EXHIBIT 10.11
NON-STANDARDIZED PROFIT SHARING/THRIFT PLAN WITH 401(k) FEATURE
ADOPTION AGREEMENT NUMBER 001-03
This Adoption Agreement, when executed by the Employer and accepted by the Plan
Administrator, and the Trustee, if applicable, and accepted by Connecticut
General Life Insurance Company, establishes the Employer's Plan and Trust, if
applicable, for the benefit of its eligible Employees and their Beneficiaries.
The terms of the Connecticut General Life Insurance Company Defined Contribution
Plan are expressly incorporated therein and shall form a part hereof as fully as
if set forth herein except that if more than one election is provided, only that
election made by the Employer shall be so incorporated. The terms of the Plan so
incorporated together with the terms of this Adoption Agreement shall constitute
the sole terms of the Employer's Plan and Trust, if applicable, and no further
trust instrument or other instrument of any nature whatsoever shall be required.
The Employer's participation under the Plan shall be subject to all the terms
set forth therein and in this Adoption Agreement.
- - Note: Section 414(d) governmental plans and section 414(e) nonelecting church
plans that do not wish to provide ERISA-required benefits should not adopt this
document. Section 414(d) governmental plans that include provisions required by
state law that do not conform to requirements of the Connecticut General Life
Insurance Company Defined Contribution Plan and this Adoption Agreement may not
adopt this document.
- - NOTE: Any choices made in this Adoption Agreement, and any situation where no
choice is made, may only be changed by actually amending this Adoption
Agreement.
Plan GENERAL INFORMATION
Document
Section
Legal Name of Employer: Zix Corporation
Address: 2711 North Haskell Avenue, Suite 2300, LB 36
City: Dallas State: Texas Zip: 75204-2960
Plan Name: Zix Corporation Retirement Plan
Plan Number: 001
- To be assigned by the Employer. For example: 001, 002, and so
on.
Employer's EIN: 75-2216818
January 1, 2003
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Plan GENERAL INFORMATION
Document
Section
Classification of Business:
A.
[ ] C Corporation [ ] S Corporation [ ] Partnership
[ ] Sole Proprietorship [ ] Tax-Exempt/Nonprofit Organization
[X] Other: Controlled Group
B.
[ ] Single Employer
[X] Controlled Group of Corporations
[ ] Group of Businesses Under Common Control
[ ] Affiliated Service Group
[ ] Other (specify): __________________________________________
January 1, 2003
-2-
Plan GENERAL INFORMATION
Document
Section
C. Employer Tax Status:
Tax Year Ends (MM/DD): December 31
Tax Basis: [ ] Cash [X] Accrual
1.21 Effective Date
The adoption of the CONNECTICUT GENERAL LIFE INSURANCE COMPANY
Non-Standardized Profit Sharing/Thrift Plan with 401(k) Feature
shall:
[ ] A. Establish a new Plan effective as of (MM/DD/YY):_________.
[X] B. Constitute an amendment and restatement in its entirety of
a previously established Qualified Plan of the Employer
which was effective January 1, 1989 (hereinafter called
the "Effective Date"). The effective date of this
amendment and restatement is January 1, 2003 .
Merger Data
This Plan includes funds from a prior or coincidental merger of
a:
[ ] A. Money Purchase Plan
[ ] B. Target Benefit Plan
[X] C. Not Applicable
Sponsoring Organization:
Connecticut General Life Insurance Company
P.O. Box 2975
Hartford, CT 06104
(860)534-2021
January 1, 2003
-3-
TABLE OF CONTENTS
ARTICLE PAGE
I. Nontrusteed, Trust, and Trustee......................................... 6
II. Plan Administrator...................................................... 7
III. Plan Year............................................................... 7
IV. Compensation............................................................ 8
V. Highly Compensated Employee............................................. 10
VI. Service................................................................. 11
VII. Eligibility Requirements................................................ 13
VIII. Entry Date.............................................................. 18
IX. Vesting................................................................. 20
X. Contributions........................................................... 24
XI. Contribution Period..................................................... 42
XII. Allocation of Contributions............................................. 44
XII.A. ADP and ACP Testing..................................................... 47
XIII. Limitations on Allocations.............................................. 49
XIV. Investment of Participant's Account..................................... 51
XV. Life Insurance.......................................................... 52
XVI. Employer Stock.......................................................... 53
XVII. Withdrawals Preceding Termination....................................... 54
XVIII. Loans to Participants, Beneficiaries and Parties-in-Interest............ 64
XIX. Retirement and Disability............................................... 65
XX. Distribution of Benefits................................................ 66
XXI. Qualified Preretirement Survivor Annuity................................ 69
XXI.A. Spousal Consent to Distributions........................................ 69
XXII. Amendment of the Plan................................................... 69
XXIII. Top-Heavy Provisions.................................................... 70
January 1, 2003
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XXIV. Other Adopting Employer................................................. 72
MERGER Appendix.................................................................. 76
January 1, 2003
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Plan I. NONTRUSTEED, TRUST, AND TRUSTEE.
Document
Section
- The Plan must have a Trustee if the Employer has elected Employer
Stock, Loans, investment in Life Insurance, and/or any investment other than
through a group annuity contract with Connecticut General Life Insurance
Company.
- If the plan is trusteed, the Employer must apply for a Trust Tax
Identification Number, unless the Trust already has obtained one, even if CIGNA
Bank & Trust Company, FSB has been appointed as the Plan's Trustee.
The Plan is:
1.40 [ ] A.Nontrusteed.
1.74, 1.75 [ ] B. Trusteed and Trustees are:
Trustee(s)
Name(s): _________________________________________________
Address: _________________________________________________
__________________________________________________________
City:___________________St: ___________ Zip: ______________
Trust EIN:________________________________________
[ ] Check this box, if applicable. This election shall be
effective only until CIGNA Bank & Trust Company, FSB's
appointment as Trustee is effective.
1.74, 1.75 [X] C. Trusteed and CIGNA Bank & Trust Company, FSB has been
appointed as the Plan's Trustee.
Trustee Name: CIGNA Bank & Trust Company, FSB
Address: 280 Trumbull Street Hartford, CT 06103
Employer's Trust BIN: to be determined
- Note: If CIGNA Bank & Trust Company, FSB is selected as
Trustee, the Trust Agreement as set forth in Section 6C of
the Plan Document shall not apply. CIGNA Bank & Trust
Company, FSB uses a separate Trust Agreement.
- If this election is made, completion of section I.B,
above, may be required as well. Under Plan Document
Section 6C, any trust agreement with CIGNA Bank & Trust
Company, FSB shall not be effective until the date it is
countersigned by an officer of CIGNA Bank & Trust Company,
FSB. An interim Plan Trustee may be required under section
I.B., above, if the CIGNA Bank & Trust Company, FSB Trust
Agreement is not countersigned until after the effective
date of this Adoption Agreement.
January 1, 2003
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Plan II. PLAN ADMINISTRATOR
Document
Section
1.51 The Plan Administrator is:
Name: Zix Corporation
Address: 2711 North Haskell Avenue, Suite 2300, LB 36
City: Dallas St: Texas Zip: 75204-2960
Plan III. PLAN YEAR
Document
Section
1.52 A. The Plan Year will mean:
[ ] 1. The 12-consecutive-month period commencing on
(MM/DD/YY)_______and each anniversary thereof except
that the first plan year will commence on
(MM/DD/YY)_______.
This election may be made only for new plans.
[X] 2. The 12-consecutive-month period commencing on
(MM/DD/YY) January 1, 2003 and each anniversary
thereof.
January 1, 2003
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Plan IV. COMPENSATION
Document
Section
- (i) Election of options 1-6 below does not require a separate
nondiscrimination test.
- (ii) If option 1, 2, or 3 is elected, you must elect the same
definition of Compensation in Section XIII, Limitations on
Allocations.
- (iii) Options 1-6 include lump sum amounts and/or cash bonuses.
These amounts are included in compensation in the year in
which paid.
- (iv) Options 7-9 may not be elected by a plan with an
integrated allocation formula.
- (v) This compensation definition is for purposes of allocating
contributions under the Plan. For nondiscrimination
testing, the Employer may use any definition of
compensation that is based upon Code section 414(s) or
415(c)(3), except that "rate of pay" definitions may not
be used. Use of options 7, 8, or 9 for nondiscrimination
testing requires that the employer satisfy a separate
compensation nondiscrimination test.
A. Indicate the number of the Compensation definition
that will be used for allocating each type of
contribution. (Note: For purposes of elective
deferral and matching contributions, the same
definition of compensation should be used in order to
simplify the calculation of these contributions.)
Elective Deferral Contributions: 9
Matching Contributions: 9
Nonelective Contributions: 9
Employee Contributions:
Safe Harbor 401(k) Plan Contributions:
1.13 For purposes of allocating contributions, Compensation
means:
1.13(a) 1. Wages, Tips and Other Compensation Box on Form W-2.
1.13(b) 2. Section 3401(a) wages.
1.13(c) 3. 415 safe-harbor compensation.
1.13(d) 4. Modified Wages, Tips, and Other Compensation Box on
Form W-2.
1.13(e) 5. Modified section 3401(a) wages.
1.13(f) 6. Modified 415 safe-harbor compensation.
1.13(g) 7. Regular or base salary or wages.
1.13(h) 8. Regular or base salary or wages plus [ ] overtime
and/or [ ] bonuses.
1.13(i) 9. A "reasonable alternative definition of Compensation,"
as that term is used under Code section 414(s)(3) and
the regulations thereunder.
The definition of Compensation is: 415 safeharbor
compensation as defined in Section 1.12(c) of the
Plan, excluding relocation expenses and amounts
realized from a disqualifying disposition of stock
acquired under a stock purchase plan described in
section 423 of the Internal Revenue Code
- Lump sum amounts and/or cash bonuses may be excluded
only if specified in this definition. Also see note
(v) above.
January 1, 2003
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Plan IV. COMPENSATION
Document
Section
1.13 B. Compensation shall be determined over the following
Determination Period:
[X] 1. The Plan Year.
[ ] 2. A 12-consecutive-month period beginning on (MM/DD)
and ending with or within the Plan Year. For
Employees whose date of hire is less than 12 months
before the end of the designated 12-month period,
Compensation will be determined over the Plan Year.
[ ] 3. The Plan Year. However, for the Plan Year in which
an Employee's participation begins, the applicable
period is the portion of the Plan Year during which
the Employee is eligible to participate in the
Plan.
1.13 C. Compensation used to determine contributions shall/shall
not include Employer Contributions made pursuant to a
salary reduction agreement, which are not includable in
the gross income of the Employee under Code section 125,
402(e)(3), 402(h)(1)(B) or 403(b).
[X] Shall [ ] Shall Not
Effective for Plan Years beginning on or after January
1, 2001 (Fill in date on which the Plan was operated in
accordance with the CRA amendment of Code section
415(c)(3). This date cannot be earlier than January 1,
1998 or later than January 1, 2001),Code section
132(f)(4) deferrals (i.e., qualified transportation
fringe benefits) shall be treated in the same manner as
section 125 deferrals for purposes of the definition of
compensation used to determine contributions under the
plan.
- "Shall" means that all salary deferral and salary
reduction contribution amounts will be included in
determining a Participant's compensation for determining
the amount of and allocating contributions even though
they are normally excluded when determining a person's
gross income. "Shall Not" means that these amounts will
not be included in compensation for these same purposes.
1.13 D. The highest annual Compensation to be used in
determining allocations to a Participant's Account shall
be:
$____________
- Enter an amount if less than the Code section 401(a)(17) limit on
Compensation of $150,000 (as indexed).
- An amount less than $150,000 (as indexed) is not allowed if an
election has been made in section X.E for the Plan to be a Safe
Harbor 401(k) Plan.
January 1, 2003
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Plan
Document V. HIGHLY COMPENSATED EMPLOYEE
Section
1.30 A. Highly Compensated Employees shall be determined using:
1.30(a) [X] Method 1: Employees who are 5% Owners in the current Plan
Year or the Look-Back Year; plus Employees who received
Compensation in excess of $80,000 (as indexed) in the
Look-Back Year; or
[ ] Method 2: Employees who are 5% Owners in the current Plan
Year or the Look-Back Year; plus Employees who received
Compensation in excess of $80,000 (as indexed) in the
Look-Back Year, and who were in the top 20% of Employees
ranked by Compensation; or
[ ] Method 3: Method 1 done on a Snapshot Day basis.
1.30(b)
The Snapshot day is __________ (fill in); or
[ ] Method 4: Method 2 done on a Snapshot Day basis.
The Snapshot day is __________ (fill in); or
_ Note: The determination to include or exclude the "top 20%
of employees ranked by Compensation" must apply consistently
to the Determination Years of all plans of the Employer that
begin with or within the same calendar year.
