Exhibit 2.b(ii)
ADOPTION AGREEMENT #006
STANDARDIZED CODE SS.401(K) PLAN
(PAIRED PROFIT SHARING PLAN)
The undersigned, ATS MONEY SYSTEMS, INC. ("Employer"), by executing this
Adoption Agreement, elects to become a participating Employer in the First Union
National Bank of North Carolina Defined Contribution Master 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 Master Plan.
ARTICLE I
DEFIMTIONS
1.02 TRUSTEE. The Trustee executing this Adoption Agreement is: (Choose
(a) or (b))
[ ] (a) A discretionary Trustee. See Section 10.03[A] of the Plan.
[X] (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 ATS MONEY
SYSTEMS. INC. PROFIT SHARING PLAN.
1.07 EMPLOYEE. The following Employees are not eligible to participate
in the Plan: (CHOOSE (A) OR AT LEAST ONE OF (B) OR (C))
[ ] (a) No exclusions.
[X] (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.]
[X] (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)).
RELATED EMPLOYERS/LEASED EMPLOYEES. An Employee of any member of the Employer's
related group (as defined in Section 1.30 of the Plan), and any Leased Employee
treated as an Employee under Section 1.31 of the Plan, is eligible to
participate in the Plan, unless excluded by reason of Options (b) or (c). [Note:
A related group member may not contribute to this Plan unless it executes a
Participation Agreement, even if its Employees are Participants in the Plan.]
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) AND
(E))
[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.
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 (F) OR ANY COMBINATION OF (G) AND (H), IF APPLICABLE)
[X] (f) No exceptions.
[ ] (g) The dollar limitation described in Option (d) does not apply.
[ ] (h) 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).
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 31.
[ ] (b) (SPECIFY)_____________________________________________________
___________.
LIMITATION YEAR. The Limitation Year is: (CHOOSE (C) OR (D))
[X] (c) The Plan Year.
[ ] (d) The 1,2 consecutive month period ending every _____.
1.18 EFFECTIVE DATE.
NEW PLAN. The "Effective Date" of the Plan is _______________.
RESTATED PLAN. The restated Effective Date is NOVEMBER 1, 1997.
This Plan is a substitution and amendment of an existing retirement plan(s)
originally established JANUARY 1, 1989.
[NOTE: SEE THE EFFECTIVE DATE ADDENDUM.]
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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 t.29 of the Plan, the Plan
credits Service with the following predecessor employer(s): N/A . Service with
the designated predecessor employer(s) applies: (CHOOSE AT LEAST ONE OF (A) OR
(B))
[ ] (a) For purposes of participation under Article II.
[ ] (b) For purposes of vesting under Article V.
[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 participates in a safe
harbor money purchase plan (as described in Section 1.31) maintained by the
leasing organization, but the Employer is not eligible for the safe harbor plan
exception: (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 under the safe harbor
plan.
[ ] (b) The Advisory Committee will reduce the 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 safe harbor plan, but only to the extent that
allocation is attributable to the Leased Employee's service provided to
the Employer. [NOTE: THE EMPLOYER MAY NOT ELECT OPTION (B) IF A PAIRED
PLAN OR ANY OTHER PLAN OF THE EMPLOYER MAKES A SIMILAR REDUCTION FOR
THE SAME PLAN OF THE LEASING ORGANIZATION.]
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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)
[X] (a) Attainment of age 21 (specify age, not exceeding 2l ).
[X] (b) service requirement. (Choose (1), (2) or (3))
[X] (1) One Year of Service.
[ ] (2) __ months (not exceeding 12) following the Employee's
Employment Commencement Date.
[ ] (3) One Hour of Service.
PLAN ENTRY DATE. "Plan Entry Date" means the Effective Date and: (CHOOSE (C),
(D) OR (E))
[ ] (c) Semi-annual Entry Dates. The first day of the Plan Year and the
first day of the seventh month of the Plan Year.
[ ] (d) The first day of the Plan Year.
[X] (e) (SPECIFY ENTRY DATES) THE 1ST DAY OF THE MONTH COINCIDING WITH OR
FOLLOWING THE DATE THE PARTICIPANT MEETS THE ELIG REQUIREMENT.
