EXHIBIT 10.5
Plan #001
STANDARDIZED
ADOPTION AGREEMENT
PROTOTYPE CASH OR DEFERRED PROFIT-SHARING
PLAN AND TRUST/CUSTODIAL ACCOUNT
Sponsored by
SECURITY NATIONAL BANK AND TRUST COMPANY
The Employer named below hereby establishes a Cash or Deferred Profit-Sharing
Plan for eligible Em ployees as provided in this Adoption Agreement and the
accompanying Basic Prototype Plan and Trust/Custodial Account Basic Plan
Document #04.
1. EMPLOYER INFORMATION
NOTE: If multiple Employers are adopting the Plan, complete this section
based on the lead Employer. Additional Employers may adopt this Plan
by attaching executed signature pages to the back of the Employer's
Adoption Agreement.
(a) NAME AND ADDRESS:
PEOPLES FEDERAL SAVINGS & LOAN ASSOC. OF SIDNEY
000 X XXXXX XX
X X XXX 000
XXXXXX, XX 00000
(b) TELEPHONE NUMBER: (000)000-0000
(c) TAX ID NUMBER: 00-0000000
(d) FORM OF BUSINESS:
[ ] (i) Sole Proprietor
[ ] (ii) Partnership
[X] (iii) Corporation
[ ] (iv) "S" Corporation (formerly known as Subchapter S)
[ ] (v) Other:
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(e) NAME OF INDIVIDUAL AUTHORIZED TO ISSUE
INSTRUCTIONS TO THE TRUSTEE/CUSTODIAN:
XXXXXXX XXXXXXX, XXXXX X XXXX
(f) NAME OF PLAN: PEOPLES FEDERAL SAVINGS & LOAN ASSOCIATION OF SIDNEY,
401K RETIREMENT PLAN
(g) THREE DIGIT PLAN NUMBER
FOR ANNUAL RETURN/REPORT: 002
2. EFFEFCTIVE DATE
(a) This is a new Plan having an effective date of APRIL 1, 1997.
(b) This is an amended Plan.
The effective date of the original Plan was __________________.
The effective date of the amended Plan is ____________________.
(c) If different from above, the Effective Date for the Plan's Elective
Deferral provisions shall be JANUARY 1, 1997.
3. DEFINITIONS
(a) "Collective or Commingled Funds" (Applicable to Institutional Trustees
only.) Investment in collective or commingled funds as permitted at
paragraph 13.3(b) of the Basic Plan Document #04 shall only be made to
the following specifically named fund(s):
Funds made available after the execution of this Adoption Agreement
will be listed on schedules attached to the end of this Adoption
Agreement.
(b) "Compensation" Compensation shall be determined on the basis of the:
[x] (i) Plan Year.
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[ ] (ii) Employer's Taxable Year.
[ ] (iii) Calendar Year.
Compensation shall be determined on the basis of the following
safe-harbor definition of Compensation in IRS Regulation Section
1.414(s)-1(c):
[ ] (iv) Code Section 6041 and 6051 Compensation,
[x] (v) Code Section 3401(a) Compensation, or
[ ] (vi) Code Section 415 Compensation.
Compensation [x] shall [ ] shall not include Employer contributions
made pursuant to a Salary Savings Agreement which are not includable
in the gross income of the Employee for the reasons indicated in the
definition of Compensation at 1.12 of the Basic Plan Document #04.
For purposes of the Plan, Compensation shall be limited to $ , the
maximum amount which will be considered for Plan purposes. [If an
amount is specified, it will limit the amount of contributions allowed
on behalf of higher compensated Employees. Completion of this section
is not intended to coordinate with the $200,000 of Code Section
415(d), thus the amount should be less than $200,000 as adjusted for
cost-of-living increases.]
(c) "Entry Date"
[ ] (i) The first day of the Plan Year nearest the date on which an
Employee meets the eligibility requirements.
[ ] (ii) The earlier of the first day of the Plan Year or the first
day of the seventh month of the Plan Year coinciding with
or following the date on which an Employee meets the
eligibility requirements.
[ ] (iii) The first day of the Plan Year following the date on which
the Employee meets the eligibility requirements. If this
election is made, the Service requirement at 4(a)(ii) may
not exceed 1/2 year and the age requirement at 4(b)(ii) may
not exceed 20-1/2.
[ ] (iv) The first day of the month coinciding with or following
the date on which an Employee meets the eligibility
requirements.
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[x] (v) The first day of the Plan Year, or the first day of the
fourth month, or the first day of the seventh month or the
first day of the tenth month, of the Plan Year coinciding
with or following the date on which an Employee meets the
eligibility requirements.
(d) "Hours of Service" Shall be determined on the basis of the method
selected below. Only one method may be selected. The method selected
shall be applied to all Employees covered under the Plan as follows:
[x] (i) On the basis of actual hours for which an Employee is paid
or entitled to payment.
[ ] (ii) On the basis of days worked.
An Employee shall be credited with ten (10) Hours of Service
if under paragraph 1.42 of the Basic Plan Document #04 such
Employee would be credited with at least one (1) Hour of
Service during the day.
[ ] (iii) On the basis of weeks worked.
An Employee shall be credited with forty-five (45) Hours of
Service if under paragraph 1.42 of the Basic Plan Document
#04 such Employee would be credited with at least one (1)
Hour of Service during the week.
[ ] (iv) On the basis of semi-monthly payroll periods.
