ADOPTION AGREEMENT #003
NONSTANDARDIZED CODE SECTION 401(k) PROFIT SHARING PLAN
The undersigned, NATIONAL AUTO FINANCE CORPORATION ("Employer"), by executing
this Adoption Agreement, elects to become a participating Employer in the
EJREYNOLDS, INC. DEFINED CONTRIBUTION PROTOTYPE PLAN (BASIC PLAN DOCUMENT #01)
by adopting the accompanying Plan and Trust in full as if the Employer were a
signatory to that Agreement. The Employer makes the following elections granted
under the provisions of the Prototype Plan.
ARTICLE I
DEFINITIONS
1.02 TRUSTEE. The Trustee executing this Adoption Agreement is: (Choose (a)
or (b))
[X] (a) A discretionary Trustee. See Section 10.03[A] of the
Plan.
[ ] (b) A nondiscretionary Trustee. See Section 10.03[B] of
the Plan. [Note: The Employer may not elect Option
(b) if a Custodian executes the Adoption Agreement.]
1.03 PLAN. The name of the Plan as adopted by the Employer is: NATIONAL
AUTO FINANCE CORPORATION 401(K) PLAN.
1.07 EMPLOYEE. The following Employees are not eligible to participate in
the Plan: (Choose (a) or at least one of (b) through (g))
[ ] (a) No exclusions.
[ ] (b) Collective bargaining employees (as defined in Section
1.07 of the Plan). [Note: If the Employer excludes
union employees from the Plan, the Employer must be
able to provide evidence that retirement benefits were
the subject of good faith bargaining.]
[ ] (c) Nonresident aliens who do not receive any earned income
(as defined in Code ss.911(d)(2)) from the Employer
which constitutes United States source income (as
defined in Code ss.861(a)(3)).
[ ] (d) Commission Salesmen.
[ ] (e) Any Employee compensated on a salaried basis.
[ ] (f) Any Employee compensated on an hourly basis.
[X] (g) (Specify) Part-time employees who work less than thirty
(30) hours per week.
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Leased Employees. Any Leased Employee treated as an Employee under
Section 1.31 of the Plan, is: (Choose (h) or (i))
[X] (h) Not eligible to participate in the Plan.
[ ] (i) Eligible to participate in the Plan, unless excluded by
reason of an exclusion classification elected under
this Adoption Agreement Section 1.07.
Related Employers. If any member of the Employer's related group (as
defined in Section 1.30 of the Plan) executes a Participation
Agreement to this Adoption Agreement, such member's Employees are
eligible to participate in this Plan, unless excluded by reason of an
exclusion classification elected under this Adoption Agreement Section
1.07. In addition: (Choose (j) or (k))
[X] (j) No other related group member's Employees are eligible
to participate in the Plan.
[ ] (k) The following nonparticipating related group member's
Employees are eligible to participate in the Plan
unless excluded by reason of an exclusion
classification elected under this Adoption Agreement
Section 1.07: .
1.12 COMPENSATION.
Treatment of elective contributions. (Choose (a) or (b))
[X] (a) "Compensation" includes elective contributions made by
the Employer on the Employee's behalf.
[ ] (b) "Compensation" does not include elective contributions.
Modifications to Compensation definition. (Choose (c) or at least
one of (d) through (j))
[X] (c) No modifications other than as elected under Options
(a) or (b).
[ ] (d) The Plan excludes Compensation in excess of
$_______________________________________________.
[ ] (e) In lieu of the definition in Section 1.12 of the Plan,
Compensation means any earnings reportable as W-2 wages
for Federal income tax withholding purposes, subject to
any other election under this Adoption Agreement
Section 1.12.
[ ] (f) The Plan excludes bonuses.
[ ] (g) The Plan excludes overtime.
[ ] (h) The Plan excludes Commissions.
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[ ] (i) Compensation will not include Compensation from a
related employer (as defined in Section 1.30 of the
Plan) that has not executed a Participation Agreement
in this Plan unless, pursuant to Adoption Agreement
Section 1.07, the Employees of that related employer
are eligible to participate in this Plan.
[ ] (j) (Specify)____________________________________________.
If, for any Plan Year, the Plan uses permitted disparity in the
contribution or allocation formula elected under Article III, any
election of Options (f), (g), (h) or (j) is ineffective for such Plan
Year with respect to any Non highly Compensated Employee.
Special definition for matching contributions. "Compensation" for
purposes of any matching contribution formula under Article III means:
(Choose (k) or (l) only (applicable)
[X] (k) Compensation as defined in this Adoption Agreement
Section 1.12.
[ ] (l) (Specify)____________________________________________.
Special definition for salary reduction contributions. An Employee's
salary reduction agreement applies to his Compensation determined
prior to the reduction authorized by that salary reduction agreement,
with the following exceptions: (Choose (m) or at least one of (n) or
(o), if applicable)
[X] (m) No exceptions.
[ ] (n) If the Employee makes elective contributions to another
plan maintained by the Employer, the Advisory Committee
will determine the amount of the Employee's salary
reduction contribution for the withholding period:
(Choose (1) or (2))
[ ] (1) After the reduction for such period of
elective contributions to the other plan(s).
[ ] (2) Prior to the reduction for such period of
elective contributions to the other plan(s).
[ ] (o) (Specify)_____________________________________________.
1.17 PLAN YEAR/LIMITATION YEAR.
Plan Year. Plan Year means: (Choose (a) or (b))
[X] (a) The 12 consecutive month period ending every
December 31st.
[ ] (b) (Specify)_____________________________________________.
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Limitation Year. The Limitation Year is: (Choose (c) or (d))
[X] (c) The Plan Year.
[ ] (d) The 12 consecutive month period ending every
_____________________________________________________.
1.18 EFFECTIVE DATE.
New Plan. The "Effective Date" of the Plan is January 1, 1996.
Restated Plan. The restated Effective Date is_______________________.
This Plan is a substitution and amendment of an existing retirement
plan(s) originally established_______________________________________.
[Note: See the Effective Date Addendum.]
1.27 HOUR OF SERVICE. The crediting method for Hours of Service is:
(Choose (a) or (b))
[X] (a) The actual method.
[ ] (b) The _______________________ equivalency method, except:
[ ] (1) No exceptions.
[ ] (2) The actual method applies for purposes of:
(Choose at least one)
[ ] (i) Participation under Article II.
[ ] (ii) Vesting under Article V.
[ ] (iii) Accrual of benefits under
Section 3.06.
[Note: On the blank line, insert "daily," "weekly,"
"semi-monthly payroll periods" or "monthly."]
1.29 SERVICE FOR PREDECESSOR EMPLOYER. In addition to the predecessor
service the Plan must credit by reason of Section 1.29 of the Plan,
the Plan credits Service with the following predecessor employer(s):
Not Applicable. Service with the designated predecessor employer(s)
applies: (Choose at least one of (a) or (b); (c) is available only in
addition to (a) or (b))
[ ] (a) For purposes of participation under Article II.
[ ] (b) For purposes of vesting under Article V.
[ ] (c) Except the following Service:________________________.
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[Note: If the Plan does not credit any predecessor service under this
provision, insert "N/A" in the first blank line. The Employer may
attach a schedule to this Adoption Agreement, in the same format as
this Section 1.29, designating additional predecessor employers and
the applicable service crediting elections.]
1.31 LEASED EMPLOYEES. If a Leased Employee is a Participant in the Plan
and also participates in a plan maintained by the leasing
organization: (Choose (a) or (b))
[ ] (a) The Advisory Committee will determine the
Leased Employee's allocation of Employer
contributions under Article III without taking
into account the Leased Employee's allocation,
if any, under the leasing organization's plan.
[X] (b) The Advisory Committee will reduce a Leased
Employee's allocation of Employer nonelective
contributions (other than designated qualified
nonelective contributions) under this Plan by the
Leased Employee's allocation under the leasing
organization's plan, but only to the extent that
allocation is attributable to the Leased Employee's
service provided to the Employer. The leasing
organization's plan:
[X] (1) Must be a money purchase plan
which would satisfy the definition
under Section 1.31 of a safe harbor
plan, irrespective of whether the
safe harbor exception applies.
[ ] (2) Must satisfy the features and,
if a defined benefit plan, the method
of reduction described in an addendum
to this Adoption Agreement, numbered
1.31.
ARTICLE II
EMPLOYEE PARTICIPANTS
2.01 ELIGIBILITY.
Eligibility conditions. To become a Participant in the Plan, an
Employee must satisfy the following eligibility conditions: (Choose
(a) or (b) or both; (c) is optional as an additional election)
[X] (a) Attainment of age 21 (specify age, not exceeding 21).
[X] (b) Service requirement. (Choose one of (1) through (3))
[ ] (1) One Year of Service.
[X] (2) Six (6) months (not exceeding 12) following
the Employee's Employment Commencement Date.
[ ] (3) One Hour of Service.
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[ ] (c) Special requirements for non-401(k) portion of plan.
(Make elections under (1) and under (2))
(1) The requirements of this Option (c) apply to
participation in: (Choose at least one of
(i) through (iii))
[ ] (i) The allocation of Employer nonelective
contributions and Participant
forfeitures.
[ ] (ii) The allocation of Employer matching
contributions (including forfeitures
allocated as matching contributions).
[ ] (iii) The allocation of Employer qualified
nonelective contributions.
(2) For participation in the allocations described
in (1), the eligibility conditions are:
(Choose at least one of (i) through (iv))
[ ] (i) _______________ (one or
two) Year(s) of Service, without
an intervening Break in Service
(as described in Section 2.03(A)
of the Plan) if the requirement
is two Years of Service.
[ ] (ii) ______________ months (not exceeding 24)
following the Employee's Employment
Commencement Date.
[ ] (iii) One Hour of Service.
[ ] (iv) Attainment of age __________ (Specify
age, not exceeding 21).
