EXHIBIT 10.10
California Coastal Communities, Inc.
401(k) Retirement Plan and Trust Agreement
Plan #001
STANDARDIZED
ADOPTION AGREEMENT
PROTOTYPE CASH OR DEFERRED PROFIT-SHARING
PLAN AND TRUST
Sponsored by
PRUDENTIAL MUTUAL FUND MANAGEMENT, INC.
The Employer named below hereby establishes a Cash or Deferred Profit-Sharing
Plan for eligible Employees 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:
California Coastal Communities, Inc.
0 Xxxxxxxxx Xxxxxx, #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 PLAN: California Coastal Communities 401(k) Plan
(f) THREE DIGIT PLAN NUMBER
FOR ANNUAL RETURN/REPORT: 001
2. EFFECTIVE DATE
(a) This is a new Plan having an effective date of January 1, 2000
(b) This is an amended Plan.
(i) The effective date of the original Plan was ________. The
effective date of the amended Plan is _______.
NOTE: The effective date of the amended Plan for the Tax Reform
Act of 1986 required changes is the first day of the 1987
Plan Year. Sections 7(f) and 12 herein shall be effective
as of the first day of the 1989 Plan Year. Any prior
amendments to the plan which were intended to have effect
after December 31, 1986 will continue to be in effect
only until the effective date of this amended and
restated plan.
3. DEFINITIONS
(a) "Compensation" Shall include all items as set forth in paragraph
1.12 of Basic Plan Document #04.
[ ] (i) For purposes of Discretionary Contributions,
Compensation shall include all amounts for the
Plan Year during which the Employee was eligible
to participate.
[X] (ii) For purposes of Discretionary Contributions,
Compensation will only include amounts for the
period during which the Employee was eligible to
participate.
(b) "Entry Date"
[X] (i) The first day of the month coinciding with or
following 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, 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.
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(c) "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 1.41 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 1.41 of the Basic Plan
Document #04 such Employee would be credited with
at least one (1) Hour of Service during the week.
(d) "Limitation Year" The Limitation Year shall be the Plan Year unless
another year is specified here:
(e) "Net Profit"
[X] (i) Not applicable (profits will not be required for
any contributions to the Plan).
[ ] (ii) As defined in paragraph 1.48 of the Basic Plan
Document #04.
(f) "Plan Year" The 12 consecutive month period commencing on January 1
and ending on December 31.
(g) "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).
(h) "Qualified Joint and Survivor Annuity" The safe-harbor provisions
of paragraph 8.7 of the Basic Plan Document #04 are applicable. If
the Plan is not safe-harbored under paragraph 8.7 of the Basic Plan
Document, the survivor annuity shall be 50% of the annuity payable
during the lives of the Participant and Spouse.
(i) "Taxable Wage Base"
[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).
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[ ] (iii) ____% (not more than 100%) of the amount
considered wages for such Plan Year under Code
Section 3121 (a).
[ ] (iv) $____, provided that such amount is not in
excess of the amount determined under paragraph
3(i)(ii) above.
NOTE: Using less than the maximum at (ii) may result in
a change in the allocation formula in Section 7.
(j) "Year of Service"
(i) For Eligibility Purposes: (Choose one)
[ ] (1) The 12-consecutive month period
during which an Employee is credited with
____(not more than 1,000) Hours of
Service.
[X] (2) Elapsed Time
If no answer is specified, the Hours of Service method will
be used.
(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: (Choose one)
[X] (1) The 12-consecutive month period during
which an Employee is credited with 1,000
(not more than 1,000) Hours of Service.
[ ] (2) Elapsed Time
If no answer is specified, the Hours of Service method will
be used.
4. ELIGIBILITY REQUIREMENTS
(a) Service:
[ ] (i) The Plan shall have no service requirement.
[ ] (ii) The Plan shall cover only Employees having
completed at least one Year of Service.
[X] (iii) The plan shall cover only Employees having
completed at least 2 months (less than 12).
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.
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(b) Age:
[X] (i) The Plan shall have no minimum age requirement.
[ ] (ii) The Plan shall cover only Employees having
attained age __ (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:
[ ] (i) No exceptions.
[X] (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 bargaining and if
two percent or less of the Employees who are
covered pursuant to that agreement are
professionals as defined in Regulations Section
1.410(b)-9. For this purpose, the term "Employee
Representative" does not include any organization
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 [within the meaning of Code
Section 7701(b)(1)(B)] and who receive no earned
income [within the meaning of Code Section
911(d)(2)] from the Employer which constitutes
income from sources within the United States
[within the meaning of Code Section 861(a)(3)].