An Employee shall be credited with ninety-five (95) Hours of
Service if under paragraph 1.42 of the Basic Plan Document
#04 such Employee would be credited with at least one (1)
Hour of Service during the semi-monthly payroll period.
[ ] (v) On the basis of months worked.
An Employee shall be credited with one-hundred-ninety (190)
Hours of Service if under paragraph 1.42 of the Basic Plan
Document #04 such Employee would be credited with at least
one (1) Hour of Service during the month.
(e) "Limitation Year" The 12-consecutive month period commencing on
JANUARY 1 and ending on DECEMBER 31.
If applicable, the Limitation Year will be a short Limitation Year
commencing on APRIL 1 and ending on DECEMBER 31 . Thereafter, the
Limitation Year shall end on the date last specified above.
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(f) "Net Profit"
[x] (i) Not applicable (profits will not be required for any
contributions to the Plan).
[ ] (ii) As defined in paragraph 1.49 of the Basic Plan Document #04.
[ ] (iii) Shall be defined as:
-------------------------------------------------------
(Only use if definition in paragraph 1.49 of the Basic Plan
Document #04 is to be superseded.)
(g) "Plan Year" The 12-consecutive month period commencing on JANUARY 1
and ending on DECEMBER 31.
If applicable, the Plan Year will be a short Plan Year commencing on
APRIL 1 and ending on DECEMBER 31. Thereafter, the Plan Year shall end
on the date last specified above.
(h) "Qualified Early Retirement Age" For purposes of making distributions
under the provisions of a Qualified Domestic Relations Order, the
Plan's Qualified Early Retirement Age with regard to the Participant
against whom the order is entered [x] shall [ ] shall not be the date
the order is determined to be qualified. If "shall" is elected, this
will only allow payout to the alternate payee(s).
(i) "Qualified Joint and Survivor Annuity" The safe-harbor provisions of
paragraph 8.7 of the Basic Plan Document #04 [x] are [ ] are not
applicable. If not applicable, the survivor annuity shall be % (50%,
66-2/3%, 75% or 100%) of the annuity payable during the lives of the
Participant and Spouse. If no answer is specified, 50% will be used.
(j) "Taxable Wage Base" [paragraph 1.79]
[x] (i) Not Applicable - Plan is not integrated with Social
Security.
[ ] (ii) The maximum earnings considered wages for such Plan Year
under Code Section 3121(a).
[ ] (iii) ____% (not more than 100%) of the amount considered wages
for such Plan Year under Code Section 3121(a).
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[ ] (iv) $________, provided that such amount is not in excess of the
amount determined under paragraph 3(j)(ii) above.
[ ] (v) For the 1989 Plan Year $10,000. For all subsequent Plan
Years, 20% of the maximum earnings considered wages for such
Plan Year under Code Section 3121(a). NOTE: Using less than
the maximum at (ii) may result in a change in the allocation
formula in Section 7.
(k) "Valuation Date(s)" Allocations to Participant Accounts will be done
in accordance with Article V of the Basic Plan Document #04:
(i) Daily (v) Quarterly
(ii) Weekly (vi) Semi-Annually
(iii) Monthly (vii) Annually
(iv) Bi-Monthly
Indicate Valuation Date(s) to be used by specifying option from list
above:
Type of Contribution(s) Valuation Date(s)
----------------------- -----------------
After-Tax Voluntary Contributions [Section 6]
-----
Elective Deferrals [Section 7(b)] (i)
-----
Matching Contributions [Section 7(c)] (i)
-----
Qualified Non-Elective Contributions [Section 7(d)] (i)
-----
Non-Elective Contributions [Section 7(e), (f) and (g)] (i)
-----
Minimum Top-Heavy Contributions [Section 7(i)] (i)
-----
(l) "Year of Service"
(i) For Eligibility Purposes: The 12-consecutive month period during
which an Employee is credited with 1000 (not more than 1,000)
Hours of Service.
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(ii) For Allocation Accrual Purposes: The 12-consecutive month period
during which an Employee is credited with 501 (not more than
1,000) Hours of Service. (For Plan Years beginning in 1990 and
thereafter, if a number greater than 501 is specified, it will be
deemed to be 501.)
(iii) For Vesting Purposes: The 12-consecutive month period during
which an Employee is credited with 1000 (not more than 1,000)
Hours of Service.
4. ELIGIBILITY REQUIREMENTS
(a) Service:
[ ] (i) The Plan shall have no service requirement.
[x] (ii) The Plan shall cover only Employees having completed at
least one [not more than three (3)] Years of Service. If
more than one (1) is specified, for Plan Years beginning in
1989 and later, the answer will be deemed to be one (1).
NOTE: If the eligibility period selected is less than one year, an
Employee will not be required to complete any specified
number of Hours of Service to receive credit for such
period.
(b) Age:
[ ] (i) The Plan shall have no minimum age requirement.
[x] (ii) The Plan shall cover only Employees having attained age 21
(not more than age 21).
(c) Classification:
The Plan shall cover all Employees who have met the age and service
requirements with the following exceptions:
[x] (i) No exceptions.
[ ] (ii) The Plan shall exclude 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 bar
gaining. For this purpose, the term "Employee
Representative" does not include any organization
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more than half of whose members are Employees who are
owners, officers, or executives of the Employer.
[ ] (iii) The Plan shall exclude Employees who are nonresident aliens
and who receive no earned income from the Employer which
constitutes income from sources within the United States.