Plan Entry Date. "Plan Entry Date" means the Effective Date and:
(Choose (d), (e) or (f))
[X] (d) Semi-annual Entry Dates. The first day of the Plan Year
and the first day of the seventh month of the Plan
Year.
[ ] (e) The first day of the Plan Year.
[ ] (f) (Specify entry dates)_________________________________.
Time of Participation. An Employee will become a Participant (and, if
applicable, will participate in the allocations described in Option
(c)(1)), unless excluded under Adoption Agreement Section 1.07, on the
Plan Entry Date (if employed on that date): (Choose (g), (h) or (i))
[X] (g) immediately following
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[ ] (h) immediately preceding
[ ] (i) nearest
the date the Employee completes the eligibility conditions described
in Options (a) and (b) (or in Option (c)(2) if applicable) of this
Adoption Agreement Section 2.01. [Note: The Employer must coordinate
the selection of (g), (h) or (i) with the "Plan Entry Date" selection
in (d), (e) or (f). Unless otherwise excluded under Section 1.07, the
Employee must become a Participant by the earlier of (1) the first day
of the Plan Year beginning after the date the Employee completes the
age and service requirements of Code ss.410(a); or (2) 6 months after
the date the Employee completes those requirements.]
Dual eligibility. The eligibility conditions of this Section 2.01
apply to: (Choose (j) or (k))
[ ] (j) All Employees of the Employer, except: (Choose (1)
or (2))
[ ] (1) No exceptions.
[ ] (2) Employees who are Participants in the Plan as
of the Effective Date.
[X] (k) Solely to an Employee employed by the Employer after
September 1, 1996. If the Employee was employed by the
Employer on or before the specified date, the Employee
will become a Participant: (Choose (1), (2) or (3))
[X] (1) On the latest of the Effective Date,
his Employment Commencement Date or the
date he attains age 21 (not to exceed
21).
[ ] (2) Under the eligibility conditions in effect
under the Plan prior to the restated
Effective Date. If the restated Plan required
more than one Year of Service to participate,
the eligibility condition under this Option
(2) for participation in the Code ss.401(k)
arrangement under this Plan is one Year of
Service for Plan Years beginning after
December 31, 1988. [For restated plans only]
[ ] (3) (Specify)___________________________________.
2.02 YEAR OF SERVICE - PARTICIPATION.
Hours of Service. An Employee must complete: (Choose (a) or (b))
[ ] (a) 1,000 Hours of Service
[ ] (b) ___________ Hours of Service
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during an eligibility computation period to receive credit for a Year
of Service. [Note: The Hours of Service requirement may not exceed
1,000.]
Eligibility computation period. After the initial eligibility
computation period described in Section 2.02 of the Plan, the Plan
measures the eligibility computation period as: (Choose (c) or (d))
[ ] (c) The 12 consecutive month period beginning with each
anniversary of an Employee's Employment Commencement
Date.
[X] (d) The Plan Year, beginning with the Plan Year which
includes the first anniversary of the Employee's
Employment Commencement Date.
2.03 BREAK IN SERVICE - PARTICIPATION. The Break in Service rule described
in Section 2.03(B) of the Plan: (Choose (a) or (b))
[X] (a) Does not apply to the Employer's Plan.
[ ] (b) Applies to the Employer's Plan.
2.06 ELECTION NOT TO PARTICIPATE. The Plan: (Choose (a) or (b))
[X] (a) Does not permit an eligible Employee or a Participant
to elect not to participate.
[ ] (b) Does permit an eligible Employee or a Participant to
elect not to participate in accordance with Section
2.06 and with the following rules: (Complete (1), (2),
(3) and (4))
(1) An election is effective for a Plan Year if filed
no later than _________________.
(2) An election not to participate must be effective
for at least ________ Plan Year(s).
(3) Following a re-election to participate, the
Employee or Participant:
[ ] (i) May not again elect not to participate
for any subsequent Plan Year.
[ ] (ii) May again elect not to participate, but
not earlier than the _________ Plan
Year following the Plan Year in which
the re-election first was effective.
(4) (Specify) ________________. [Insert "N/A" if no
other rules apply].
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ARTICLE III
EMPLOYER CONTRIBUTIONS AND FORFEITURES
3.01 AMOUNT.
Part I. [Options (a) through (g)] Amount of Employer's contribution.
The Employer's annual contribution to the Trust will equal the total
amount of deferral contributions, matching contributions, qualified
nonelective contributions and nonelective contributions, as determined
under this Section 3.01.
(Choose any combination of (a), (b), (c) and (d), or choose (e))
[X] (a) Deferral contributions (Codess.401(k) arrangement).
(Choose (1) or (2) or both)
[X] (1) Salary reduction arrangement. The
Employer must contribute the amount by
which the Participants have reduced
their Compensation for the Plan Year,
pursuant to their salary reduction
agreements on file with the Advisory
Committee. A reference in the Plan to
salary reduction contributions is a
reference to these amounts.
[ ] (2) Cash or deferred arrangement. The Employer
will contribute on behalf of each Participant
the portion of the Participant's
proportionate share of the cash or deferred
contribution which he has not elected to
receive in cash. See Section 14.02 of the
Plan. The Employer's cash or deferred
contribution is the amount the Employer may
from time to time deem advisable which the
Employer designates as a cash or deferred
contribution prior to making that
contribution to the Trust.
[X] (b) Matching contributions. The Employer will make
matching contributions in accordance with the
formula(s) elected in Part II of this Adoption
Agreement Section 3.01.
[X] (c) Designated qualified nonelective contributions. The
Employer, in its sole discretion, may contribute an
amount which it designates as a qualified nonelective
contribution.
[X] (d) Nonelective contributions. (Choose any combination of
(1) through (4))
[X] (1) Discretionary contribution. The amount (or
additional amount) the Employer may from time
to time deem advisable.
[ ] (2) The amount (or additional amount) the
Employer may from time to time deem
advisable, separately determined for each of
the following classifications of
Participants: (Choose (i) or (ii))
[ ] (i) Nonhighly Compensated Employees and
Highly Compensated Employees.
[ ] (ii) (Specify classifications)
__________________________________.
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Under this Option (2), the Advisory
Committee will allocate the amount
contributed for each Participant
classification in accordance with Part II of
Adoption Agreement Section 3.04, as if the
Participants in that classification were the
only Participants in the Plan.
[ ] (3) ___________ % of the Compensation of all
Participants under the Plan, determined for
the Employer's taxable year for which it
makes the contribution. [Note: The percentage
selected may not exceed 15%.]
[ ] (4) ___________ % of Net Profits but not more
than $ ___________________.
[ ] (e) Frozen Plan. This Plan is a frozen Plan effective
________________________________. The Employer will not
contribute to the Plan with respect to any period
following the stated date.
Net Profits. The Employer: (Choose (f) or (g))
[X] (f) Need not have Net Profits to make its annual
contribution under this Plan.
[ ] (g) Must have current or accumulated Net Profits exceeding
$ ________________________ to make the following
contributions: (Choose at least one)
[ ] (1) Cash or deferred contributions described in
Option (a)(2).
[ ] (2) Matching contributions described in Option
(b), except:_________________________.
[ ] (3) Qualified nonelective contributions described
in Option (c).
[ ] (4) Nonelective contributions described in
Option (d).
The term "Net Profits" means the Employer's net income or profits for any
taxable year determined by the Employer upon the basis of its books of account
in accordance with generally accepted accounting practices consistently applied
without any deductions for Federal and state taxes upon income or for
contributions made by the Employer under this Plan or under any other employee
benefit plan the Employer maintains. The term "Net Profits" specifically
excludes Not Applicable. [Note: Enter "N/A" if no exclusions apply.]
If the Employer requires Net Profits for matching contributions and the
Employer does not have sufficient Net Profits under Option (g), it will reduce
the matching contribution under a fixed formula on a prorata basis for all
Participants. A Participant's share of the reduced contribution will bear the
same ratio as the matching contribution the Participant would have received if
Net Profits were sufficient bears to the total matching contribution all
Participants would have received if Net Profits were sufficient. If more than
one member of a related group (as defined in Section 1.30) execute this
Adoption Agreement, each participating member will determine Net Profits
separately but will not apply this reduction unless, after combining the
separately determined
10
Net Profits, the aggregate Net Profits are insufficient to satisfy the matching
contribution liability. "Net Profits" includes both current and accumulated Net
Profits.
Part II. [Options (h) through (j)] Matching contribution formula. [Note: If the
Employer elected Option (b), complete Options (h), (i) and (j).]
[X] (h) Amount of matching contributions. For each Plan Year,
the Employer's matching contribution is: (Choose any
combination of (1), (2), (3), (4) and (5))
[ ] (1) An amount equal to ________% of each
Participant's eligible contributions for the
Plan Year.
[ ] (2) An amount equal to __________ % of each
Participant's first tier of eligible
contributions for the Plan Year, plus the
following matching percentage(s) for the
following subsequent tiers of eligible
contributions for the Plan ________________.
[X] (3) Discretionary formula.
[X] (i) An amount (or additional
amount) equal to a matching
percentage the Employer from
time to time may deem advisable
of the Participant's eligible
contributions for the Plan
Year.
[ ] (ii) An amount (or additional amount)
equal to a matching percentage the
Employer from time to time may
deem advisable of each tier of the
Participant's eligible
contributions for the Plan Year.
[ ] (4) An amount equal to the following percentage
of each Participant's eligible contributions
for the Plan Year, based on the Participant's
Years of Service:
Number of Years of Service Matching Percentage
-------------------------- -------------------
----- -----
----- -----
----- -----
----- -----
The Advisory Committee will apply this
formula by determining Years of Service as
follows: .
[ ] (5) A Participant's matching contributions may
not: (Choose (i) or (ii))
[ ] (i) Exceed __________________________.
[ ] (ii) Be less than ____________________.
