EX-99.B14(d)
PROTOTYPE NON-STANDARD PROFIT SHARING PLAN ADOPTION AGREEMENT
The undersigned employer(s) - _______________________, hereinafter referred to
as the "Employer", hereby adopts the _______________________ PROTOTYPE NON-
STANDARD PROTOTYPE PROFIT SHARING PLAN AND TRUST.
1. EMPLOYER TAX IDENTIFICATION NUMBER _______________________________.
2. The EFFECTIVE DATE of the Plan shall be __________________________.
3. The EFFECTIVE DATE of this amendment _____________________________.
4. The ANNIVERSARY DATE of the Plan shall be ________________________.
5. The ENTRY DATE(S) of the Plan:
5.1 _____________ shall be the first Entry Date.
5.2 _____________ shall be the second Entry Date.
(The Entry Date(s) may not postpone entry into the Plan later than the earlier
of (a) the first day of the Plan Year beginning after the date on which an
Employee satisfies the requirements of Section 6 below, or (b) the date 6 months
after the date such requirements were satisfied).
6. ELIGIBILITY REQUIREMENTS - Each Employee will be eligible to participate
in this Plan in accordance with Section 5 of this Adoption Agreement, except the
following:
6.1 / / Employees who have not attained the age of _____ (cannot
exceed 21).
6.2 / / Employees who have not completed _____ Year(s) of Service
(cannot exceed 1 year unless the Plan provides a
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nonforfeitable right to 100% of the Participant's account
balance derived from Employer contributions after not more
than 2 Years of Service, in which case, up to 2 years is
permissible. If the Year(s) of Service selected is, or
includes, a fractional year, an Employee will not be
required to complete any specified Hours of Service to
receive credit for such fractional year.).
6.3 / / Employees included in a unit of Employees covered by a
collective bargaining agreement between the Employer and
Employee representatives, if retirement benefits were the
subject of good faith bargaining. For this purpose, the
term "Employee Representatives" does not include any
organization more than half of whose members are employees
who are owners, officer, or executives of the Employer.
6.4 / / Employees who are nonresident aliens and who receive no
earned income from the Employer which constitutes income
from sources within the United States.
6.5 / / a salaried employee.
6.6 / / an hourly employee.
6.7 / / a commissioned salesperson.
The term "Employee" shall include all Employees of this Employer and any
other employer aggregated with this Employer under Internal Revenue Code
Section 414(b), (c) or (m) and individuals required to be considered
Employees or any such Employer under Code Section 414(n) or under
regulations under Code Section 414(o).
7. COMPENSATION shall mean all of each Participant's:
7.1 / / W-2 earnings
7.2 / / Compensation (as that term is defined in Section 415(c)(3)
of the Code)
which is actually paid to the Participant during:
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7.3 / / The Plan Year.
7.4 / / The taxable year ending with or within the Plan Year.
7.5 / / The Limitation Year ending with or within the Plan Year.
Compensation:
7.6 / / Shall include
7.7 / / Shall not include
employer contributions made pursuant to a salary reduction agreement which
are not includable in the gross income of the employee under sections 125,
402(a)(8), 402(h) or 403(b) of the Code.
7.8 / / Basic Salary
7.9 / / Basic Hourly
7.10 / / Commissions
7.11 / / Bonuses
7.12 / / Other _______________________________________.
The exclusions shall not apply if the Plan utilizes Permitted Disparity or
indetermining minimum benefits and contributions.
8. NORMAL RETIREMENT AGE shall mean:
The later of age _____ (not to exceed age 65) or the _____ (not to exceed
5th) anniversary of the first day of the first Plan Year in which the
Participant commenced participation in the Plan.
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9. VESTING
If a Participant terminates prior to Normal Retirement Age he shall receive
a percentage of his Accrued Benefit according to the vesting schedule
checked below:
9.1 / / One Hundred Percent schedule.
100% at all times.
9.2 / / Twenty Percent Schedule.
20% after the second Covered Year of Service and 20% for each
additional Covered Year of Service.
9.3 / / Variable Schedule.
Based on Covered Years of Service after Year:
1 __________ 3 __________ 5 __________ 7 100%
2 __________ 4 __________ 6 __________
This option 9.3 shall not be less favorable than the vesting schedules
contained in Internal Revenue Code Sections 411(a)(2)(A) and (B).
Note: Option 9.2 will automatically apply if and when this Plan shall
become top heavy provided that Option 9.1 has not been elected and Option
9.3 is not at least as favorable as Option 9.2.
9.4 / / Three-Twenty Schedule.
20% after 3 Covered Years of Service and 20% for each additional
Covered Year of Service.
9.5 / / Cliff Schedule.