(d) Employees on Effective Date:
[ ] (i) Not Applicable. All Employees will be required to satisfy
both the age and Service requirements specified above.
[x] (ii) Employees employed on the Plan's Effective Date do not have
to satisfy the Service requirements specified above.
[ ] (iii) Employees employed on the Plan's Effective Date do not have
to satisfy the age requirements specified above.
5. RETIREMENT AGES
(a) Normal Retirement Age:
If the Employer imposes a requirement that Employees retire upon
reaching a specified age, the Normal Retirement Age selected below may
not exceed the Employer imposed mandatory retirement age.
[x] (i) Normal Retirement Age shall be 65 (not to exceed age 65).
[ ] (ii) Normal Retirement Age shall be the later of attaining age
(not to exceed age 65) or the (not to exceed the 5th)
anniversary of the first day of the first Plan Year in which
the Participant commenced participation in the Plan.
(b) Early Retirement Age:
[ ] (i) Not Applicable.
[x] (ii) The Plan shall have an Early Retirement Age of 55 (not less
than 55) and completion of 5 Years of Service.
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6. EMPLOYEE CONTRIBUTIONS
[x] (a) Participants shall be permitted to make Elective Deferrals in any
amount from 1% up to 15% of their Compensation.
If (a) is applicable, Participants shall be permitted to amend
their Salary Savings Agreements to change the contribution
percentage as provided below:
[ ] (i) On the Anniversary Date of the Plan,
[ ] (ii) On the Anniversary Date of the Plan and on the first day of
the seventh month of the Plan Year,
[ ] (iii) On the Anniversary Date of the Plan and on the first day
following any Valuation Date, or
[x] (iv) Upon 30 days notice to the Employer.
[ ] (b) Participants shall be permitted to make after tax Voluntary
Contributions.
[ ] (c) Participants shall be required to make after tax Voluntary
Contributions as follows (Thrift Savings Plan):
[ ] (i) ____% of Compensation.
[ ] (ii) A percentage determined by the Employee on his or her
enrollment form.
[x] (d) If necessary to pass the Average Deferral Percentage Test,
Participants [ ] may [x] may not have Elective Deferrals
recharacterized as Voluntary Contributions.
NOTE: The Average Deferral Percentage Test will apply to
contributions under (a) above. The Average Contribution
Percentage Test will apply to contributions under (b) and
(c) above, and may apply to (a).
7. EMPLOYER CONTRIBUTIONS AND ALLOCATION THEREOF
NOTE: The Employer shall make contributions to the Plan in accordance
with the formula or formulas selected below. The Employer's
contribution shall be subject to the limitations contained in
Articles III and X. For this purpose, a contribution for a Plan
Year shall be limited for the Limitation Year
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which ends with or within such Plan Year. Also, the integrated
allocation formulas below are for Plan Years beginning in 1989
and later. The Employer's allocation for earlier years shall be
as specified in its Plan prior to amendment for the Tax Reform
Act of 1986.
(a) Profits Requirement:
(i) Current or Accumulated Net Profits are required for:
[ ] (A) Matching Contributions.
[ ] (B) Qualified Non-Elective Contributions.
[ ] (C) discretionary contributions.
(ii) No Net Profits are required for:
[x] (A) Matching Contributions.
[x] (B) Qualified Non-Elective Contributions.
[x] (C) discretionary contributions.
NOTE: Elective Deferrals can always be contributed regardless of profits.
[ ] (b) Salary Savings Agreement:
The Employer shall contribute and allocate to each Participant's
account an amount equal to the amount withheld from the Compensation
of such Participant pursuant to his or her Salary Savings Agreement.
If applicable, the maximum percentage is specified in Section 6 above.
An Employee who has terminated his or her election under the Salary
Savings Agreement other than for hardship reasons may not make another
Elective Deferral:
[ ] (i) until the first day of the next Plan Year.
[x] (ii) until the first day of the next valuation period.
[ ] (iii) for a period of ____month(s) (not to exceed 12 months).
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[x] (c) Matching Employer Contribution [See paragraphs (h) and (i)]:
[x] (i) Percentage Match: The Employer shall contribute and allocate
to each eligible Participant's account an amount equal to
50% of the amount contributed and allocated in accordance
with paragraph 7(b) above and (if checked) ___% of [ ] the
amount of Voluntary Contributions made in accordance with
paragraph 4.1 of the Basic Plan Document #04. The Employer
shall not match Participant Elective Deferrals as provided
above in excess of $____ or in excess of 3% of the
Participant's Compensation or if applicable, Voluntary
Contributions in excess of $____ or in excess of ____% of
the Participant's Compensation. In no event will the match
on both Elective Deferrals and Voluntary Contributions
exceed a combined amount of $____ or ____%.
[ ] (ii) Discretionary Match: The Employer shall contribute and
allocate to each eligible Participant's account a percentage
of the Participant's Elective Deferral contributed and
allocated in accordance with paragraph 7(b) above. The
Employer shall set such percentage prior to the end of the
Plan Year. The Employer shall not match Participant Elective
Deferrals in excess of $____ or in excess of ___% of the
Participant's Compensation.
[ ] (iii) Tiered Match: The Employer shall contribute and allocate to
each Participant's account an amount equal to ____% of the
first ____% of the Participant's Compensation, to the extent
deferred.
____% of the next ____% of the Participant's Compensation,
to the extent deferred.
____% of the next ____% of the Participant's Compensation,
to the extent deferred.