TIME OF PARTICIPATION. An Employee will become a Participant, unless excluded
under Adoption Agreement Section 1.07, on the Plan Entry Date (if employed on
that date): (CHOOSE (F), (G) OR (H))
[X] (f) immediately following
[ ] (g) immediately preceding
[ ] (h) nearest
the date the Employee completes the eligibility conditions described in Options
(a) and (b) of this Adoption Agreement Section 2.01. [NOTE: THE EMPLOYER MUST
COORDINATE THE SELECTION OF (F), (G) OR (H) WITH THE "PLAN ENTRY DATE" SELECTION
IN (C), (D) OR (E). UNLESS OTHERWISE EXCLUDED UNDER SECTION 1.07, THE EMPLOYEE
MUST BECOME A PARTICIPANT BY THE EARLIEST 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 (I) OR (J))
[ ] (i) 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.
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[X] (j) Solely to an Employee employed by the Employer after December 31,
l997. If the Employee was employed by the Employer on or before the
specified date, the Employee will become a Participant: (CHOOSE (1) OR
(2))
[X] (1) On the latest of the Effective Date, his Employment
Commencement Date or the date he attains age N/A (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]
2.02 YEARS OF SERVICE - PARTICIPATION
HOURS OF SERVICE. An Employee must complete: (CHOOSE (A) OR (B))
[X] (a) 1,000 Hours of Service
[ ] (b) _____ Hours of Service
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.
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 COMBINATIONS OF (A), (B), (C) AND (D), OR CHOOSE (E))
[X] (a) DEFERRAL CONTRIBUTIONS (CODE SS.401(K) 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.
5
[X] (b) MATCHING CONTRIBUTIONS. The Employer will make matching
contributions in accordance with the formula(s) elected in Part II of
this Adoptive 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.
[X] (1) Discretionary contribution. The amount (or additional amount)
the Employer may from time to time deem advisable.
[ ] (2) _____% 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%.]
[ ] (3) _____% 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 OF (1), (2) AND
(3))
[ ] (1) Matching contributions described in Option (b), except:
[ ] (2) Qualified nonelective contributions described in Option (c).
[ ] (3) Nonelective contributions described in Option _____________.
"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 _______________
__________________________. [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
Net Profits, the aggregate Net Profits are insufficient to satisfy the matching
contribution liability. "Net Profits" includes both current and accumulated Net
Profits.
6
PART II. [OPTIONS (H) AND (I)] MATCHING CONTRIBUTION FORMULA. [NOTE: IF THE
EMPLOYER ELECTED OPTION (B), COMPLETE OPTIONS (H) AND (I).]
[X] (h) Amount of matching contributions. Subject to Option (i), for each
Plan Year, the Employer's matching contribution is: (CHOOSE ANY
COMBINATION OF (1). (2), (3) AND (4))
[X] (1) An amount equal to 25% of each Participant's salary reduction
contributions for the Plan Year.
[ ] (2) An amount equal to _____%, of each Participant's first tier of
salary reduction contributions for the Plan Year, plus the
following matching percentage(s) for the following subsequent tiers
of salary reduction contributions for the Plan Year:
[ ] (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 salary reduction 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 salary reduction contributions
for the Plan Year.
[NOTE: UNDER OPTIONS (2) OR (3)(II), THE MATCHING PERCENTAGE FOR ANY SUBSEQUENT
TIER OF SALARY REDUCTION CONTRIBUTIONS MAY NOT EXCEED THE MATCHING PERCENTAGE
FOR ANY PRIOR TIER.]
[ ] (4) A Participant's matching contributions may not:
[ ] (i) Exceed ___________________________________________
[ ] (ii) Be less than ____________________________________
[X] (i) AMOUNT OF SALARY REDUCTION CONTRIBUTIONS TAKEN INTO ACCOUNT. When
determining a Participant's salary reduction contributions taken into
account under the matching contributions formula(s), the following
rules apply: (CHOOSE ANY COMBINATION OF (1) THROUGH (3))
[ ] (1) The Advisory Committee will take into account all salary
reduction contributions credited for the Plan Year.
[X] (2) The Advisory Committee will disregard salary reduction
contributions exceeding 6 % OF COMPENSATION .
[ ] (3) The Advisory Committee will treat as the first tier of salary
reduction contributions, an amount not exceeding:
_______________________________. The subsequent tiers of salary
reduction contributions are: _____________________________________
___________________________________________________________________
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PART III. [OPTION (J).]. SPECIAL RULES FOR CODE SS.401(K) ARRANGEMENT. (CHOOSE
(J), IF APPLICABle)
[X] (j) 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))
(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 20% 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.