(d) Employees on Effective Date:
[X] (i) Not Applicable. All Employees will be required
to satisfy both the age and Service requirements
specified above.
[ ] (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.
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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:
Early Retirement Age shall not be applicable unless the Employer
attached a form to this Adoption Agreement certifying that Early
Retirement Age is a benefit which has accrued under the predecessor
Plan which cannot be cut back under Code Section 411(d)(6).
6. EMPLOYEE CONTRIBUTIONS
[X] (a) Participants shall be permitted to make Elective
Deferrals in any amount from 1% (not more than 2%) up to
15% (not more than 20%) of their Compensation.
If (a) is applicable, Participants shall be permitted to
amend their Salary Savings Agreements to change the
contribution percentage in accordance with the procedures
established by the Plan Administrator.
[ ] (b) Participants shall be permitted to make after tax 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
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 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.
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(a) Current or Accumulated Net Profits are required for:
[ ] (i) Matching Contributions.
[ ] (ii) Qualified Non-Elective Contributions.
[ ] (iii) Discretionary Contributions.
If no answer is specified, Current or Accumulated Net
Profits will not be required.
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.
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).
If no option is specified, option (ii) will apply.
[X] (c) Matching Employer Contribution [See paragraphs (g), (h)
and (i)]:
[X] (i) PERCENTAGE MATCH: The Employer shall
contribute and allocate to each eligible
Participant's account an amount equal to
25% of the amount contributed and
allocated in accordance with paragraph
7(b) above. The Employer shall not match
Participant Elective Deferrals as
provided above in excess of $ __ or in
excess of 6 % of the Participant's
Compensation.
[ ] (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 not match Participant
Elective Deferrals in excess of
$_________ or in excess of ___% of the
Participant's Compensation.
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[ ] (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, and __% of the next __% of
the Participant's Compensation.
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) ELIGIBILITY FOR MATCH: Matching contributions will
be made to [ ] all Employees eligible to
participate [X] only to non-Highly Compensated
Employees eligible to participate.
[ ] (vi) QUALIFIED MATCH: Employer Matching
Contributions will be treated as Qualified
Matching Contributions to the extent specified by
the Employer at the time the Matching Employer
Contributions are made.
(vii) MATCHING CONTRIBUTION COMPUTATION PERIOD: The time
period upon which matching contributions will be
based shall be:
[ ] (A) weekly
[ ] (B) bi-weekly
[X] (C) semi-monthly
[ ] (D) monthly
[ ] (E) quarterly
[ ] (F) semi-annually
[ ] (G) annually
[X] (d) Qualified Non-Elective Employer Contribution - [See
paragraphs (g), (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 the amount
necessary to meet both the ADP and ACP tests. Qualified
non-Elective
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Contributions will be made to only non-Highly Compensated
Employees eligible to participate.
[X] (e) Additional Employer Contribution Other Than Qualified Non-
Elective Contributions - Non-Integrated [See paragraphs
(g), (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 (g), (h) and (i)].
The Employer's contribution for the Plan Year plus any
forfeitures (only if they are reallocated to Participants
under Section 9 herein), shall be allocated to the accounts
of eligible Participants as set forth in the Basic Plan
Document #04 of paragraph 5.3.
NOTE: Only one plan maintained by the Employer may be integrated
with Social Security.
[ ] (g) Allocation of Excess Amounts (Annual Additions)
Excess deferrals which result in an Excess Amount shall be
returned to the Participant. In the event that the
allocation formula of other contributions 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.
NOTE: For every Limitation Year, or part
thereof, that a suspense account exists,
the Employer will be subjected to a
ten-percent penalty on the monies held in
the suspense account.
[X] (ii) reallocated as additional Employer
contributions to all other Participants
to the extent that they do not have any
Excess Amount.
If no answer is specified, the suspense
account method will be used.
[ ] (h) 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) 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.
(i) 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 ACP of the affected Highly
Compensated Employees.
8. ALLOCATIONS TO TERMINATED EMPLOYEES
(a) 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.
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:
[ ] (i) Retirement.
[ ] (ii) Disability.
[ ] (iii) Death.
[ ] (iv) Other termination.
(b) If applicable, 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.
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9. ALLOCATION OF FORFEITURES
NOTE: Subsections (a), (b) and (c) below apply to forfeitures of
amounts other than Excess Aggregate Contributions.
(a) Allocation Alternatives:
[ ] (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.