NOTE: Percentages specified in (iii) above may not increase as the
percentage of Participant's contribution increases.
[ ] (iv) Flat Dollar Match: The Employer shall contribute and
allocate to each Participant's account $____ if the
Participant defers at least 1% of Compensation.
[ ] (v) Percentage of Compensation Match: The Employer shall
contribute and allocate to each Participant's account __% of
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Compensation if the Participant defers at least 1% of
Compensation.
[ ] (vi) Proportionate Compensation Match: The Employer shall
contribute and allocate to each Participant who defers at
least 1% of Compensation, an amount determined by
multiplying such Employer Matching Contribution by a
fraction the numerator of which is the Participant's
Compensation and the denominator of which is the
Compensation of all Participants eligible to receive such an
allocation. The Employer shall set such discretionary
contribution prior to the end of the Plan Year.
[ ] (vii) Qualified Match: Employer Matching Contributions will be
treated as Qualified Matching Contributions to the extent
specified below:
[ ] (A) All Matching Contributions.
[ ] (B) None.
[ ] (C) ____% of the Employer's Matching Contribution.
[ ] (D) up to ____% of each Participant's Compensation.
[ ] (E) The amount necessary to meet the [ ] Average
Deferral Percentage (ADP) test, [ ] Average
Contribution Percentage (ACP) test, [ ] Both the
ADP and ACP tests.
(viii) Matching Contribution Computation Period: The time period
upon which matching contributions will be based shall be
[x] (A) weekly
[ ] (B) bi-weekly
[ ] (C) semi-monthly
[ ] (D) monthly
[ ] (E) quarterly
[ ] (F) semi-annually
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[ ] (G) annually
(ix) Eligibility for Match: Employer Matching Contributions,
whether or not Qualified, will only be made on Employee
Contributions not withdrawn prior to the end of the [X]
valuation period [ ] Plan Year.
[x] (d) Qualified Non-Elective Employer Contribution - [See paragraphs (h) and
(i)] These contributions are fully vested when contributed.
The Employer shall have the right to make an additional discretionary
contribution which shall be allocated to each eligible Employee in
proportion to his or her Compensation as a percentage of the
Compensation of all eligible Employees. This part of the Employer's
contribution and the allocation thereof shall be unrelated to any
Employee contributions made hereunder. The amount of Qualified
non-Elective Contributions taken into account for purposes of meeting
the ADP or ACP test requirements is:
[ ] (i) All such Qualified non-Elective Contributions.
[ ] (ii) The amount necessary to meet [ ] the ADP test, [ ] the ACP
test, [x] Both the ADP and ACP tests.
Qualified non-Elective Contributions will be made to:
[ ] (iii) All Employees eligible to participate.
[x] (iv) Only non-Highly Compensated Employees eligible to
participate.
[x] (e) Additional Employer Contribution Other Than Qualified Non-Elective
Contributions - Non-Integrated [See paragraphs (h) and (i)]
The Employer shall have the right to make an additional discretionary
contribution which shall be allocated to each eligible Employee in
proportion to his or her Compensation as a percentage of the
Compensation of all eligible Employees. This part of the Employer's
contribution and the allocation thereof shall be unrelated to any
Employee contributions made hereunder.
[ ] (f) Additional Employer Contribution - Integrated Allocation Formula [See
paragraphs (h) and (i)]
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The Employer shall have the right to make an additional discretionary
contribution. The Employer's contribution for the Plan Year plus any
forfeitures shall be allocated to the accounts of eligible
Participants as follows:
(i) First, to the extent contributions and forfeitures are
sufficient, all Participants will receive an allocation equal to
3% of their Compensation.
(ii) Next, any remaining Employer Contributions and forfeitures will
be allocated to Participants who have Compensation in excess of
the Taxable Wage Base (excess Compensation). Each such
Participant will receive an allocation in the ratio that his or
her excess compensation bears to the excess Compensation of all
Participants. Participants may only receive an allocation of 3%
of excess Compensation.
(iii) Next, any remaining Employer contributions and forfeitures will
be allocated to all Participants in the ratio that their
Compensation plus excess Compensation bears to the total
Compensation plus excess Compensation of all Participants.
Participants may only receive an allocation of up to 2.7% of
their Compensation plus excess Compensation, under this
allocation method. If the Taxable Wage Base defined at Section
3(j) is less than or equal to the greater of $10,000 or 20% of
the maximum, the 2.7% need not be reduced. If the amount
specified is greater than the greater of $10,000 or 20% of the
maximum Taxable Wage Base, but not more than 80%, 2.7% must be
reduced to 1.3%. If the amount specified is greater than 80% but
less than 100% of the maximum Taxable Wage Base, the 2.7% must be
reduced to 2.4%.
NOTE: If the Plan is not Top-Heavy or if the Top-Heavy minimum
contribution or benefit is provided under another Plan
[see Section 11(c)(ii)] covering the same Employees,
sub-paragraphs (i) and (ii) above may be disregarded and
5.7%, 4.3% or 5.4% may be substituted for 2.7%, 1.3% or
2.4% where it appears in (iii) above.
(iv) Next, any remaining Employer contributions and forfeitures will
be allocated to all Participants (whether or not they received an
allocation under the preceding paragraphs) in the ratio that each
Participant's Compensation bears to all Participants'
Compensation.
