EX-99.B14(i)
PROTOTYPE STANDARD SIMPLE 401(k) PROFIT SHARING PLAN ADOPTION AGREEMENT
The undersigned employer(s) - **SAVE UNDER CLIENT #.adp IN INSTITUTION
DIRECTORY**, hereinafter referred to as the "Employer", hereby adopts the
_________ PROTOTYPE STANDARD SIMPLE 401(k) PROFIT SHARING PLAN AND TRUST. The
name of the Plan shall be _____________________________.
1. EMPLOYER TAX IDENTIFICATION NUMBER: _______________________.
2. The EFFECTIVE DATE of the initial adoption of the Plan is _______ (usually
the first day of the Plan Year).
3. If this is an amendment of an existing plan, the EFFECTIVE DATE of the
amendment is ________ (usually the first day of the Plan Year).
4. The LAST DAY of the PLAN YEAR, _______ shall be the ANNIVERSARY DATE.
5. The ENTRY DATE(S) of the Plan:
5.1 / / Shall be the first day of each PLAN YEAR and the first day
of each quarter thereafter.
5.2 / / Shall be the first day of each PLAN YEAR and the first day
of the seventh month of each Plan Year.
6. ELIGIBILITY REQUIREMENTS: Each Employee except the following shall be
eligible to participate in the Plan in accordance with Section 5 above.
6.1 / / Employees who have not attained the age of __________
(cannot exceed 21).
6.2 / / Employees who have not completed ______ Year of Service
(cannot exceed 1 year). If the Year of Service selected is
or includes a fractional
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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, SHALL NOT be eligible to participate. For this
purpose, the term "Employee Representatives" does not include any
organization more than half of whose members are employees who
are owners, officers, or executives of the Employer.
6.4 / / Employees who are nonresident aliens (within the meaning of
Code section 7701(1)(B)) and who received no earned income
(within the meaning of Code Section 911(d)(2)) from the Employer
which constitutes income from sources within the United States
(within the meaning of Code Section 861(a)(3)).
7. COMPENSATION, for purposes of the qualified Cash or Deferred Arrangement,
and this plan generally, shall mean all money or value which is actually
paid to the Participant during the Plan Year, as represented in Sections
7.1 and 7.2 below, and SHALL INCLUDE Employer contributions made pursuant
to a salary reduction agreement which are not includible in the gross
income of the employee under Sections 125, 402(a)(8), 402(h) or 403(b) of
the Code.
7.1 / / W-2 earnings reported in the Wages, Tips, and Other
Compensation Box on Form W2.
7.2 / / Compensation (as that term is defined in Section 415(c)(3)
of the Code).
7.3 / / Compensation for purposes of the Cash or Deferred
Arrangement, SHALL NOT INCLUDE earnings paid prior to the date
the Employee became a Plan Participant.
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. If no age is elected and
this section is left blank, the Normal Retirement Age will be deemed to be
65.
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9. VESTING: If a Participant terminates prior to Normal Retirement Age he
shall receive a percentage of his Accrued Benefit according to the vesting
schedule checked below.
9.1 / / One hundred percent schedule - 100% at all times.
9.2 / / Twenty Percent Schedule - 20% after the second Covered Year
of Service and 20% for each additional year credited thereafter,
until 100% is reached at six years.
9.3 Variable Schedule:
Based on Covered Year of Service after Year:
1 _______________________________ 3 ____ 5 _____
7 ____ 100%
2 ________________________ 4 ____ 6 ____
This option 9.3 shall not be less favorable than the vesting schedules
contained in Internal Revenue Code Sections 411(a)(2)(A) and (B).
9. VESTING: (continued)
9.4 / / Years of Service for purposes of determining vesting shall
exclude Years of Service
a. / / prior to the Effective Date of this Plan or a
predecessor plan.
b. / / prior to the age of 18.
Note: Option 9.2 will automatically apply if and when this Plan shall
become top heavy provided that Option 9.1 has not been elected and Option
9.3 is not at least as favorable as Option 9.2.
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.
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Notwithstanding the above, the Accrued Benefit shall become fully vested at
Normal Retirement Age.
10. CONTRIBUTIONS
10.1 EMPLOYER CONTRIBUTIONS: The Employer may make contributions to the
Plan without regard to current or accumulated earnings and profits for
the taxable year or years ending within the Plan Year.