[ ] (iii) Forfeitures shall be applied to reduce
the Employer's contribution for such Plan
Year.
[X] (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) or (iii) 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).
[X] (iii) Forfeitures will be reallocated as
of the end of the Plan Year in which the
Participant separates from service.
[ ] (iv) Forfeitures shall be reallocated
as of 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.
(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 I and 2 in the following boxes to indicate order):
[1] (i) Current year's forfeitures.
[2] (ii) Additional Employer contribution.
If no answer is specified, the order will be (i) and (ii).
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(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 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
[X] (a) The Employer may permit a Participant to elect to defer to
the Plan, an amount not to exceed 25% 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.
[ ] (b) Not Applicable.
If no answer is specified, option (b) will apply.
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:
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[ ] (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.
If no answer is specified, option (i) will apply.
(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.
(e) 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.
If no answer is specified, option (i) will apply.
12. VESTING
Contributions under paragraph 7(b), 7(c)(vi) and 7(d) are always fully
vested. Employer contributions shall be subject to the vesting table
selected by the Employer below. A Participant shall receive credit for a
Year of Service as specified at 3(j)(iii) of this Adoption Agreement.
(a) 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.
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YEARS OF SERVICE
----------------
1 2 3 4 5 6 7
- - - - - - -
(ii) __% 100%
(iii) __% __% 100%
(iv) 0% 20% 40% 60% 80% 100%
(v) __% __% 20% 40% 60% 80% 100%
(vi) 10% 20% 30% 40% 60% 80% 100%
(vii) __% __% __% __% 100%
(viii) __% __% __% __% __% __% 100%
NOTE: The percentages selected for schedule (viii) may not be
less for any year than the percentages shown at schedule (v).
Contributions will vest as provided below:
Vesting
Option Selected Type of Employer Contribution
--------------- -----------------------------
IV 7(c) Employer Match on Salary Savings
----
IV 7(e) or (f) Employer Discretionary
----
(b) Top-Heavy Vesting
For any Plan Year in which this Plan is Top-Heavy, the following
minimum vesting rules will apply:
(i) Schedules (v), (vi), and (viii) above will
automatically shift to schedule (iv).
(ii) Schedule (vii) above will automatically shift to
schedule (iii). (c) Service disregarded for
Vesting:
[X] (i) No service will be disregarded.
[ ] (ii) Service prior to the Effective Date of this
Plan or a predecessor plan shall be disregarded
when computing a Participant's vested and
non-forfeitable interest.
[ ] (iii) Service prior to a Participant having
attained age 18 shall be disregarded when
computing a Participant's vested and
non-forfeitable interest.
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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):
Xxxx Company
Xxxx Management Services Inc.
Karsten Realty Advisors
14. ROLLOVER/TRANSFER CONTRIBUTIONS
(a) Rollover Contributions, including Direct Rollovers, as described at
paragraph 1.69 of the Basic Plan Document 404, [X] shall [ ] shall
not be permitted to be made to the Plan. 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 [X] shall [ ] shall not be permitted to be made
to the Plan. If permitted, Employees [X] may [ ] 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. If permitted, Hardship
withdrawals [ ] shall [X] shall not be limited to Elective Deferrals.
16. PARTICIPANT LOANS
Participant loans, as provided for in paragraph 13.8 of the Basic Plan
Document #04, [X] are [ ] are not permitted. If permitted, repayments of
principal and interest shall be repaid to the Participant's segregated
account.
17. INSURANCE POLICIES
The insurance provisions of paragraph 13.9 of the Basic Plan Document #04
[ ] shall [X] shall not be applicable.
18. INVESTMENT DIRECTION
[ ] (a) Employer Investment Direction
The Employer investment direction provisions, as set forth
in Article XIII of the Basic Plan Document #04, shall be
applicable to the following:
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[ ] (i) All monies
[ ] (ii) Employer Discretionary and Matching Monies
[ ] (iii) Employer Discretionary Monies excluding Matching
Monies
[ ] (iv) Employer Matching Monies only.
[X] (b) Employee Investment Direction
Employee investment direction provisions, as set forth in
Article XIII of the Basic Plan Document #04, shall be
applicable to all monies not directed by Employer.
If no answer is specified, Employee Investment Direction will apply.