Full vesting after 5 Covered Years of Service.
COVERED YEARS OF SERVICE for Vesting purposes shall exclude:
9.6 / / Years of Service before age 18.
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9.7 / / Years of Service prior to the Effective Date of the Plan or
a predecessor plan.
9.8 / / Years of Service in which the Employee declined to make
mandatory contributions to the Plan.
If the vesting schedule under the Plan(s) shifts in or out of the above
vesting schedule for any Plan Year because of the Plan's top heavy status,
such shift is an amendment to the vesting schedule and the election in
Section 1.4 of the Plan applies.
Notwithstanding the above, the Accrued Benefit shall become fully vested at
Normal Retirement Age.
10. CONTRIBUTIONS
Employer contributions under the Plan shall be made solely at the
discretion of the Employer but not in excess of 15% of Participant
Compensation plus the dollar amount of any credit carryovers, up to the
maximum amount specified in Section 5.5 of the Plan.
10.1 / / Forfeitures of Employer Contributions shall be used to
reduce the Employer's Contribution.
10.2 / / Forfeitures of Employer Contributions shall be added to the
Employer's Contribution and allocated therewith.
10.3 / / The Employer shall not make a contribution on behalf of a
Participant who terminates employment with the Employer by
reason other than death, disability or retirement and who is
not employed with the Employer on the Anniversary Date.
11. ALLOCATION OF CONTRIBUTIONS
The Employer Contribution to the Plan will be allocated among the accounts
of Participants who have completed a Year of Service during the Plan Year
unless such allocation would cause the Plan to fail the nondiscrimination
tests of Code Section 401(a)26 and 410(b). In that case, Employees who
have completed 500 Hours of Service during the Plan Year shall be made
Participants and the accounts of all Participants who have completed 500
Hours of Service during the Plan Year shall share in the allocation of
contribution.
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11.1 / / ALLOCATION BASED ON COMPENSATION - In the ratio which each
Participant's Compensation bears to the Compensation paid to
all Participants.
11.2 / / ALLOCATION UNDER PERMITTED DISPARITY RULES - Employer
contributions for the Plan Year plus any forfeitures will be
allocated to Participants' accounts as follows:
If the Plan is Top Heavy for the Plan Year (as defined in Section 8 of the
Plan document), begin at step (1), otherwise begin at step (3).
(1) Contributions and forfeitures will be allocated to each
Participant's account in the ratio that each Participant's total
Compensation bears to all Participant's total Compensation, but
not in excess of 3% of each Participant's Compensation.
(2) Any contributions and forfeitures remaining after the allocation
in (1) above will be allocated to each Participant's account in
the ratio that each Participant's Compensation for the Plan Year
in excess of the Integration Level bears to the Excess
Compensation of all Participants, but not in excess of 3%.
(3) Any contributions and forfeitures (remaining after the allocation
in (2) above in the case of a Top Heavy Plan) will be allocated
to each Participant's account in the ratio that the sum of each
Participant's total Compensation and Compensation in excess of
the Integration Level bears to the sum of all Participants' total
Compensation and Compensation in excess of the Integration Level,
but not in excess of the Maximum Disparity Rate.
(4) Any remaining Employer contributions or forfeitures will be
allocated to each Participant's account in the ratio that each
Participant's total Compensation for the Plan Year bears to all
Participant's total Compensation for that year.
12. EXCESS COMPENSATION SHALL MEAN COMPENSATION IN EXCESS:
12.1 / / of the Taxable Wage Base in effect as of the beginning of
the Plan Year.
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12.2 / / of $ __________ (a dollar amount less than the Taxable Wage
Base).
12.3 / / of _____% of the Taxable Wage Base (not to exceed 100%).
13. INDIVIDUAL INVESTMENT ACCOUNTS:
13.1 / / Will not be used.
13.2 / / Will be used as follows:
Each Participant will have a separate Individual Investment Account
which will contain the amount allocated to the Participant Account.
Each Participant will have the power to direct the investment with
respect to his Individual Investment Account subject to such rules as
the Administrator and the Trustee may deem necessary. Gains and
losses of the Account shall accrue to such Account only.
14. LIMITATION YEAR shall mean each 12 consecutive month period ending on
__________.
NOTE: A written resolution must be adopted by the Employer if the
Limitation Year is other than the calendar year.
15. LIMITATION IN BENEFITS - If the Employer maintains or has ever,
maintained, in addition to this Plan, one or more plans which are either
qualified defined benefit plans or qualified defined contribution plans
other than paired plan:
Plan #01 - Adoption Agreement 000
Xxxx #00 - Adoption Agreements 001, 002, 005, 009
in which any Participant in this Plan is (or was) a participant or could
possibly become a participant, the Employer must complete this Section.