B. Calendar Year Election for Look-Back Year
[ ] Yes [ ] No
If yes, for determining if an employee is an HCE on the basis
of Compensation, the calendar year beginning with or within
the Look-Back Year shall be treated as the Look- Back Year.
- Note: Only available for Plans with non-calendar year Plan
years.
- Note: This election must be the same for all plans of the
employer.
January 1, 2003
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Plan
Document VI. SERVICE
Section
Check off appropriate basis for determining service.
2A.3, A. Hours of Service or Elapsed Time
2A.9,
2A.5
1. Years of Service shall be determined on the following
basis:
-For purposes of section 1.a. below, if the Plan provides for
contributions that are subject to a whole year of eligibility service
requirement and also provides for contributions that are subject to a
fractional year of eligibility service requirement, select the service
crediting method that applies to those contributions that are subject
to the whole year of eligibility service requirement.
Eligibility must be determined based on the elapsed time method for
those contributions that are subject to a fractional year of
eligibility service requirement.
a. Eligibility: (choose one)[X]Hours of Service [ ]Elapsed
Time
b. Vesting: (choose one) [X]Hours of Service [ ]Elapsed Time
c. Allocation of Contributions:(choose one)
[X]Hours of Service [ ]Elapsed Time
2. Succeeding Eligibility Computation Period.
-Complete this item only if Years of Service for Eligibility
(A.1.a., above) is based on Hours of Service.
If an Employee does not fulfill the Plan's eligibility
requirements in the initial 12- consecutive month period of
service, the succeeding eligibility computation period shall
be:
[X] a. The following employment year (commencing on the first
anniversary of employment and ending on the succeeding
anniversary), and any such succeeding year thereafter,
if necessary.
[ ] b. The Plan Year beginning within the initial employment
year, and any succeeding Plan Years thereafter, if
necessary.
3. If Service is based on Hours of Service, Hours shall be
determined on the basis of:
[ ] a. Actual hours for which paid or entitled to payment.
[ ] b. Days Worked (10 Hours of Service).
[ ] c. Weeks Worked (45 Hours of Service).
[ ] d. Semimonthly payroll periods (95 Hours of Service).
[X] e. Months Worked (190 Hours of Service).
- For options b, c, d, and e: If the Employee would be
credited with 1 Hour of Service during the period, the
Employee shall be credited with the number of Hours of Service
indicated in parentheses.
January 1, 2003
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Plan VI. SERVICE
Document
Section
B. Service with other employers.
1.25 1. Service with members of the Employer's controlled group of
corporations, affiliated service group, or group of business
under common control ("controlled group").
- Service for an employer while the employer is part of the
controlled group must be taken into account.
a. Service with a member of the controlled group prior
to it becoming part of the controlled group will be
included for all purposes.
[ ] Yes [X] No
2. Service with a predecessor organization.
2A.5 - Service with a predecessor organization of the Employer must
be taken into account if the Employer maintains the Plan of
the predecessor organization.
a. Service with a predecessor organization will be
included for all purposes even if the Employer does
not maintain the plan of the predecessor
organization.
[ ] Yes [X] No
3. Service with the following subsidiary(ies) or affiliated
organization, not related to the Employer under the rules of
Code sections 414(b), (c) or (m), shall be considered Service
for all purposes of this plan:
2A.5 Elron Software, Inc. 04-3394792
- Service credited under 1.a, 2.a and 3 must apply to all similarly
situated Employees, must be credited for a legitimate business reason,
and must not by design or operation discriminate significantly in favor
of Highly Compensated Employees.
September 2, 2003
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Plan VII. ELIGIBILITY REQUIREMENTS
Document
Section
Check or fill out appropriate requirements for each type of contribution in
the Plan.
2A.5(a), A. Eligibility Requirements 2B.1
1. If Employer is a Partnership or Sole Proprietorship: Self-Employed
Individuals are eligible to participate in the Plan.
[ ] Yes [ ] No
2. Immediate Participation.
- No age or service requirement.
1.16, 1.53 - This election is required for contributions made to any employee
under this Plan who is employed pursuant to the Davis-Bacon Act or
other Prevailing Wage Law.
[ ] Elective Deferral Contributions
[ ] Matching Contributions
[ ] Nonelective Contributions
[ ] Employee Contributions
[ ] Safe Harbor 401(k) Contributions
3. Service Requirement.
- Not to exceed 1 year if graded vesting; not to exceed 2 years if
100% immediate vesting. Not to exceed 1/2 year if graded vesting or
1 1/2 years if 100% immediate vesting if annual Entry Date is chosen
in Section VIII "Entry Date." Not to exceed 1 year for Elective
Deferral Contributions.
- No minimum service requirement is allowed for any employee under
this Plan who is employed pursuant to the Davis-Bacon Act or other
Prevailing Wage Law.
[X] Elective Deferral Contributions: 0 (indicate number of years)
[X] Matching Contributions: 0 (indicate number of years)
[X] Nonelective Contributions: 0 (indicate number of years)
[ ] Employee Contributions:__(indicate number of years)
[ ] Safe Harbor 401(k) Contributions:__(indicate number of years)
- Fill in the blank(s) above with the amount of service required.
Any service requirement not in units of whole years requires
service for eligibility to be determined based on elapsed time
(see Section VI.A.1.a).
4. Age Requirement.
- Not greater than 21 years. If annual entry date is chosen in
Section VIII "Entry Date," not greater than 20 1/2 years.
- No minimum attained age requirement is allowed for any employee
under this Plan who is employed pursuant to the Davis-Bacon Act or
other Prevailing Wage Law.
[X] Elective Deferral Contributions: 21 (indicate minimum age)
[X] Matching Contributions: 21 (Indicate minimum age)
[X] Nonelective Contributions: 21 (indicate minimum age)
[ ] Employee Contributions: (indicate minimum age)
[ ] Safe Harbor 401(k) Contributions: (indicate minimum age)
January 1, 2003
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Plan VII. ELIGIBILITY REQUIREMENTS
Document
Section
2A.5(a), 5. Employees who were employed on or before the initial Effective
2B.1 Date of the Plan or the Effective Date of the amendment and
restatement of the Plan, as indicated on page 2, shall/shall not be
immediately eligible as of (choose one) [ ] the initial Effective
Date or the Effective Date of the amendment and restatement of the
Plan, or [ ] the first Entry Date following the initial Effective
Date or the Effective Date of the amendment and restatement of the
Plan, without regard to any Age and/or Service requirements
specified in 3 or 4 above.
[ ] Shall [X] Shall Not
January 1, 2003
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Plan VII. ELIGIBILITY REQUIREMENTS
Document
Section
2B.1 B. Job Class Requirements
An Employee must be a member of one or more of the following
selected classifications:
1. No Job Class Requirements:
[ ] Elective Deferral Contributions
[ ] Matching Contributions
[ ] Nonelective Contributions
[ ] Employee Contributions
[ ] Safe Harbor 401(k) Contributions
2. Salaried:
[ ] Elective Deferral Contributions
[ ] Matching Contributions
[ ] Nonelective Contributions
[ ] Employee Contributions
[ ] Safe Harbor 401(k) Contributions
3. Hourly:
[ ] Elective Deferral Contributions
[ ] Matching Contributions
[ ] Nonelective Contributions
[ ] Employee Contributions
[ ] Safe Harbor 401(k) Contributions
4. Clerical:
[ ] Elective Deferral Contributions
[ ] Matching Contributions
[ ] Nonelective Contributions
[ ] Employee Contributions
[ ] Safe Harbor 401(k) Contributions
5. Employees whose employment is governed by a collective bargaining
agreement represented by the following union:
[ ] Elective Deferral Contributions
[ ] Matching Contributions
[ ] Nonelective Contributions
[ ] Employee Contributions
[ ] Safe Harbor 401(k) Contributions
6. Other (fill in): Employed in a capacity other than an independent
contractor or a leased employee as defined under section 414 (n)
of the Internal Revenue Code
[X] Elective Deferral Contributions
[X] Matching Contributions
[X] Nonelective Contributions
[ ] Employee Contributions
[ ] Safe Harbor 401(k) Contributions
- A Plan may not exclude Employees based on the number of hours
worked by the Employees. For example, "part-time" Employees may
not be excluded.
January 1, 2003
-15-
Plan VII. ELIGIBILITY REQUIREMENTS
Document
Section
2B.1 C. Additional Requirements
An Employee must be in the following designated division(s) of the
Employer:
___________________________________________________________________
___________________________________________________________________
[ ] Elective Deferral Contributions
[ ] Matching Contributions
[ ] Nonelective Contributions
[ ] Employee Contributions
[ ] Safe Harbor 401(k) Contributions
2B.1 D. An Employee must not be a member of any one of the following groups:
1. Union.
- This exclusion shall not apply if the current collective
bargaining agreement provides for coverage under the plan.
- Employees who are members of a union are defined as: 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 of the Employer who are covered
pursuant to that agreement are professional employees as defined in
section 1.410(b)-9 of the regulations. For this purpose, the term
"employee representatives" does not include any organization more
than half of whose members are Employees who are owners, officers,
or executives of the Employer.
[X] Elective Deferral Contributions
[X] Matching Contributions
[X] Nonelective Contributions
[ ] Employee Contributions
[ ] Safe Harbor 401(k) Contributions
2. Nonresident aliens (within the meaning of Code section
7701(b)(1)(B)) who receive no earned income (within the meaning of
Code section 911(d)(2)) from the Employer that constitutes income
from sources within the United States (within the meaning of Code
section 861(a)(3)).
[ ] Elective Deferral Contributions
[ ] Matching Contributions
[ ] Nonelective Contributions
[ ] Employee Contributions
[ ] Safe Harbor 401(k) Contributions
January 1, 2003
-16-
Plan VII. ELIGIBILITY REQUIREMENTS
Document
Section
3. Employees covered by the following designated qualified employee
benefit plans:
________________________________________________________________
________________________________________________________________
[ ] Elective Deferral Contributions
[ ] Matching Contributions
[ ] Nonelective Contributions
[ ] Employee Contributions
[ ] Safe Harbor 401(k) Contributions
4. Highly Compensated Employees.
[ ] Elective Deferral Contributions
[ ] Matching Contributions
[ ] Nonelective Contributions
[ ] Employee Contributions
[ ] Safe Harbor 401(k) Contributions
1.23 5. An individual not treated as a common law employee, who is not
reported on payroll, income tax withholding, wage tax liability,
or worker compensation coverage records, or any such similar
record, even if a court or administrative agency later
determines such individuals are common law employees. This
exclusion shall not include Leased Employees who are treated as
Employees under the terms of the Plan.
[ ] Elective Deferral Contributions
[ ] Matching Contributions
[ ] Nonelective Contributions
[ ] Employee Contributions
[ ] Safe Harbor 401(k) Contributions
1.16 E. The Plan covers Employees whose conditions of employment are
mandated under the Davis-Bacon Act. (As required by law,
contributions under this Plan made pursuant to the Davis-Bacon Act
or other Prevailing Wage Law may not be subject to any minimum
service or age requirements).
[ ] Yes [X] No
January 1, 2003
-17-
Plan VIII. ENTRY DATE
Document
Section
- - Check the appropriate requirement for Entry Date.
1.26 A. Immediately.
[X] Elective Deferral Contributions
[X] Matching Contributions
[X] Nonelective Contributions
[ ] Employee Contributions
[ ] Safe Harbor 401(k) Contributions
1.26 B. The first day of any month.
[ ] Elective Deferral Contributions
[ ] Matching Contributions
[ ] Nonelective Contributions
[ ] Employee Contributions
[ ] Safe Harbor 401(k) Contributions
1.26 C. Quarterly (that is, three months apart) on each:
(MM/DD)_________________, or (MM/DD)______________, or
(MM/DD)_________________, or (MM/DD)_______________.
- Fill in dates.
[ ] Elective Deferral Contributions
[ ] Matching Contributions
[ ] Nonelective Contributions
[ ] Employee Contributions
[ ] Safe Harbor 401(k) Contributions
1.26 D. Semiannually (that is, six months apart) on each:
(MM/DD)_________________, or (MM/DD)______________.
- Fill in dates.
[ ] Elective Deferral Contributions
[ ] Matching Contributions
[ ] Nonelective Contributions
[ ] Employee Contributions
[ ] Safe Harbor 401(k) Contributions
January 1, 2003
-18-
Plan VIII. ENTRY DATE
Document
Section
1.26 E. Annually, on each (MM/DD) ___________.
- Fill in date.
[ ] Elective Deferral Contributions
[ ] Matching Contributions
[ ] Nonelective Contributions
[ ] Employee Contributions
[ ] Safe Harbor 401(k) Contributions
1.26 F. The first day nearest to the date(s) selected in B, C, D or E
above, whether before or after that date, that the Participant meets
the Eligibility Requirements.
[ ] Elective Deferral Contributions
[ ] Matching Contributions
[ ] Nonelective Contributions
[ ] Employee Contributions
[ ] Safe Harbor 401(k) Contributions
- Allows retroactive entry into the Plan. This may have an effect on
various nondiscrimination tests for the Plan. In addition,
retroactive entry for elective deferral contributions may cause
administrative and compliance difficulties.