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Related Employers. If two or more related employers (as defined in Section
1.30) contribute to this Plan, the related employers may elect different
matching contribution formulas by attaching to the Adoption Agreement a
separately completed copy of this Part II. [Note: Separate matching
contribution formulas create separate current benefit structures that must
satisfy the minimum participation test of Code ss.401(a)(26).]
[X] (i) Definition of eligible contributions. Subject to the
requirements of Option (j), the term "eligible
contributions" means: (Choose any combination of (1)
through (3))
[X] (1) Salary reduction contributions.
[ ] (2) Cash or deferred contributions
(including any part of the
Participant's proportionate share of
the cash or deferred contribution
which the Employer defers without the
Participant's election).
[ ] (3) Participant mandatory contributions, as
designated in Adoption Agreement Section
4.01. See Section 14.04 of the Plan.
[X] (j) Amount of eligible contributions taken into
account. When determining a Participant's eligible
contributions taken into account under the matching
contributions formula(s), the following rules apply:
(Choose any combination of (1) through (4))
[X] (1) The Advisory Committee will take
into account all eligible contributions
credited for the Plan Year.
[ ] (2) The Advisory Committee will disregard
eligible contributions exceeding
____________________________________________.
[ ] (3) The Advisory Committee will treat as the
first tier of eligible contributions, an
amount not exceeding: ______________________.
The subsequent tiers of eligible
contributions are: _________________________.
[ ] (4) (Specify)___________________________________.
Part III. [Options (k) and (l)]. Special rules for Code ss.401(k) Arrangement.
(Choose (k) or (l), or both, as applicable)
[X] (k) Salary Reduction Agreements. The following rules and
restrictions apply to an Employee's salary reduction
agreement: (Make a selection under (1), (2), (3) and
(4))
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(1) Limitation on amount. The Employee's salary reduction
contributions: (Choose (i) or at least one of (ii) or
(iii))
[ ] (i) No maximum limitation other than as provided
in the Plan.
[X] (ii) May not exceed 15% of Compensation for the
Plan Year, subject to the annual additions
limitation described in Part 2 of Article
III and the 402(g) limitation described in
Section 14.07 of the Plan.
[ ] (iii) Based on percentages of Compensation must
equal at least_____________________________.
(2) An Employee may revoke, on a prospective basis, a
salary reduction agreement: (Choose (i), (ii), (iii) or
(iv))
[ ] (i) Once during any Plan Year
but not later than
_____________________________________
of the Plan Year.
[ ] (ii) As of any Plan Entry Date.
[ ] (iii) As of the first day of any month.
[X] (iv) Specify, but must be at least once per Plan
Year) At any time, effective as of the next
pay period .
(3) An Employee who revokes his salary reduction agreement
may file a new-salary reduction agreement with an
effective date: (Choose (i), (ii), (iii) or (iv))
[ ] (i) No earlier than the first day of the next
Plan Year.
[X] (ii) As of any subsequent Plan Entry Date.
[ ] (iii) As of the first day of any month subsequent
to the month in which he revoked an
Agreement.
[ ] (iv) (Specify, but must be at least once per Plan
Year following the Plan Year of revocation)
______________________.
(4) A Participant may increase or may decrease, on a
prospective basis, his salary reduction percentage or
dollar amount: (Choose (i), (ii), (iii) or (iv))
[ ] (i) As of the beginning of each payroll period.
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[ ] (ii) As of the first day of each month.
[X] (iii) As of any Plan Entry Date.
[ ] (iv) (Specify, but must permit an increase or a
decrease at least once per Plan Year)
_________________________________________.
[ ] (l) Cash or deferred contributions. For each
Plan Year for which the Employer makes a
designated cash or deferred contribution, a
Participant may elect to receive directly in
cash not more than the following portion
(or, if less, the 402(g) limitation
described in Section 14.07 of the Plan) of
his proportionate share of that cash or
deferred contribution: (Choose (1) or (2))
[ ] (1) All or any portion.
[ ] (2) _________________%.
3.04 CONTRIBUTION ALLOCATION. The Advisory Committee will allocate deferral
contributions, matching contributions, qualified nonelective
contributions and nonelective contributions in accordance with Section
14.06 and the elections under this Adoption Agreement Section 3.04.
Part I. [Options (a) through (d)]. Special Accounting Elections.
(Choose whatever elections are applicable to the Employer's Plan)
[X] (a) Matching Contributions Account. The Advisory Committee
will allocate matching contributions to a
Participant's: (Choose (1) or (2); (3) is available
only in addition to (1))
[X] (1) Regular Matching Contributions Account.
[ ] (2) Qualified Matching Contributions Account.
[ ] (3) Except, matching contributions under
Option(s) ______________________ of Adoption
Agreement Section 3.01 are allocable to the
Qualified Matching Contributions Account.
[ ] (b) Special Allocation Dates for Salary Reduction
Contributions. The Advisory Committee will allocate
salary reduction contributions as of the Accounting
Date and as of the following additional allocation
dates: _______________________________________________
_____________________________________________________.
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[ ] (c) Special Allocation Dates for Matching Contributions.
The Advisory Committee will allocate matching
contributions as of the Accounting Date and as of the
following additional allocation dates:________________.
[X] (d) Designated Qualified Nonelective Contributions -
Definition of Participant. For purposes of allocating
the designated qualified nonelective contribution,
"Participant" means: (Choose (1), (2) or (3))
[ ] (1) All Participants.
[X] (2) Participants who are Nonhighly Compensated
Employees for the Plan Year.
[ ] (3) (Specify.)__________________________________.
Part II. Method of Allocation - Nonelective Contribution. Subject to
any restoration allocation required under Section 5.04, the Advisory
Committee will allocate and credit each annual nonelective
contribution (and Participant forfeitures treated as nonelective
contributions) to the Employer Contributions Account of each
Participant who satisfies the conditions of Section 3.06, in
accordance with the allocation method selected under this Section
3.04. If the Employer elects Option (e)(2), Option (g)(2) or Option
(h), for the first 3 % of Compensation allocated to all Participants,
"Compensation" does not include any exclusions elected under Adoption
Agreement Section 1.12 (other than the exclusion of elective
contributions), and the Advisory Committee must take into account the
Participant's Compensation for the entire Plan Year. (Choose an
allocation method under (e), (f), (g) or (h); (i) is mandatory if the
Employer elects (f), (g) or (h); (j) is optional in addition to any
other election.)
[ ] (e) Nonintegrated Allocation Formula. (Choose (1) or (2))
[ ] (1) The Advisory Committee will allocate the
annual nonelective contributions in the same
ratio that each Participant's Compensation
for the Plan Year bears to the total
Compensation of all Participants for the Plan
Year.
[ ] (2) The Advisory Committee will allocate the
annual nonelective contributions in the same
ratio that each Participant's Compensation
for the Plan Year bears to the total
Compensation of all Participants for the Plan
Year. For purposes of this Option (2),
"Participant" means, in addition to a
Participant who satisfies the requirements of
Section 3.06 for the Plan Year, any other
Participant entitled to a top heavy minimum
allocation under Section 3.04(B), but such
Participant's allocation will not exceed 3%
of his Compensation for the Plan Year.
[ ] (f) Two-Tiered Integrated Allocation Formula - Maximum
Disparity. First, the Advisory Committee will allocate
the annual Employer nonelective contributions in the
same ratio that
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each Participant's Compensation plus
Excess Compensation for the Plan Year bears to the
total Compensation plus Excess Compensation of all
Participants for the Plan Year. The allocation under
this paragraph, as a percentage of each Participant's
Compensation plus Excess Compensation, must not exceed
the applicable percentage (5.7%, 5.4% or 4.3%) listed
under the Maximum Disparity Table following Option (i).
The Advisory Committee then will allocate any remaining
nonelective contributions in the same ratio that each
Participant's Compensation for the Plan Year bears to
the total Compensation of all Participants for the Plan
Year.
[ ] (g) Three-Tiered Integrated Allocation Formula. First, the
Advisory Committee will allocate the annual Employer
nonelective contributions in the same ratio that each
Participant's Compensation for the Plan Year bears to
the total Compensation of all Participants for the Plan
Year. The allocation under this paragraph, as a
percentage of each Participant's Compensation may not
exceed the applicable percentage (5.7%, 5.4% or 4.3%)
listed under the Maximum Disparity Table following
Option (i). Solely for purposes of the allocation in
this first paragraph, "Participant" means, in addition
to a Participant who satisfies the requirements of
Section 3.06 for the Plan Year: (Choose (1) or (2))
[ ] (1) No other Participant.
[ ] (2) Any other Participant entitled to a top heavy
minimum allocation under Section 3.04(B), but
such Participant's allocation under this
Option (g) will not exceed 3% of his
Compensation for the Plan Year.
As a second tier allocation, the Advisory Committee
will allocate the nonelective contributions in the same
ratio that each Participant's Excess Compensation for
the Plan Year bears to the total Excess Compensation of
all Participants for the Plan Year. The allocation
under this paragraph, as a percentage of each
Participant's Excess Compensation, may not exceed the
allocation percentage in the first paragraph.
Finally, the Advisory Committee will allocate any
remaining nonelective contributions in the same ratio
that each Participant's Compensation for the Plan Year
bears to the total Compensation of all Participants for
the Plan Year.
[X] (h) Four-Tiered Integrated Allocation Formula. First, the
Advisory Committee will allocate the annual Employer
nonelective contributions in the same ratio that each
Participant's Compensation for the Plan Year bears to
the total Compensation of all Participants for the Plan
Year, but not exceeding 3% of each Participant's
Compensation. Solely for purposes of this first tier
allocation, a "Participant" means, in addition to any
Participant who satisfies the requirements of Section
3.06 for the Plan Year, any other Participant entitled
to a top heavy minimum allocation under Section 3.04(B)
of the Plan.
16
As a second tier allocation, the Advisory Committee
will allocate the nonelective contributions in the same
ratio that each Participant's Excess Compensation for
the Plan Year bears to the total Excess Compensation of
all Participants for the Plan Year, but not exceeding
3% of each Participant's Excess Compensation.
