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EXHIBIT 10.4
ADMINISTRATIVE SERVICES AGREEMENT
CHICAGO KSB BENEFIT CONSULTANTS, INC. CHAMPAIGN
EMPLOYER INFORMATION
NAME: CENTRAL ILLINOIS BANCORP, INC.
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ADDRESS: 000 XXXXX XXXXX XXXXXX XXXXXX, XX 00000
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EMPLOYER'S TAXPAYER ID NUMBER: 00-0000000
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PLAN'S TAX ID NUMBER: ----------
NAME OF PLAN: CENTRAL ILLINOIS BANCORP, INC.
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EMPLOYEE STOCK PURCHASE PLAN
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CONTACTS XXXX XXXXXXX, XXXXX XXXXXXXX, XXXXXX XXXXXXX
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PHONE NUMBER: 000-000-0000 CHAMPAIGN; 000-000-0000 SIDNEY
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FAX NUMBER: 000-000-0000 CHAMPAIGN; 217-892-8000 SIDNEY
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AGREEMENT EFFECTIVE DATE: JANUARY 1, 1997
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The above-named Employer (the "Employer") retains KSB Benefit Consultants, Inc.
(KSB) to perform recordkeeping and other services under this Agreement in
connection with the Employer's qualified plan(s) identified above. This may
include plans established using prototype qualified plan documents furnished by
KSB or other plans (the "Plan"). The Contact Person listed above will act on
the Employer's behalf until the Employer notifies KSB otherwise in writing.
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KSB BENEFIT CONSULTANTS, INC. 1
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I. SERVICES PROVIDED
A. BASIC SERVICES
1. Allocate contributions and any forfeitures arising under the Plan
in accordance with the terms of the Plan and the information
provided by the Employer, subject to the applicable limitations of
the Internal Revenue Code of 1986, as amended ("Code").
2. Post any withdrawals, transfers distributions or future allocation
changes among funding vehicles. Post any dividends, interest or
other earnings to participants' accounts.
3. Value each participants account:
_______Monthly
_______Quarterly
X Annually
_______
4. Provide each participant with an annual statement in KSB
standard format (or more frequent statements if KSB and the Employer
agree) or in a format recommended by the Employer, showing the
balance and charges to the participant's account and such other
standard information as agreed.
Provide to each participant statements mutually agreed to by the
Employer and KSB. We guarantee "turn-around time" of thirty (30) days
after KSB receives ALL information necessary to prepare the reports
(for example, the valuation of closely held stock)
5. Prepare a Summary of Fund Operations and Plan Financial Statements
on a periodic basis:
_______Monthly
_______Quarterly
X Annually
_______
6. Process withdrawals by and distributions to participants and
beneficiaries in accordance with
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instructions from the Employer in accordance with Plan provisions.
Where applicable, calculate federal income tax withholding. KSB
will prepare and issue Form 1099R to report any such distributions.
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7. Calculate the division of a Participant's account subject to
a qualified domestic relations order (QDRO). The employer shall be
responsible to verify that an order qualifies as a QDRO. Upon
notification by the Employer, KSB shall compute the division and
establish a separate account for the ex-spouse.
B. LOANS NOT APPLICABLE
C. COMPLIANCE SERVICES
1. HCE DETERMINATION. Determine "highly compensated employees"
("HCEs"). The Employer will provide compensation data and identify
"officers" (as defined in the regulations.) The Employer will also,
if necessary, identify the family members of officers and/or HCEs
who are also employed by the Employer. The Employer will be
required to approve the list of the "highly compensated employees".
The Employer will be required to furnish this information via
electronically or by diskette in connection with the payroll
information.
2. ADP TEST. NOT APPLICABLE
3. TOP HEAVY TEST. Not Needed; plan is not top heavy
4. REFUNDS, ADP/ACP. NOT APPLICABLE
5. REFUNDS, 402(G). NOT APPLICABLE
6. ANNUAL ADDITION LIMIT. Based on information received from
the Employer, KSB shall process all corrective distributions which
are calculated by the Employer required to comply with Sec. 415(c)
Contribution limits. KSB shall make any necessary corrections as
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directed by the Employer. KSB shall not accept additional
contributions by Participants identified as exceeding the Sec.
415(c) limit.
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7. AGE 70 1/2. Shall calculate and process all distributions required
to comply with Sec. 401(a)(9). KSB shall provide the
Employer with a list of Partici-pants attaining age 70
1/2 in the next year, and current age 70 1/2
participants. After the Employer confirms the list, KSB
will calculate the distribution.
8. SERVICES NOT PROVIDED. KSB shall not perform the following
tax compliance services:
- Sec. 410(b) minimum coverage test. However, based on data
maintained by it, KSB shall provide participant count data to the
Employer necessary to report the minimum coverage test, as
necessary, on the Form 5500.