January 1, 2003
-19-
Plan IX. VESTING
Document
Section
1.77 A. Vesting Percentage.
The Vesting Schedule, based on number of Years or Periods of
Service, shall be as indicated below. Indicate the number of
the vesting schedule that applies to any Nonelective
Contributions, Matching Contributions, and Prior Employer
Contributions. The vesting schedules are depicted in 1 through
8, below.
Nonelective Contributions are subject to vesting schedule: 3
Matching Contributions are subject to vesting schedule: 3
- The vesting schedule for matching contributions indicated
above may have changed pursuant to the Economic Growth and Tax
Relief Reconciliation Act of 2001 (EGTRRA). See your EGTRRA
Amendment to the Connecticut General Life Insurance Company
Defined Contribution Plan Basic Plan Document Number 03.
Prior Employer Contributions are subject to vesting
schedule: ______
ADP Test Safe Harbor Contributions that are Safe Harbor
Matching Contributions shall always be subject to vesting
schedule: 1
ADP Test Safe Harbor Contributions that are Safe Harbor
Nonelective Contributions shall always be subject to vesting
schedule: 1
ACP Test Safe Harbor Matching Contributions are subject to
vesting schedule: ___________
If applicable, any Matching Contributions and/or Nonelective
Contributions made under this Plan pursuant to the Davis-Bacon
Act or other Prevailing Wage Act are subject to vesting
schedule: 1
1. Immediately = 100%
2. 0-3 Years = 0%
3 Years = 100%
3. 1 Year = 20%
2 Years = 40%
3 Years = 60%
4 Years = 80%
5 Years = 100%
4. 0-3 Years = 0%
3 Years = 20%
4 Years = 40%
5 Years = 60%
6 Years = 80%
7 Years = 100%
January 1, 2003
-20-
Plan
Document IX. VESTING
Section
5. 0-2 Years = 0%
2 Years = 20%
3 Years = 40%
4 Years = 60%
5 Years = 80%
6 Years = 100%
6. 0-5 Years = 0%
5 Years = 100%
7. 1 Year = 25%
2 Years = 50%
3 Years = 75%
4 Years = 100%
8. Other. Must be at least as liberal as
#4 or #6 above.
_______ = ________
_______ = ________
_______ = ________
_______ = ________
_______ = ________
_______ = ________
_______ = ________
_______ = ________
2A.5(b) B. The vesting computation period shall be based on the
Employee's service in the:
[X] Plan Year [ ] Employment year
January 1, 2003
-21-
Plan
Document IX. VESTING
Section
2A.7, C. Excluded Years or Periods of Service.
2A.10
The vesting percentage shall be based on all Years of Service
(i.e., completing 1000 Hours of Service) or Periods of Service
(i.e., Elapsed Time), EXCEPT that the following shall be excluded:
Years or Periods of Service:
[ ] 1. Prior to the time the Participant attained age 18.
[ ] 2. During which the Employer did not maintain the plan or
predecessor plan.
[ ] 3. During which the Participant elected not to contribute to a
plan which required Employee Contributions.
[ ] 4. Rule of Parity (Elapsed Time).
- Rule of Parity (Elapsed Time): In the event a reemployed
Employee has no vested interest in Employer Contributions at
the time the break occurred, and has since incurred 5
consecutive 1-year Breaks-in-Service, and has a Period of
Severance which equals or exceeds his prior Period of
Service, such prior Service may be disregarded.
[ ] 5. Rule of Parity (Hours of Service).
- Rule of Parity (Hours of Service): Years of Service prior
to a Break-in-Service may be disregarded if the participant
had no vested interest in Employer Contributions at the time
the break occurred, and the Participant has since incurred 5
consecutive 1-year Breaks-in-Service, and the number of
consecutive 1- year Breaks-in-Service is at least as great
as the Years of Service before the break occurred.
[X] 6. Prior to any 1-Year Break-in-Service until the Employee
completes a Year of Service following reemployment.
[ ] 7. None of the above.
January 1, 2003
-22-
Plan
Document IX. VESTING
Section
3D.1, D. Forfeitures.
3D.2,
2A.7,
2A.10
1. Forfeitures will occur:
[X] a. Immediately.
[ ] (1) Optional Payback Method.
[X] (2) Required Payback Method.
[ ] b. Upon a 1-Year Break-in-Service.
[ ] (1) Optional Payback Method.
[ ] (2) Required Payback Method.
[ ] c. Upon 5 consecutive 1-Year Breaks-in-Service.
- No payback of Forfeitures is allowed after
5-consecutive 1-Year Breaks-in- Service.
2. Forfeitures will be:
[ ] a. Reallocated to Participants' Accounts.
- Must be reallocated in accordance with the same
allocation formula as the contributions from which they
arose.
[X] b. Used as an Employer Credit and then, to the extent any
Forfeitures remain, reallocated to Participants'
Accounts.
- To the extent that Forfeitures are reallocated, they
must be reallocated in accordance with the same
allocation formula as the contributions from which
arose.
-If the Plan provides Matching Contributions and forfeitures
are reallocated, the Contribution Percentage (ACP) Test will
be affected.
January 1, 2003
-23-
Plan X. CONTRIBUTIONS
Document
Section
2C.1(k)(1) A. Elective Deferral Contributions
1. Availability/Amount
[ ] Not Available under the Plan.
[X] Available under the Plan (complete the following).
Each Participant MAY elect to have his Compensation
actually paid during the [Elect One] [ ] Plan Year or
[X] Contribution Period reduced by:
[ ] a. ________%.
[ ] b. up to __________%.
[X] c. from 2 % to 30 %.
[ ] d. [This election d. is only available if
"Plan Year" is chosen above.]
up to the maximum percentage allowable,
not to exceed the limits of Code
sections 402(g) and 415.
[ ] e. a specified monetary amount not in
excess of ______ % of a Participant's
Compensation.
- Lump sum amounts and/or cash bonuses must be subject
to the salary deferral election unless the definition
of compensation in Section IV.A.9 has been elected and
these amounts have been specifically excluded from
that compensation definition. Lump sum amounts and
cash bonuses are deferred upon and tested in the Plan
Year in which paid.
2. Modification
A Participant may change the amount of Elective Deferral
Contributions the Participant makes to the Plan (complete a
and b):
[X] a. 2 per Plan Year (may not be less frequent than
once).
[X] b. As of the following date(s) (MM/DD):
at any time
__________________________________________
__________________________________________
__________________________________________
__________________________________________
January 1, 2004
-24-
Plan X. CONTRIBUTIONS
Document
Section
2C.1(k)(1) 3. Deemed Election to Defer Compensation
[ ] a. An Employee who is eligible to have Elective
Deferral Contributions made to the Plan and who
is provided Plan enrollment materials shall be
deemed to have elected to have had his
Compensation paid during the Contribution
Period or Plan Year (as applicable) reduced by
___%, effective ____(no less than 30 days after
the date he receives Plan enrollment materials),
unless he has affirmatively elected to reduce
his Compensation by a different amount
(including zero). A deemed election to defer
Compensation may be modified in accordance with
the provisions of Section X.A.2 above.
- Percentage amount above may not be greater than 6%.
The provision above applies to (choose one):
[ ] all employees who are eligible to have
Elective Deferral Contributions made to
the Plan, or
[ ] all employees hired on or after ______who
are eligible to have Elective Deferral
Contributions made to the Plan.
[X] b. Deemed elections to defer Compensation are not
available under the Plan.
January 1, 2003
-25-
Plan X. CONTRIBUTIONS
Document
Section
2C.1(b) B. Required Employee Contributions
1. Availability/Amount
[X] Not Available under the Plan.
[ ] Available under the Plan and must be made as a
condition of receiving an Employer
Contribution.
- Required Employee Contributions are NOT AVAILABLE
unless Elective Deferral Contributions are available.
Required Contributions shall be in the amount of:
[ ] a. _____ % of Compensation actually paid during
the Contribution 2C.1(k)(1) Period.
[ ] b. Not less than _________ % nor more than
_______ % of Compensation actually paid during
the Contribution Period.
2. Modification
A Participant may suspend Required Employee
Contributions for a minimum period of:
[ ] a. 1 month
[ ] b. 2 months
[ ] c. 3 months
- The suspension period may be of indefinite duration. A
Participant's reentry into the Plan shall be as of the first
Entry Date following the end of the suspension period.
January 1, 2003
-26-
Plan X. CONTRIBUTIONS
Document
Section
2C.1 C. Matching Contributions
Availability
[ ] Not Available under the Plan.
[X] Available under the Plan (elect one from option 1
and, if applicable, elect one from option 2).
1. [ ] a. Matching Contributions SHALL be based
upon Considered Net Profits.
[X] b. Matching Contributions SHALL NOT be
based upon Considered Net Profits.
2. Matching Contributions shall be made to:
[X] a. All Participants.
[ ] b. Nonhighly Compensated Employee
Participants only.
3. Partnership Plans.
[ ] a. The Employer SHALL make Matching
Contributions to Partners.
-Prior to the 1998 Plan Year, Matching
Contributions to Partners are treated
in all respects as Elective Deferral
Contributions.
[ ] b. The Employer SHALL NOT make Matching
Contributions to Partners.
Amount
For each $1.00 of either Elective Deferral
Contributions and/or Required Employee Contributions,
as selected above, the Employer will contribute and
allocate to each Participant's Matching Contribution
Account an amount equal to:
[ ] 1. $__________ (e.g., $.50).
[X] 2. A discretionary percentage, to be determined
by the Employer.
- If option 2 is elected, the amount of the
discretionary percentage should be determined
by an annual Board of Directors resolution
setting the percentage.
January 1, 2003
-27-
Plan X. CONTRIBUTIONS
Document
Section
[ ] 3. Graded Match.
-If a or b is elected, the minimum and maximum
percentages must be within the parameters of the
Elective Deferral election in Section X.A or the
Required Employee Contribution election in Section X.B
of this Adoption Agreement.
- Percentages for higher amounts must be lower than
the percentages for lower amounts. For example: 100%
of the first $500, plus 75% of the next $500, plus 50%
of the next $500.
[ ] a. Graded based upon the dollar amount of each
Participant's Elective Deferral Contributions
or Required Employee Contributions as follows:
______% of the first $ ______ plus
______% of the next $ ______ plus
______% of the next $ ______ plus
______% of the next $ ______.
[ ] b. Graded based upon the percentage of
Compensation of each Participant's Elective
Deferral Contribution or Required Employee
Contribution as follows:
______% of the first ______% plus
______% of the next ______% plus
______% of the next ______% plus
______% of the next ______%
-If 3.a or b is elected, additional testing will be
required to prove that the different contributions are
available on a nondiscriminatory basis.
January 1, 2003
-28-
Plan X. CONTRIBUTIONS
Document
Section
[ ] 4. Separate specific dollar amounts for different
employees under this Plan (e.g., employees in
different job classifications):
- This option is available only for Plans covering
Employees whose conditions of employment are mandated
under the Davis-Bacon Act or similar Prevailing Wage
Law.
$ ______(e.g., $.50) to employees in ______ (fill in)
$ ______(e.g., $.50) to employees in ______ (fill in)
$ ______(e.g., $.50) to employees in ______ (fill in)
$ ______(e.g., $.50) to employees in ______ (fill in)
$ ______(e.g., $.50) to employees in ______ (fill in)
Additional Formulas (fill in below):
- Formulas must be the same type as above.
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
- If 4 is selected, additional testing will be
required to prove that the different contributions are
available on a nondiscriminatory basis.
January 1, 2003
-29-
Plan X. CONTRIBUTIONS
Document
Section
[ ] 5. Different graded matches for different employees
under this Plan (e.g., employees in different job
classifications, divisions, organizations, members of
a controlled group of corporations, etc.):
- This option is available only for Plans covering
Employees whose conditions of employment are mandated
under the Davis-Bacon Act or similar Prevailing Wage
Law.
[ ] a. Graded based upon the dollar amount of
Elective Deferral Contributions or Required
Contributions of each Participant as follows:
- Percentages for higher amounts must be lower than
the percentages for lower amounts. For example: 100%
of the first $500, plus 75% of the next $500, plus 50%
of the next $500.
Employees in _________ (fill in)
______% of the first $ ______ plus
______% of the next $ ______ plus
______% of the next $ ______ plus
______% of the next $ ______ .
Employees in _________ (fill in)
______% of the first $ ______ plus
______% of the next $ ______ plus
______% of the next $ ______ plus
______% of the next $ ______.
Employees in _________ (fill in)
______% of the first $ ______ plus
______% of the next $ ______ plus
______% of the next $ ______ plus
______% of the next $ ______.
Additional Formulas (fill in below):
- Formulas must be the same type as above.