10.2 ELECTIVE DEFERRALS: A Participant may elect to have his or her
Compensation reduced by the following percentage per pay period, or
for a specified pay period or periods, as designated in writing to the
Plan Administrator. The amount which may be elected shall not be in
excess of _________________ percent of a Participant's Compensation.
Unless elected otherwise by the Employer below, a Participant's
election regarding Elective Deferrals shall apply to his cash bonuses.
a. A Participant may elect to commence Elective Deferrals as of each
________ (i.e., each entry date). Such election shall
become effective as of the _______ pay period following the
pay period during which the Participant's election to commence
Elective Deferrals was made, or as soon as administratively
feasible thereafter.
b. / / A Participant's election regarding Elective
Deferrals SHALL NOT apply to Cash Bonuses.
c. No Participant shall be permitted to have Elective Deferrals made
under this plan during any calendar year in excess of $7,000,
multiplied by the Adjustment Factor.
d. A Participant's election to have Elective Deferrals made pursuant
to a salary reduction agreement shall remain in effect until
modified or terminated.
10. CONTRIBUTIONS
10.2 ELECTIVE DEFERRALS: (continued)
e. A Participant may modify the amount of Elective Deferrals as of
each entry date. Such modification shall become effective as of
the 2nd pay period following the pay period during which the
Participant's election to modify Elective Deferrals was made, or
as soon as administratively feasible thereafter.
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f. A Participant may CEASE Elective Deferrals at any time, effective
with the 2nd pay period following the pay period during which the
Participant's election to cease Elective Deferrals was made, or
as soon as administratively feasible thereafter.
10.3 EMPLOYER PROFIT SHARING CONTRIBUTIONS AND ALLOCATION OF EMPLOYER
PROFIT SHARING CONTRIBUTIONS:
a. In addition to Elective Deferrals, Qualified Non-elective
Contributions, Qualified Matching Contributions and Matching
Contributions, the Employer may make additional contributions
under the Plan which shall be made solely at the discretion of
the Employer but not in excess of 15% of Participant
Compensation, up to the maximum amount specified in Section 5.5
of the Plan. Forfeitures of Employer Profit Sharing
Contributions shall be added to the Employer's Contribution and
allocated therewith.
b. The Employer Profit Sharing Contribution to the Plan will be
allocated among the accounts of Participants as of the
Anniversary Date who have been credited with more than 500 Hours
of Service during the Plan Year. Such contribution shall be
allocated to the accounts of these Participants in the ratio that
each Participant's Compensation for the Plan Year bears to the
total Compensation of all Participants for such Plan Year.
11. QUALIFIED NON-ELECTIVE CONTRIBUTIONS
11.1 The Employer may make Qualified Non-elective Contributions to the Plan
in such amounts as determined by the Employer as appropriate.
11.2 If Qualified Non-elective Contributions are needed to meet the Actual
Deferral Percentage ("ADP") test described in Section 11.4 of the
Plan, such contribution shall be allocated as of the Anniversary Date
to the accounts of non-highly compensated Participants in the ratio
that each Participant's Compensation for the Plan Year bears to the
total Compensation of all non-highly compensated Participants for such
Plan Year.
11.3 If Qualified Non-elective Contributions are made to the Plan for a
purpose other than to meet the Actual Deferral Percentage test
described in Section 11.4 of the Plan (i.e., to meet a minimum
contribution requirement under the top heavy rules), the contribution
shall be allocated among the accounts of non-key employees who have
been credited with more than 500 hours of service during the Plan
Year, in the ratio in which each Participant's Compensation for the
Plan
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Year bears to the total Compensation of all non-key participants for
such Plan Year.
12. QUALIFIED MATCHING CONTRIBUTIONS (100% Vested)
12.1. / / The Employer will make Qualified Matching Contributions
to the plan on behalf of all Participants who make Elective
Deferrals, irrespective of their employment status on the
Anniversary Date. The contribution shall be 100% vested,
treated as a deferral for purposes of distribution, and
shall be allocated as of the Valuation Date following
deposit in the trust. The contribution shall be made in the
following amounts:
a. / / ___ percent of the Elective Deferral made for each
Plan Year.
b. / / The sum of ____ percent of the portion of the
Elective Deferral which does not exceed _______ percent
of the portion of the Participant's Compensation, plus
percent of the portion of the Elective Deferral which
exceeds ___ percent of the Participant's Compensation,
but does not exceed _____ percent of the Participant's
Compensation.
c. / / The Employer shall not match Elective Deferrals as
provided above in excess of $ _____ or in excess of
_____ percent of the Participant's compensation.
12.2 The level of contributions chosen by the Employer is subject to
the Code Section 401(m)(2) discrimination test and the Section
415 contribution limitations.