[X] (iii) Based on percentages of Compensation must equal at least
1%.
(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) 1ST DAY
OF PAYROLL PERIOD UPON 30 DAYS WRITTEN NOTICE.
(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.
[ ] (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.
[X] (iv) (SPECIFY, BUT MUST BE AT LEAST ONCE PER PLAN YEAR
FOLLOWING THE PLAN YEAR OF REVOCATION) 1ST DAY OF PAYROLL
PERIOD UPON 30 DAYSWRITTEN NOTICE.
(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.
[ ] (ii) As of the first day of each month.
[ ] (iii) As of any Plan Entry Date.
[X] (iv) (SPECIFY, BUT MUST PERMIT AN INCREASE OR A DECREASE AT
LEAST ONCE PER PLAN YEAR) 1ST DAY OF PAYROLL PERIOD UPON 30
DAYS WRITTEN NOTICE.
8
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 of
the Plan and the elections under this Adoption Agreement Section 3.04.
PART I. [OPTIONS (A) THROUGH (D)]. SPECIAL ACCOUNTING ELECTIONS. (CHOOSE
WHICHEVER 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.
[X] (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: ANY BUSINESS DAY THE FINANCIAL MARKETS ARE OPEN AND AVAILABLE
FUNDS ARE DEPOSITED WITH THE TRUSTEE.
[X] (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: ANY BUSINESS
DAY THE FINANCLAL MARKETS ARE OPEN AND AVAILABLE FUNDS ARE DEPOSTTED
WITH THE TRUSTEE.
[X] (d) DESIGNATED QUALIFIED NONELECTIVE CONTRIBUTIONS - DEFINITION OF
PARTICIPANT. For purposes of allocating the designated qualified
nonelective contribution, "Participant" means: (CHOOSE (1) OR (2))
[ ] (l) All Participants.
[X] (2) Participants who are Nonhighly Compensated Employees.
PART II. METHOD OF ALLOCATION - NONELECTIVE CONTRIBUTION. Subject to any
restoration allocation required under Section 5.04, the Advisory Committee will
allocate and credit the annual nonelective contributions (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 method selected under this Part II. (CHOOSE AN ALLOCATION
METHOD UNDER (E), (F), (G) OR (H); (I) IS MANDATORY IF THE EMPLOYER ELECTS (F),
(G) OR (H))
[X] (e) Nonintegrated Allocation Formula, .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.
[ ] (f) Two-Tiered Integrated Allocation Formula - Maximum Disparity.
First, the Advisory Committee will allocate the annual nonelective
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 (5.7%, 5.4% or 4.3%) listed under the Maximum
Disparity Table following Option (i).
9
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 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).
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.
[ ] (h) FOUR-TIERED INTEGRATED ALLOCATION FORMULA. First, 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, but
not exceeding 3% of each Participant's Compensation.
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, thc Advisory Committee will allocate the
annual 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.
[ ] (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))
[ ] (1) ____% (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).
10
[ ] (ii) But not greater than $_______.
[ ] (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.]
Maximum Disparity Table. For purposes of Options (f), (g) and (h), the
applicable percentage is:
Integration Level (as Applicable Percentages for Applicable Percentages
percentage of 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%
TOP HEAVY MINIMUM ALLOCATION - APPLICATION OF REQUIREMENT. The Plan applies the
top heavy minimum allocation requirements of Section 3.04(B)(1): (CHOOSE (J) OR
(K))
[ ] {j) In all Plan Years. A Participant is entitled to the top heavy
minimum allocation if he is employed by the Employer on the last day of
the Plan Year, unless: (CHOOSE (1) OR (2))
[ ] (1) No exceptions.
[ ] (2) The Participant is a Key Employee for the Plan Year. [NOTE: IF
THE EMPLOYER SELECTS THIS OPTION (2), IT WILL HAVE TO DETERMINE FOR
EACH PLAN YEAR WHO ARE THE KEY EMPLOYEES UNDER THE PLAN.]