The Employer must also complete this Section if it maintains a welfare
benefit fund, as defined in Code Section 419(e), or an individual medical
account, as defined in Code Section 415(1)(2) under which amounts are
treated as annual additions with respect to any Participant in this Plan.
If any Participant is covered under another qualified defined contribution
plan maintained by the Employer, other than a master or prototype plan:
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15.1 / / The provisions of Section 5.5 (B) of the Plan will apply as
if the other plan were a master or prototype plan.
15.2 / / The total Annual Additions will be limited to the maximum
permissible amount and excess amounts will be reduced in a
manner that precludes Employer discretion, as follows:
16. MINIMUM CONTRIBUTION FOR TOP HEAVY PLAN - If the Employer maintains one or
more defined benefit plans in which a Participant participates in addition
to this Plan and does not maintain any other defined contribution plans in
which a Participant participates, the minimum benefit requirement
applicable to Top Heavy Plans shall be met under this Plan.
If the minimum benefit requirement is met under this Plan, the additional
minimum benefit:
16.1 / / Shall be provided.
16.2 / / Shall not be provided.
17. YEAR OF SERVICE shall mean
17.1 / / 1000 Hours of Service
17.2 / / __________ Hours of Service (less than 1000 Hours of
Service).
18. PREDECESSOR EMPLOYER - Service with the following Predecessor Employer(s):
.
shall be counted for purposes of:
18.1 / / eligibility Years of Service.
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18.2 / / vesting (Covered Years of Service).
19. ADMINISTRATOR shall mean:
19.1 / / The Employer.
19.2 / / Individuals specified in item 23 below.
20. OTHER BENEFITS
20.1 / / Early Retirement Benefit (fully vested): Subject to the
Joint and Survivor Annuity requirements, any Participant may
retire and receive the entire amount in his Participant
Account provided he has attained age _____ and has at least
_____ Covered Years of Service.
21. ACTUARIAL EQUIVALENT - For purposes of establishing present value to
compute the top heavy ratio, benefit payments shall be discounted only for
mortality and interest based on the following:
21.1 / / Pre-Retirement Interest Rate _____%
21.2 / / Post-Retirement Mortality Table __________ with _____%
interest.
22. PARTICIPATING AFFILIATES - Each Affiliate (i.e., each member of a
controlled group of corporations, commonly controlled group of trades or
businesses, or an affiliated service group within the meaning of section
414 of the Code) must adopt this Plan as a Participating Affiliate.
(Attach additional signature pages if there is more than one Participating
Affiliate).
Participating Affiliate Name Employer I. D.
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Address Taxable Year
By Title Date
23. ADMINISTRATOR - If Option 19.2 is elected the following named individuals
shall serve as Plan Administrator.
Signature by the Administrator (if other than the Employer) is in
acknowledgment of acceptance of appointment as Administrator.
Administrator(s) Name(s) Signature(s):
24. Appointment of Trustee or Custodian (Select 24.1 or 24.2)
Incorporated businesses must name a Trustee. Unincorporated businesses
covering one or more Self Employed Indificuals may appoint a Custodian or a
Trustee.
24.1 / / Trustee - Signature by the Trustee is in acknowledgement of
acceptance of appointment.
Trustee Name: Signature:
24.2 / / Custodian - ____________ is hereby appointed as Custodian.
Signature of Authorized Individual Accepting Appointment
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Optional Provision - To be elected if Plan Section 10.7 is elected.
25. INSURANCE TRUSTEE - Signature by the Trustee is in acknowledgment of
acceptance of appointment.
Insurance Trustee Name: Signature:
26< 25>. ADOPTION AGREEMENT USAGE
This Adoption Agreement is only to be used with basic Defined Contribution
Plan document 02.
The Adopting Employer may not rely on the opinion letter issued by the
National Office of the Internal Revenue Service as evidence that this Plan
is qualified under Section 401 of the Internal Revenue Code. In order to
obtain reliance with respect to qualification, application for a
determination letter should be made to the appropriate Key District
Director of Internal Revenue.
27< 26>. SPONSORING ORGANIZATION
The Sponsoring organization or its authorized representative identified
below will inform the adopting employer of any amendments made to the Plan
or of the discontinuance or abandonment of the Plan.
The organization sponsoring this Plan is ______________________________.
The authorized representative of the sponsoring organization is
___________________________.
The Employer represents that the legal and tax aspects of this Plan and
Trust have been duly considered and passed upon by its attorney and/or tax
advisor who has determined that it is suitable and has been properly
completed and adopted.
ADOPTION FOR THE EMPLOYER
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Date of Execution Signature Title
Document #61728
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