- Sec. 404 deduction limit. KSB can consult with the Employer
concerning compliance with the Sec. 415 contribution and Sec. 404
deduction limits.
- Sec. 415(e) combined benefit and contribution limit.
(Not APPLICABLE -- repealed after 1996)
9. PARTICIPANT DIRECTION. All requirements needed by the plan
to satisfy DOL Reg. Sec. 2550.404(c) will be the responsibility of
the Employer.
II. EMPLOYER RESPONSIBILITIES
A. PROVIDE ACCURATE AND COMPLETE INFORMATION. KSB will accept
information that the Employer presents as being accurate. This also
includes data supplied by any other recordkeeper or third party
representing the Plan. KSB will not accept responsibility for
errors in services or reports resulting from erroneous information
provided. If KSB must redo any of its services because of incorrect
data so provided, KSB may assess an additional fee.
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B. PROVIDE PAYROLL DATA ELECTRONICALLY OR BY DISKETTE. The Employer
will provide information including all Participant demographic
information, deferral and compensation information in the form of a
diskette. If any information is incomplete, improperly filled out
or ambiguous such that a transaction on behalf of a participant
cannot be processed, KSB will attempt to resolve the matter as soon
as practical by calling the Employer.
C. PROVIDE PLAN DOCUMENTS. The Employer will furnish KSB with all
information it needs to perform its services, including Plan
documents and any amendments thereto at the time of their execution.
If KSB finds an amendment unacceptable, KSB retains the right to
refuse to perform services under this Agreement. KSB will not be
responsible for: (a) the accuracy of the information provided by the
Employer, (b) any services, participant statements or reports based
on inaccurate information from the Employer, (c) the failure of the
Employer to properly and timely adopt a document drafted by KSB, or
(d) failure to provide any services, participant statements or
reports because of the Employer's failure to provide accurate
information on a timely basis, or
D. The Employer agrees to communicate information regarding the
Plan and procedures of the Plan directly to their employees.
EMPLOYEES WILL NOT CONTACT KSB.
E. Since the Plan is not a prototype plan sponsored by KSB the
Employer will be solely responsible for obtaining the IRS
qualification of the Plan and maintaining such qualification in the
future.
III. WARRANTY AND LIMITATION OF REMEDY AND LIABILITY
A. KSB does not warrant that its services hereunder will be
uninterrupted or error free; but KSB does agree that such services
will be provided without any willful misconduct, negligence, bad
faith, or failure to use due care on its part. For purposes of this
Agreement, negligence means a failure to use reasonable diligence
and the degree of skill and judgment possessed by one experienced in
furnishing comparable services to
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retirement plans of similar size with characteristics similar to
those of the Plan. KSB liability under this warranty is llimited
under this warranty tp the obligation to correct any errors in
service attributable solely to KSB without additional charge to the
Employer.
B. The Employer will defend, indemnify and hold KSB, its
employees, officers and directors harmless from any and all loss,
damage, penalty, liability, cost and expense incurred by, imposed
upon or asserted against them by any person, including the Employer,
its affiliates, officers, employees, agents or subcontractors, by
reason of any claim, judicial or regulatory proceeding arising from
any act or failure to act in connection with the services provided
under this Agreement, except where such loss, damage, penalty,
liability, cost or expense was a consequence of KSB or such other
person(s) willful misconduct or negligence.
IV. WAIVER; ASSIGNMENT; AMENDMENT; GOVERNING LAW
A. The failure of either party to strictly enforce any provision
of this Agreement shall not operate as a waiver of such provision or
release either party from its obligations under this Agreement
strictly in accordance with such provision.
B. Neither KSB nor the Employer may assign this Agreement
without the written consent of the other party.
C. This Agreement may be amended only by a written amendment
signed by both parties.
D. This Agreement will be governed by the laws of Illinois
except to the extent that federal law may preempt or supersede such
state law.
NOTE: KSB is not an investment manager, trustee, or other fiduciary. KSB acts
only as the plan administrator's (the employer's) agent and provider of the KSB
prototype plan document.
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GUARANTEE: KSB guarantees delivery of participant statements within thirty
(30) days after KSB receives ALL information necessary to prepare the reports.
This includes investment manager or trustee reports and final payroll reports.
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V. SERVICE AGREEMENT SIGNATURES
EMPLOYER
CENTRAL ILLINOIS BANCORPORATION
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Plan Sponsor
By: Xxxxxx X. Xxxxxxxx /s/ Xxxxxx X. Xxxxxxxx
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Print name Signature
Chief Financial Officer January 1, 1997
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Print Title Date Signed
KSB BENEFIT CONSULTANTS, INC.
By:
XXXX X. XXXXXX /s/ Xxxx X. Xxxxxx
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Print name Signature
OPERATIONS MANAGER January 1, 1997
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Print Title Date Signed
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