[X] (k) Only in Plan Years for which the Plan is top heavy. A Participant
is entitled to the top heavy minimum allocation if he is employed by
the Employer on the last day of the Plan Year, unless he is a Key
Employee. [NOTE: OPTION (K) WILL REQUIRE THE ADVISORY COMMITTEE TO
DETERMINE WHETHER THE PLAN IS TOP HEAVY FOR A PLAN YEAR.]
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 (L) OR (M))
[X] (1) 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.
[ ] (m) The Employer will satisfy the top heavy minimum allocation under
the Paired Pension Plan the Employer also maintains under this Master
Plan. 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 Paired Pension
Plan. See Section 3.04(B)(7)(b) of the Plan.
If the Employer maintains another plan which is not a Paired Pension Plan
offered under this Master 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 ss.416.
11
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
contributions and forfeitures to each Participant in the Plan, in accordance
with the elections in this Adoption Agreement Section 3.04, without regard to
which contributing related group member employs the Participant. A Participant's
Compensation includes Compensation from all related employers, irrespective of
which related employers are contributing to the Plan. The signatory Employer and
any Participating Employer(s) will satisfy any fixed matching contribution
formula under Adoption Agreement Section 3.01 as agreed upon by those Employers.
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))
[ ] (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.
[X] (b) To reduce the Employer matching contributions and nonelective
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.
[X] (c) To the extent attributable to matching contributions: (CHOOSE (1),
(2) OR (3))
[X] (1) in the manner elected under Options (a) or (b).
[ ] (2) First to reduce Employer matching contributions for the Plan
Year: (Choose (i) or (ii))
[ ] (i) in which the forfeiture occurs,
[ ] (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 (I) 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.
12
[ ] (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 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.
[X] (b) The Employee's Compensation for the portion of the Plan Year in
which the Employee actually is a Participant in the Plan, except:
(CHOOSE (1) OR (2))
[X] (1) No exceptions.
[ ] (2) For purposes of the first 3% of Compensation allocated under
Option (e), (g) or (h) of Adoption Agreement Section 3.04,
whichever applies, the Advisory Committee will take into account
the Employee's Compensation for the entire Plan Year.
ACCRUAL REQUIREMENTS. To receive an allocation of designated qualified
nonelective contributions, nonelective contributions and Participant forfeitures
treated as nonelective contributions for the Plan Year, a Participant must
satisfy the accrual requirements of this paragraph. 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
terminates employment with the Employer during the Plan Year, the Participant
must complete at least 501 Hours of Service (not exceeding 5O1) during the Plan
Year, except: (Choose (c) or (d))
[ ] (c) No exceptions.
[X] (d) No Hour of Service requirement if the Participant terminates
employment during the Plan Year on account of: (CHOOSE AT LEAST ONE OF
(1), (2) AND (3))
[X] (1} Death.
[X] (2) Disability.
[X] (3) Attainment of Normal Retirement Age in the current Plan Year or
in a prior Plan Year.
SPECIAL ACCRUAL REQUIREMENTS FOR MATCHING CONTRIBUTIONS. To receive an
allocation of matching contributions (and forfeitures applied to reduce matching
contributions) a Participant must satisfy the following condition(s):
(CHOOSE (E) OR ANY COMBINATION OF (F), (G) AND (H))
[X] (e) No conditions other than making salary reduction contributions.
[ ] (f) The accrual requirements prescribed for an allocation of
nonelective contributions.
[ ] (g) The Participant does not revoke his salary reduction agreement
effective during the Plan Year.
13
[x] (h) The Participant is not a Highly Compensated Employee for the Plan
Year. This Option (h) applies to: (CHOOSE (1) OR (2))
[ ] (1) All matching contributions.
[ ] (2) Matching contributions described in Option(s) _________ of
Adoption Agreement Section 3.O1.
3.15 MORE THAN ONE PLAN LIMITATION. If the provisions of Section 3.15
apply, the Excess Amount attributed co 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 ss.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 ss.415).
[ ] (b) The total Excess Amount.
[X] (c) None of the Excess Amount.
[NOTE: IF THE EMPLOYER ADOPTS PAIRED PLANS AVAILABLE UNDER THIS MASTER PLAN, THE
EMPLOYER MUST COORDINATE ITS ELECTIONS UNDER SECTION 3.15 OF EACH ADOPTION
AGREEMENT.]
