Note

Retirement Plans

The Company has a defined contribution plan pursuant to Section

401(k)

of the Internal Revenue Code for all employees who have reached defined minimum age and term of service requirements (the “Defined Contribution Plan”, or the “DC Plan”). The Company makes safe harbor contributions and matches employees' contributions to the Defined Contribution Plan as annually determined by EMC's Board of Directors. Additionally, the DC Plan has a profit sharing component which provides for contributions to the DC Plan at the discretion of EMC's Board of Directors. Amounts contributed to the DC Plan vest immediately. The Company's total contributions to the Defined Contribution Plan amounted to approximately

$168,700

and

$187,000

for the years ended

December

31,

2016

and

2015,

respectively.

The Company had a qualified non-contributory cash balance defined benefit retirement plan covering certain eligible employees (the “Pension Plan”, or the “Plan”) that was terminated in

December

2015.

Participants accumulated annual service credits as determined by their participation level according to the plan document and became fully vested after

three

years of service, including credits given for prior service. Interest was accrued on these accumulated amounts at an annual rate of

5%.

All participants were fully vested upon the Plan’s termination.

Net periodic benefit cost recognized in the consolidated statements of operations consists of the following during the year ended

December

31,

2015:

Service cost	$	100,000
Interest cost		49,500
Expected return on plan assets		(64,800	)
Settlements		40,900

Net periodic benefit cost	$	125,600

The projected benefit obligation (the “PBO”) and accumulated benefit obligation are determined as the actuarial present value of the vested benefits to which the employees are currently entitled but based on their expected date of separation or retirement. The change in the projected benefit obligation of the Pension Plan and the change in assets at fair value are as follows during the year ended

December

31,

2015:

Change in PBO:

PBO, beginning of year	$	990,700
Service cost		100,000
Interest cost		49,500
Actuarial (gain) loss		(24,700	)
Settlements		(1,115,500	)
Benefits paid		-

PBO, end of year	$	-

Change in Plan assets:

Fair value, beginning of year		640,600
Actual return on plan assets		(800	)
Company contributions		475,700
Benefits paid		(1,115,500	)

Fair value, end of year	$	-

Funded status at December 31, 2015	$	-

The Company’s funding policy for the Plan was to fund at least the amount actuarially determined necessary to comply with the minimum funding standards as defined by the Employee Retirement Income Security Act.

Assumptions used in accounting for the projected benefit obligation at

January

2015

included a discount rate of

and long-term asset return of

7%.

The Plan's investment policy reflected the long-term nature of the plan's funding obligations. The assets were invested to provide the opportunity for both income and growth of principal. This objective was pursued as a long-term goal designed to provide required benefits for participants without undue risk. It was expected that this objective would be achieved through a well-diversified asset portfolio. As such, the Plan’s assets, which were classified as Level I assets, were invested in a publicly traded mutual fund with a domestic blend of stocks and bonds at

January

2015.

Upon the termination of the Plan in

2015,

all Plan assets were distributed.