[ ] (g) Additional Employer Contribution-Alternative Integrated Allocation
Formula [See paragraph (h) and (i)]
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The Employer shall have the right to make an additional discretionary
contribution. To the extent that such contributions are sufficient,
they shall be allocated as follows:
----% of each eligible Participant's Compensation plus ----% of
Compensation in excess of the Taxable Wage Base defined at Section
3(j) hereof. The percentage on excess compensation may not exceed the
lesser of (i) the amount first specified in this paragraph or (ii) the
greater of 5.7% or the percentage rate of tax under Code Section
3111(a) as in effect on the first day of the Plan Year attributable to
the Old Age (OA) portion of the OASDI provisions of the Social
Security Act. If the Employer specifies a Taxable Wage Base in Section
3(j) which is lower than the Taxable Wage Base for Social Security
purposes (SSTWB) in effect as of the first day of the Plan Year, the
percentage contributed with respect to excess Compensation must be
adjusted. If the Plan's Taxable Wage Base is greater than the larger
of $10,000 or 20% of the SSTWB but not more than 80% of the SSTWB, the
excess percentage is 4.3%. If the Plan's Taxable Wage Base is greater
than 80% of the SSTWB but less than 100% of the SSTWB, the excess
percentage is 5.4%.
NOTE: Only one plan maintained by the Employer may be integrated with
Social Security.
(h) Allocation of Excess Amounts (Annual Additions)
In the event that the allocation formula above results in an
Excess Amount, such excess shall be:
[ ] (i) placed in a suspense account accruing no gains or
losses for the benefit of the Participant.
[x] (ii) reallocated as additional Employer contributions to all
other Participants to the extent that they do not have
any Excess Amount.
(i) Minimum Employer Contribution Under Top-Heavy Plans:
For any Plan Year during which the Plan is Top-Heavy, the sum of
the contributions and forfeitures as allocated to eligible
Employees under paragraphs 7(d), 7(e), 7(f), 7(g) and 9 of this
Adoption Agreement shall not be less than the amount required
under paragraph 14.2 of the Basic Plan Document #04. Top-Heavy
minimums will be allocated to:
[ ] (i) all eligible Participants.
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[x] (ii) only eligible non-Key Employees who are Participants.
(j) Return of Excess Contributions and/or Excess Aggregate
Contributions:
In the event that one or more Highly Compensated Employees is
subject to both the ADP and ACP tests and the sum of such tests
exceeds the Aggregate Limit, the limit will be satisfied by
reducing the:
[ ] (i) the ADP of the affected Highly Compensated Employees.
[ ] (ii) the ACP of the affected Highly Compensated Employees.
[x] (iii) a combination of the ADP and ACP of the affected Highly
Compensated Employees.
8. ALLOCATIONS TO TERMINATED EMPLOYEES
(a) For Plan Years beginning prior to 1990:
[ ] (i) For Plan Years beginning prior to 1990,
the Employer will not allocate Employer related
contributions to any Participant who terminates
employment during the Plan Year.
[ ] (ii) The Employer will allocate Employer
related contributions to Employees who terminate
during the Plan Year as a result of:
[ ] (1) Retirement.
[ ] (2) Disability.
[ ] (3) Death.
[ ] (4) Other termination provided that the Participant
has completed a Year of Service.
[ ] (5) Other termination.
(b) For Plan Years beginning in 1990 and thereafter, the Employer
will allocate Employer related contributions to any Participant
who is credited with more than 500 Hours of Service or is
employed on the last day of the Plan Year without regard to the
number of Hours of Service.
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The Employer will also allocate Employer related contributions to
any Participant who terminates during the Plan Year without
accruing the necessary Hours of Service if they terminate as a
result of:
[X] (i) Retirement.
[X] (ii) Disability.
[X] (iii) Death.
9. ALLOCATION OF FORFEITURES
NOTE: Subsections (a), (b) and (c) below apply to forfeitures of
amounts other than Excess Aggregate Contributions.
(a) Allocation Alternatives:
If forfeitures are allocated to Participants, such allocations
shall be done in the same manner as the Employer's contribution.
[ ] (i) Not Applicable. All contributions are always fully
vested.
[ ] (ii) Forfeitures shall be allocated to Participants in the
same manner as the Employer's contribution.
If allocation to other Participants is selected,
the allocation shall be as follows:
[1] Amount attributable to Employer discretionary
contributions and Top-Heavy minimums will be
allocated to:
[ ] all eligible Participants under the Plan.
[ ] only those Participants eligible for an
allocation of matching contributions in the
current year.
[2] Amounts attributable to Employer Matching
contributions will be allocated to:
[ ] all eligible Participants.
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[ ] only those Participants eligible for
allocations of matching contributions in the
current year.
[x] (iii) Forfeitures shall be applied to reduce the Employer's
contribution for such Plan Year.
[ ] (iv) Forfeitures shall be applied to offset administrative
expenses of the Plan. If forfeitures exceed these expenses,
(iii) above shall apply.
(b) Date for Reallocation:
NOTE: If no distribution has been made to a former Participant,
sub-section (i) below will apply to such Participant even if the
Employer elects (ii), (iii) or (iv) below as its normal
administrative policy.
[ ] (i) Forfeitures shall be reallocated at the end of the Plan Year
during which the former Participant incurs his or her fifth
consecutive one year Break In Service.
[ ] (ii) Forfeitures will be reallocated immediately (as of the next
Valuation Date).
[ ] (iii) Forfeitures shall be reallocated at the end of the Plan Year
during which the former Employee incurs his or her (1st,
2nd, 3rd, or 4th) consecutive one year Break In Service.