As a third tier allocation, the Advisory Committee will
allocate the annual Employer contributions in the same
ratio that each Participant's Compensation plus Excess
Compensation for the Plan Year bears to the total
Compensation plus Excess Compensation of all
Participants for the Plan Year. The allocation under
this paragraph, as a percentage of each Participant's
Compensation plus Excess Compensation, must not exceed
the applicable percentage (2.7%, 2.4% or 1.3%) listed
under the Maximum Disparity Table following Option (i).
The Advisory Committee then will allocate any remaining
nonelective contributions in the same ratio that each
Participant's Compensation for the Plan Year bears to
the total Compensation of all Participants for the Plan
Year.
[X] (i) Excess Compensation. For purposes of Option (f), (g) or
(h), "Excess Compensation" means Compensation in excess
of the following Integration Level: (Choose (1) or (2))
[X] (1) 100 % (not exceeding 100%) of the taxable
wage base, as determined under Section 230 of
the Social Security Act, in effect on the
first day of the Plan Year: (Choose any
combination of (i) and (ii) or choose (iii))
[ ] (i) Rounded to __________________ (but
not exceeding the taxable wage
base).
[ ] (ii) But not greater than
$_______________________________.
[X] (iii) Without any further adjustment or
limitation.
[ ] (2) $ ________________ [Note: Not exceeding the
taxable wage base for the Plan Year in which
this Adoption Agreement first is effective.]
17
Maximum Disparity Table. For purposes of Options (f), (g) and (h), the
applicable percentage is:
Integration Level
(as percentage of Applicable Percentages for Applicable Percentages
taxable wage base) Option (f) or Option (g) for Option (h)
------------------ -------------------------- ----------------------
100% 5.7% 2.7%
More than 80% but less than 100% 5.4% 2.4%
More than 20% (but not less than
$10,001) and not more
than 80% 4.3% 1.3%
20% (or $10,000, if greater) or less 5.7% 2.7%
[ ] (j) Allocation offset. The Advisory Committee will reduce a
Participant's allocation otherwise made under Part II
of this Section 3.04 by the Participant's allocation
under the following qualified plan(s) maintained by the
Employer:_____________________________________________.
The Advisory Committee will determine this allocation
reduction: (Choose (1) or (2))
[ ] (1) By treating the term "nonelective
contribution" as including all amounts paid
or accrued by the Employer during the Plan
Year to the qualified plan(s) referenced
under this Option (j). If a Participant under
this Plan also participates in that other
plan, the Advisory Committee will treat the
amount the Employer contributes for or during
a Plan Year on behalf of a particular
Participant under such other plan as an
amount allocated under this Plan to that
Participant's Account for that Plan Year. The
Advisory Committee will make the computation
of allocation required under the immediately
preceding sentence before making any
allocation of nonelective contributions under
this Section 3.04.
[ ] (2) In accordance with the formula provided in an
addendum to this Adoption Agreement, numbered
3.04(j).
Top Heavy Minimum Allocation - Method of Compliance. If a Participant's
allocation under this Section 3.04 is less than the top heavy minimum
allocation to which he is entitled under Section 3.04(B):
(Choose (k) or (l))
[X] (k) The Employer will make any necessary additional
contribution to the Participant's Account, as described
in Section 3.04(B)(7)(a) of the Plan.
[ ] (l) The Employer will satisfy the top heavy minimum
allocation under the following plan(s) it maintains:
_____________________________________________________.
18
However, the Employer will make any necessary
additional contribution to satisfy the top heavy
minimum allocation for an Employee covered only under
this Plan and not under the other plan(s) designated in
this Option (l). See Section 3.04(B)(7)(b) of the Plan.
If the Employer maintains another plan, the Employer
may provide in an addendum to this Adoption Agreement,
numbered Section 3.04, any modifications to the Plan
necessary to satisfy the top heavy requirements under
Code Section 416.
Related employers. If two or more related employers (as defined in Section
1.30) contribute to this Plan, the Advisory Committee must allocate all
Employer nonelective contributions (and forfeitures treated as nonelective
contributions) to each Participant in the Plan, in accordance with the
elections in this Adoption Agreement Section 3.04: (Choose (m) or (n))
[ ] (m) Without regard to which contributing related group
member employs the Participant.
[X] (n) Only to the Participants directly employed by the
contributing Employer. If a Participant receives
Compensation from more than one contributing Employer,
the Advisory Committee will determine the allocations
under this Adoption Agreement Section 3.04 by prorating
among the participating Employers the Participant's
Compensation and, if applicable, the Participant's
Integration Level under Option (i).
3.05 FORFEITURE ALLOCATION. Subject to any restoration allocation required
under Sections 5.04 or 9.14, the Advisory Committee will allocate a
Participant forfeiture in accordance with Section 3.04: (Choose (a) or
(b); (c) and (d) are optional in addition to (a) or (b))
[X] (a) As an Employer nonelective contribution for the
Plan Year in which the forfeiture occurs, as if the
Participant forfeiture were an additional nonelective
contribution for that Plan Year.
[ ] (b) To reduce the Employer matching contributions and
nonelective contributions for the Plan Year: (Choose
(1) or (2))
[ ] (1) in which the forfeiture occurs.
[ ] (2) immediately following the Plan Year in which
the forfeiture occurs.
[ ] (c) To the extent attributable to matching contributions:
(Choose (1), (2) or (3))
[ ] (1) In the manner elected under Options (a)
or (b).
[X] (2) First to reduce Employer matching
contributions for the Plan Year: (Choose (i)
or (ii))
[ ] (i) in which the forfeiture occurs,
19
[X] (ii) immediately following the Plan Year
in which the forfeiture occurs,
then as elected in Options (a) or (b).
[ ] (3) As a discretionary matching
contribution for the Plan Year in which the
forfeiture occurs, in lieu of the manner
elected under Options (a) or (b).
[ ] (d) First to reduce the Plan's ordinary and necessary
administrative expenses for the Plan Year and then will
allocate any remaining forfeitures in the manner
described in Options (a), (b) or (c), whichever
applies. If the Employer elects Option (c), the
forfeitures used to reduce Plan expenses: (Choose (1)
or (2))
[ ] (1) relate proportionately to forfeitures
described in Option (c) and to forfeitures
described in Options (a) or (b).
[ ] (2) relate first to forfeitures described in
Option ____________________________________.
Allocation of forfeited excess aggregate contributions. The Advisory
Committee will allocate any forfeited excess aggregate contributions
(as described in Section 14.09): (Choose (e), (f) or (g))
[X] (e) To reduce Employer matching contributions for the Plan
Year: (Choose (1) or (2))
[ ] (1) in which the forfeiture occurs.
[X] (2) immediately following the Plan Year in which
the forfeiture occurs.
[ ] (f) As Employer discretionary matching contributions for
the Plan Year in which forfeited, except the Advisory
Committee will not allocate these forfeitures to the
Highly Compensated Employees who incurred the
forfeitures.
[ ] (g) In accordance with Options (a) through (d), whichever
applies, except the Advisory Committee will not
allocate these forfeitures under Option (a) or under
Option (c)(3) to the Highly Compensated Employees who
incurred the forfeitures.
3.06 ACCRUAL OF BENEFIT.
Compensation taken into account. For the Plan Year in which the
Employee first becomes a Participant, the Advisory Committee will
determine the allocation of any cash or deferred contribution,
designated qualified nonelective contribution or nonelective
contribution by taking into account: (Choose (a) or (b))
[ ] (a) The Employee's Compensation for the entire Plan Year.
20
[X] (b) The Employee's Compensation for the portion of the
Plan Year in which the Employee actually is a
Participant in the Plan.
Accrual Requirements. Subject to the suspension of accrual
requirements of Section 3.06(E) of the Plan, to receive an allocation
of cash or deferred contributions, matching contributions, designated
qualified nonelective contributions, nonelective contributions and
Participant forfeitures, if any, for the Plan Year, a Participant must
satisfy the conditions described in the following elections: (Choose
(c) or at least one of (d) through (f))
[ ] (c) Safe harbor rule. If the Participant is employed by the
Employer on the last day of the Plan Year, the
Participant must complete at least one Hour of Service
for that Plan Year. If the Participant is not employed
by the Employer on the last day of the Plan Year, the
Participant must complete at least 501 Hours of Service
during the Plan Year.
[X] (d) Hours of Service condition. The Participant must
complete the following minimum number of Hours of
Service during the Plan Year: (Choose at least one of
(1) through (5))
[X] (1) 1,000 Hours of Service.
[ ] (2) (Specify, but the number of Hours of Service
may not exceed 1,000)______________________.
[ ] (3) No Hour of Service requirement if the
Participant terminates employment during
the Plan Year on account of: (Choose (i),
(ii) or (iii))
[ ] (i) Death.
[ ] (ii) Disability.
[ ] (iii) Attainment of Normal Retirement
Age in the current Plan Year or in
a prior Plan Year.
[ ] (4) ________________ Hours of Service (not
exceeding 1,000) if the Participant
terminates employment with the Employer
during the Plan Year, subject to any election
in Option (3).
[X] (5) No Hour of Service requirement for an
allocation of the following contributions:
Employer matching contributions .
[X] (e) Employment condition. The Participant must be employed
by the Employer on the last day of the Plan Year,
irrespective of whether he satisfies any Hours of
Service condition under Option (d), with the following
exceptions: (Choose (1) or at least one of (2) through
(5))
21
[ ] (1) No exceptions.
[ ] (2) Termination of employment because of death.
[ ] (3) Termination of employment because of
disability.
[ ] (4) Termination of employment following
attainment of Normal Retirement Age.
[X] (5) No employment condition for the following
contributions: Employer matching
contributions.
