NORTH AMERICAN DIVERSIFIED INC.

rs when an individual turns age 60, 61, 62, or 63, the limit is increased to $34,750). The maximum combined amount – consisting of both the employee’s contributions and the Fund’s matching contributions – that can go into the Thrift Plan is $70,000 per year for those under the age of 50 and $77,500 per year for those age 50 and over (except for years when an individual turns age 60, 61, 62, or 63, the limit is increased to $81,250). The Nonqualified Plan permits an eligible employee to contribute to the Nonqualified Plan up to the maximum amount of 6% of the employee’s base salary and cash incentive compensation that he or she is prevented from contributing to the Thrift Plan because of the Internal Revenue Code’s limitations on annual contributions, and for the Fund to contribute the 100%

lly surrender charges and living income benefit rider charges assessed against policyholder account balances during the period. In the case of variable annuities, revenues include administrative fees assessed to contract holders. These revenues are included within “Other policy revenue” in the Consolidated Statements of Operations. Universal life and single premium whole life revenues represent amounts assessed to policyholders including amounts recorded as “Other policy revenue” in the Consolidated Statements of Operations such as mortality charges, surrender charges actually paid, and earned policy service fees. Amounts included in the Consolidated Statements of Operations as “Policyholder benefits and claims incurred” are claims in excess of account balances returned to policyholders. I