______________________________________________
______________________________________________
______________________________________________
______________________________________________
January 1, 2003
-30-
Plan X. CONTRIBUTIONS
Document
Section
[ ] b. Graded based upon the percentage of compensation
of the Elective Deferral Contributions or Required
Contributions of each Participant as follows:
-This option is available only for Plans covering
Employees whose conditions of employment are mandated
under the Davis-Bacon Act or similar Prevailing Wage
Law.
- Matching percentages for higher compensation
percentages must be lower than matching percentages
for lower compensation percentages. For example: 100%
of the first 3%, plus 75% of the next 2%, plus 50% of
the next 2%.
Employees in _________ (fill in)
______% of the first $ ______ plus
______% of the next $ ______ plus
______% of the next $ ______ plus
______% of the next $ ______.
Employees in _________ (fill in)
______% of the first $ ______ plus
______% of the next $ ______ plus
______% of the next $ ______ plus
______% of the next $ ______.
Employees in _________ (fill in)
______% of the first $ ______ plus
______% of the next $ ______ plus
______% of the next $ ______ plus
______% of the next $ ______.
Additional Formulas (fill in below):
- Formulas must be the same type as above.
__________________________________________________
__________________________________________________
__________________________________________________
__________________________________________________
__________________________________________________
__________________________________________________
-If 5.a or b is selected, additional testing will be required
to prove that the different contributions are available on a
nondiscriminatory basis.
January 1, 2003
-31-
Plan X. CONTRIBUTIONS
Document
Section
Additional Requirements
The Elective Deferral and/or Required Employee Contributions,
upon which Matching Contributions are made by the Employer,
shall not exceed:
[ ] 1. $ _______for the Plan Year.
[ ] 2. ________ % of Participant's Compensation for the
Contribution Period.
- Reminder: Note the period over which Compensation
will be determined in section IV.B.
[ ] 3. ________ % of the Participant's Compensation for the
Contribution Period, but in no event any amount
greater than $_______ for the Plan Year.
[X] 4. N/A.
The total amount of Matching Contributions made by the
Employer shall not exceed:
[ ] 1. $ ________ for the Plan Year.
[ ] 2. ________ % of Participant's Compensation for either
the: (choose one)
[ ] Contribution Period.
[ ] Plan Year.
[X] 3. N/A.
True-Up Contributions:
The Employer may/may not contribute a True-Up Contribution
for each Participant at the end of the Plan Year so that the
total Matching Contribution for each Participant is
calculated on an annual basis.
[ ] May [X] May not
Additional Matching Contributions:
In addition, at the end of the Plan Year, the Employer may
contribute Additional Matching Contributions to be allocated
in the same proportion that the Matching Contribution made on
behalf of each Participant during the Plan Year bears to the
Matching Contribution made on behalf of all Participants
during the Plan Year.
January 1, 2003
[ ] May [X] May not
-32-
Plan X. CONTRIBUTIONS
Document
Section
Qualified Matching Contributions (QMACs):
The Employer may/may not make Qualified Matching
Contributions (QMACs) to the Plan.
[ ] May [X] May not
If the Employer makes QMACs, they shall be made to:
[ ] All Participants.
[ ] Nonhighly Compensated Employee Participants
only.
Amount: (choose one)
[ ] ________ % of the Participant's Elective
Deferral Contributions.
[ ] _______ % of the Participant's Elective
Deferral Contributions, but no amount in excess
of either $_____ or ______% (choose one) of the
Participant's Compensation.
NOTE: Regardless of the election above, the Plan
automatically allows the Employer to make Qualified Matching
Contributions to correct a failed ADP or ACP test.
January 1, 2003
-33-
Plan X. CONTRIBUTIONS
Document
Section
2C.1 D. Nonelective Contributions
- If you choose to make a Nonelective Contribution, each
Employee eligible to participate in the Plan and who
satisfies the Annual Allocation Requirement of Section XII.A
or XII.B MUST be given an allocation, regardless of whether
they make Elective Deferral Contributions.
Availability
[ ] Not Available under the Plan.
[X] Available under the Plan (complete the following).
Amount
The Contribution for each Contribution Period shall be:
[ ] 1. ________ % of Considered Net Profits.
[ ] 2. ________ % of Compensation of each Participant.
- Reminder: Note the period over which Compensation will
be determined in section IV.B.
[ ] 3. The Employer will contribute an amount equal to
$_________ for each Participant.
[X] 4. Discretionary.
- If option 4 is elected, the amount of the discretionary
contribution made by the Employer should be determined by an
annual Board of Directors resolution setting a fixed amount
of contribution or a formula by which a fixed amount can be
determined. The discretionary contribution amount may only be
allocated in accordance with the provisions of section XII,
Allocation of Contributions.
[ ] 5. The Employer will contribute an amount equal to
$_______ /hour or unit of each Participant (indicate
dollar or cents amount).
- Option 5 may be chosen ONLY for Employees who are subject
to a Collective Bargaining Agreement.
[ ] 6. ______ % of Considered Net Profits to ______(fill in)
______ % of Considered Net Profits to ______(fill in)
______ % of Considered Net Profits to ______(fill in)
______ % of Considered Net Profits to ______(fill in)
______ % of Considered Net Profits to ______(fill in)
- Fill in job classification.
January 1, 2003
-34-
Plan X. CONTRIBUTIONS
Document
Section
Additional Formulas (fill in below):
- Formulas must be the same type as above.
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
[ ] 7. ______ % of Compensation to each Participant under
this Plan in ______(fill in)
______ % of Compensation to each Participant under
this Plan in ______(fill in)
______ % of Compensation to each Participant under
this Plan in ______(fill in)
______ % of Compensation to each Participant under
this Plan in ______(fill in)
______ % of Compensation to each Participant under
this Plan in ______(fill in)
- Fill in job classification.
Additional Formulas (fill in below):
- Formulas must be the same type as above.
______________________________________________________
______________________________________________________
______________________________________________________
______________________________________________________
[ ] 8. The Employer will contribute an amount equal to:
$ ______ per hour of service for each Participant
under this Plan in ______ (fill in)
$ ______ per hour of service for each Participant
under this Plan in ______ (fill in)
$ ______ per hour of service for each Participant
under this Plan in ______ (fill in)
$ ______ per hour of service for each Participant
under this Plan in ______ (fill in)
- Fill in job classification.
Additional Formulas (fill in below):
- Formulas must be the same type as above.
______________________________________________________
______________________________________________________
______________________________________________________
- Options 6, 7 and 8 may be selected ONLY when a Plan
covers Employees whose conditions of employment are
mandated under the Davis-Bacon Act.
- If option 6, 7 or 8 is selected, subsection A.1
(Compensation to Compensation allocation) MUST be
chosen in Section XIII, "Allocation of Contributions."
- If option 6, 7 or 8 is selected, additional testing
will be required to prove that the different
contributions are available on a nondiscriminatory
basis.
January 1, 2003
-35-
Plan X. CONTRIBUTIONS
Document
Section
Additional Nonelective Contributions:
In addition, the Employer of a Plan that provides for
nonannual Nonelective Contributions may also contribute an
additional annual discretionary Nonelective Contribution at
the end of the Plan Year. This contribution will be allocated
in accordance with the provisions of section XII.A. of the
Adoption Agreement and will be subject to the Annual
Allocation Requirements of section XII.B. of the Adoption
Agreement.
[ ] Yes [X] No
Additional Requirements
Nonelective Contributions shall/shall not be based on
Considered Net Profits.
- "Shall" must be chosen if option 1 is selected.
[ ] Shall [X] Shall not
Qualified Nonelective Contributions (QNECs)
The Employer may/may not make Qualified Nonelective
Contributions (QNECS) to the Plan.
[ ] May [X] May not
If the Employer makes QNECs, they shall be made to:
[ ] All Participants.
[ ] Nonhighly Compensated Employee Participants only.
Amount: (choose one)
[ ] _______% of the Compensation of all participants
eligible to share in the allocation.
[ ] ________ % of the net profits, but in no event
more than $ _________ for any Plan Year.
[ ] an amount determined by the Employer.
Allocation: (choose one)
[ ] In the ratio which each Participant's
Compensation for the Plan Year bears to the
total Compensation of all Participants for
such Plan Year.
[ ] In the ratio which each Participant's
Compensation not in excess of $_______ for
the Plan Year bears to the total Compensation
of all Participants not in excess of $ ______
for such Plan Year.
NOTE: Regardless of the election above, the Plan
automatically allows the Employer to make Qualified
Nonelective Contributions to correct a failed ADP or ACP
test.
January 1, 2003
-36-
Plan X. CONTRIBUTIONS
Document
Section
2C.1(k)(1); E. Safe Harbor 401(k) Plan Contributions
2C.1(l)
[ ] (Check this box, if applicable). This Plan shall be a Safe
Harbor 401(k) Plan.
1. Elective Deferral Contributions for ADP Test Safe Harbor
Plan
a. Each Participant may elect to have his Compensation
actually paid during the (choose one) [ ] Plan Year
or [ ] Contribution Period reduced by:
[ ]1. _______ %.
[ ]2. up to ________ %.
[ ]3. from _______% to __________ %.
[ ]4. [This election is only available if "Plan
Year" is chosen above.] up to the maximum
percentage allowable, not to exceed the limits
of Code sections 402(g) and 415.
[ ]5. A specified monetary amount not in excess
of __________ % of a Participant's
Compensation.
- Lump sum amounts and/or cash bonuses must be
subject to the salary deferral election unless the
definition of compensation in Section IV.A.9 has
been elected and these amounts have been
specifically excluded from that compensation
definition. Lump sum amounts and cash bonuses are
deferred upon and tested in the Plan Year in which
paid.
b. Modification
A Participant may change the amount of Elective
Deferral Contributions the Participant makes to the
Plan (complete 1 and 2):
[ ] 1. ________ per Plan Year (may not be less
frequent than twice).
[ ] 2. As of the following date(s) (MM/DD):
[ ] [REQUIRED] During the 30-day period
following receipt of the annual Safe
Harbor 401(k) Plan notice.
[ ] In addition, as of the following dates
(MMDDYY):
____________________________________________
____________________________________________
____________________________________________
____________________________________________
January 1, 2003
-37-
Plan X. CONTRIBUTIONS
Document
Section
c. Deemed Election to Defer Compensation
[ ]1. An Employee who is eligible to have Elective
Deferral Contributions made to the Plan and who is
provided Plan enrollment materials shall be deemed
to have elected to have had his Compensation paid
during the Contribution Period or Plan Year (as
applicable) reduced by __________%, effective
_____________ (no less than 30 days after the date
he receives Plan enrollment materials), unless he
has affirmatively elected to reduce his
Compensation by a different amount (including
zero). A deemed election to defer Compensation may
be modified in accordance with the provisions of
Section X.E.1.b. above.
- Percentage amount above may not be greater than 6%.
The provision above applies to (choose one):
[ ] all employees who are eligible to have
Elective Deferral
[ ] all employees hired on or after ___________
who are eligible to have Elective Deferral
Contributions made to the Plan.
[ ]2. Deemed elections to defer Compensation are not
available under the Plan.
2. Safe Harbor Contributions for ADP Test Safe Harbor Plan
(ADP Test Safe Harbor Contribution)
- Note: The Employer must elect either a, b, or c, below. In addition,
the Employer may elect any combination of a, b, or c, below.
[ ]a. Basic Matching Contributions.
The Employer will make Matching Contributions and
allocate to each Participant's ADP Safe Harbor
Contribution Account an amount equal to:
(i) $1.00 for each $1.00 of the Employee's
Elective Deferral Contribution up to 3% of
the Employee's Compensation; plus
(ii) $.50 for each $1.00 of the Employee's
Elective Deferral Contribution in excess of
3% up to 5% of the Employee's Compensation.
January 1, 2003
-38-
Plan X. CONTRIBUTIONS
Document
Section
[ ] b. Enhanced Matching Contributions.
The Employer will make Matching Contributions and
allocate to each Participant's ADP Safe Harbor
Contribution Account an amount equal to the sum of:
(i) $1.00 for each $1.00 of the Employee's Elective
Deferral Contribution up to ____% (must be at
least 3%, but not greater than 6%) of the
Employee's Compensation; plus
- Note: If the blank above equals at least 4%
or more, section (ii), below, need not, but
still may, be filled in.
(ii) $_____ for each $1.00 of the Employee's
Elective Deferral Contribution in excess of
_____ % [must be the same percentage as in
(i)], but that does not exceed of the
Employee's Compensation.
- Note: The first and last blank in (ii) must
be completed so that, at any rate of elective
deferral contribution, the Matching
Contribution is at least equal to the formula
in subsection a, above. However, the rate of
match may not increase as elective deferrals
increase.
[ ] c. Safe Harbor Nonelective Contributions.
The Employer will make a Safe Harbor Nonelective
Contribution to the ADP Safe Harbor Contribution
Account of each Eligible Employee in an amount equal
to:
________ % (must be at least 3%) of the Employee's
Compensation.