NOTE: Each of the mutual funds in which the Plan may invest
carries its own fees and expenses, which may include
management fees, Rule 12b-1 fees and/or other fees and
expenses, which are described in detail in each Fund's
prospectus. Employees who invest in one or more of these
mutual funds will, as shareholders of those mutual funds,
bear their pro-rata portion of each fund's fees and
expenses and may also pay a sales charge or contingent
deferred sales charge in connection with their purchase of
fund shares. Employer acknowledges that Prudential
Securities Incorporated (PSI) and Pruco Securities
Corporation (Prusec) may be deemed to benefit ftom advisory
and other fees paid to its affiliates in connection with
the management and operation of the mutual funds in which
the Employee may invest, from sales charges and contingent
deferred sales charges imposed as described in the
prospectus and from fees paid to The Prudential Insurance
Company of America in connection with the Guaranteed
Interest Account.
19. EARLY PAYMENT OPTION
(a) 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.
(b) 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 20 below.
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20. DISTRIBUTION OPTIONS
(a) Timing of Distributions:
In cases of termination benefits shall be paid:
[ ] (i) As soon as administratively feasible
following the close of the Plan Year during which
a distribution is requested or is otherwise
payable.
[X] (ii) As soon as administratively feasible,
following the date on which a distribution is
requested or is otherwise payable.
[ ] (iii) Only after the Participant has achieved
the Plan's Normal Retirement Age, or Early
Retirement Age, if applicable.
If no answer is specified, option (ii) will apply.
(b) Optional Forms of Payment:
[X] (i) Lump Sum.
[X] (ii) Installment Payments.
[ ] (iii) Other form(s)* as specified:
If no answer is specified, option (i) will apply.
*Annuities are only available in either a nonsafe-harbored Plan
which does not meet the provisions of paragraph 8.7 of Basic Plan
Document #04 or in a Plan which previously offered annuities as an
optional form of payment.
21. SPONSOR CONTACT
The Sponsor of this Prototype Plan is Prudential Mutual Fund
Management, Inc., Xxx Xxxxxxx Xxxxx, Xxx Xxxx, Xxx Xxxx 00000. Any
questions regarding this Prototype Plan document may be directed to
your Prudential Representative. You may also call Prudential Mutual
Fund Services at (000)000-0000.
17
22. 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.
The adopting Employer understands that there are fees for each account
under the Plan. THE BASIC PLAN DOCUMENT CONTAINS A PRE-DISPUTE ARBITRATION
CLAUSE FOUND IN ARTICLE XIII, SECTION 13.7 ARBITRATION.
IF EMPLOYER INVESTMENT DIRECTION APPLICABLE, NAME(S) OF
INDIVIDUAL(S) AUTHORIZED TO ISSUE INVESTMENT AND ADMINISTRATIVE
INSTRUCTIONS TO THE PLAN SPONSOR OR AFFILIATE:
(a) EMPLOYER:
This agreement and the corresponding provisions of the Plan and
Trust Basic Plan Document #04 were adopted by the Employer the 7th
day of December, 1999.
Signed for the Employer by: Xxxxxx X. Xxxxxxx
Title: CHIEF FINANCIAL OFFICER
Signature: /s/ XXXXXX X. XXXXXXX
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 determination 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.
18
The Employer may not rely on the opinion letter issued by the
National Office of the Internal Revenue Service as evidence that
this Plan is qualified under section 401 of the Code unless the
terms of the Plan, as herein adopted or amended, that pertain to
the requirements of Code Sections 401(a)(4), 401(a)(17), 401(l),
401(a)(5), 410(b) and 414(s), as amended by the Tax Reform Act of
1986, or later laws, (a) are made effective retroactively to the
first day of the first Plan Year beginning after December 31, 1988
(or such later date on which these requirements first become
effective with respect to this Plan); or (b) are made effective no
later than the first day on which the Employer is no longer
entitled, under regulations, to rely on a reasonable, good faith
interpretation of these requirements, and the prior provisions of
the Plan constitute such an interpretation.
This Adoption Agreement may only be used in conjunction with Basic
Plan Document #04.
19
[X] (b) TRUSTEE:
[X] Prudential Trust Company
00 Xxxxxxxx Xxxxxx Xxxx
Xxxxxxxx, XX 00000
NOTE: There is an annual trustee fee charged under the
Plan if Prudential Trust Company is appointed as
Trustee.
[ ] The Trustee(s) will be the following individuals:
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:
Xxxxxx X. Xxxxxx
/s/ Xxxxxx X. Xxxxxx Signature
Signature Signature
(c) Prudential Mutual Fund Management, Inc.
The Employer's Agreement and the corresponding provisions of the Plan
and Trust Basic Plan Document #04 were accepted by Prudential Mutual
Fund Management, Inc. the
day of ______, 19__.
Signed for by: .&*
Title:
Signature:
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