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]
OVERRIDE OF 100% LIMITATION. The Employer elects: (CHOOSE (C) OR (D))
[ ] (c) To apply the 100% limitation described in Section 3.19(1) of the
Plan in all Limitation Years. [Note: This election will avoid having to
calculate the Plan's top heavy ratio for any year, unless the Employer
has elected Adoption Agreement Section 3.04(k).]
14
[ ] (d) Not to apply the 100% limitation for Limitation Years in which the
Plan's top heavy ratio {as determined under Section 1.33 of the Plan)
does not exceed 90%, but only if the defined benefit plan satisfies the
extra minimum benefit requirements of Code ss.416(h)(2) (and the
applicable Treasury regulations) after taking into account the
Employer's election under Options (e), (f), (g) or (h) of this Section
3.18. 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: _____________________________
_________________________________________________________ [Note: This
election will require the Advisory Committee to calculate the Plan's
top heavy ratio.]
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 (e), (f), (g), or (h)
[ ] (e) No modifications.
[ ] (f) By substituting 4% for 3% in Paragraph (b) of Section 3.04(B)(1) or
of Section 3.04(B)(2) of the Plan, whichever applies, but only for any
Plan Year in which Option (d) applies to override the 100% limitation.
[ ] (g) By increasing the top heavy minimum allocation to 5% for any Plan
Year in which the 100% limitation applies, and to 7 1/2% for any Plan
Year in which Option (d) applies to override the 100% limitation. The
increased percentage under this Option (g) applies irrespective of
whether the highest contribution rate for the Plan Year is less than
that increased percentage.
[ ] (h) By eliminating the top heavy minimum allocation. [Note: The
Employer may not select this option (h) if the defined benefit plan
does not guarantee the top heavy minimum benefit under Code ss.416 for
every Participant in this Plan who is a Non-Key Employee.)
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.
ARTICILE IV
PARTICIPANT CONTRIBUTIONS
4.01 PARTICIPANT NONDPDUCTIBLE CONTRIBUTIONS. The Plan (Choose (a) or
(b))
[X] (a) Does not permit Participant nondeductible contributions.
[ ] (b) Permits Participant nondeductible contributions, pursuant to
Section 14.04 of the Plan.
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 (c) or (d))
[ ] (c) No other allocation dates.
[ ] (d) (Specify) _________________________________________________________
________________
As of an allocation date, the Advisory Committee will credit all nondeductible
contributions made for the relevant allocation period. Unless otherwise
specified in (d), 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.
15
ARTICLE V
TERMINATION OF SERVICE - PARTICPANT VESTING
5.01 NORMAL RETIREMENT. Normal Retirement Age under the Plan is:
(Choose (a) or (b))
[X] (a) 65 [State age, but may not exceed age 65].
[ ] (b) The later of the date the Participant attainsyears of age or
theanniversary 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 PARTIGIPANT 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.
DEFERRED CONTRIBUTIONS ACCOUNT/QUALIFIED MATCHING CONTRIBUTIONS
ACCOUNT/QUALIFIED NONELECTIVE CONTRIBUTIONS Account. A Participant has a 100%
nonforfeitable interest at all times in his Deferral Contribution Account, his
Qualified Matching Contributions Account and in his Qualified Nonelective
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.
[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............... 0% 1..................... 0%
2............... 20% 2..................... 20%
3............... 40% 3..................... 40%
4............... 60% 4..................... 60%
5............... 80% 5..................... 80%
6 or more....... 100 6..................... 100%
7 or more............. 100%
16
[ ] (c) Special vesting election for Regular Matching Contributions
Xxxxxxx.Xx 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)(Z), 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 ss.416. The Employer, at its option, may complete
a Non Top Heavy Schedule only if the Employer elected Adoption Agreement Section
3.04(k). The Non Top Heavy Schedule must satisfy Code ss.411(a)(2). Also see
Section 7.05 of the Plan.]
[X] (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 nor elect
Option (d) unless it has completed a Non Top Heavy Schedule.]
MINIMUM VESTING. (Choose (e) or (f)
[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.
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))
[X] (a) Does not apply.
[ ] (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.
17
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), (c)
and (d))
[ ] (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.
[X] (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.
ARTICI.E VI
TIME AND METHOD OF PAYMENTS OF BENEFITS
CODE SS.411(D)(6) PROTECTED BENEFITS. The elections under this Article VI may
not eliminate Code ss.411(d)(6) protected benefits. To the extent the elections
would eliminate a Code ss.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 FIRST DAY OF
EACH MONTH _________________________________________ [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 xxx 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) or
(d))
[ ] (a) ___________________________________________________________________
of the ___________________ Plan Year beginning after the Participant's
Separation from Service.