ADP Test Safe Harbor Contributions will be made to: (elect one)
[ ] This Plan.
[ ] Another defined contribution plan of the Employer,
named:
(insert name of plan) __________.
January 1, 2003
-39-
Plan Document
Section X. CONTRIBUTIONS
3. Additional Matching Contributions to a Safe Harbor 401(k)
Plan. (ACP Test Safe Harbor Matching Contributions)
- Note: No additional contributions other than those in E.1
and E.2, above, are required for a Safe Harbor 401(k)
Plan. However, additional Matching Contributions may be
made by completing this section.
The Employer will make additional Matching Contributions to
the Safe Harbor 401(k) Plan (ACP Test Safe Harbor Matching
Contributions) on behalf of each Eligible Employee in the
amount of: (elect one)
[ ] a. ___% of the Employee's Elective Deferral
Contribution up to _____% (not to exceed 6%)
of the Employee's Compensation.
[ ] b. ____% of the Employee's Elective Deferral
Contribution up to _____% of the Employee's
Compensation, plus ____% (not to exceed the
percentage indicated in the first blank) of
the Employee's Elective Deferral
Contribution up to _____% of the Employee's
Compensation. Under no circumstances shall
the total contribution under this section
exceed 6% of the Employee's Compensation.
[ ] c. A discretionary percentage (not to exceed
4%) of the Employee's Compensation. The
discretionary percentage must be determined
by the Employer prior to the date the
contribution is due to be made.
Contributions made pursuant to this section X.E.3 shall vest
in accordance with the vesting schedule elected by the
Employer for these contributions in Section IX of the
Adoption Agreement, and are subject to any vesting schedule
that may be imposed should the plan become top-heavy.
January 1, 2003
-40-
Plan X. CONTRIBUTIONS
Document
Section
2C.1(b) F. Voluntary (post-tax) Employee Contributions
Availability/Amount
[X] Not Available under the Plan.
[ ] Available under the Plan (complete the elections
in 1 and/or 2 below).
[ ] 1. Periodic Voluntary Employee
Contributions SHALL be permitted:
[ ] a. Up to_________% of
Compensation actually paid
during the Contribution
Period.
[ ] b. No limit.
[ ] 2. Lump Sum Voluntary Employee
Contributions shall be permitted.
[ ] a. Up to___________% of
Compensation for the Plan
Year.
[ ] b. No Limit.
- Voluntary Employee Contributions are NOT AVAILABLE
unless Elective Deferral Contributions are available
2C.3 G. Rollover Contributions
Availability
[X] 1. Rollover Contributions out of the Plan are always
available.
[X] Cash only.
[ ] Cash and Loan Notes from this and/or a
prior plan.
[X] 2. Rollover Contributions into the Plan:
[ ] Not Available under the Plan.
[X] Available under the Plan (complete the
following).
Cash Only or Cash and Loan Notes:
[X] Cash only.
[ ] Cash and Loan Notes
from prior plan.
Rollover contributions into the
Plan may be made by:
[X] Both eligible
Employees and
Employees who would
be eligible except
they do not yet meet
the Plan's age and/or
service requirement.
[ ] Eligible Employees
only.
January 1, 2003
-41-
Plan X. CONTRIBUTIONS
Document
Section
7B.8,
7B.9 H. Transfers of Account Balances
Availability
[X]1. Transfers of account balances out of the Plan are always
available.
[X]2. Transfers of account balances into the Plan:
[X] Not Available under the Plan.
[ ] Available under the Plan.
Plan XI. CONTRIBUTIONS PERIOD
Document
Section
1.15 A. The regular Contribution Period (by contribution type) shall
be:
- For 1, 2, 3, 4, 6, 7, 8, and 9 below, "Other" Contribution Period may
not be longer than annual, but may be shorter than bi-weekly.
- For 5 below, "Other" Contribution Period may not be longer than
monthly, but may be shorter than bi-weekly.
1. Matching Contributions:
[X] Annual [ ] 4-Weekly
[ ] Monthly [ ] Bi-Weekly
[ ] Other (specify)________.
2. Nonelective Contributions:
[X] Annual [ ] 4-Weekly
[ ] Monthly [ ] Bi-weekly.
[ ] Other (specify)________.
3. Qualified Matching Contributions (QMACs):
[ ] Annual [ ] 4-Weekly
[ ] Monthly [ ] Bi-weekly.
[ ] Other (specify)________.
January 1, 2003
-42-
Plan XI. CONTRIBUTION PERIOD
Document
Section
1.15 4. Qualified Nonelective Contributions (QNECs):
[ ] Annual [ ] 4-Weekly
[ ] Monthly [ ] Bi-weekly.
[ ] Other (specify)________.
5. Elective Deferral Contributions, Required Employee
Contributions, and/or Voluntary Employee
Contributions:
- Notwithstanding any election in this section, these
contributions must be paid to the trust or Insurance
Company on the earliest date on which contributions
can reasonably be segregated from the Employer's
general assets, but no later than 15 days after the
end of the month in which they were deferred from pay
or otherwise contributed by the Employee.
- Annual contribution period is not available for
contributions in #5.
- The same one choice applies to all contribution
types in #5.
[ ] Monthly [ ] 4-Weekly
[ ] Bi-weekly [X] Other(specify)
Semi-monthly.
6. Lump Sum Voluntary Employee Contributions:
[ ] Annual [ ] Quarterly
[ ] Semi-Annual [ ] Other (specify)____.
[not longer than
annual]
7. ADP Test Safe Harbor (Matching) Contributions:
[ ] Annual [ ] 4-Weekly
[ ] Monthly [ ] Bi-Weekly
[ ] Other (specify)______.
8. ADP Test Safe Harbor (Nonelective) Contributions:
[ ] Annual [ ] 4-Weekly
[ ] Monthly [ ] Bi-Weekly
[ ] Other (specify)______.
9. ACP Test Safe Harbor (Matching) Contributions:
[ ] Annual [ ] 4-Weekly
[ ] Monthly [ ] Bi-Weekly
[ ] Other (specify)_______.
January 1, 2003
-43-
Plan XII. ALLOCATION OF CONTRIBUTIONS
Document
Section
2C.1(g) A. Allocation Formula for Nonelective Contribution
Complete the following ONLY if Section X.D is 1, 4, 6 or 7.
- If Section X.D is 6 or 7, the Compensation to Compensation
allocation formula (1 below) must be chosen.
The Nonelective Contribution will be allocated to Participants
who meet the requirements of Section XII.B or C as follows:
[X] 1. Compensation to Compensation:
In the same ratio as each Participant's Compensation
bears to the total Compensation of all Participants.
[ ] 2. Integrated with Social Security:
a. Choose one of the following methods:
[ ] Step-Rate Method
For each Plan Year, the Employer will
contribute an amount equal to _____% of each
Participant's Compensation up to the Social
Security Integration Level, plus ____% of each
Participant's Compensation in excess of the
Social Security Integration Level. However,
in no event will the Excess Contribution
percentage exceed the amount specified in
Section 2C.1(g)(2)(B) of the Plan.
[ ] Maximum Disparity Method
For each Plan Year, the Employer's Nonelective
Contribution shall be allocated in the manner
stated in Section 2C.1(g)(3) of the Plan in
order to maximize permitted disparity.
b. Social Security Integration Level:
[ ] i. $_______(not to exceed the Social Security
Taxable Wage Base).
[ ] ii. The Social Security Taxable Wage Base in
effect on the first day of the Plan Year.
[ ] iii._______% of the Social Security Taxable
Wage Base (not to exceed 100%).
January 1, 2003
-44-
Plan XII. ALLOCATION OF CONTRIBUTIONS
Document
Section
2C.1(g) A. Allocation Formula for Nonelective Contribution (continued)
[ ] 3. Uniform Points Allocation:
Each Participant shall receive_________(fill in number)
points for each (must elect at least either a. and/or
b. below):
[ ] a. Year of age.
[ ] b. Year of Service.
[ ] c. $________(not to exceed $200) of Compensation.
Each Participant's allocation shall bear the same
relationship to the Employer Contribution that his or
her total points bears to all points awarded.
2C.1(h) B. Annual Allocation Requirements
An allocation of the annual Nonelective Contribution (other
than a Safe Harbor Nonelective Contribution), annual Matching
Contribution (other than a Safe Harbor Basic Matching
Contribution, Enhanced Matching Contribution or ACP Test Safe
Harbor Matching Contribution), Additional Nonelective
Contribution and/or Additional Matching Contribution made by
the Employer will be made to each Participant who:
[ ] 1. Is a Participant on ANY day during the Plan Year
regardless of Service credited during the Plan Year.
[ ] 2. Is credited with a Year of Service in the Plan Year for
which the contribution is made.
[X] 3. Is a Participant on the last day of the Plan Year.
[ ] 4. Is credited with a Year of Service in the Plan Year for
which the contribution is made and is a Participant on
the last day of the Plan Year.
An allocation of a Safe Harbor Nonelective Contribution, a
Safe Harbor Basic Matching Contribution, Enhanced Matching
Contribution or ACP Test Safe Harbor Matching Contribution
will be made to each Participant who is a Participant on any
day during the Plan Year, regardless of Service credited
during the Plan Year.
In addition, an allocation will be made by the Employer on
behalf of any Participant who retires, dies or becomes
disabled during the Plan Year, regardless of the number of
Hours of Service credited to such Participant and regardless
of whether such Participant is a Participant on the last day
of the Plan Year.
Annual Nonelective Contribution [X] Yes [ ] No
Additional Nonelective Contribution [ ] Yes [ ] No
Annual Matching Contribution [X] Yes [ ] No
Additional Matching Contribution [ ] Yes [ ] No
January 1, 2003
-45-
Plan XII. ALLOCATION OF CONTRIBUTIONS
Document
Section
2C.1(h) C. Nonannual Allocation Requirement
An allocation of the nonannual Matching Contribution (other
than a Safe Harbor Basic Matching Contribution, Enhanced
Matching Contribution or ACP Test Safe Harbor Matching
Contribution) or nonannual Nonelective Contribution (other
than a Safe Harbor Nonelective Contribution)made by the
Employer will be made to each Participant who:
[ ] 1. Is a Participant on any day of the Contribution Period.
[ ] 2. Is a Participant as of the last day of the Contribution
Period.
An allocation of a Safe Harbor Nonelective Contribution, a
Safe Harbor Basic Matching Contribution, Enhanced Matching
Contribution or ACP Test Safe Harbor Matching Contribution
will be made to each Participant who is a Participant on any
day during the Contribution Period, regardless of Service
credited during the Contribution Period.
In addition, an allocation will be made by the Employer on
behalf of any Participant who retires, dies, or becomes
disabled during the Contribution Period, regardless of whether
such Participant is a Participant as of the last day of the
Contribution Period.
Nonannual Nonelective Contribution [ ] Yes [ ] No
Nonannual Matching Contribution [ ] Yes [ ] No
1.73 D. True-Up Contributions
An allocation of the True-Up Contribution made by the Employer
will be made to each Participant who:
[ ] 1. Is a Participant on ANY day of the Plan Year.
[ ] 2. Is a Participant on the last day of the Plan Year.
[ ] 3. Is credited with a Year of Service in the Plan Year for
which the contribution is made.
[ ] 4. Is credited with a Year of Service in the Plan Year for
which the contribution is made and is a Participant on
the last day of the Plan Year.
In addition, an allocation of the True-Up Contribution will be
made by the Employer on behalf of any Participant who retires,
dies or becomes disabled during the Plan Year, regardless of
whether such Participant is a Participant as of the last day
of the Plan Year.
[ ] Yes [ ] No
January 1, 2003
-46-
Plan XII.A. ADP AND ACP TESTING
Document
Section
4A. A. Actual Deferral Percentage (ADP) and Actual Contribution
Percentage (ACP) Test
1. Testing Method (Check off appropriate boxes)
[X] Current Year Method.
[ ] Prior Year Method.
[ ] New Plan Choosing Prior Year Method.
First Year Method - First Plan Year begins_______.
[ ] Prior Year NHCE ADP and ACP deemed to be 3%.
[ ] Current Year actual data to be used.
2. ADP and ACP Tests include
[ ] All Qualified Nonelective Contributions (QNECs).
[ ] Portion of QNECs needed to pass test (only allowed
if Current Year Testing Method is in effect).
[ ] No QNECs.
[X] N/A.
- Note: The above elections do not apply to a Fail-Safe
Contribution made in accordance with the provisions of Section
2C.1 of the Plan.
January 1, 2003
-47-
Plan XII.A. ADP AND ACP TESTING
Document
Section
4A. B. Correction Methodology for ADP Test, ACP Test and Multiple
Use Test (MUT)
1. Correction Methods.
The method used to correct any failure of these tests
shall be as indicated below:
ADP Correction - [X] Refunds.
[X] Other (explain) Any method in Basic
Plan Document Number 03.
