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1 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--Continued ADJUSTERS INTERNATIONAL, INC. AND SUBSIDIARIES December 31, 2016 and 2015 1 NOTE G--RETIREMENT PLANS--Continued The Plan also has a 401(k) feature for its eligible employees. This option provides for voluntary participation by employees with allowed contributions up to a maximum not to exceed $18,000 for 2016 and 2015. The Company makes a matching contribution whictotals 50% of the employees' individual contributions, up to 3%. The Company madem Ching contributions of $106,756 and $117,483 for the years ended December 31, 2016 and,2200',15yrespectively. Tidal Basin has a 401(k) and profit sharing plan for subst'ntiy all of its employees. The 401(k) feature of the plan provides for voluntary participation by employees with allowed contributions up to a maximum not to exceed $18,000 for701'6. Tidal Basin makes a safe harbor matching contribution which totals 100% of the--first 3% and 50% of the next 2% of the employees' individual contributions. Tidal Basin(ad'e matching contributions of approximately $32,000 for the period April 15, 2016 through=Decemb r 31, 2016. Under the profit sharing feature of the Plan, the amount to be contributed in any one year is determined annually by the Board oD ectors. Tidal Basin did not make a profit sharing contribution to the plan for the periioodd April 15, 2016 through December 31, 2016. Effective January 1, 2017, the[Tid lBasin-GC 401(k) & PS Plan and Trust was merged into the Adjuster's International 401iRetirement Savings Plan. NOTE H--RELATED PARTY TRANSACTIONS/LEASES AI is wholly-owned by business entities and individuals whose primary business is public adjusting. A majority of the stockholders of AI operate separate entities ("Participants") in different regions of the country and in additional markets located outside the United States. AI's operating agreement with each of the Participants determines a base operating agreement fee to be paid to AI on a quarterly basis. The operating agreement further defines the percentage of the losses, adjusted by each of the Participants, to be paid to AI for support and public adjusting work performed on behalf of AI. The agreements stipulate a minimum amount of payments that need to be made to AI relating to adjusted losses. The agreements were renewed on January 1, 2015 with modified percentage fees for the Participants' adjusting work through December 31, 2016, at which time the agreements expired. The agreements were renewed with similar terms through December 31, 2018. -19-