[X] (b) AS SOON AS ADMINISTRATIVELY FEASIBLE 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).
18
[ ] (d) __________________________ following the Participant's attainment
of Normal Retirement Age, but not earlier than ________ days following
his Separation from Service.
NONFORFEITABLE ACCRUED BENEFIT EXCEEDS $3,500. See the elections under Section
6.03.
DISABILITY. The distribution date, subject to the limitations of Section
6.01(A)(3), is: (Choose (e) or (f))
[ ] (e)after the Participant terminates employment because of disability.
[X] (f) The same as if the Participant had terminated employment without
disability.
HARDSHIP. (Choose (g) or (h))
[X] (g) The Plan does not permit a hardship distribution to a Participant
who has separated from Service.
[ ] (h) 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) or (2))
[ ] (1) Section 6.01(A)(4) of the Plan.
[ ] (2) Section 14.11 of the Plan.
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 (i) or (j))
[X] (i) 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 thc Participant has separated from Service or unless the
Participant has attained age 59 1/2.
[ ] (j) 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.
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
(b))
[X] (a) No modifications.
[ ] (b) The Plan permits the following annuity options: ___________________
_______________________________________________________________________
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(b).]
19
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 (a) or
(b))
[ ] (a) As of any distribution date, but not earlier thanof 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 (5))
[ ] (1) As of 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.
[ ] (3) Any distribution date in thePlan 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 leastYears of Service (as defined in Article V).
The distribution: events described in the election(s) made under
Options (a) or (b) apply equally to all Accounts maintained for the Participant.
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 (c) or at least one of (d)
through (f)
[ ] (c) No distribution options prior to Separation from Service.
[X] (d) 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))
[X] (1) 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.]
[ ] (e) 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.]
[X] (f) Hardship. A Participant may elect a hardship distribution prior to
his Separation from Service in accordance with the hardship
distribution policy: (Choose (1) or (2); (3) is available only in
addirion to (1) or (2))
[ ] (1) Under Section 6.01(A)(4) of the Plan.
20
[X] (2) Under Section 14.11 of the Plan.
[ ] (3) 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.]
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 (g) or at least one of (h)
or (i)
[ ] (g) No distribution options prior to Separation from Service.
[X] (h) Until he retires, the participant has a continuing election to
receivc all or any portion of these Accounts after he attains: (Choose
(1) or (2))
[X] (1) The later of Normal Retirement Age or age 59 1/2.
[ ] (2) Age (at least 59 1/2).
[X] (i) Hardship. A Participant, prior to this Separation from Service, may
elect a hardship distribution in accordance with the hardship
distribution policy under Section 14.11 of the Plan.
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 (j) or (k)).
[X] (j) Only as described in this Adoption Agreement Section 6.03 for
distributions prior to Separation from Service.
[ ] (k) As if he has a Separation from Service. After March 31, 1988, a
distribution authorized solely by reason of this option (k) 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 PARTICTPANTS' ACCOUNTS
9.10 VALUE OF PARTICIPANT'S ACCRUED BENEFITS. 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 Plan)
occurs more than 90 days after the most recent valuation date, the distribution
will include interest at: (Choose (a) or (b))
[X] (a) 0% per annum. (Note: The percentage may equal 0.)
21
[ ] (b) The 90 day Treasury xxxx rate in effect at the beginning of the
current valuation period.
9.11 ALLOCATION AND DISTRIBUTRION OF NET INCOME GAIN OR LOSS. Pursuant
to Section 14.12, to determine the allocation of net income, gain or loss:
(Choose 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) or (4))
[ ] (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 l4.12,
based on a weighing period.
[X] (4) Treat as part of the relevant Account at the beginning of the
valuation period 100% of the salary reduction contributions:
(Choose (i) or (ii)).
[X] (i) made during that valuation period.
[ ] (ii) made by the Following specified time
[X] (b) For matching contributions, the Advisory Committee will: (Choose
(1). (2) or (3))
[ ] (1) Apply Section 9.11 without modification
[ ] (2) Use the weighted average method described in Section 14.12,
based on a weighting period.