ACP Correction - [X] Refunds.
[X] Other (explain) Any method in Basic
Plan Document Number 03.
MUT Correction - [ ] Refunds - of - (choose one)
[ ] 401(k) [ ] Match.
[ ] Other (explain)_____________.
2. Borrowing Method.
To satisfy ADP and ACP testing, ADP percentages may be
shifted to ACP, or, if matching contributions meet the
section 401(k) distribution requirements, ACP percentages
may be shifted to ADP.
Check off each test for which the Borrowing Method, if
required, will be used:
[X] ADP test.
[X] ACP test
[ ] MUT
3. Disaggregation of Otherwise Excludible Employee Groups
A Plan may separately test the portions of the Plan that
apply to Employees who do not otherwise meet the
statutory maximum eligibility requirements (i.e., age 21
and 1 Year of Service) of Code section 410(a).
Indicate which test, if any, this testing method will be
used for:
[X] ADP test.
[X] ACP test.
January 1, 2003
-48-
Plan XIII. LIMITATIONS ON ALLOCATIONS
Document
Section
4B A. If any Participant is covered by another qualified defined
contribution plan maintained by the Employer, other than a
Master or Prototype plan:
- Complete part A if you: (1) maintain, or at any time maintained,
another qualified retirement plan in which any Participant in this Plan
is, was, or could be, a participant; or (2) maintain a Code section
415(l)(2) individual medical account, for which amounts are treated as
Annual Additions for any Participant in this Plan.
[X] 1. N/A. The Employer has no other defined contribution
plan(s).
[ ] 2. The provisions of Section 4B.5 of the Plan will apply,
as if the other plan were a Master or Prototype plan.
[ ] 3. The plans will limit total Annual Additions to the
Maximum Permissible Amount, and will reduce any Excess
Amounts in a manner that precludes Employer discretion,
in the following manner:
_______________________________________________________
_______________________________________________________
4B B. If any Participant is or ever has been a Participant in a
qualified defined benefit plan maintained by the Employer:
Note: The provisions of this section XIII.B shall not apply
for any Limitation Year beginning after December 31, 1999.
- Complete part B if you maintain, or at any time maintained, another
qualified retirement plan in which any Participant in this Plan is,
was, or could be a participant.
[X] 1. N/A. The Employer has no defined benefit plan(s).
[ ] 2. In any Limitation Year, the Annual Additions
credited to the Participant under this Plan may
not cause the sum of the Defined Benefit Plan
Fraction and the Defined Contribution Fraction to
exceed 1.0. If the Employer contributions that
would otherwise be allocated to the Participant's
account during such year would cause the 1.0
limitation to be exceeded, the allocation will be
reduced so that the sum of the fraction equals
1.0. Any contributions not allocated because of
the preceding sentence will be allocated to the
remaining Participants according to the Plan's
allocation formula. If the 1.0 limitation is
exceeded because of an Excess Amount, such Excess
Amount will be reduced in accordance with Section
4B.4 of the Plan.
[ ] 3. Provide the method under which the Plan involved
will satisfy the 1.0 limitation in a manner that
precludes Employer discretion.
_______________________________________________________
_______________________________________________________
January 1, 2003
-49-
Plan XIII. LIMITATIONS ON ALLOCATIONS
Document
Section
C. Compensation will mean all of each Participant's:
- Everyone must complete Section C. If option 1, 2, or 3 was selected
in Section IV.A., you must make the same selection here.
- Notwithstanding any other election in this Adoption Agreement,
beginning in the 1998 Limitation Year, all options below shall include
Employer contributions made pursuant to a Salary Reduction Agreement,
which would not otherwise be includable in gross income of the Employee
under Code section 125, 402(e)(3), 402(h)(1)(B) or 403(b).
Notwithstanding any other election in this Adoption Agreement, prior to
the 1998 Limitation Year, all options below shall exclude such amounts
listed in the prior sentence.
4B.1(b)(1)
[ ] 1. Wages, Tips, and Other Compensation Box on Form W-2.
4B.1(b)(2)
[ ] 2. Section 3401(a) wages.
4B.1(b)(3)
[X] 3. 415 safe-harbor compensation.
For limitation years beginning on or after January 1, 2001
(Fill in date on which the Plan was operated in accordance
with the CRA amendment of Code section 415(c)(3). This date
cannot be earlier than January 1, 1998 or later than
January 1, 2001), for purposes of applying the limitations
described in section 4.B of the Plan, Compensation paid or
made available during such limitation years shall also
include elective amounts that are not includible in the
gross income of the employee by reason of Code section
132(f)(4).
4B.1(h) D. The Limitation Year shall be:
- Everyone must complete Section D.
[X] 1. The Calendar Year.
[ ] 2. The 12-month period coinciding with the Plan Year.
[ ] 3. The 12-month period beginning on (MM/DD): _______.
January 1, 2003
-50-
Plan XIV. INVESTMENT OF PARTICIPANT'S ACCOUNTS
Document
Section
5A.1 A. Choose election 1, 2, or 3 below.
[X] 1. The Participant shall have the authority to
direct the investment of Contributions made by the
Employer.
[ ] 2. The Participant shall have the authority to direct
investment of all of the Employer Contributions
indicated below:
[ ] Matching Contributions (including any Qualified
Matching Contributions)
[ ] Nonelective Contributions (including any Qualified
Nonelective Contributions)
[ ] Prior Employer Contributions
[ ] Safe Harbor 401(k) Contributions
[ ] 3. The Employer shall direct all sources of contributions
made by the Employer.
5A.1 B. If the Participant can direct the investment of any or all
contributions made by the Employer, complete the following.
Those having authority to direct the investment of the
Participant's Account are (choose all that apply):
[X] 1. Participants who are active Employees.
[X] 2. Participants who are former employees and continue to
maintain an account in the Plan or Trust.
[X] 3. Beneficiaries.
[X] 4. Alternate Payees.
January 1, 2003
-51-
Plan XV. LIFE INSURANCE
Document
Section
5B.1 A. Available as a Participant investment:
[ ] Yes [X] No
- Note: Life Insurance shall only be available as a
Participant investment if this is a readoption of a prior plan
document that already contains such a provision.
B. If yes is elected above, Life Insurance shall be available to:
[ ] 1. All Participants.
[ ] 2. Only to the specified group of Participants (fill in
below):
____________________________________________________
____________________________________________________
____________________________________________________
- If subsection 2 is checked, separate nondiscrimination
testing will be required.
January 1, 2003
-52-
Plan XVI. EMPLOYER STOCK
Document
Section
- - Before electing Employer Stock as an investment option, you should consult
your legal counsel on any federal or state securities law requirements arising
from offering Employer Stock as an investment option under your Plan and whether
use of this document is appropriate for you under those laws. Neither
Connecticut General Life Insurance Company nor any of its employees can advise
you on these matters.
1.46 A. Investment in Employer Stock is:
[ ] Permitted.
[X] Not Permitted.
- You must complete the following subsections B and C if
investment in Employer Stock is permitted and Participants
have the authority to direct the investment of Employer
Contributions.
1.46 B. Investment in Employer Stock: (check all that apply)
[ ] May be made in stock of the Employer or Adopting
Employer with which an Employee is employed.
[ ] May be made in shares of stock of any of the
Employers designated below that are part of the
same controlled group of corporations or trades
or business under common control as the
sponsoring Employer, whether or not the Employer
whose stock is offered for investment is an
Adopting Employer, and whether or not a
Participant is employed by that particular
entity.
List Employers whose stock may be invested in by
Participants:
_____________________________________________________
_____________________________________________________
_____________________________________________________
_____________________________________________________
_____________________________________________________
1.46 C. Investment in Employer Stock within the Plan by officers or
directors of the Employer or by an individual who owns more
than 10% of the Employer's Stock is:
[ ] Permitted.
[ ] Not Permitted.
1.46 D. The Trustee:
[ ] 1. Will vote the shares of the Employer Stock.
[ ] 2. Will vote the shares of the Employer Stock in
accordance with any instructions received by
the Trustee from the Participant.
- Option 2 must be selected if CIGNA Bank & Trust
Company, FSB is the Trustee.
[ ] 3. May, but is not required to, request voting
instructions from the Participants.
January 1, 2003
-53-
Plan XVII. WITHDRAWALS PRECEDING TERMINATION
Document
Section
- - Complete only the sections for the type of contributions in your plan.
3E.1(a) A. Withdrawal of Required (post-tax) Employee Contributions.
- Withdrawal may be for any reason.
[ ] Not Available under the Plan.
[ ] Available under the Plan.
If available, Required Employee Contributions may be
withdrawn:
[ ] Once each 6 months.
[ ] Once each 12 months.
[ ] Other (specify)_______.
The Contribution suspension period following a
withdrawal of Required Employee Contributions shall
be:
- You must choose one of the suspension periods
shown. Related Employer Contributions will be
suspended for the same period.
[ ] 6 Months.
[ ] 12 Months.
[ ] 24 Months.
3E.1(b) B. Withdrawal of Voluntary (post-tax) Employee Contributions.
- Withdrawal may be for any reason.
[ ] Not Available under the Plan.
[ ] Available under the Plan.
If available, Voluntary Employee Contributions may be
withdrawn:
[ ] Once each 6 months.
[ ] Once each 12 months.
[ ] Other (specify)_______.
January 1, 2003
-54-
Plan XVII. WITHDRAWALS PRECEDING TERMINATION
Document
Section
C. Withdrawal of Elective Deferral Contributions.
[ ] Not Available under the Plan.
[X] Available under the Plan.
If available, select the conditions for withdrawal:
3E.2 [X] Withdrawal upon Participant's attainment
of age 59-1/2.
3E.8 Frequency (check all that apply):
[X] At any time.
[ ] On_____ (specify date or dates).
[ ] At any time, ____times per year.
[ ] Once every_______(i.e., four
months, six months, calendar
quarter, etc.).
[ ] Other (specify)_____.
[ ] Withdrawal for Serious Financial
Hardship.
- If a Participant makes a withdrawal of Elective
Deferral Contributions due to a Serious Financial
Hardship, the Participant must be suspended from
making any additional Elective Deferral Contributions
for a period of 12 months.
D. Withdrawal of Qualified Matching Contributions Upon
Participant's Attainment of Age
3E.3 59-1/2.
[ ] Not available under the Plan.
[ ] Available under the Plan.
If available, select the frequency (check all that
apply):
[ ] At any time.
[ ] On_________(specify date or dates).
[ ] At any time,_________times per year.
[ ] Once every__________(i.e., four months, six
months, calendar quarter, etc.).
[ ] Other (specify)__________.
January 1, 2003
-55-
Plan XVII. WITHDRAWALS PRECEDING TERMINATION
Document
Section
E. Withdrawal of Qualified Nonelective Contributions Upon
Participant's Attainment of Age
3E.4 59-1/2.
[ ] Not available under the Plan.
[ ] Available under the Plan.
If available, select the frequency (check all that
apply):
[ ] At any time.
[ ] On________(specify date or dates).
[ ] At any time,_________times per year.
[ ] Once every__________(i.e., four months, six
months, calendar quarter, etc.).
[ ] Other (specify)_________.
F. Withdrawal of Employer Contributions (Matching, Nonelective
and/or Prior Employer Contributions).
[X] Not Available under the Plan.
[ ] Available under the Plan.
- If Prior Employer Contributions are money purchase plan
contributions, they may not be withdrawn.
If available, select the conditions for withdrawal:
3E.6
[ ] 1. Withdrawal upon Participant's attainment of
age 59-1/2.
Available from:
[ ] a. Matching Contributions.
Frequency (check all that apply):
[ ] At any time.
[ ] On_______(specify date or dates).
[ ] At any time,___________times per
year.
[ ] Once every___________(i.e., four
months, six months, calendar
quarter, etc.).
[ ] Other (specify)___________.
January 1, 2003
-56-
Plan XVII. WITHDRAWALS PRECEDING TERMINATION
Document
Section
[ ] b. Nonelective Contributions.
Frequency (check all that apply):
[ ] At any time.
[ ] On_______(specify date or dates).
[ ] At any time,__________times per
year.
[ ] Once every_________(i.e., four
months, six months, calendar
quarter, etc.).
[ ] Other (specify)__________.
[ ] c. Prior Employer Contributions.
Frequency (check all that apply):
[ ] At any time.
[ ] On__________(specify date or
dates).
[ ] At any time,___________times per
year.
[ ] Once every____________(i.e., four
months, six months, calendar
quarter, etc.).
[ ] Other (specify)__________.
3E.6 [ ] 2. Withdrawals to active Participants who have
been Participants for a minimum of 60
consecutive months.
Available from:
[ ] a. Matching Contributions.
[ ] b. Nonelective Contributions
[ ] c. Prior Employer Contributions.
Frequency of withdrawal:
[ ] Once each 6 months.
[ ] Once each 12 months.
[ ] Other (specify) _____________.