[ ] (f) (Specify other conditions, if applicable):____________
_____________________________________________________.
Suspension of Accrual Requirements. The suspension of accrual
requirements of Section 3.06(E) of the Plan: (Choose (g), (h) or (i))
[X] (g) Applies to the Employer's Plan.
[ ] (h) Does not apply to the Employer's Plan.
[ ] (i) Applies in modified form to the Employer's
Plan, as described in an addendum to this
Adoption Agreement, numbered Section 3.06(E).
Special accrual requirements for matching contributions. If the Plan
allocates matching contributions on two or more allocation dates for a
Plan Year, the Advisory Committee, unless otherwise specified in
Option (l), will apply any Hours of Service condition by dividing the
required Hours of Service on a prorata basis to the allocation periods
included in that Plan Year. Furthermore, a Participant who satisfies
the conditions described in this Adoption Agreement Section 3.06 will
receive an allocation of matching contributions (and forfeitures
treated as matching contributions) only if the Participant satisfies
the following additional condition(s): (Choose (j)) or at least one of
(k) or (l))
[X] (j) No additional conditions.
[ ] (k) The Participant is not a Highly Compensated Employee
for the Plan Year. This Option (k) applies to: (Choose
(1) or (2))
[ ] (1) All matching contributions.
[ ] (2) Matching contributions described in Option(s)
______________ of Adoption Agreement Section
3.01.
[ ] (l) (Specify)_____________________________________________.
22
3.15 MORE THAN ONE PLAN LIMITATION. If the provisions of Section 3.15
apply, the Excess Amount attributed to this Plan equals: (Choose (a),
(b) or (c))
[ ] (a) The product of:
(i) the total Excess Amount allocated as of such
date (including any amount which the Advisory
Committee would have allocated but for the
limitations of Code Section 415), times
(ii) the ratio of (1) the amount allocated to the
Participant as of such date under this Plan
divided by (2) the total amount allocated as
of such date under all qualified defined
contribution plans (determined without
regard to the limitations of Code Section 415).
[X] (b) The total Excess Amount.
[ ] (c) None of the Excess Amount.
3.18 DEFINED BENEFIT PLAN LIMITATION.
Application of limitation. The limitation under Section 3.18 of the
Plan: (Choose (a) or (b))
[X] (a) Does not apply to the Employer's Plan because the
Employer does not maintain and never has maintained a
defined benefit plan covering any Participant in this
Plan.
[ ] (b) Applies to the Employer's Plan. To the extent necessary
to satisfy the limitation under Section 3.18, the
Employer will reduce: (Choose (1) or (2))
[ ] (1) The Participant's projected annual benefit
under the defined benefit plan under which
the Participant participates.
[ ] (2) Its contribution or allocation on behalf of
the Participant to the defined contribution
plan under which the Participant participates
and then, if necessary, the Participant's
projected annual benefit under the defined
benefit plan under which the Participant
participates.
[Note: If the Employer selects (a), the remaining
options in this Section 3.18 do not apply to the
Employer's Plan.]
Coordination with top heavy minimum allocation. The Advisory Committee
will apply the top heavy minimum allocation provisions of Section
3.04(B) of the Plan with the following modifications: (Choose (c) or
at least one of (d) or (e))
[ ] (c) No modifications.
23
[ ] (d) For Non-Key Employees participating only in this Plan,
the top heavy minimum allocation is the minimum
allocation described in Section 3.04(B) determined by
substituting ____________ % (not less than 4%) for
"3%," except: (Choose (i) or (ii))
[ ] (i) No exceptions.
[ ] (ii) Plan Years in which the top heavy ratio
exceeds 90%.
[ ] (e) For Non-Key Employees also participating in the defined
benefit plan, the top heavy minimum is: (Choose (1) or
(2))
[ ] (1) 5% of Compensation (as determined under
Section 3.04(B) or the Plan) irrespective of
the contribution rate of any Key Employee,
except: (Choose (i) or (ii))
[ ] (i) No exceptions.
[ ] (ii) Substituting "7 1/2%" for 5%" if
the top heavy ratio does not
exceed 90%.
[ ] (2) 0%. [Note: The Employer may not select this
Option (2) unless the defined benefit plan
satisfies the top heavy minimum benefit
requirements of Code ss.416 for these Non-Key
Employees.]
Actuarial Assumptions for Top Heavy Calculation. To determine the top
heavy ratio, the Advisory Committee will use the following interest
rate and mortality assumptions to value accrued benefits under a
defined benefit plan:
_____________________________________________________________________
____________________________________________________________________.
If the elections under this Section 3.18 are not appropriate to
satisfy the limitations of Section 3.18, or the top heavy requirements
under Code ss.416, the Employer must provide the appropriate
provisions in an addendum to this Adoption Agreement.
ARTICLE IV
PARTICIPANT CONTRIBUTIONS
4.01 PARTICIPANT NONDEDUCTIBLE CONTRIBUTIONS. The Plan: (Choose (a) or (b);
(c) is available only with (b))
24
[X] (a) Does not permit Participant nondeductible contributions.
[ ] (b) Permits Participant nondeductible contributions,
pursuant to Section 14.04 of the Plan.
[ ] (c) The following portion of the Participant's
nondeductible contributions for the Plan Year are
mandatory contributions under Option (i)(3) of Adoption
Agreement Section 3.01: (Choose (1) or (2))
[ ] (1) The amount which is not less than:
____________________________________________.
[ ] (2) The amount which is not greater than:
____________________________________________.
Allocation dates. The Advisory Committee will allocate nondeductible
contributions for each Plan Year as of the Accounting Date and the
following additional allocation dates: (Choose (d) or (e))
[ ] (d) No other allocation dates.
[ ] (e) (Specify)_____________________________________________.
As of an allocation date, the Advisory Committee will credit all
nondeductible contributions made for the relevant allocation period.
Unless otherwise specified in (e), a nondeductible contribution
relates to an allocation period only if actually made to the Trust no
later than 30 days after that allocation period ends.
4.05 PARTICIPANT CONTRIBUTION - WITHDRAWAL/DISTRIBUTION. Subject to the
restrictions of Article VI, the following distribution options apply
to a Participant's Mandatory Contributions Account, if any, prior to
his Separation from Service: (Choose (a) or at least one of (b)
through (d))
[ ] (a) No distribution options prior to Separation from
Service.
[ ] (b) The same distribution options applicable to the
Deferral Contributions Account prior to the
Participant's Separation from Service, as elected in
Adoption Agreement Section 6.03.
[ ] (c) Until he retires, the Participant has a continuing
election to receive all or any portion of his Mandatory
Contributions Account if: (Choose (1) or at least one
of (2) through (4))
[ ] (1) No conditions.
[ ] (2) The mandatory contributions have accumulated
for at least _____________ Plan Years since
the Plan Year for which contributed.
[ ] (3) The Participant suspends making nondeductible
contributions for a period of ______________
months.
25
[ ] (4) (Specify)
--------------------------------------
[ ] (d) (Specify)
------------------------------------------------
ARTICLE V
TERMINATION OF SERVICE - PARTICIPANT VESTING
5.01 NORMAL RETIREMENT. Normal Retirement Age under the Plan is:
(Choose (a) or (b))
[ ] (a) _________ [State age, but may not exceed age 65].
[ ] (b) The later of the date the Participant attains 65 years
of age or the 5th anniversary of the first day of the
Plan Year in which the Participant commenced
participation in the Plan. [The age selected may not
exceed age 65 and the anniversary selected may not
exceed the 5th.]
5.02 PARTICIPANT DEATH OR DISABILITY. The 100% vesting rule under Section
5.02 of the Plan: (Choose (a) or choose one or both of (b) and (c))
[ ] (a) Does not apply.
[X] (b) Applies to death.
[X] (c) Applies to disability.
5.03 VESTING SCHEDULE.
Deferral Contributions Account/Qualified Matching Contributions
Account/Qualified Nonelective Contributions Account/Mandatory
Contributions Account. A Participant has a 100% Nonforfeitable
interest at all times in his Deferral Contributions Account, his
Qualified Matching Contributions Account, his Qualified Nonelective
Contributions Account and in his Mandatory Contributions Account.
Regular Matching Contributions Account/Employer Contributions Account.
With respect to a Participant's Regular Matching Contributions Account
and Employer Contributions Account, the Employer elects the following
vesting schedule: (Choose (a) or (b); (c) and (d) are available only as
additional options)
[ ] (a) Immediate vesting. 100% Nonforfeitable at all times.
[Note: The Employer must elect Option (a) if the
eligibility conditions under Adoption Agreement
Section 2.01(c) require 2 years of service or more than
12 months of employment.]
26
[X] (b) Graduated Vesting Schedules.
Top Heavy Schedule Non Top Heavy Schedule
(Mandatory) (Optional)
Years of Nonforfeitable Years of Nonforfeitable
Service Percentage Service Percentage
------- ---------- ------- ----------
Less than 1 0% Less than 1 0%
1 20% 1 20%
2 40% 2 40%
3 60% 3 60%
4 80% 4 80%
5 100% 5 100%
6 or More 100% 6 100%
7 or More 100%
[ ] (c) Special vesting election for Regular Matching Contributions
Account. In lieu of the election under Options (a) or (b),
the Employer elects the following vesting schedule for a
Participant's Regular Matching Contributions Account:
(Choose (1) or (2))
[ ] (1) 100% Nonforfeitable at all times.
[ ] (2) In accordance with the vesting schedule
described in the addendum to this Adoption
Agreement, numbered 5.03(c). [Note: If the
Employer elects this Option (c)(2), the
addendum must designate the applicable vesting
schedule(s) using the same format as used in
Option (b).]
[Note: Under Options (b) and (c)(2), the Employer must complete
a Top Heavy Schedule which satisfies Code Section 416. The
Employer, at its option, may complete a Non Top Heavy Schedule.
The Non Top Heavy Schedule must satisfy Code Section 411(a) (2).
Also see Section 7.05 of the Plan.]