[X] (3) Treat as part of the relevant Account at the beginning of the
valuation period 1OO% of the matching contributions allocated
during the valuation period.
[ ] (c) For Participant nondeductible contributions, the Advisory Committee
will: (Choose (1), (2), (3) or (4))
[ ] (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: ____________________
_____.
22
ARTICLE X
TRUSTEE AND CUSTODIAN, POWERS AND DUTIES
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))
[ ] (a) No other mandatory valuation dates.
[X] (b) (SPECIFY) EVERY BUSINESS DAY THE FINANCIAL MARKETS ARE OPEN AND
AVAILABLE FUNDS ARE DEPOSITEED WITH THE TRUSTEE.
23
EFFECTIVEDATE ADDENDUM
(RESTATED PLANS ONLY)
The Employer must complete this addendum only if the restated Effective Date
specified in Adoption Agreement Section 1.18 is different than the restated
effective date for at least one of the provisions listed in this addendum. In
lieu of the restated Effective Date in Adoption Agreement Section 1.18, the
following special effective dates apply: (CHOOSE WHICHEVER ELECTIONS APPLY)
[ ] (a) COMPENSATION DEFINITION. The Compensation definition of Section
1.12 (other than the $200,000 limitation) is effective for Plan Years
beginning after _____________. [NOTE: MAY NOT BE EFFECTIVE LATER THAN
THE FIRST DAY OF THE FIRST PLAN YEAR BEGINNING AFTER THE EMPLOYER
EXECUTES THIS ADOPTION AGREEMENT TO RESTATE THE PLAN FOR THE TAX REFORM
ACT OF 1986, IF APPLICABLE.)
[X] (b) ELIGIBILITY CONDITIONS. The eligibility conditions specified in
Adoption Agreement Section 2.01 are effective for Plan Years beginning
after DECEMBER 31, 1997.
[ ] (c) SUSPENSION OF YEARS OF SERVICE. The suspension of Years of Service
rule elected under Adoption Agreement Section 2.03 is effective for
Plan Years beginning after ____________________.
[X] (d) CONTRIBUTION/ALLOCATION FORMULA. The contribution formula elected
under Adoption Agreement Section 3.O1 and the method of allocation
elected under Adoption Agreement Section 3.04 is effective for Plan
Years beginning after DECEMBER 31, 1997.
[ ] (e) ACCRUAL REQUIREMENTS. The accrual requirements of Section 3.06 are
effective for Plan Years beginning after _____________. [NOTE: IF THE
EFFECTIVE DATE IS LATER THAN PLAN YEAR'S BEGINNING AFTER DECEMBER 31,
1989, THE ACCRUAL REQUIREMENTS IN THE PLAN PRIOR TO ITS RESTATEMENT MAY
NOT BE MORE RESTRICTIVE FOR POST-1989 PLAN YEARS THAN THE REQUIREMENTS
PERMITTED UNDER ADOPTION AGREEMENT SECTION 3.06.)
[ ] (f) ELIMINATION OF NET PROFITS. The requirement for the Employer not to
have net profits to contribute to this Plan is effective for Plan Years
beginning after ________________. [NOTE: THE DATE SPECIFIED MAY NOT BE
EARLIER THAN DECEMBER 31, 1985.]
[ ] (g) VESTING SCHEDULE. The vesting schedule elected under Adoption
Agreement Section 5.03 is effective for Plan Years beginning after
_________________.
[X] (h) ALLOCATION OF EARNINGS. The special allocation provisions elected
under Adoption Agreement Section 9.11 are effective for Plan Years
beginning after DECEMBER 31. 1997.
For Plan Years prior to the special Effective Date, the terms of the
Plan prior to its restatement under this Adoption Agreement will control for
purposes of the designated provisions. A special Effective Date may not result
in the delay of a Plan provision beyond the permissible Effective Date under any
applicable law requirements.
24
EXECUTION PAGE
The Trustee (and Custodian, if applicable), by executing this Adoption
Agreement, accepts position and agrees to all of the obligations,
responsibilities and duties imposed upon the Trustee (or Custodian) under the
Master 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 25 TH day of MARCH , 1998.
Name and EIN of Employer: ATS MONEY SYSTEMS, INC. 00-0000000
Signed: /s/ XXXXXX X. XXXXXX
----------------------------------------------------
Xxxxxx X. Xxxxxxx, President & CEO
Name(s) of Trustee: FIRST UNION NATIONAL BANK
Signed: /s/ XXX X. XXXXXXXX, XX.