13. MATCHING CONTRIBUTIONS (May be subject to a vesting schedule under Section
9)
13.1 / / The Employer will make Matching Contributions to the Plan on
behalf of Participants defined below who make Elective Deferrals,
irrespective of their employment status on the last day of the
Plan Year. The contribution shall be allocated to all
Participants who make Elective Deferrals, may be subject to a
vesting schedule and treated as a non-elective Employer
contribution for purposes of distributions.
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13.2 Matching contributions will be:
a. / / Nonforfeitable when made.
b. / / Subject to the vesting schedule applicable to
Employer contributions, other than Elective Deferrals,
Qualified Non-elective Contributions and Profit Sharing
Contributions, under the Plan.
13. MATCHING CONTRIBUTIONS: (continued)
13.3 The amount of such Matching Contributions made on behalf of each
Participant shall be:
a. / / ___ percent of the Elective Deferral made for each
Plan Year.
b. / / The Employer shall not match Elective Deferrals as
provided in Section 13.1 above in excess of $______ or
in excess of _________ percent of the Participant's
Compensation.
13.4 / / The Employer may make Matching Contributions from time to
time as it deems advisable. Such contribution shall be equal to
a specified percentage of the Participant's Elective Deferral,
provided that the Employer may establish a limit on the amount of
the Elective Deferral which shall be matched. Such limit shall
be specified either as a dollar amount or as a percentage of
Compensation. This contribution shall be made on behalf of all
individuals who deferred during the Plan Year.
13.5 The level of contributions chosen by the Employer is subject to the
Code Section 401(m)(2) discrimination test and the Section 415
contribution limitations.
14. SPECIAL DISTRIBUTIONS AND MISCELLANEOUS RULES
14.1 Elective Deferrals, Qualified Matching Contributions, Qualified
Non-elective Contributions and income allocable to such amounts shall
be distributable upon separation from service, death, or disability,
as defined in the underlying Plan document. Further, such amounts may
be distributable on any of the following events:
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a. Termination of the Plan without the establishment of another
defined contribution plan.
b. As soon as would be administratively feasible after the
disposition by the Employer to an unrelated corporation of
substantially all of the assets (within the meaning of Code
Section 409(d)(2)) used in a trade or business of the Employer,
if the Employer continues to maintain this Plan after such
disposition, but only with respect to Employees who continue
employment with the corporation which acquired such assets.
c. As soon as would be administratively feasible after the
disposition by the Employer to an unrelated entity of the
Employer's interest in a subsidiary (within the meaning of Code
Section 409(d)(3)) if the Employer continues to maintain this
Plan, but only with respect to Employees who continue employment
with such subsidiary.
14.2 HARDSHIP DISTRIBUTIONS:
/ / Elective Deferrals and certain earnings thereon may be
distributed upon the hardship of the Participant, to the
extent provided for in Section 11.6 (c) of the Plan, and
subject to applicable regulations prescribed by the
secretary.
14. SPECIAL DISTRIBUTIONS AND MISCELLANEOUS RULES: (continued)
14.3 AGE 59 1/2:
/ / A Participant shall be permitted to withdraw all or a
portion of his vested account balance on or after the
attainment of age 59 1/2.
14.4 PARTICIPANT LOANS:
/ / Participant loans shall be permitted in this Plan.
14.5 CALENDAR YEAR ELECTION:
Irrespective of any other language, clause or provision in the Plan
and Trust or Adoption Agreement, for Plans that have elected to use
the calendar year (the twelve contiguous month period beginning
January 1 and ending December 31) as the Plan's Plan Year, the
Employer shall use the calendar year ending with the Plan Year in the
look back year (as defined in Treasury Regulations under Section
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414(q) of the Code) calculation for determining which Employees are
Highly Compensated Employees. The use of the calendar year as the
look-back year shall apply to all Plans, entities, and arrangements of
the Employer. The determination year shall be the twelve month
period ending with the Plan Year as well.