[ ] (d) The Top Heavy Schedule under Option (b) (and, if
applicable, under Option (c)(2)) applies:
(Choose (1) or (2))
[ ] (1) Only in a Plan Year for which the Plan is top
heavy.
[ ] (2) In the Plan Year for which the Plan first is
top heavy and then in all subsequent Plan
Years. [Note: The Employer may not elect
Option (d) unless it has completed a Non Top
Heavy Schedule.]
Minimum vesting. (Choose (e) or (f))
27
[X] (e) The Plan does not apply a minimum vesting rule.
[ ] (f) A Participant's Nonforfeitable Accrued Benefit will never
be less than the lesser of $_______ or his entire Accrued
Benefit, even if the application of a graduated vesting
schedule under Options (b) or (c) would result in a
smaller Nonforfeitable Accrued Benefit.
Life Insurance Investments. The Participant's Accrued Benefit
attributable to insurance contracts purchased on his behalf under
Article XI is: (Choose (g) or (h))
[X] (g) Subject to the vesting election under Options (a), (b) or
(c).
[ ] (h) 100% Nonforfeitable at all times, irrespective of the
vesting election under Options (b) or (c)(2).
5.04 CASH-OUT DISTRIBUTIONS TO PARTIALLY-VESTED PARTICIPANTS/RESTORATION OF
FORFEITED ACCRUED BENEFIT. The deemed cash-out rule described in
Section 5.04(C) of the Plan: (Choose (a) or (b))
[ ] (a) Does not apply.
[X] (b) Will apply to determine the timing of forfeitures
for 0% vested Participants. A Participant is not a 0%
vested Participant if he has a Deferral Contributions
Account.
5.06 YEAR OF SERVICE - VESTING.
Vesting computation period. The Plan measures a Year of Service on the
basis of the following 12 consecutive month periods: (Choose (a) or (b))
[X] (a) Plan Years.
[ ] (b) Employment Years. An Employment Year is the 12 consecutive
month period measured from the Employee's Employment
Commencement Date and each successive 12 consecutive month
period measured from each anniversary of that Employment
Commencement Date.
Hours of Service. The minimum number of Hours of Service an Employee
must complete during a vesting computation period to receive credit for
a Year of Service is: (Choose (c) or (d))
[X] (c) 1,000 Hours of Service.
[ ] (d) ______________ Hours of Service. [Note: The Hours of
Service requirement may not exceed 1,000.]
5.08 INCLUDED YEARS OF SERVICE - VESTING. The Employer specifically excludes
the following Years of Service: (Choose (a) or at least one of (b)
through (e))
28
[X] (a) None other than as specified in Section 5.08(a) of the Plan.
[ ] (b) Any Year of Service before the Participant attained the
age of _________. Note: The age selected may not exceed
age 18.]
[ ] (c) Any Year of Service during the period the Employer did not
maintain this Plan or a predecessor plan.
[ ] (d) Any Year of Service before a Break in Service if the
number of consecutive Breaks in Service equals or exceeds
the greater of 5 or the aggregate number of the Years of
Service prior to the Break. This exception applies only
if the Participant is 0% vested in his Accrued Benefit
derived from Employer contributions at the time he has a
Break in Service. Furthermore, the aggregate number of
Years of Service before a Break in Service do not include
any Years of Service not required to be taken into account
under this exception by reason of any prior Break in
Service.
[ ] (e) Any Year of Service earned prior to the effective date of
ERISA if the Plan would have disregarded that Year of
Service on account of an Employee's Separation from
Service under a Plan provision in effect and adopted before
January 1, 1974.
ARTICLE VI
TIME AND METHOD OF PAYMENTS OF BENEFITS
Code Section 411(d)(6) Protected Benefits. The elections under this Article VI
may not eliminate Code Section 411(d)(6) protected benefits. To the extent the
elections would eliminate a Code Section 411(d)(6) protected benefit, see
Section 13.02 of the Plan. Furthermore, if the elections liberalize the optional
forms of benefit under the Plan, the more liberal options apply on the later of
the adoption date or the Effective Date of this Adoption Agreement.
6.01 TIME OF PAYMENT OF ACCRUED BENEFIT.
Distribution Date. A distribution date under the Plan means the last day
of the calendar quarter following a participant's separation from service.
[Note: The Employer must specify the appropriate date(s). The specified
distribution dates primarily establish annuity starting dates and the
notice and consent periods prescribed by the Plan. The Plan allows the
Trustee an administratively practicable period of time to make the actual
distribution relating to a particular distribution date.]
Nonforfeitable Accrued Benefit Not Exceeding $3,500. Subject to the
limitations of Section 6.01(A)(1), the distribution date for distribution
of a Nonforfeitable Accrued Benefit not exceeding $3,500 is:
(Choose (a), (b), (c), (d) or (e))
29
[ ] (a) __________________________________________________________
________________ of the _____________________ Plan Year
beginning after the Participant's Separation from Service.
[X] (b) The last day of the calendar quarter following the
Participant's Separation from Service.
[ ] (c) _____________________ of the Plan Year after the
Participant incurs ___________ Break(s) in Service (as
defined in Article V).
[ ] (d) ______________________________________ following the
Participant's attainment of Normal Retirement Age, but not
earlier than __________________ days following his
Separation from Service.
[ ] (e) (Specify) ________________________________________________.
Nonforfeitable Accrued Benefit Exceeds $3,500. See the elections under
Section 6.03.
Disability. The distribution date, subject to Section 6.01(A)(3), is:
(Choose (j), (g) or (h))
[ ] (f) ____________________________________ after the Participant
terminates employment because of disability.
[X] (g) The same as if the Participant had terminated employment
without disability.
[ ] (h) (Specify) _________________________________________________.
Hardship. (Choose (i) or (j))
[X] (i) The Plan does not permit a hardship distribution to
a Participant who has separated from Service.
[ ] (j) The Plan permits a hardship distribution to a Participant
who has separated from Service in accordance with the
hardship distribution policy stated in: (Choose (1), (2)
or (3))
[ ] (1) Section 6.01(A)(4) of the Plan.
[ ] (2) Section 14.11 of the Plan.
[ ] (3) The addendum to this Adoption Agreement,
numbered Section 6.01.
Default on a Loan. If a Participant or Beneficiary defaults on a loan
made pursuant to a loan policy adopted by the Advisory Committee
pursuant to Section 9.04, the Plan: (Choose (k), (l) or (m))
30
[X] (k) Treats the default as a distributable event. The
Trustee, at the time of the default, will reduce the
Participant's Nonforfeitable Accrued Benefit by the
lesser of the amount in default (plus accrued interest)
or the Plan's security interest in that Nonforfeitable
Accrued Benefit. To the extent the loan is attributable
to the Participant's Deferral Contributions Account,
Qualified Matching Contributions Account or Qualified
Nonelective Contributions Account, the Trustee will not
reduce the Participant's Nonforfeitable Accrued Benefit
unless the Participant has separated from Service or
unless the Participant has attained age 59 1/2.
[X] (l) Does not treat the default as a distributable
event. When an otherwise distributable event first
occurs pursuant to Section 6.01 or Section 6.03 of the
Plan, the Trustee will reduce the Participant's
Nonforfeitable Accrued Benefit by the lesser of the
amount in default (plus accrued interest) or the Plan's
security interest in that Nonforfeitable Accrued
Benefit.
[ ] (m) (Specify) ________________________________________________.
6.02 METHOD OF PAYMENT OF ACCRUED BENEFIT. The Advisory Committee will apply
Section 6.02 of the Plan with the following modifications: (Choose (a)
or at least one of (b), (c), (d) and (e))
[ ] (a) No modifications.
[ ] (b) Except as required under Section 6.01 of the Plan, a lump
sum distribution is not available: ________________________
__________________________________________________________
[ ] (c) An installment distribution: (Choose (1) or at least one
of (2) or (3))
[ ] (1) Is not available under the Plan.
[ ] (2) May not exceed the lesser of ______________________
years or the maximum period permitted under Section
6.02.
[ ] (3) (Specify) _________________________________________.
[ ] (d) The Plan permits the following annuity options: None .
Any Participant who elects a life annuity option is subject
to the requirements of Sections 6.04(A), (B), (C) and (D)
of the Plan. See Section 6.04(E). [Note: The Employer may
specify additional annuity options in an addendum to this
Adoption Agreement, numbered 6.02(d).]
[ ] (e) If the Plan invests in qualifying Employer securities, as
described in Section 10.03(F), a Participant eligible to
elect distribution under Section 6.03 may elect to receive
that distribution in Employer securities only in accordance
with the provisions of the addendum to this Adoption
Agreement, numbered 6.02(e).
31
6.03 BENEFIT PAYMENT ELECTIONS.
Participant Elections After Separation from Service. A Participant who
is eligible to make distribution elections under Section 6.03 of the Plan
may elect to commence distribution of his Nonforfeitable Accrued Benefit:
(Choose at least one of (a) through (c))
[ ] (a) As of any distribution date, but not
earlier than _____________ of the __________
Plan Year beginning after the Participant's
Separation from Service.
[X] (b) As of the following date(s): (Choose at least one of
Options (1) through (6))
[ ] (1) Any distribution date after the
close of the Plan Year in which the
Participant attains Normal Retirement
Age.
[X] (2) Any distribution date following his Separation
from Service with the Employer.
[ ] (3) Any distribution date in the ___________ Plan
Year(s) beginning after his Separation from
Service.
[ ] (4) Any distribution date in the Plan
Year after the Participant incurs
________ Break(s) in Service (as
defined in Article V).
[ ] (5) Any distribution date following
attainment of age _________ and
completion of at least ____ Years of
Service (as defined in Article V).
[ ] (6) (Specify) _____________________________________.
[ ] (c) (Specify)__________________________________________________.
The distribution events described in the election(s) made under
Options (a), (b) or (c) apply equally to all Accounts maintained for
the Participant unless otherwise specified in Option (c).