----------------------------------------------------
Xxx X. Xxxxxxxx, Xx., Group Vice President
Name of Custodian:__________________________________________
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) is solely for
the Master Plan Sponsor's record keeping purposes and does not necessarily
correspond to the plan number the Employer designated in the prior paragraph.
The Master Plan Sponsor offers the following Paired Pension Plan(s) with this
Paired Profit Sharing Plan, identified by 3-digit adoption agreement number:
___.
MASTER PLAN SPONSOR. The Master Plan Sponsor identified an the first page of the
basic plan document will notify all adopting employers of any amendment of this
Master Plan or of any abandonment or discontinuance by the Master Plan Sponsor
of its maintenance of this Master Plan. For inquiries regarding the adoption of
the Master Plan, the Master Plan Sponsor's intended meaning of any plan
provisions or the effect of the opinion letter issued to the Master Plan
Sponsor, please contact thc Master Plan Sponsor at the following address and
telephone number: 1200 TWO FIRST UNION CENTER, T-2 XXXXXXXXX, XX 0000-0000 (704)
374-008.
RELIANCE ON OPINION LETTER. If the Employer does not maintain (and has never
maintained) any other Plan other than this Plan and a Paired Pension Plan, it
may rely on the Master Plan Sponsor's opinion letter covering this Plan for
purposes of plan qualification. For this purpose, the Employer has not
maintained another plan if this Plan, or the Paired Pension Plan, amended and
restated that prior plan and the prior plan was the same type of plan as the
restated plan. If the Employer maintains or has maintained another plan other
than a Paired Pension Plan, including a welfare benefit fund, as defined in Code
ss.419(e), which provides post-retirement medical benefits for key employees (as
defined in Code ss.419A(d)(3)), or an individual medical account (as defined in
Code ss.415(1)(2)), the Employer may not rely on this Plan's qualified status
unless it obtains a determination letter from the applicable IRS Key District
office.
00
XXXXXXXX X TO GENERAL INSTRUCTIONS
CHECKLIST OF EMPLOYER ADMINISTRATIVE ELECTIONS
The Prototype Plan permits the adopting employer (or the advisory committee) to
make certain administrative elections not reflected in the adoption agreement.
This form lists those administrative elections and provides a means of recording
your decision.
1. Section 1.09 - Definition of highly compensated employee. The plan
permits the employer to make a calendar year election for purposes of
identifying highly compensated employees.
[X] The plan will use the calendar year election.
[ ] The plan will not use the calendar year election.
2. Section 1.12(B) - Nondiscriminationdefinition of compensation. When
testing discrimination under the plan, the plan permits the employer to
elect to "gross up" an employees compensation by the amount of his
elective contributions for the year.
[X] The plan will "gross up" compensation for elective contributions.
[ ] The plan will exclude elective contributions.
[NOTE: This election solely is for purposes of testing discrimination.
The election does not affect the employer's election under Option (a)
or (b) of Adoption Agreement Section 1.12. The elections under Adoption
Agreement Section 1.12 apply to the definition of compensation for
purposes of making allocations of employer contributions and
participant forfeitures.]
3. Section 4.03. Rollover contributions.
[X] The plan accepts rollover contributions.
[ ] The plan does not accept rollover contributions.
4. Section 7.04. If your plan has a discretionary trustee, Section 7.04
authorizes the employer to enter into a written agreement with the
trustee permitting the employer to direct investments. Legal counsel
should assist you in this arrangement.
5. Section 8.10. If the trustee agrees, the plan authorizes participant
direction of investment. The adopting employer, the advisory committee
and the trustee should agree to the conditions and limitations of
participant direction of investment. Legal counsel should assist you
with this election.
[X] The plan will permit participant direction of investment.
[ ] The plan will not permit participant direction of investment.
6. Section 9.04. The plan authorizes the advisory committee to adopt a
written loan policy to permit participant loans.
[X] The plan will permit participant loans.
[ ] The plan will not permit participant loans.
7. Section 11.01. The plan may invest in life insurance on behalf of a
participant's account, subject to participant consent.
[ ] The plan will invest in life insurance contracts.
[X] The plan will not invest in life insurance contracts.
***************
