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2002 Annual Report 43
NOTE 9— EMPLOYEE BENEFIT PLANS
The Company sponsors a contributory profit sharing and savings plan that covers substantially all employees who are
21 years of age with at least six months of service. Employees may contribute up to 100% of their annual compensa-
tion subject to Internal Revenue Code maximum limitations. The Company has agreed to make matching contributions
equal to 50% of the first 2% of each employee’s contribution and 25% of the next 4% of each employee’s contribution.
Additional contributions to the plan may be made as determined annually by the Board of Directors. After two years of
service, Company contributions and earnings thereon vest at the rate of 20% per year. Company contributions charged
to operations amounted to $3,438,000 in 2002, $3,207,000 in 2001 and $2,454,000 in 2000. Company contribu-
tions, in the form of common stock, to the profit sharing and savings plan to match employee contributions during the
years ended December 31 were as follows:
YEAR MARKET
CONTRIBUTED SHARES VALUE
2002 41,332 $1,202,000
2001 37,567 969,000
2000 49,891 724,000
Profit sharing contributions accrued at December 31, and funded in the next year through the issuance of shares
of the Company’s common stock were as follows:
YEAR MARKET
FUNDED SHARES VALUE
2002 77,876 $2,200,000
2001 88,118 1,729,000
2000 132,890 1,919,000
The Company also sponsors a non-funded non-contributory defined benefit healthcare plan, which provides certain
health benefits to qualified retired employees. According to the terms of this plan, retirees’ annual benefits are limited
to $1,000 per employee starting at age 66 for employees with 20 or more years of service. Post-retirement benefit
costs for each of the years ended December 31, 2002, 2001 and 2000 amounted to $12,000.
Additionally, the Company has adopted a stock purchase plan under which 1,000,000 shares of common stock
are reserved for future issuance. Under the plan, substantially all employees and non-employee directors have the right
to purchase shares of the Company’s common stock monthly at a price equal to 85% of the fair market value of the
stock not to exceed 5% of the participant’s annual salary. Purchases of common stock under the plan during the years
ended December 31 were as follows:
WEIGHTED-
AVERAGE
YEAR SHARES PRICE
2002 102,662 $25.18
2001 97,991 22.13
2000 147,315 12.83
The Company has in effect a performance incentive plan for the Company’s senior management under which
400,000 shares of restricted stock are reserved for future issuance. Under the plan, 5,881 shares were issued during
2002, no shares were issued during 2001, and 12,164 shares were issued during 2000.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)