For all Plans not using the calendar year as their Plan Year, the
determination year shall be the same as the Plan Year and the Employer
shall use the twelve contiguous months immediately preceding the
determination year as the look back year.
14.6 VALUATION DATE(s) for DISTRIBUTIONS:
The Plan shall have the following interim Valuation Date(s) for
purposes of distributions:
a. / / Daily (each day of the Plan Year)
b. / / Quarterly (last day of each quarter of the Plan Year)
c. / / Other ______________________________________________________
15. CLAIMS FOR EXCESS ELECTIVE DEFERRALS: Participants who claim Excess
Elective Deferrals for the preceding calendar year must submit their claims
in writing to the Plan Administrator by March 1.
16. ACTUAL DEFERRAL AND CONTRIBUTION PERCENTAGES
16.1 Qualified Matching Contributions and Qualified Non-Elective
Contributions may be taken into account as Elective Deferrals for
purposes of calculating the Actual Deferral Percentages. In
determining Elective Deferrals for the purpose of the ADP test the
Employer shall include such Qualified Matching Contributions and such
Qualified Non-Elective Contributions under this Plan or any other Plan
of the Employer as necessary to meet the test and as provided for by
regulations under the Code.
16. ACTUAL DEFERRAL AND CONTRIBUTION PERCENTAGES: (continued)
16.2 The amount of such contributions taken into account as Elective
Deferrals for purposes of calculating the Actual Deferral Percentage,
subject to such other
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requirements as may be prescribed by the Secretary of the Treasury,
shall be those contributions as needed to meet the test.
16.3 Qualified Matching Contributions and Qualified Non-Elective
Contributions may be taken into account as Contributions for purposes
of calculating the Actual Contribution Percentages. In determining
which contributions shall be counted for the purpose of the ACP test
the Employer shall include such Qualified Matching Contributions and
such Qualified Non-Elective Contributions under this Plan or any other
Plan of the Employer as necessary to meet the test and as provided for
by regulations under the Code.
16.4 The amount of such contributions taken into account as Contributions
for purposes of calculating the Actual Contribution Percentage,
subject to such other requirements as may be prescribed by the
Secretary of the Treasury, shall be those contributions as needed to
meet the test.
17. FORFEITURES: Forfeitures of Matching Contributions shall be applied in the
current year of forfeiture to reduce employer contributions.
18. / / INDIVIDUAL INVESTMENT DIRECTION: If the Employer has elected
this Section, each Participant will have the right to direct the
investment of the amount allocated to his Plan account for each of the
contribution types which have also been checked below. Each
Participant will have the power to direct the investment with respect
to those contributions and the earning or losses thereon subject to
such rules as the Administrator and the Trustee may deem necessary.
Gains and losses of the funds so directed by the Participant shall
accrue solely to those funds. The Participant directing the
investment of amounts allocated to his account shall be solely
responsible for the investment results of such directions. This means
that the Participant shall be solely responsible for whatever gains
and/or losses are attributable to the amounts allocated to his account
for which he directs the investment. Contributions not checked below
will be held in a pooled trust and subject to the investment direction
and management of the Plan Administrator. If the Participant fails to
direct the investment of any contribution type checked below, the
failure will be deemed a direction by the Participant to invest said
funds in a money market, dollar-a-share fund or similar vehicle chosen
by the Plan for this purpose.
18.1 / / Elective Deferrals
18.2 / / Qualified Non-elective Contributions
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18.3 / / Matching Contributions
18.4 / / Qualified Matching Contributions.
18.5 / / Profit Sharing Contributions
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19. LIMITATION YEAR shall mean each 12 consecutive month period ending on
_____.
NOTE: A written resolution must be adopted by the Employer if the Limited
Year is other than the calendar year.
20. 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 plans:
Plan #01 - Adoption Agreement 000
Xxxx #00 - 000, 002, 004, 003, 006, 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(l)(2) under which amounts are
treated as annual additions with respect to any participant in this Plan.