[x] (iv) Forfeitures will be reallocated immediately (as of the Plan
Year end).
(c) Restoration of Forfeitures:
If amounts are forfeited prior to five consecutive 1-year Breaks
in Service, the Funds for restoration of account balances will be
obtained from the following resources in the order indicated
(fill in the appropriate number):
[1] (i) Current year's forfeitures.
[2] (ii) Additional Employer contribution.
[-] (iii) Income or gain to the Plan.
18
(d) Forfeitures of Excess Aggregate Contributions shall be:
[x] (i) Applied to reduce Employer contributions.
[ ] (ii) Allocated, after all other forfeitures under the Plan, to the
Matching Contribution account of each non-Highly Compensated Participant who
made Elective Deferrals or Voluntary Contributions in the ratio which each such
Participant's Compensation for the Plan Year bears to the total Compensation of
all Participants for such Plan Year. Such forfeitures cannot be allocated to the
account of any Highly Compensated Employee.
Forfeitures of Excess Aggregate Contributions will be so applied at the end
of the Plan Year in which they occur.
10. CASH OPTION
[ ] (a) The Employer may permit a Participant to elect to defer to the
Plan, an amount not to exceed % of any Employer paid cash bonus made for ------
such Participant for any year. A Participant must file an election to defer such
contribution at least fifteen (15) days prior to the end of the Plan Year. If
the Employee fails to make such an election, the entire Employer paid cash bonus
to which the Participant would be entitled shall be paid as cash and not to the
Plan. Amounts deferred under this section shall be treated for all purposes as
Elective Deferrals. Notwithstanding the above, the election to defer must be
made before the bonus is made available to the Participants.
[x] (b) Not Applicable.
11. LIMITATIONS ON ALLOCATIONS
[ ] This is the only Plan the Employer maintains or ever maintained;
therefore, this section is not applicable.
[X] The Employer does maintain or has maintained another Plan (including a
Welfare Benefit Fund or an individual medical account [as defined in Code
Section 415(l)(2)], under which amounts are treated as Annual Additions) and has
completed the proper sections below.
Complete (a), (b) and (c) only if the Employer maintains or ever maintained
another qualified plan, including a Welfare Benefit Fund or an individual
medical
account [as defined in Code Section 415(l)(2)], in which any Participant in
this Plan is (or was) a participant or could possibly become a participant.
(a) If the Participant is covered under another qualified Defined
Contribution Plan maintained by the Employer, other than a Master or Prototype
Plan:
[X] (i) the provisions of Article X of the Basic Plan Document #04 will
apply, as if the other plan were a Master or Prototype Plan.
[ ] (ii) Attach provisions stating the method under which the plans will
limit total Annual Additions to the Maximum Permissible Amount, and will
properly reduce any Excess Amounts, in a manner that precludes Employer
discretion.
(b) If a Participant is or ever has been a participant in a Defined Benefit
Plan maintained by the Employer:
Attach provisions which will satisfy the 1.0 limitation of Code Section
415(e). Such language must preclude Employer discretion. The Employer must also
specify the interest and mortality assumptions used in determining Present Value
in the Defined Benefit Plan.
(c) The minimum contribution or benefit required under Code Section 416
relating to Top-Heavy Plans shall be satisfied by:
[X] (i) this Plan.
[ ] (ii) (Name of other qualified plan of the Employer).
[ ] (iii) Attach provisions stating the method under which the minimum
contribution and benefit provisions of Code Section 416 will be satisfied. If a
Defined Benefit Plan is or was maintained, an attachment must be provided
showing interest and mortality assumptions used in the Top-Heavy Ratio.
12. VESTING
Employees shall have a fully vested and nonforfeitable interest in any
Employer contribution and the investment earnings thereon made in accordance
with paragraphs (select one or more options) [ ] 7(c), [ ] 7(e), [ ] 7(f), [ ]
7(g) and [ ] 7(i) hereof. Contributions under paragraph 7(b), 7(c)(vii) and 7(d)
are always fully vested. If one or
more of the foregoing options are not selected, such Employer contributions
shall be subject to the vesting table selected by the Employer.
Each Participant shall acquire a vested and nonforfeitable percentage in
his or her account balance attributable to Employer contributions and the
earnings thereon under the procedures selected below except with respect to any
Plan Year during which the Plan is Top-Heavy, in which case the Two-twenty
vesting schedule [Option (b)(iv)] shall automatically apply unless the Employer
has already elected a faster vesting schedule. If the Plan is switched to option
(b)(iv), because of its Top-Heavy status, that vesting schedule will remain in
effect even if the Plan later becomes non-Top-Heavy until the Employer executes
an amendment of this Adoption Agreement indicating otherwise.
(a) Computation Period:
The computation period for purposes of determining Years of Service and
Breaks in Service for purposes of computing a Participant's nonforfeitable right
to his or her account balance derived from Employer contributions:
[ ] (i) shall not be applicable since Participants are always fully vested,
[ ] (ii) shall commence on the date on which an Employee first performs an
Hour of Service for the Employer and each subsequent 12-con secutive month
period shall commence on the anniversary thereof, or
[x] (iii) shall commence on the first day of the Plan Year during which an
Employee first performs an Hour of Service for the Employer and each subsequent
12-consecutive month period shall commence on the anniversary thereof.
