EX-99.B14(h)
PROTOTYPE STANDARD PROFIT SHARING PLAN ADOPTION AGREEMENT
The undersigned employer(s)- ______________________, hereinafter referred to as
the "Employer", hereby adopts the ___________________ PROTOTYPE STANDARD 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 nonforfeitable
right to 100% of the Participant's account balance
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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 owners, officers, 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.
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:
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.
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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.
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.
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 __________ 4 __________ (at least 60%)
2 __________ (at least 20%) 5 __________ (at least 80%)
3 __________ (at least 40%) 6 100%
9.4 / / Three Year Vesting Schedule
100% vested after the completion of three (3) Covered Years of
Service.
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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 and shall be allocated
pursuant to Section 11 of this Adoption Agreement to those Participants who
have not incurred a Break in Service. Forfeitures of Employer
Contributions shall be:
10.1 / / applied to reduce the Employer's Contribution.
10.2 / / added to the Employer's contribution and allocated
therewith.
11. ALLOCATION OF CONTRIBUTIONS
The Employer contribution to the Plan will be allocated among Participant
Accounts:
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).
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(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 Profit Sharing 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.
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:
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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 Agreement 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:
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:
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15.3 / / If the Participant is or has ever been a Participant in a
defined benefit plan maintained by the Employer, the benefits
under the plans will be limited as follows (this method must
preclude Employer discretion):
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 contributions 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
18.2 / / vesting (Covered Years of Service)
19. ADMINISTRATOR shall mean:
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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 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.
Address Taxable Year
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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.
Administrator(s) Name(s): Signature(s):
Optional Provision - To be elected if Plan Section 10.6(E) is not elected.
24. APPOINTMENT OF TRUSTEE - Signature by the Trustee is in acknowledgement of
acceptance of appointment.
Trustee Name: Signature:
25. APPOINTMENT OF TRUSTEE OR CUSTODIAN (Select 29.1 or 29.2)
Incorporated businesses must name a Trustee. Unincorporated businesses
covering one or more Self Employed Individuals may appoint a Custodian or a
Trustee.
25.1 / / Trustee - Signature by the Trustee is in acknowledgement of
acceptance of appointment.
Trustee Name: Signature:
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25.2 / / Custodian - _____________ is hereby appointed as Custodian.
Signature of Authorized Individual Accepting Appointment.
Optional Provision - To be elected if Plan Section 10.7 is elected.
26. INSURANCE TRUSTEE - Signature by the Trustee is in acknowledgement 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.
An Employer who has ever maintained or who later adopts any plan (including
a welfare benefit fund, as defined in Section 419(e) of the Code, which
provides post-retirement medical benefits allocated to separate accounts
for key employees as defined in Code Section 419A(d)(3), or an individual
medical account, as defined in Section 415(1)(2) of the code) in addition
to this Plan other than paired plans:
Plan #01 - Adoption Agreement 000
Xxxx #00 - Adoption Agreement 001, 002, 006, 009, 010
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. If the Employer who adopts or
maintains multiple plans other than the paired plans identified above
wishes to obtain reliance that its plans are qualified, application for a
determination letter should be made to the appropriate Key District
Director of Internal Revenue.
Failure of the Employer to properly complete this Adoption Agreement may
result in the disqualification of this Plan.
27. < 26 >. SPONSORING ORGANIZATION
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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
DATE OF EXECUTION SIGNATURE TITLE
Document #61735
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