Suspension Period following withdrawal:
[ ] N/A.
[ ] 6 months.
[ ] 12 months.
[ ] 24 months.
January 1, 2003
-57-
Plan XVII. WITHDRAWALS PRECEDING TERMINATION
Document
Section
[ ] 3. Withdrawal for Serious Financial Hardship.
3E.7
Available from:
[ ] a. Matching Contributions.
[ ] b. Nonelective Contributions
[ ] c. Prior Employer Contributions.
[ ] 4. Age of Money Withdrawal. Vested
contributions may be withdrawn after each
contribution has accumulated under the Plan
for a fixed number of years. This provision
applies separately and independently to each
separate contribution made by the Employer.
Fixed number of years each contribution
must be in the plan:________(fill in; must
be minimum of 2 years.)
Available from:
[ ] a. Matching Contributions.
[ ] b. Nonelective Contributions
[ ] c. Prior Employer Contributions.
Prior Employer Contributions:
Prior Employer Contributions are contributions of a type that are not
currently being made to the Plan and are not allowed under the terms of
this document, and which were made to the Plan by the Employer prior to
the Plan's original conversion and/or restatement on ___(fill in date).
January 1, 2003
-58-
Plan XVII. WITHDRAWALS PRECEDING TERMINATION
Document
Section
3E.9 G. Withdrawal of Rollover Contributions:
[ ] Not Available under the Plan.
[X] Available under the Plan.
If available, Rollover Contributions may be
withdrawn:
[ ] Once per Plan Year.
[ ] Every 6 Months.
[ ] Every 3 Months.
[ ] Every Month.
[X] Anytime.
3E.9 H. Withdrawal of Qualified Voluntary Employee Contributions
(QVEC Contributions)
- Applicable only if this is a readoption of an existing plan. If
selected, Contributions may be withdrawn for any reason.
[X] Not Available under the Plan.
[ ] Available under the Plan.
If available, Qualified Voluntary Employee
Contributions may be withdrawn:
[ ] Once per Plan Year.
[ ] Every 6 Months.
[ ] Every 3 Months.
[ ] Every Month.
[ ] Anytime.
January 1, 2003
-59-
Plan XVII. WITHDRAWALS PRECEDING TERMINATION
Document
Section
3E.1(c) I. Withdrawal of Prior Required Employee Contributions.
- Withdrawal may be for any reason.
[ ] Not Available under the Plan.
[ ] Available under the Plan.
If available, Prior Required Employee Contributions
may be withdrawn:
[ ] Once each 6 months.
[ ] Once each 12 months.
[ ] Other (specify) _______________.
Prior Required Employee Contributions are post-tax
contributions made by Employees in order to receive an
Employer contribution and which were made before the Plan's
original conversion and/or restatement on _____(fill in date).
3E.1(d) J. Withdrawal of Prior Voluntary Employee Contributions.
- Withdrawal may be for any reason and may be taken at any time.
[ ] Not Available under the Plan.
[ ] Available under the Plan.
Prior Voluntary Employee Contributions are voluntary
contributions made by Employees prior to these types of
contribution being eliminated as a plan option on _____(fill
in date).
January 1, 2003
-60-
Plan XVII. WITHDRAWALS PRECEDING TERMINATION
Document
Section
2C.1(l); K. Withdrawal of Safe Harbor 401(k) Plan Elective Deferral
Contributions
3E.5 [ ] Not Available under the Plan.
[ ] Available under the Plan.
If available, select the conditions for withdrawal:
[ ] 1. Withdrawal upon Participant's attainment of
age 59-1/2.
Frequency (check all that apply):
[ ] At any time.
[ ] On _______(specify date or dates).
[ ] At any time, ________times per year.
[ ] Once every ______(i.e., four months, six
months, calendar quarter, etc.).
[ ] Other (specify)_____________.
[ ] 2. Withdrawal for Serious Financial Hardship.
- If a Participant makes a withdrawal of Safe Harbor
401(k) Elective Deferral Contributions due to a
Serious Financial Hardship, the Participant must be
suspended from making any additional Elective
Deferral Contributions for a period of 12 months.
January 1, 2003
-61-
Plan XVII. WITHDRAWALS PRECEDING TERMINATION
Document
Section
2C.1(l); L. Withdrawal of ADP Test Safe Harbor (Employer Matching or
Employer Nonelective)
3E.5 Contributions Upon the Participant's Attainment of Age 59-1/2.
[ ] Not available under the Plan.
[ ] Available under the Plan.
If available select the conditions for withdrawal.
[ ] 1. Available from 401(k) Safe Harbor (Employer
Matching) Contributions.
Frequency (check all that apply):
[ ] At any time.
[ ] On _________(specify date or dates).
[ ] At any time,_______times per year.
[ ] Once every________(i.e., four months,
six months, calendar quarter, etc.).
[ ] Other (specify)________.
[ ] 2. Available from 401(k) Safe Harbor (Employer
Nonelective) Contributions.
Frequency (check all that apply):
[ ] At any time.
[ ] On _______(specify date or dates).
[ ] At any time, _________times per year.
[ ] Once every _________(i.e., four months,
six months, calendar quarter, etc.).
[ ] Other (specify) ________.
January 1, 2003
-62-
Plan XVII. WITHDRAWALS PRECEDING TERMINATION
Document
Section
M. Withdrawal of ACP Test Safe Harbor (additional Employer Match)
Contribution. (Elect all that apply)
[ ] Not available under the Plan.
[ ] Available under the Plan.
If available select the conditions for withdrawal.
[ ] 1. Withdrawal Upon Participant's Attainment of
Age 59-1/2.
Frequency (check all that apply):
[ ] At any time.
[ ] On ________(specify date or dates).
[ ] At any time, _______times per year.
[ ] Once every _______(i.e., four months,
six months, calendar quarter, etc.).
[ ] Other (specify) _______.
[ ] 2. Withdrawals to Active Participants who have
been Participants for a minimum of
60-consecutive months.
Frequency:
[ ] Once every six months.
[ ] Once every 12 months.
[ ] Other (specify) __________.
Suspension Period Following Withdrawal:
[ ] N/A.
[ ] 6 months.
[ ] 12 months.
[ ] 24 months.
[ ] 3. Withdrawal for Serious Financial Hardship.
[ ] 4. Age of Money Withdrawal.
Vested contributions may be withdrawn after
each contribution has accumulated under the
Plan for a fixed number of years. This
provision applies separately and
independently to each separate contribution
made by the Employer.
Fixed number of years each contribution must
be in the Plan ______(fill in; must be
minimum of 2 years.)
January 1, 2003
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Plan XVIII. LOANS TO PARTICIPANTS, BENEFICIARIES AND PARTIES-IN-INTEREST
Document
Section
5C A. Loans are permitted.
[X] Yes
- If yes, Plan must be trusteed (see section I.B.)
[ ] No
5C B. Suspension of loan repayments for qualified military service.
The repayment of participant loans will be suspended during
qualified military service, pursuant to Code section
414(u)(4).
[X] Yes
[ ] No
5C C. Loans are available only from the following sources:
- Qualified Voluntary Employee Contributions (QVEC
Contributions) may not be taken in a loan.
[X] All Sources.
[ ] List Sources:
_____________________________________________________
_____________________________________________________
_____________________________________________________
_____________________________________________________
_____________________________________________________
January 1, 2003
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Plan XIX. RETIREMENT AND DISABILITY
Document
Section
1.41 A. Normal Retirement Age is:
[ ] 1. The date the Participant attains age _______(not to
exceed 65).
[X] 2. The later of:
a. The date the Participant attains age 65 (not
to exceed 65), or
b. The fifth (not to exceed 5th) anniversary of
the Participation Commencement Date.
- Note regarding 2.b above: If, for Plan Years
beginning before January 1, 1988, Normal Retirement
Age was determined with reference to the anniversary
of the Participation Commencement Date (more than 5
but not to exceed 10 years), the anniversary date for
Participants who first commenced participation under
the Plan before the first Plan Year beginning on or
after January 1, 1988 shall be the earlier of (A) the
tenth anniversary of the date the Participant
commenced participation in the Plan (or such
anniversary as had been elected by the Employer, if
less than 10) or (B) the fifth anniversary of the
first day of the first Plan Year beginning on or
after January 1, 1988. The Participation Commencement
Date is the first day of the first Plan Year in which
the Participant commenced participation in the Plan.
1.19 B. Early Retirement by Participants
1. Early Retirement by Participants is:
[ ] a. Not Permitted.
[X] b. Permitted. Subject to the following
conditions:
[ ] i. Age ________(not to exceed 65).
[ ] ii. Years of Service ________.
[X] iii. Age 55 (not to exceed 65) and five
Years of Service.
[ ] iv. Age ________(not to exceed 65) and
________Years of Participation.
1.17 C. Disability
If an Employer makes any contribution (other than Elective
Deferral Contributions) determined on the basis of the
Participant's Compensation, the Employer shall/shall not make
such contributions on behalf of all disabled Participants on
the basis of the Compensation each such Participant would have
received for the Limitation Year if the Participant had been
paid at the rate of Compensation paid immediately before
becoming permanently and totally disabled.
[ ] Shall [X] Shall Not
- All such contributions are 100% vested and nonforfeitable
when made.
January 1, 2003
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Plan XX. DISTRIBUTION OF BENEFITS
Document
Section
3A.1 A. Distribution of benefits should be in the form of (check all
that apply):
[X] 1. Single Sum.
[ ] 2. Life Annuity.
[ ] 3. Installment Payments.
[ ] 4. Installment Refund Annuity.
[ ] 5. Employer Stock, to the extent the Participant is
invested therein.
[ ] 6. In-kind distribution from self-directed brokerage
account, to the extent the Participant is invested
therein.
B. Distribution Timing (check boxes that apply)
[ ] 1. All Participants may elect to defer their
distributions.
[X] 2. Participants who terminate employment and whose account
balances do not exceed $5,000 shall receive an
immediate, lump sum cash distribution.
[ ] 3. Participants who terminate employment and whose account
balances do not exceed $ ______(fill in dollar amount
less than $5,000; must be in $100 increments) shall
receive an immediate, lump sum cash distribution.
[ ] 4. Participants who terminated employment and deferred
distribution of their vested account balance, and
whose vested account balance does not at any
subsequent time exceed $ ______(fill in dollar amount
not to exceed $5,000) shall receive an immediate, lump
sum cash distribution.
- The filled in dollar amount in #4 must equal the
amount in #2 or #3 above.
C. Expenses - Deferred Participants.
1. Participants who elect to defer distribution of their
benefits shall/shall not pay for all reasonable fees
associated with administration of their deferral
payment, as permitted by ERISA.
[X] Shall [ ] Shall Not
D. Distributions Upon Plan Termination.
1. Distributions upon Plan termination shall be made in
the form of (choose one):
a. [ ] Single Sum
b. [ ] The same as in the election in Section XX.A.
of this Adoption Agreement.
- In the event that no election is made, Section XX.D.1.b of
the Adoption Agreement shall be the default election.
January 1, 2003
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Plan XX. DISTRIBUTION OF BENEFITS
Document
Section
3B.1(g) E. Minimum Required Distributions - Required Beginning Date
(RBD).
(Choose One.)
- This election should reflect any previous election made by
you, and match the manner in which you have been operating
your Plan.
[ ] 1. Pre-SBJPA RBD. April 1 of the calendar year following
the calendar year the Participant turns age 70-1/2.
[ ] 2. April 1 of the calendar year following the calendar
year the Participant turns age 70-1/2, except actively
employed non-5% Owners may defer payment to their
SBJPA RBD, provided they reach age 70-1/2 after
December 31, ________(fill in any year after 1998).
[X] 3. SBJPA RBD. (Also elect one of options (a), (b), or (c)
below)
For 5% Owners: April 1 of the calendar year following the
calendar year the Participant turns age 70-1/2.
For non-5% Owners: The later of the April 1 of the calendar
year following the calendar year in which the Participant
attains age 70-1/2 or retires.
[ ] a. The Pre-SBJPA RBD is removed and replaced in
its entirety by the SBJPA RBD effective ________.
This date cannot be earlier than January 1, 1997. In
addition, as of the above effective date, the Plan
must have allowed all Participants to make in-service
withdrawals (at any time and in any amount) prior to
age 70-1/2.
[ ] b. The Pre-SBJPA RBD is replaced by the SBJPA RBD
so that employees who are not 5% owners and reach age
70-1/2 after December 31, _______(specify year:
cannot be earlier than 1998) will not be required to
begin receiving payments until the April 1 following
the calendar year of their retirement.
[X] c. The Pre-SBJPA RBD is replaced by the SBJPA RBD
so that employees who are not 5% owners and reach age
70-1/2 after December 31, 2002 (specify year: cannot
be earlier than 1998) will not be required to begin
receiving payments until the April 1 following the
calendar year of their retirement. However, non-5%
Owners may make an irrevocable election to receive
payments beginning the April 1 following the calendar
year in which they attain age 70-1/2.