Participant Elections Prior to Separation from Service - Regular
Matching Contributions Account and Employer Contributions Account.
Subject to the restrictions of Article VI, the following distribution
options apply to a Participant's Regular Matching Contributions
Account and Employer Contributions Account prior to his Separation
from Service: (Choose (d) or at least one of (e) through (h))
[X] (d) No distribution options prior to Separation from Service.
32
[ ] (e) Attainment of Specified Age. Until he retires, the
Participant has a continuing election to receive all or
any portion of his Nonforfeitable interest in these
Accounts after he attains:
(Choose (1) or (2))
[ ] (l) Normal Retirement Age.
[ ] (2) __________ years of age and is at least
______________ % vested in these Accounts.
[Note: If the percentage is less than
100%, see the special vesting formula in
Section 5.03.]
[ ] (f) After a Participant has participated in the Plan for a
period of not less than _____ years and he is 100% vested
in these Accounts, until he retires, the Participant has a
continuing election to receive all or any portion of the
Accounts. [Note: The number in the blank space may not
be less than 5.]
[ ] (g) Hardship. A Participant may elect a hardship distribution
prior to his Separation from Service in accordance with
the hardship distribution policy: (Choose (1), (2) or (3);
(4) is available only as an additional option)
[ ] (1) Under Section 6.01(A)(4) of the Plan.
[ ] (2) Under Section 14.11 of the Plan.
[ ] (3) Provided in the addendum to this Adoption
Agreement, numbered Section 6.03.
[ ] (4) In no event may a Participant receive a
hardship distribution before he is at
least ___________ % vested in these
Accounts. [Note: If the percentage in
the blank is less than 100%, see the
special vesting formula in Section 5.03.]
[ ] (h) (Specify) ____________________________
[Note: The Employer may use an addendum, numbered 6.03,
to provide additional language authorized by Options
(b)(6), (c), (g)(3) or (h) of this Adoption Agreement
Section 6.03.]
Participant Elections Prior to Separation from Service - Deferral
Contributions Account, Qualified Matching Contributions Account and
Qualified Nonelective Contributions Account. Subject to the restrictions
of Article VI, the following distribution options apply to a Participant's
Deferral Contributions Account, Qualified Matching Contributions Account
and Qualified Nonelective Contributions Account prior to his Separation
from Service: (Choose (i) or at least one of (j) through (l))
[X] (i) No distribution options prior to Separation from Service.
33
[ ] (j) Until he retires, the Participant has a continuing election
to receive all or any portion of these Accounts after he
attains: (Choose (1) or (2))
[ ] (1) The later of Normal Retirement Age or age
59 1/2.
[ ] (2) Age _____ (at least 59 1/2).
[ ] (k) Hardship. A Participant, prior to this Separation from
Service, may elect a hardship distribution from his
Deferral Contributions Account in accordance with the
hardship distribution policy under Section 14.11 of the
Plan.
[ ] (l) (Specify) _______________________________________________.
[Note: Option (l) may not permit in service distributions
prior to age 59 1/2 (other than hardship) and may not
modify the hardship policy described in Section 14.11.]
Sale of trade or business/subsidiary. If the Employer sells substantially
all of the assets (within the meaning of Code ss.409(d)(2)) used in a
trade or business or sells a subsidiary (within the meaning of Code
ss.409(d)(3)), a Participant who continues employment with the acquiring
corporation is eligible for distribution from his Deferral Contributions
Account, Qualified Matching Contributions Account and Qualified
Nonelective Contributions Account: (Choose (m) or (n))
[X] (m) Only as described in this Adoption Agreement Section 6.03
for distributions prior to Separation from Service.
[ ] (n) As if he has a Separation from Service. After March 31,
1988, a distribution authorized solely by reason of this
Option (n) must constitute a lump sum distribution,
determined in a manner consistent with Code ss.401(k)(10)
and the applicable Treasury regulations.
6.04 ANNUITY DISTRIBUTIONS TO PARTICIPANTS AND SURVIVING SPOUSES. The annuity
distribution requirements of Section 6.04: (Choose (a) or (b))
[X] (a) Apply only to a Participant described in Section 6.04(E)
of the Plan (relating to the profit sharing exception to
the joint and survivor requirements).
[ ] (b) Apply to all Participants.
ARTICLE IX
ADVISORY COMMITTEE - DUTIES WITH RESPECT TO PARTICIPANTS' ACCOUNTS
9.10 VALUE OF PARTICIPANT'S ACCRUED BENEFIT. If a distribution (other than a
distribution from a segregated Account and other than a corrective
distribution described in Sections 14.07, 14.08, 14.09 or 14.10 of the
34
Plan) occurs more than 90 days after the most recent valuation date,
the distribution will include interest at: (Choose (a), (b) or (c))
[X] (a) 0 % per annum. [Note: The percentage may equal 0%.]
[ ] (b) The 90 day Treasury bill rate in effect at the beginning
of the current valuation period.
[ ] (c) (Specify) ____________________________________________.
9.11 ALLOCATION AND DISTRIBUTION OF NET INCOME GAIN OR LOSS. Pursuant to
Section 14.12, to determine the allocation of net income, gain or loss:
(Complete only those items, if any, which are applicable to the Employer's
Plan)
[X] (a) For salary reduction contributions, the Advisory Committee
will: (Choose (1), (2), (3), (4) or (5))
[ ] (1) Apply Section 9.11 without modification.
[ ] (2) Use the segregated account approach
described in Section 14.12.
[X] (3) Use the weighted average method described in
Section 14.12, based on a 365-day weighting
period.
[ ] (4) Treat as part of the relevant Account at the
beginning of the valuation period
__________ % of the salary reduction
contributions: (Choose (i) or (ii))
[ ] (i) made during that valuation
period.
[ ] (ii) made by the following
specified time: ____________
____________________________.
[ ] (5) Apply the allocation method described in
the addendum to this Adoption Agreement
numbered 9.11(a).
[X] (b) For matching contributions, the Advisory Committee will:
(Choose (1), (2), (3) or (4))
[ ] (1) Apply Section 9.11 without modification.
[X] (2) Use the weighted average method described
in Section 14.12, based on a 365-day
weighting period.
35
[ ] (3) Treat as part of the relevant Account at
the beginning of the valuation period
___________ % of the matching
contributions allocated during the
valuation period.
[ ] (4) Apply the allocation method described in
the addendum to this Adoption Agreement
numbered 9.11(b).
[ ] (c) For Participant nondeductible contributions, the Advisory
Committee will: (Choose (1), (2), (3), (4) or (5))
[ ] (1) Apply Section 9.11 without modification.
[ ] (2) Use the segregated account approach
described in Section 14.12.
[ ] (3) Use the weighted average method described
in Section 14.12, based on a __________
weighting period.
[ ] (4) Treat as part of the relevant Account at
the beginning of the valuation period
____________ % of the Participant
nondeductible contributions:
(Choose (i) or (ii))
[ ] (i) made during that valuation
period.
[ ] (ii) made by the following
specified time: ____________
____________________________.
[ ] (5) Apply the allocation method described in
the addendum to this Adoption Agreement
numbered 9.11(c).
ARTICLE X
TRUSTEE AND CUSTODIAN, POWERS AND DUTIES
10.03 INVESTMENT POWERS. Pursuant to Section 10.03[F] of the Plan, the
aggregate investments in qualifying Employer securities and in qualifying
Employer real property: (Choose (a) or (b))
[X] (a) May not exceed 10% of Plan assets.
[ ] (b) May not exceed ________ % of Plan assets. [Note: The
percentage may not exceed 100%.]
36
10.14 VALUATION OF TRUST. In addition to each Accounting Date, the Trustee must
value the Trust Fund on the following valuation date(s): (Choose (a) or
(b))
[X] (a) No other mandatory valuation dates.
[ ] (b) (Specify) ______________________________________________.
37
EXECUTION PAGE
The Trustee (and Custodian, if applicable), by executing this Adoption
Agreement, accepts its position and agrees to all of the obligations,
responsibilities and duties imposed upon the Trustee (or Custodian) under the
Prototype Plan and Trust. The Employer hereby agrees to the provisions of this
Plan and Trust, and in witness of its agreement, the Employer by its duly
authorized officers, has executed this Adoption Agreement, and the Trustee (and
Custodian, if applicable) signified its acceptance, on this ____ day of
___________, 1996.
Name and EIN of Employer: NATIONAL AUTO FINANCE CORPORATION (EIN: 00-0000000)
Signed: _______________________________________________________________________
XXXXX X. XXXXX - Vice President (FOR NATIONAL AUTO FINANCE CORPORATION)
Name(s) of Trustee: Xxxxx X. Xxxxx (Vice President), Xxx Xxxxxx (President),
Xxxx X. Xxxxxxx (Chief Executive Officer) and Xxxxx X.
Xxxxx (Vice President)
Signed: _______________________________________________________________________
XXXXX X. XXXXX - Vice President (AS THE TRUSTEE)
_______________________________________________________________________
XXX XXXXXX - PRESIDENT (AS THE TRUSTEE)
_______________________________________________________________________
XXXX X. XXXXXXX - Chief Executive Officer (AS THE TRUSTEE)
_______________________________________________________________________
XXXXX X. XXXXX - Vice President (AS THE TRUSTEE)
Name of Custodian: Not Applicable
Signed: _______________________________________________________________________
[Note: A Trustee is mandatory, but a Custodian is optional. See Section 10.03
of the Plan.]
Plan Number. The 3-digit plan number the Employer assigns to this Plan for
ERISA reporting purposes (Form 5500 Series) is: 001.
Use of Adoption Agreement. Failure to complete properly the elections in this
Adoption Agreement may result in disqualification of the Employer's Plan. The
3-digit number assigned to this Adoption Agreement (see page 1)
38
is solely for the Regional Prototype Plan Sponsor's recordkeeping purposes and
does not necessarily correspond to the plan number the Employer designated in
the prior paragraph.