A Participant shall receive credit for a Year of Service if he or she
completes at least 1,000 Hours of Service [or if lesser, the number of hours
specified at 3(l)(iii) of this Adoption Agreement] at any time during the
12-consecutive month computation period. Consequently, a Year of Service may be
earned prior to the end of the 12-consecutive month computation period and the
Participant need not be employed at the end of the 12-consecutive month
computation period to receive credit for a Year of Service.
(b) Vesting Schedules:
NOTE: The vesting schedules below only apply to a Participant who has at
least one Hour of Service during or after the 1989 Plan Year. If applicable,
Participants who separated from Service prior to the 1989 Plan Year will
remain under the vesting schedule as in effect in the Plan prior to amendment
for the Tax Reform Act of 1986.
(i) Full and immediate vesting. Years of Service 1 2 3 4 5 6 7 -- --- -- --
-- -- -- (ii) % 100% ----- (iii) % % 100% ----- ----- (iv) % 20% 40% 60% 80%
100% ----- (v) % % 20% 40% 60% 80% 100% ----- ----- (vi) 10% 20% 30% 40% 60% 80%
100% (vii) 20 % 40 % 60 % 80 % 100% ----- ----- ----- ----- (viii) % % % % % %
100% ----- ----- ----- ----- ----- -----
NOTE: The percentages selected for schedule (viii) may not be less for any
year than the percentages shown at schedule (v).
[ ] All contributions other than those which are fully vested when
contributed will vest under schedule above.
[X] Contributions other than those which are fully vested when contributed
will vest as provided below:
Vesting
Option Selected Type Of Employer Contribution
VII 7(c) Employer Match on Salary Savings
VII 7(c) Employer Match on
Employee Voluntary
VII 7(e) Employer Discretionary
7(f) & (g) Employer
Discretionary - Integrated
(c) Service disregarded for Vesting:
[x] (i) Not Applicable. All Service shall be considered.
[ ] (ii) Service prior to the Effective Date of this Plan or a predecessor
plan shall be disregarded when computing a Participant's vested and
nonforfeitable interest.
[ ] (iii) Service prior to a Participant having attained age 18 shall be
disregarded when computing a Participant's vested and nonfor feitable interest.
13. SERVICE WITH PREDECESSOR ORGANIZATION
For purposes of satisfying the Service requirements for eligibility, Hours
of Service shall include Service with the following predecessor organization(s):
(These hours will also be used for vesting purposes.)
14. ROLLOVER/TRANSFER CONTRIBUTIONS
(a) Rollover Contributions, as described at paragraph 4.3 of the Basic Plan
Document #04, [x] shall [ ] shall not be permitted. If permitted, Employees [x]
may [ ] may not make Rollover Contributions prior to meeting the eligibility
requirements for participation in the Plan.
(b) Transfer Contributions, as described at paragraph 4.4 of the Basic Plan
Document #04 [ ] shall [x] shall not be permitted. If permitted, Employees [ ]
may [x] may not Transfer Contributions prior to meeting the eligibility
requirements for participation in the Plan.
NOTE: Even if available, the Employer may refuse to accept such
contributions if its Plan meets the safe-harbor rules of paragraph 8.7 of the
Basic Plan Document #04.
15. HARDSHIP WITHDRAWALS
Hardship withdrawals, as provided for in paragraph 6.9 of the Basic Plan
Document #04, [X] are [ ] are not permitted.
16. PARTICIPANT LOANS
Participant loans, as provided for in paragraph 13.5 of the Basic Plan
Document #04, [ ] are [X] are not permitted. If permitted, repayments of
principal and interest shall be repaid to [ ] the Participant's segregated
account or [ ] the general Fund.
17. INSURANCE POLICIES
The insurance provisions of paragraph 13.6 of the Basic Plan Document #04 [
] shall [x] shall not be applicable.
18. EMPLOYER INVESTMENT DIRECTION
The Employer investment direction provisions, as set forth in paragraph
13.7 of the Basic Plan Document #04, [ ] shall [x] shall not be applicable.
19. EMPLOYEE INVESTMENT DIRECTION
(a) The Employee investment direction provisions, as set forth in paragraph
13.8 of the Basic Plan Document #04, [X] shall [ ] shall not be applicable.
If applicable, Participants may direct their investments:
[X] (i) among funds offered by the Trustee.
[ ] (ii) among any allowable investments.
(b) Participants may direct the following kinds of contributions and the
earnings thereon (check all applicable):
[X] (i) All Contributions.
[ ] (ii) Elective Deferrals.
[ ] (iii) Employee Voluntary Contributions (after-tax).
[ ] (iv) Employee Mandatory Contributions (after-tax).
[ ] (v) Employer Qualified Matching Contributions.
[ ] (vi) Other Employer Matching Contributions.
[ ] (vii) Employer Qualified Non-Elective Contributions.
[ ] (viii) Employer Discretionary Contributions.
[ ] (ix) Rollover Contributions.
[ ] (x) Transfer Contributions.
[ ] (xi) All of above which are checked, but only to the extent that the
Participant is vested in those contributions.
NOTE: To the extent Employee investment direction was previously allowed,
the Trustee shall have the right to either make the assets part of the general
Trust, or leave them as separately invested subject to the rights of paragraph
13.8.
20. EARLY PAYMENT OPTION
(a) A Participant who separates from Service prior to retirement, death or
Disability [x] may [ ] may not make application to the Employer requesting an
early payment of his or her vested account balance.