January 1, 2003
-67-
Plan XX. DISTRIBUTION OF BENEFITS
Document
Section
F. Compliance with 2001 Proposed Regulations Under Code Section
401(a)(9)
- Select one of the following three choices.
[X] 1. Model Amendment Adopting Rules under 2001 Proposed Regulations
(under this alternative, Model Amendment applies to all minimum
distributions in calendar years beginning on or after the specified
date as provided below).
For all required distributions made with respect to calendar years
beginning on or after January 1, 2001 (insert date of intended
compliance not earlier than January 1, 2001), the Plan shall apply the
minimum distribution requirements of Code section 401(a)(9) in
accordance with the regulations under section 401(a)(9) that were
proposed in January 2001 (the 2001 Proposed Regulations),
notwithstanding any provisions of the Plan or Prototype Plan to the
contrary. This amendment shall continue in effect until the end of the
last calendar year beginning before the effective date of the final
regulations under section 401(a)(9) or such other date as may be
published by the Internal Revenue Service.
[ ] 2. Model Amendment Adopting Rules under 2001 Proposed Regulations
(under this alternative, Model Amendment can be adopted as of a date
within the 2001 Plan Year after some minimum distributions have been
made under the prior rules).
With respect to distributions under the Plan made on or after
_______(specify date on which the Plan began operating in accordance
with the 2001 Proposed Regulations), for calendar years beginning on or
after January 1, 2001, the Plan will apply the minimum distribution
requirements of Code section 401(a)(9) in accordance with the 2001
Proposed Regulations, notwithstanding any provisions of the Plan to the
contrary. If the total amount of required minimum distributions made to
a Participant for 2001 prior to _______(specify date on which the Plan
began operating in accordance with the 2001 Proposed Regulations) are
less than the amount determined under the 2001 Proposed Regulations,
then the amount of the required minimum distributions for 2001 on or
after such date will be determined so that the total amount of required
minimum distributions for 2001 is the amount determined under the 2001
Proposed Regulations. This amendment shall continue in effect until the
end of the last calendar year beginning before the effective date of
the final regulations under section 401(a)(9) or such other date as may
be published by the Internal Revenue Service.
[ ] 3. The Employer does not intend to comply with the 2001 Proposed
Regulations at this time. (Electing this choice will require amendment
of the Plan at a later date to elect compliance with these
regulations.)
January 1, 2003
-68-
Plan XXI. QUALIFIED PRERETIREMENT SURVIVOR ANNUITY
Document
Section
3C.4 The Qualified Preretirement Survivor Annuity shall be:
- 100% is required for Plans allowing only single sum distributions.
[X] 100% to the surviving spouse.
[ ] 50% to the surviving spouse.
Plan XXI.A. SPOUSAL CONSENT TO DISTRIBUTIONS
Document
Section
3C.6 A. Profit Sharing Exception Plans.
If the Plan as a whole or any Participant individually meets
the requirements of Section 3C.6 of the Plan, Joint and
Survivor Annuity Requirements- Safe Harbor Rules, spousal
consent shall/shall not be required for:
Loans [ ] Shall [X] Shall Not
Withdrawals [ ] Shall [X] Shall Not
Distributions [ ] Shall [X] Shall Not
- Note: If "Shall" is selected for "Distributions" that
election shall apply only to distributions exceeding the
Plan's involuntary cash-out threshold (if any) indicated by
the Employer's election in Section XX.B. of this Adoption
Agreement.
- Note: If this section and the Plan section 3C.6 are
applicable, and no election is made, the default election will
be "Shall Not."
B. If the requirements of section A., above, are not met or are not
applicable, spousal consent shall always be required for any loan or
withdrawal, and for any distribution exceeding the Plan's
involuntary cash-out threshold (if any) indicated by the Employer's
election in Section XX.B. of this Adoption Agreement.
[X] Always.
Plan XXII. AMENDMENT OF THE PLAN
Document
Section
7B A. The party having the authority to amend the Adoption
Agreement is the:
[ ] 1. Trustee(s).
- Trustee(s) cannot be chosen if the Trustee is CIGNA Bank &
Trust Company, FSB.
[ ] 2. Plan Administrator.
[ ] 3. Plan Committee.
[X] 4. Designated Representative of the Employer.
January 1, 2003
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Plan XXIII. TOP-HEAVY PROVISIONS
Document
Section
7A.1(i) A. Method to be used to avoid duplication of Top-Heavy Minimum
benefits when a non-Key Employee is a Participant in both this
Plan and a defined benefit plan maintained by the Employer
(select one response):
[X] 1. N/A. The Employer has no other plan(s).
[ ] 2. Single Plan Minimum Top-Heavy Allocation. A minimum
Top-Heavy contribution will be allocated to each
non-Key Employee's Participant Account in an amount
equal to:
[ ] a. The lesser of 3% of Compensation or the
highest percentage allocated to any Key
Employee.
[ ] b. ________% of Compensation (must be at least 3%).
[ ] 3. Multiple Plans Top-Heavy Allocation. In order to
satisfy Code sections 415 and 416, and because of the
required aggregation of multiple plans, a minimum
Top-Heavy contribution will be allocated to each
non-Key Employee in an amount equal to:
[ ] a. Not Applicable. No other plan was in existence
prior to the Effective Date of this Adoption
Agreement.
[ ] b. 5% of Compensation, to be provided in a
defined contribution plan of the Employer.
[ ] c. 7-1/2% of Compensation, to be nonintegrated,
and provided in this Plan.
- If c is chosen, for all Plan Years in which this
Plan is Top-Heavy (but not Super Top-Heavy), the
Defined Benefit and Defined Contribution fractions
shall be computed using 125%.
[ ] 4. Enter the name of the plan(s) and specify the method
under which the plan(s) will provide Top-Heavy Minimum
Benefits to non-Key Employees [include any adjustments
required under Code section 415(e)]:
_______________________________________________________
_______________________________________________________
- If 2, 3, or 4 is selected, the Employer's defined benefit
plan must contain provisions coordinating Top-Heavy minimum
benefits with this Plan and these elections.
- If 4 is selected, the method specified must preclude
Employer discretion and inadvertent omissions.
January 1, 2003
-70-
Plan XXIII. TOP-HEAVY PROVISIONS
Document
Section
7A.1 B. Present Value: In order to establish the present value to
compute the Top-Heavy Ratio, any benefit shall be discounted
only for mortality and interest, based on:
- Complete B only if response to A is 2, 3, or 4. Fill in all blanks.
[ ] 1. Interest Rate _________%.
[ ] 2. Mortality Table ________.
[ ] 3. Valuation Date _________.
7A.2 C. Where a non-Key Employee is a Participant in this and another
defined contribution plan(s) of the Employer, choose which
plan will provide the minimum Top-Heavy contribution:
[X] 1. N/A. The Employer has no other plan.
[ ] 2. The minimum allocation will be met in this Plan.
[ ] 3. The minimum allocation will be met in the other defined
contribution plan. Enter the name of the plan:
_______________________________________________________
- If 2 or 3 is selected, the Employer's other defined
contribution plan must contain provisions coordinating the
Top-Heavy Minimum Contribution with this Plan and these
elections.
7A.3 D. Top-Heavy Vesting Schedule. In the event the plan becomes
Top-Heavy, the vesting schedule shall be:
- Must meet one of the schedules below and must be at least as liberal
as the vesting schedule elected in Section IX.A.
[ ] 1. 100% vesting after _______(not to exceed 3) years of
Service.
[ ] 2. _______% vesting after 1 Year of Service
_______% (not less than 20) vesting after 2
Years of Service
_______% (not less than 40) vesting after 3
Years of Service
_______% (not less than 60) vesting after 4
Years of Service
_______% (not less than 80) vesting after 5
Years of Service
100 % vesting after 6 Years of Service
[X] 3. Same vesting schedule(s) as elected in Adoption
Agreement Section IX (already meets Top-Heavy minimum
vesting requirements).
- If the vesting schedule under the Plan shifts into the above schedule
for any Plan Year because of the Plan's Top-Heavy status, such shift is
an amendment to the vesting schedule and the election provisions in
Section 7B.1 of the Plan shall apply.
- The Top-Heavy vesting schedule will remain in effect even if the Plan
ceases to be Top Heavy.
January 1, 2003
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Plan XXIV. OTHER ADOPTING EMPLOYER
Document
Section
6E.1,
6E.2 A. The following Adopting Employer(s) also adopt this plan and
have executed this Adoption Agreement:
- Fill in below the names and the Employer Identification Numbers
(EINs) of Adopting Employers.
- Must meet requirements of Plan definition of Employer, Plan Section
1.25.
ZixIt Management Services Corp. - 75-2765445
ZixIt.com, Inc. - 75-2804397
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
January 1, 2003
-72-
The Employer hereby adopts the Connecticut General Life Insurance Company
Defined Contribution Prototype Profit Sharing/Thrift Plan with 401(k) Feature,
including all elections made in this Non-Standardized Adoption Agreement, and
the Employer agrees to be bound by all the terms of the Plan and by all the
terms of this Adoption Agreement and of the Annuity Contract. The Employer
further agrees that it will furnish promptly all information required by the
Trustee, if applicable, the Plan Administrator and the Insurance Company in
order to carry out their functions. The Employer shall notify the Trustee, if
applicable, the Plan Administrator and the Insurance Company promptly of any
changes in the status of the Employer which might affect the Employer's duties
and responsibilities hereunder.
The elections under this Adoption Agreement may be changed by the Employer from
time to time by a written instrument signed by the Employer, the Plan
Administrator and the Trustee, if applicable, and accepted by the Plan Sponsor.
The Employer consents to the exercise by the Plan Sponsor of the right to amend
the Plan and the Annuity Contract from time to time as it may deem necessary or
advisable.
By signing this Adoption Agreement, the Employer specifically acknowledges that
the Insurance Company has no authority: (1) to answer legal questions and that
all such questions shall be answered by legal counsel for the Employer; and (2)
to make determinations involved in the administration of the Plan and that all
such determinations shall be answered by the Employer's Plan Administrator or
other designated representative.
Upon execution of this Adoption Agreement by the Employer, the Plan shall be
effective with respect to that Employer as of the Effective Date specified
herein, provided the Plan Administrator and the Trustee, if applicable, shall
then or thereafter execute this Adoption Agreement to signify their acceptance
of their duties and responsibilities hereunder and provided further, the Plan
Sponsor will indicate its acceptance of the Employer in accordance with its
usual rules and practices.
The Employer may rely on an opinion letter issued by the National Office of the
Internal Revenue Service as evidence that the Plan is qualified under section
401 of the Internal Revenue Code only to the extent provided in Announcement
2001-77, 2001-30 I.R.B.
The Employer may not rely on the opinion letter in certain other circumstances
or with respect to certain qualification requirements, which are specified in
the opinion letter issued with respect to the plan and in Announcement 2001-77.
In order to have reliance in such circumstances or with respect to such
qualification requirements, application for a determination letter must be made
by the Employer to Employee Plans Determinations of the Internal Revenue
Service.
Connecticut General Life Insurance Company will inform the Employer of any
amendments made to the Plan or of the discontinuance or abandonment of such
Plan.
CAUTION: You should very carefully examine the elections you have made in this
Adoption Agreement and discuss them with your legal counsel. Failure to properly
fill out the Adoption Agreement may result in disqualification of your plan.
This Adoption Agreement may only be used in conjunction with Basic Plan Document
Number 03.
(Note: The Employer, Plan Administrator and Trustee, if applicable, must all
sign below. If CIGNA Bank & Trust Company, FSB is the Trustee, only the Employer
and the Plan Administrator must sign this Adoption Agreement, as CIGNA Bank &
Trust Company, FSB is governed by the terms of a separate Trust Agreement.)
Executed at _________________, this __________day of _____________, 20 ______.
Employer's Exact Name: Zix Corporation
Witness: ______________________________ By: _______________________________
Title: _______________________________
January 1, 2003
-73-
Additional Adopting Employer's Exact Name: ZixIt Management Services Corp.
Witness: ________________________ By: ________________________________
Title: _________________________________
Additional Adopting Employer's Exact Name: ZixIt.com, Inc.
Witness: ________________________ By: ________________________________
Title: _________________________________
ACCEPTED this __________ day of __________ 20 ___________.
Witness: _________________________ By (Plan Administrator): _________
Witness: _________________________ By (Plan Administrator): _________
Witness: _________________________ By (Plan Administrator): _________
Witness:__________________________ By (Trustee): ____________________
Witness:__________________________ By (Trustee): ____________________
Witness:__________________________ By (Trustee): ____________________
ACCEPTED this __________ day of __________ 20 ___________.
CONNECTICUT GENERAL LIFE INSURANCE COMPANY
By (Authorized Representative): [ILLEGIBLE]
January 1, 2003
-74-
January 1, 2003
-75-