Reliance on Notification Letter. The Employer may not rely on the Regional
Prototype Plan Sponsor's notification letter covering this Adoption Agreement.
For reliance on the Plan's qualification, the Employer must obtain a
determination letter from the applicable IRS Key District office.
39
PARTICIPATION AGREEMENT
For Participation by Related Group Members (Plan Section 1.30)
The undersigned Employer, by executing this Participation Agreement, elects to
become a Participating Employer in the Plan identified in Section 1.03 of the
accompanying Adoption Agreement, as if the Participating Employer were a
signatory to that Agreement. The Participating Employer accepts, and agrees to
be bound by, all of the elections granted under the provisions of the Prototype
Plan as made by NATIONAL AUTO FINANCE CORPORATION, the Signatory Employer to
the Execution Page of the Adoption Agreement.
1. The Effective Date of the undersigned Employer's participation in the
designated Plan is: January 1, 1996.
2. The undersigned Employer's adoption of this Plan constitutes:
[ ] (a) The adoption of a new plan by the Participating Employer.
[X] (b) The adoption of an amendment and restatement of a plan
currently maintained by the Employer, identified as
__________, and having an original effective date of
__________.
Dated this ___________ day of ____________________, 1996.
Name of Participating Employer: National Auto Finance Company, L.P.
Signed: ______________________________________________________________________
XXXXX X. XXXXX (FOR NATIONAL AUTO FINANCE COMPANY, L.P.)
Participating Employer's EIN: 00-0000000
Acceptance by the Signatory Employer to the Execution Page of the Adoption
Agreement and by the Trustee.
Name of Signatory Employer: NATIONAL AUTO FINANCE CORPORATION
Accepted: ______________________
[Date] Signed: __________________________
XXXXX X. XXXXX
Name(s) of Trustee: XXXXX X. XXXXX, XXX XXXXXX, XXXX X. XXXXXXX AND
XXXXX X. XXXXX
Accepted: ______________________
[Date] Signed: __________________________
XXXXX X. XXXXX
Accepted: _______________________
[Date] Signed: __________________________
XXX XXXXXX
Accepted: ______________________
[Date] Signed: __________________________
XXXX X. XXXXXXX
Accepted: _______________________
[Date] Signed: __________________________
XXXXX X. XXXXX
[Note: Each Participating Employer must execute a separate Participation
Agreement. See the Execution Page of the Adoption Agreement for important
Prototype Plan information.]
40
PARTICIPATION AGREEMENT
FOR PARTICIPATION BY RELATED GROUP MEMBERS (PLAN SECTION 1.30)
The undersigned Employer, by executing this Participation Agreement, elects to
become a Participating Employer in the Plan identified in Section 1.03 of the
accompanying Adoption Agreement, as if the Participating Employer were a
signatory to that Agreement. The Participating Employer accepts, and agrees to
be bound by, all of the elections granted under the provisions of the Prototype
Plan as made by NATIONAL AUTO FINANCE CORPORATION, the Signatory Employer to
the Execution Page of the Adoption Agreement.
1. The Effective Date of the undersigned Employer's participation in the
designated Plan is: January 1, 1996.
2. The undersigned Employer's adoption of this Plan constitutes:
[ ] (a) The adoption of a new plan by the Participating Employer.
[X] (b) The adoption of an amendment and restatement of a plan
currently maintained by the Employer, identified as
__________, and having an original effective date of
__________.
Dated this ___________ day of ____________________, 1996.
Name of Participating Employer: Auto Credit Clearinghouse, L.P.
Signed: ______________________________________________________________________
XXXXX X. XXXXX (FOR AUTO CREDIT CLEARINGHOUSE, L.P.)
Participating Employer's EIN: 00-0000000
Acceptance by the Signatory Employer to the Execution Page of the Adoption
Agreement and by the Trustee.
Name of Signatory Employer: NATIONAL AUTO FINANCE CORPORATION
Accepted: ______________________
[Date] Signed: __________________________
XXXXX X. XXXXX
Name(s) of Trustee: XXXXX X. XXXXX, XXX XXXXXX, XXXX X. XXXXXXX AND
XXXXX X. XXXXX
Accepted: ______________________
[Date] Signed: __________________________
XXXXX X. XXXXX
Accepted: _______________________
[Date] Signed: __________________________
XXX XXXXXX
Accepted: ______________________
[Date] Signed: __________________________
XXXX X. XXXXXXX
Accepted: _______________________
[Date] Signed: __________________________
XXXXX X. XXXXX
[Note: Each Participating Employer must execute a separate Participation
Agreement. See the Execution Page of the Adoption Agreement for important
Prototype Plan information.]
41
PARTICIPATION AGREEMENT
FOR PARTICIPATION BY RELATED GROUP MEMBERS (PLAN SECTION 1.30)
The undersigned Employer, by executing this Participation Agreement, elects to
become a Participating Employer in the Plan identified in Section 1.03 of the
accompanying Adoption Agreement, as if the Participating Employer were a
signatory to that Agreement. The Participating Employer accepts, and agrees to
be bound by, all of the elections granted under the provisions of the Prototype
Plan as made by NATIONAL AUTO FINANCE CORPORATION, the Signatory Employer to
the Execution Page of the Adoption Agreement.
1. The Effective Date of the undersigned Employer's participation in the
designated Plan is: January 1, 1996.
2. The undersigned Employer's adoption of this Plan constitutes:
[X] (a) The adoption of a new plan by the Participating Employer.
[ ] (b) The adoption of an amendment and restatement of a plan
currently maintained by the Employer, identified as
__________, and having an original effective date of
__________.
Dated this ___________ day of ____________________, 1996.
Name of Participating Employer: National Financial Companies LLC
Signed: ______________________________________________________________________
XXXXX X. XXXXX (FOR NATIONAL FINANCIAL COMPANIES LLC)
Participating Employer's EIN: 00-0000000
Acceptance by the Signatory Employer to the Execution Page of the Adoption
Agreement and by the Trustee.
Name of Signatory Employer: NATIONAL AUTO FINANCE CORPORATION
Accepted: ______________________
[Date] Signed: __________________________
XXXXX X. XXXXX
Name(s) of Trustee: XXXXX X. XXXXX, XXX XXXXXX, XXXX X. XXXXXXX AND
XXXXX X. XXXXX
Accepted: ______________________
[Date] Signed: __________________________
XXXXX X. XXXXX
Accepted: _______________________
[Date] Signed: __________________________
XXX XXXXXX
Accepted: ______________________
[Date] Signed: __________________________
XXXX X. XXXXXXX
Accepted: _______________________
[Date] Signed: __________________________
XXXXX X. XXXXX
[Note: Each Participating Employer must execute a separate Participation
Agreement. See the Execution Page of the Adoption Agreement for important
Prototype Plan information.]
42
PARTICIPATION AGREEMENT
FOR PARTICIPATION BY RELATED GROUP MEMBERS (PLAN SECTION 1.30)
The undersigned Employer, by executing this Participation Agreement, elects to
become a Participating Employer in the Plan identified in Section 1.03 of the
accompanying Adoption Agreement, as if the Participating Employer were a
signatory to that Agreement. The Participating Employer accepts, and agrees to
be bound by, all of the elections granted under the provisions of the Prototype
Plan as made by NATIONAL AUTO FINANCE CORPORATION, the Signatory Employer to
the Execution Page of the Adoption Agreement.
1. The Effective Date of the undersigned Employer's participation in the
designated Plan is: January 1, 1996.
2. The undersigned Employer's adoption of this Plan constitutes:
[X] (a) The adoption of a new plan by the Participating Employer.
[ ] (b) The adoption of an amendment and restatement of a plan
currently maintained by the Employer, identified as
__________, and having an original effective date of
__________.
Dated this ___________ day of ____________________ 1996.
Name of Participating Employer: Hospitality Finance Company, L.P.
Signed: ______________________________________________________________________
XXXXX X. XXXXX (FOR HOSPITALITY FINANCE COMPANY, L.P.)
Participating Employer's EIN: 00-0000000
Acceptance by the Signatory Employer to the Execution Page of the Adoption
Agreement and by the Trustee.
Name of Signatory Employer: NATIONAL AUTO FINANCE CORPORATION
Accepted: ______________________
[Date] Signed: __________________________
XXXXX X. XXXXX
Name(s) of Trustee: XXXXX X. XXXXX, XXX XXXXXX, XXXX X. XXXXXXX AND
XXXXX X. XXXXX
Accepted: ______________________
[Date] Signed: __________________________
XXXXX X. XXXXX
Accepted: _______________________
[Date] Signed: __________________________
XXX XXXXXX
Accepted: ______________________
[Date] Signed: __________________________
XXXX X. XXXXXXX
Accepted: _______________________
[Date] Signed: __________________________
XXXXX X. XXXXX
[Note: Each Participating Employer must execute a separate Participation
Agreement. See the Execution Page of the Adoption Agreement for important
Prototype Plan information.]
43
===============================================================================
NATIONAL AUTO FINANCE CORPORATION
401(k) PLAN
SUMMARY PLAN DESCRIPTION
===============================================================================
PARTICIPANT'S ACKNOWLEDGEMENT OF RECEIPT OF
-------------------------------------------
SUMMARY PLAN DESCRIPTION
------------------------
I hereby acknowledge receipt of a copy of the Summary Plan Description ("SPD")
for the plan identified above. I received a copy of the SPD on the date
indicated below.
Dated: _________________
____________________________________________________
Participant's Name - Printed
____________________________________________________
Signature of Participant
Note: This form should be completed by plan participants (to acknowledge
receipt of the Summary Plan Description) and returned to the Plan
Administer. A copy of this receipt is not required by XXXxxxxxxx, Inc.
(the third party administrator).
44
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-----------
------------------
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================================================================================
NATIONAL AUTO FINANCE CORPORATION
401(k) PLAN
(ADOPTION AGREEMENT)
================================================================================