20.1 If the Participant is covered under another qualified defined
contribution plan maintained by the Employer, other than a master or
prototype plan:
a. / / The provisions of Section 5.5 (B) of the Plan will
apply as if the other plan were a master or prototype plan.
b. / / 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:
20.2 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):
21. MINIMUM CONTRIBUTION FOR TOP HEAVY PLAN: If the Employer maintains one or
more defined benefit plans in which a Participant participates in addition
to this Plan and does not maintain any other defined contribution plan in
which a
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Participant participates, the minimum benefit requirement applicable to Top
Heavy Plans shall be met under this Plan.
22. YEAR OF SERVICE: shall mean 1000 Hours of Service.
23. PREDECESSOR EMPLOYER: Service with the following Predecessor Employer(s):
Years of Service shall be counted for purposes of eligibility and vesting.
24. ADMINISTRATOR shall mean the Employer. The Administrator shall have the
sole and ultimate authority to interpret the Plan terms and provisions.
25. OTHER BENEFITS: Early Retirement Benefits are not provided by this Plan.
26. 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:
26.1 / / Pre-Retirement Interest Rate _____ %.
26.2 / / Post-Retirement Mortality Table: _____ with ______ %
interest.
27. 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 are more Participating Affiliates.]
Participating Affiliate Name: _______________________________________
Employer Tax I. D.: ____________________________________________
Address: _______________________________________________________
Taxable Year: _______________________________________________________
By: _______________ Title: __________________ Date: _____________
Participating Affiliate Name: _______________________________________
Employer Tax I.D.: _____________________________________________
Address: _______________________________________________________
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Taxable Year: _______________________________________________________
By: ________________________ Title: ___________ Date: ___________
Participating Affiliate Name: _______________________________________
Employer Tax I.D.: _____________________________________________
Address: _______________________________________________________
Taxable Year: __________________________________________________
By: ________________________ Title: ____________ Date: ___________
28. ADMINISTRATOR: Signature by the Administrator is not required if the
Employer is the Administrator.
Optional Provision - To be elected if Plan Section 10.6 (E) is elected.
29. 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.
29.1 The following individual or entity shall be Trustee(s):
Name: _____________________________________________________
Address: __________________________________________________
Phone Number: _____________________________________________
Signature by the Trustee is in acknowledgment of acceptance of
appointment.
Signature: ________________________________________________
29.2 The following individual or entity shall be Custodian(s).
Name: _____________________________________________________
Address: __________________________________________________
Phone Number: _____________________________________________
Signature by the Custodian is in acknowledgment of acceptance of
appointment.
Signature: ________________________________________________
Optional Provision - To be elected if Plan Section 10.6 (E) is not elected
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30. INSURANCE TRUSTEE: Signature by the Trustee is in acknowledgement of
acceptance of appointment.
Insurance Trustee Name: _____________________________________________
Signature: ________________________________________________
31. 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(l)(2) of the
Code) in addition to this Plan other than paired plans:
Plan #01 - Adoption Agreement 000
Xxxx #00 - 000, 002, 004, 003, 006, 009
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.
31. ADOPTION AGREEMENT USAGE: (continued)
The Employer may not rely on the opinion letter issued by the National
Office of the Internal Revenue Service as evidence that this Plan is
qualified under Section 401 of the Code unless the terms of the Plan, as
herein adopted or amended, that pertain to the requirements of Sections
401(a)(4), 401(a)(17), 401(l), 401(a)(5), 410(b) and 414(s) of the Code, as
amended by the Tax Reform Act of 1986 or later laws,
31.1 are made effective retroactively to the first day of the Plan Year
beginning after December 31, 1988 (or such other date on which these
requirements first become effective with respect to this Plan);
31.2 are made effective no later than the first day on which the Employer
is no longer entitled, under regulations, to rely on a reasonable good
faith interpretation of
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these requirements, and the prior provisions of the Plan constitute
such an interpretation.
32. SPONSORING ORGANIZATION: The Sponsoring organization or its authorized
representative identified below will inform the adopting employer of any
amendments made to the Plan or of the discontinuance or abandonment of the
Plan. The organization sponsoring this Plan is:
The authorized representative of the sponsoring organization is:
The Employer represents that the legal and tax aspects of this Plan and
Trust have been duly considered and passed upon by its attorney and/or tax
advisor who has determined that it is suitable and has been properly
completed and adopted.
ADOPTION FOR THE EMPLOYER
By ____________________________________ Date _______________
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