOYEES PREMIUM, IF HE/SHE HAD PRIVATE WAGEEARNINGS IN THE SAME PERIOD. THUS, THE EXPENSES CONSIST OF THE HEALTHAND DENTAL INSURANCE PREMIUMS THAT ARE PAID OUT OF THE EBT.

REPORTED SEPARATELY FROM THE AMOUNTS NOTED ABOVE IN SECTION 4A, AREAMOUNTS THAT WERE PAID BY THE EMPLOYEE TO THE EBT PLAN, TOWARDS THEEMPLOYEES ACCOUNT, IN ORDER TO PROVIDE A SUFFICIENT BALANCE TO COVERTHEIR PREMIUMS DUE. THESE DEPOSITS ARE REQUIRED BY THE EMPLOYEE ATTIMES WHEN THE EMPLOYEE HAS NOT WORKED A SUFFICIENT NUMBER OF HOURSDURING THE MONTH TO COVER HIS/HER PREMIUMS DUE. FOR INSTANCE, IF THEREIS NOT ENOUGH WORK AVAILABLE TO THE EMPLOYEE, AND THE EMPLOYEES EBTBALANCE CANNOT COVER THEIR HEALTH AND DENTAL INSURANCE PREMIUMS, THEEMPLOYEE MUST COVER THE BALANCE OF THEIR PREMIUMS DUE BY DEPOSITINGADDITIONAL FUNDS TO THEIR EBT ACCOUNT. BY WORKING AN AVERAGE OF 40HOURS PER WEEK, THE EMPLOYEE IN ENSURED THAT HIS/HER PREMIUMS WILL BECOVERED BY THE AMOUNTS EARNED EITHER THROUGH THEIR PREVAILING WAGE HOURS WORKED ON PUBLIC CONTRACTS, OR FOR HOURS WORKED ON PRIVATE JOBS,WHICH THE PROPER PERCENTAGE OF THEIR PREMIUMS ARE COVERED BY THEEMPLOYER.