(b) A Participant who has attained age 59-1/2 and who has not separated
from Service [x] may [ ] may not obtain a distribution of his or her vested
Employer contributions. Distribution can only be made if the Participant is 100%
vested.
(c) A Participant who has attained the Plan's Normal Retirement Age and who
has not separated from Service [x] may [ ] may not receive a distribution of his
or her vested account balance.
NOTE: If the Participant has had the right to withdraw his or her account
balance in the past, this right may not be taken away. Notwithstanding the
above, to the contrary, required minimum distributions will be paid. For timing
of distributions, see item 21(a) below.
21. DISTRIBUTION OPTIONS
(a) Timing of Distributions:
In cases of termination for other than death, Disability or retirement,
benefits shall be paid:
[ ] (i) As soon as administratively feasible, following the close of the
valuation period during which a distribution is requested or is otherwise
payable.
[ ] (ii) As soon as administratively feasible following the close of the
Plan Year during which a distribution is requested or is otherwise payable.
[X] (iii) As soon as administratively feasible, following the date on which
a distribution is requested or is otherwise payable.
[ ] (iv) As soon as administratively feasible, after the close of the Plan
Year during which the Participant incurs consecutive one-year Breaks in Service.
[ ] (v) Only after the Participant has achieved the Plan's Normal
Retirement Age, or Early Retirement Age, if applicable.
In cases of death, Disability or retirement, benefits shall be paid:
[ ] (vi) As soon as administratively feasible, following the close of the
valuation period during which a distribution is requested or is otherwise
payable. [ ] (vii) As soon as administratively feasible following the close of
the Plan Year during which a distribution is requested or is otherwise payable.
[X] (viii) As soon as administratively feasible, following the date on
which a distribution is requested or is otherwise payable.
(b) Optional Forms of Payment:
[x] (i) Lump Sum.
[x] (ii) Installment Payments.
[ ] (iii) Life Annuity*.
[ ] (iv) Life Annuity Term Certain*. Life Annuity with payments guaranteed
for years (not to exceed 20 years, specify all applicable).
[ ] (v) Joint and [ ] 50%, [ ] 66-2/3%, [ ] 75% or [ ] 100% survivor
annuity* (specify all applicable).
[ ] (vi) Other form(s) specified:
*Not available in Plan meeting provisions of paragraph 8.7 of Basic Plan
Document #04.
(c) Recalculation of Life Expectancy:
In determining required distributions under the Plan, Participants and/or
their Spouse (Surviving Spouse) [ ] shall [x] shall not have the right to have
their life expectancy recalculated annually.
If "shall",
[ ] only the Participant shall be recalculated.
[ ] both the Participant and Spouse shall be recalculated.
[ ] who is recalculated shall be determined by the Participant.
22. SPONSOR CONTACT
Employers should direct questions concerning the language contained in and
qualification of the Prototype to:
XXXXXXXX XXXXX (Job Title) TRUST ADMINISTRATOR (Phone Number) 000-000-0000
In the event that the Sponsor amends, discontinues or abandons this
Prototype Plan, notification will be provided to the Employer's address provided
on the first page of this Agreement.
Prototype Cash or
Deferred Profit-
Sharing Plan #001
23. SIGNATURES
Due to the significant tax ramifications, the Sponsor recommends that
before you execute this Adoption Agreement, you contact your attorney or tax
advisor, if any.
(a) EMPLOYER:
Name and address of Employer if different than specified in Section 1
above.
This agreement and the corresponding provisions of the Plan and
Trust/Custodial Account Basic Plan Document #04 were adopted by the Employer the
day of , 19 .
Signed for the Employer by:
Title:
Signature:
The Employer understands that its failure to properly complete the Adoption
Agreement may result in disqualification of its Plan.
Employer's Reliance: An Employer who maintains or has ever maintained or
who later adopts any Plan [including, after December 31, 1985, 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
Section 419A(d)(3)] or an individual medical account, as defined in Code Section
415(l)(2) in addition to this Plan 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. If the Employer who adopts or
maintains multiple Plans wishes to obtain reliance that such Plan(s) are
qualified, application for a deter mination letter should be made to the
appropriate Key District Director of Internal Revenue. The Employer understands
that its failure to properly complete the Adoption Agreement may result in
disqualification of its plan.
This Adoption Agreement may only be used in conjunction with Basic Plan
Document #04.
Prototype Cash or
Deferred Profit-
Sharing Plan #001
[x] (b) TRUSTEE:
Name of Trustee:
SECURITY NATIONAL BANK AND TRUST CO.
The assets of the Fund shall be invested in accordance with paragraph 13.3
of the Basic Plan Document #04 as a Trust. As such, the Employer's Plan as
contained herein was accepted by the Trustee the day of , 19 .
Signed for the Trustee by: XXXXXXXX XXXXX
Title: TRUST ADMINISTRATOR
Signature:
[ ] (c) CUSTODIAN:
Name of Custodian:
The assets of the Fund shall be invested in accordance with paragraph 13.4
of the Basic Plan Document #04 as a Custodial Account. As such, the Employer's
Plan as contained herein was accepted by the Custodian the day of , 19 .
Signed for the Custodian by:
Title:
Signature:
(d) SPONSOR:
The Employer's Agreement and the corresponding provisions of the Plan and
Trust/Custodial Account Basic Plan Document #04 were accepted by the Sponsor the
day of , 19 .
Signed for the Sponsor by: XXXXXXXX XXXXX
Title: TRUST ADMINISTRATOR
Signature:
