Exhibit 4.6
NONSTANDARDIZED ADOPTION AGREEMENT
PROTOTYPE CASH OR DEFERRED PROFIT-SHARING PLAN
Sponsored by
Pension Concepts, Inc.
The Employer named below hereby establishes a Cash or Deferred
Profit-Sharing Plan for eligible Employees as provided in this Adoption
Agreement and the accompanying Basic Plan Document #01.
I. EMPLOYER INFORMATION
If more than one Employee is adopting the Plan, complete this section based
on the Lead Employer. Additional Employers who are members of the same
controlled group or affiliated service group may adopt this plan by completing
and executing Section XX(A) of the Adoption Agreement.
A. Name and Address
Hallett Construction Company
5550 NE 22nd Street
Des Moines, IA 50313
B. Telephone Number: 515-266-9928
C. Employer's Tax ID Number: 41-2094590
D. Form of Business:
[ ] 1. Sole Proprietor [ ] 5. Limited Liability Company
[ ] 2. Partnership [ ] 6. Limited Liability Partnership
[x ] 3. Corporation [ ] 7. _______________________
[ ] 4. S Corporation
E. Is the Employer Part Of A Controlled Group [x] YES [ ] NO Part Of An
Affiliated Service Group? [ ] NO [ ] NO
F. Name Of Plan: Hallett Construction Company 401(k) Plan
G. Three Digit Plan Number: 002
H. Employer's Tax Year End: 12/31
I. Employer's Business Code: 234900
II. EFFECTIVE DATE
A. New Plan:
This is a new Plan having an Effective Date of ____________________.
B. Amended and Restated Plans:
This is an amendment or restatement of an existing Plan. The initial
Effective Date of the Plan was 1/1/2002. The Effective Date of this amendment or
restatement is 1/1/2003.
C. Amended or Restated Plans for GUST:
This is an amendment or restatement of an existing Plan to comply with GUST
[The Uruguay Round Agreements, Pub. L. 103-465 (GATT); The Uniformed Services
Employment and Reemployment Rights Act of 1994, Pub. L. 103-353 (USERRA); The
Small Business Job Protection Act of 1996, Pub. L. 104-188 (SBJPA) [including
Section 414(u) of the Internal Revenue Code]; The Taxpayer Relief Act of 1997,
Pub. L. 105-34 (TRA'97); The Internal Revenue Service Restructuring and Reform
Act of 1998, Pub. L. 105-206 (IRSRRA), and The Community Renewal Tax Relief Act
of 2000, Pub. L. 106-554 (CRA). The initial Effective Date of the Plan was
____________________. Except as provided for in the Plan, the Effective Date of
this amendment or restatement is _______________. (The restatement date should
be no earlier than the first day of the current Plan Year. The Plan contains
appropriate retroactive Effective Dates with respect to provisions of GUST.)
Pursuant to Code Section 411(d)(6) and the Regulations issued thereunder,
an Employer cannot reduce, eliminate or make subject to Employer discretion any
Code Section 411(d)(6) protected benefit. Where this Plan document is being
adopted to amend another plan that contains a protected benefit not provided for
in the Basic Plan Document #01, the Employer may complete Schedule A as an
addendum to this Adoption Agreement. Schedule A describes such protected
benefits and shall become part of this Plan. If a prior plan document contains a
plan feature not provided for in the Basic Plan Document #01, the Employer may
attach Schedule B describing such feature. Provisions listed on Schedule B are
not covered by the IRS Opinion Letter issued with respect to the Basic Plan
Document #01.
D. Effective Date for Elective Deferrals:
If different from above, the Elective Deferral provisions shall be
effective __________.
III. DEFINITIONS
A. "Compensation"
Select the definition of Compensation, the Compensation Computation Period,
any Compensation Dollar Limitation and Exclusions from Compensation for each
Contribution Type from the options listed below. Enter the letter of the option
selected on the lines provided below. Leave the line blank if no election needs
to be made.
Compensation Compensation Exclusions
Employer Compensation Computation Dollar From
Contribution Definition Period Limitation Compensation
Type
================================================================================
All
Contributions d a $ a
================================================================================
Elective
Deferrals $
================================================================================
Voluntary
After-tax $
================================================================================
Required $
After-tax
================================================================================
Safe Harbor $
================================================================================
Non-Safe Harbor
Match Formula 1 $
================================================================================
QNEC/QMAC $
================================================================================
Discretionary $
================================================================================
Non-Safe Harbor $
Match Formula 2
================================================================================
================================================================================
Antidiscrimination Compensation Compensation Compensation
Tests Definition Computation Period Dollar Limitation
================================================================================
ADP/ACP d a $
Compensation Computation Periods must be consistent for all contribution
types, except discretionary. If different Computation Periods are selected, the
selection for ADP/ACP testing will be deemed to be the election for all purposes
except for Discretionary Contributions.
1. Compensation Definition:
a. Code Section 3401(a) -- W-2 Compensation subject to income tax
withholding at the source.
b. Code Section 3401(a) -- W-2 Compensation subject to income tax
withholding at the source, with all pre-tax contributions added.
c. Code Section 6041/6051 -- Income reportable on Form W-2.
d. Code Section 6041/6051 -- Income reportable on Form W-2, with all
pre-tax contributions added.
e. Code Section 415 -- All income received for services performed for the
Employer.
f. Code Section 415 -- All income received for services performed for the
Employer, with all pre-tax contributions excluded.
The Code Section 415 definition will always apply with respect to sole
proprietors and partners.
2. Compensation Computation Period:
a. Compensation paid during a Plan Year while a Participant.
b. Compensation paid during the entire Plan Year.
c. Compensation paid during the Employer's fiscal year.
d. Compensation paid during the calendar year.
3. Compensation Dollar Limitation: The dollar limitation section does not
need to be completed unless Compensation of less than the Code Section
401(a)(17) limit of $160,000 (as indexed) is to be used.
4. Exclusions from Compensation (non-integrated plans only):
a. There will be no exclusions from Compensation under the Plan.
b. Any amount included in a Participant's gross income due to the
application of Code Sections 125, 132(f)(4), 402(h)(1)(B), 402(e) or 403(b) will
be excluded from the definition of Compensation under the Plan.
c. Overtime
d. Bonuses
e. Commissions
f. Exclusion applies only to Participants who are Highly Compensated
Employees.
g. Severance pay
h. Holiday and vacation pay
i. Other: _____________________________________________________
B. "Disability"
[x] 1. As defined in paragraph 1.26 of the Basic Plan Document #01.
[ ] 2. As defined in the Employer's Disability Insurance Plan.
[ ] 3. An individual will be considered to be disabled if he or she is
unable to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment which can be expected to result in
death or to be of long continued and indefinite duration. An individual shall
not be considered to be disabled unless he or she furnishes proof of the
existence thereof in such form and manner as the Secretary may prescribe.
C. "Highly Compensated Employees-- Top-Paid Group Election" For Plans which
are being amended and restated for GUST, please complete Schedule C outlining
the preamendment operation of the Plan, as well as this section of the Adoption
Agreement. The testing elections made below will apply to the future operation
of the Plan.
[x] 1. Top-Paid Group Election:
In determining who is a Highly Compensated Employee, the Employer makes the
Top-Paid Group election. The effect of this election is that an Employee (who is
not a 5% owner at any time during the determination year or the look-back year)
who earned more than $80,000, as indexed for the look-back year, is a Highly
Compensated Employee if the Employee was in the Top-Paid Group for the look-back
year. This election is applicable for the Plan Year in which this Plan is
effective.
[ ] 2. Calendar Year Data Election:
If the Plan Year is not the calendar year, the prior year computation
period for purposes of determining if an Employee earned more than $80,000, as
indexed, is the calendar year beginning in the prior Plan Year. This election is
applicable for the Plan Year in which this Plan is effective.
D. "Hour Of Service"
Hours shall be determined by the method selected below. The method selected
shall be applied to all Employees covered under the Plan as follows:
[ ] 1. Not applicable. For all purposes under the Plan, a Year of Service
(Period of Service) is defined as Elapsed Time.
[x] 2. On the basis of actual hours for which an Employee is paid or
entitled to payment.
[ ] 3. On the basis of days worked. An Employee shall be credited with ten
(10) Hours of Service if such Employee would be credited with at least one (1)
Hour of Service during the day.
[ ] 4. On the basis of weeks worked. An Employee shall be credited with
forty-five (45) Hours of Service if the Employee would be credited with at least
one (1) Hour of Service during the week.
[ ] 5. On the basis of semi-monthly payroll periods. An Employee shall be
credited with ninety-five (95) Hours of Service if such Employee would be
credited with at least one (1) Hour of Service during the semi-monthly payroll
period.
[ ] 6. On the basis of months worked. An Employee shall be credited with
one-hundred ninety (190) Hours of Service if such Employee would be credited
with at least one (1) Hour of Service during the month.
G. "Net Profit"
[ ] 1. Not applicable. Employer contributions to the Plan are not
conditioned on profits.
[ ] 2. Net Profits are defined as follows:
[ ] a. As defined in paragraph 1.61 of Basic Plan Document #01.
[ ] b. Net Profits will be defined in a uniform and nondiscriminatory
manner which will not result in a deprivation of an eligible Participant of any
Employer Contribution.
[ ] c. Net Profits are required for the following contributions.
[ ] i. Employer Non-Safe Harbor Match Formula 1.
[ ] ii. Employer Non-Safe Harbor Match Formula 2.
[ ] iii. Employer QNEC and QMAC.
[ ] iv. Employer discretionary.
Elective Deferrals can always be contributed regardless of profits.
Top-Heavy minimums are required regardless of profits.
H. "Plan Year"
The 12-consecutive month period commencing on January 1 and ending on
December 31.
If applicable, there will be a short Plan Year commencing on
_______________ and ending on _______________. Thereafter, the Plan Year shall
end on the date specified above.
I. "QDRO Payment Date"
[x] 1. The date the QDRO is determined to be qualified.
[ ] 2. The statutory age 50 requirement applies for purposes of making
distribution to an alternate payee under the provisions of a QDRO.
J. "Qualified Joint and Survivor Annuity"
[x] 1. Not applicable. The Plan is not subject to Qualified Joint and
Survivor Annuity rules. The safe harbor provisions of paragraph 8.7 of the Basic
Plan Document #01 apply. The normal form of payment is a lump sum. No annuities
are offered under the Plan.
[ ] 2. The normal form of payment is a lump sum. The Plan does provide for
annuities as an optional form of payment at Section XVIII(C) of the Adoption
Agreement. Joint and Survivor rules are avoided unless the Participant elects to
receive his or her distribution in the form of an annuity.
[ ] 3. The Joint and Survivor Annuity rules are applicable and the survivor
annuity will be __________% (50%, 66-2/3%, 75% or 100%) of the annuity payable
during the lives of the Participant and his or her Spouse. If no selection is
specified, 50% shall be deemed elected.
K. "Qualified Preretirement Survivor Annuity"
Do not complete this section if paragraph (J)(1) was elected.
[ ] 1. The Qualified Preretirement Survivor Annuity shall be 100% of the
Participant's Vested Account Balance in the Plan as of the date of the
Participant's death.
[ ] 2. The Qualified Preretirement Survivor Annuity shall be 50% of the
Participant's Vested Account Balance in the Plan as of the date of the
Participant's death.
L. "Valuation of Plan Assets"
The assets of the Plan shall be valued on the last day of the Plan Year and
on the following Valuation Date(s):
[ ] 1. There are no other mandatory Valuation Dates.
[x] 2. The Valuation Dates are applicable for the contribution type
specified below:
------------------------------------------------------------------------------
Contribution Type Valuation Date
------------------------------------------------------------------------------
All Contributions a
------------------------------------------------------------------------------
Elective Deferrals
------------------------------------------------------------------------------
Voluntary After-tax
------------------------------------------------------------------------------
Required After-tax
------------------------------------------------------------------------------
Safe Harbor
------------------------------------------------------------------------------
Non-Safe Harbor Match Formula 1
------------------------------------------------------------------------------
QNEC/QMAC
------------------------------------------------------------------------------
Discretionary
------------------------------------------------------------------------------
Non-Safe Harbor Match Formula 2
------------------------------------------------------------------------------
a. Daily valued
b. The last day of each month.
c. The last day of each quarter in the Plan Year.
d. The last day of each semi-annual period in the Plan Year.
e. At the discretion of the Plan Administrator.
f. Other: _____________________________________________________
IV. ELIGIBILITY REQUIREMENTS
Complete the following using the eligibility requirements as specified for
each contribution type. To become a Participant in the Plan, the Employee must
satisfy the following eligibility requirements.
================================================================================
Contribution Type Minimum Age Service Class Eligibility Entry Date
Requirement Exclusions Computation Period
================================================================================
All Contributions 21 4 1, 6 3 3
================================================================================
Elective Deferrals
================================================================================
Voluntary After-tax
================================================================================
Required After-tax
================================================================================
Safe Harbor Contribution*
================================================================================
Non-Safe Harbor
Match -Formula 1
================================================================================
QNECs
================================================================================
QMACs
================================================================================
Employer Discretionary
================================================================================
Non-Safe Harbor
Match - Formula 2
================================================================================
*If any age or Service requirement selected is more restrictive than that
which is imposed on any Employee contribution, that group of Employees will be
subject to the ADP and/or ACP testing as prescribed under IRS Notices 98-52,
2000-3 and any applicable IRS Regulations.
A. Age:
1. No age requirement.
2. Insert the applicable age in the chart above. The age may not be more
than 21.
B. Service:
1. No service requirement.
2. __________ months of Service (insert number of months applicable to the
specified contribution type).
3. __________ months of Service (insert number of months applicable to the
specified contribution type).
4. 1 Year of Service or Period of Service.
5. 2 Years of Service or Periods of Service.
6. 1 Expected Year of Service. May enter after six (6) months of actual
Service.
7. 1 Expected Year of Service. May enter after _____months of actual
Service [must be less than one (1) Year].
8. 1 Expected Year of Service. May enter after _____ months of actual
Service [must be less than one (1) Year].
9. Completion of __________ Hours of Service within the __________ month(s)
time period following an Employee's commencement of employment.
No more than 83% Hours of Service may be required during each such month;
provided, however, that the Employee shall become a Participant no later than
upon the completion of 1,000 Hours of Service within an Eligibility Computation
Period and the attainment of the minimum age requirement.
The maximum Service requirement for Elective Deferrals is 1 year. For all
other contributions, the maximum is 2 years. If a Service requirement greater
than 1 year is selected, Participants must be 100% vested in that contribution.
A Year of Service for eligibility purposes is defined as follows (choose
one):
Do not enter this definition in the table above.
[ ] 10. Not applicable. There is no Service requirement.
[ ] 11. Not applicable. The Plan is using Expected Year of Service or has a
Service requirement of less than one (1) year.
[x] 12. Hours of Service method. A Year of Service will be credited upon
completion of 1000 Hours of Service. A Year of Service for eligibility purposes
may not be less than 1 Hour of Service nor greater than 1,000 hours by operation
of law. If left blank, the Plan will use 1,000 hours.
[ ] 13. Elapsed Time method.
C. Employee Class Exclusions:
1. Employees included in a unit of Employees covered by a collective
bargaining agreement between the Employer and Employee Representatives, if
benefits were the subject of good faith bargaining and if two percent or less of
the Employees are covered pursuant to the agreement are professionals as defined
in ss.1.410(b)-9 of the Regulations. For this purpose, the term "employee
representative" does not include any organization more than half of whose
members are owners, officers, or executives of the Employer.
2. Employees who are non-resident 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 which constitutes income from sources
within the United States [within the meaning of Code Section 861(a)(3)].
3. Employees compensated on an hourly basis.
4. Employees compensated on a salaried basis.
5. Employees compensated on a commission basis.
6. Leased Employees.
7. Highly Compensated Employees.
8. The Plan shall exclude from participation any nondiscriminatory
classification of Employees determined as follows:
D. Eligibility Computation Period: The initial Eligibility Computation
Period shall commence on the date on which an Employee first performs an Hour of
Service and the first anniversary thereof. Each subsequent Computation Period
shall commence on:
1. Not applicable. The Plan has a Service requirement of less than one (1)
year or uses the Elapsed Time method to determine eligibility.
2. The anniversary of the Employee's employment commencement date and each
subsequent 12-consecutive month period thereafter.
3. The first day of the Plan Year which commences prior to the first
anniversary date of the Employee's employment commencement date and each
subsequent Plan Year thereafter.
E. Entry Date Options:
1. The first day of the month coinciding with or next following the date on
which an Employee meets the eligibility requirements.
2. The first day of the payroll period coinciding with or next following
the date on which an Employee meets the eligibility requirements.
3. The earlier of the first day of the Plan Year, or the first day of the
fourth, seventh or tenth month of the Plan Year coinciding with or next
following the date on which an Employee meets the eligibility requirements.
4. The earlier of the first day of the Plan Year or the first day of the
seventh month of the Plan Year coinciding with or next following the date on
which an Employee meets the eligibility requirements.
5. The first day of the Plan Year following the date on which the Employee
meets the eligibility requirements. If this election is made, the Service
waiting period cannot be greater than one-half year and the minimum age
requirement may not be greater than age 20 1/2.
6. The first day of the Plan Year nearest the date on which an Employee
meets the eligibility requirements. This option can only be selected for
Employer related contributions.
7. The first day of the Plan Year during which the Employee meets the
eligibility requirements. This option can only be selected for Employer related
contributions.
8. The Employee's date of hire.
F. Employees on Effective Date:
[x] 1. All Employees will be required to satisfy both the age and Service
requirements specified above.
[ ] 2. Employees employed on the Plan's Effective Date do not have to
satisfy the age requirement specified above.
[ ] 3. Employees employed on the Plan's Effective Date do not have to
satisfy the Service requirement specified above.
G. Special Waiver of Eligibility Requirements:
The age and/or Service eligibility requirements specified above shall be
waived for those eligible Employees who are employed on the following date for
the contribution type(s) specified. This waiver applies to either the age or
service requirement or both as elected below:
================================================================================
Waiver Date Waiver of Age Waiver of Service Contribution
Requirement Requirement Type
================================================================================
All Contributions
================================================================================
Elective Deferrals
================================================================================
Employer Discretionary
================================================================================
Non-Safe Harbor
Match -Formula 1
================================================================================
Safe Harbor Contribution
================================================================================
QNECs
================================================================================
QMACs
================================================================================
Non-Safe Harbor
Match - Formula 2
================================================================================
V. RETIREMENT AGES
A. Normal Retirement:
[ ] 1. Normal Retirement Age shall be 62 (not to exceed 65)
[ ] 2. Normal Retirement Age shall be the later of attaining age _____ (not
to exceed age 65) or the _____ not to exceed the fifth) anniversary of the first
day of the first Plan year in which the Participant commenced participation in
the Plan.
3. The Normal Retirement date shall be:
[ ] a. as of the date the Participant attains Normal Retirement Age.
[ ] b. the first day of the month next following the Participant's
attainment of Normal Retirement Age.
B. Early Retirement:
[x] 1. Not applicable.
[ ] 2. The Plan shall have an Early Retirement Age of _____ (not less that
age 55) and completion of _____ Years of Service.
3. The Early Retirement Date shall be:
[ ] a. as of the date the Participant attains Early Retirement Age.
[ ] b. the first day of the month next following the Participant's
attainment of Early Retirement Age.
VI. EMPLOYEE CONTRIBUTIONS
A. Elective Deferrals:
[ ] 1. Up to __________%.
[ ] 2. Participants shall be permitted to make Elective Deferrals in any
amount from a minimum of __________% to a maximum of __________% of their
Compensation not to exceed $__________.
[ ] 3. Participants shall be permitted to make Elective Deferrals in a flat
dollar amount from a minimum of $__________ to a maximum of $__________, not to
exceed _____% of their Compensation.
[x] 4. Up to the maximum percentage of Compensation and dollar amount
permissible under Section 402(g) of the Internal Revenue Code not to exceed the
limited of Code Sections 401(k), 404 and 415.
B. Bonus Option:
[ ] 1. Not applicable.
[x] 2. Bonuses paid by the Employer are included in the definition of
Compensation and the Employer permits a Participant to amend their deferral
election to defer to the Plan, an amount not to exceed 100% or $__________ of
any bonus received by the Participant for any Plan Year.
C. Automatic Enrollment: The Employer elects the automatic enrollment
provisions as follows:
[ ] 1. New Employees. Employees who have not met the eligibility
requirements shall have Elective Deferrals withheld in the amount of __________%
of Compensation or $__________ of Compensation upon entering the Plan.
[ ] 2. Current Participants. Current Participants who are deferring at a
percentage less than the amount selected herein shall have Elective Deferrals
withheld in the amount of __________% of Compensation or $__________ of
Compensation.
[ ] 3. Current Employees. Employees who are eligible to participate but not
deferring shall have Elective Deferrals withheld in the amount of __________% of
Compensation or $__________ of Compensation.
Employees and Participants shall have the right to amend the stated
automatic Elective Deferral percentage or receive cash in lieu of deferral into
the Plan.
D. Voluntary After-tax Contributions:
[x] 1. The Plan does not permit Voluntary After-tax Contributions.
[ ] 2. Participants may make Voluntary After-tax Contributions in any
amount from a minimum of __________% to a maximum of __________% of their
Compensation or a flat dollar -- amount from a minimum of $__________ to a
maximum of $__________.
If recharacterization of Elective Deferrals has been elected at Section
XII(D) in this Adoption Agreement, Voluntary After-tax Contributions must be
permitted in the Plan by completing the section above.
E. Required After-tax Contributions (Thrift Savings Plans only):
[x] 1. The Plan does not Permit Required After-tax Contributions.
[ ] 2. Participants shall be required to make Required After-tax
Contributions as follows:
[ ] a. __________% of Compensation.
[ ] b. A percentage determined by the Employee.
F. Rollover Contributions:
[ ] 1. The Plan does not accept Rollover Contributions.
[ ] 2. Participants may make Rollover Contributions after meeting the
eligibility requirements for participation in the Plan.
[x] 3. Employees may make Rollover Contributions prior to meeting the
eligibility requirements for participation in the Plan.
G. Elective Plan to Plan Transfer Contributions:
[ ] 1. The Plan does not accept Transfer Contributions.
[ ] 2. Participants may make Transfer Contributions after meeting the
eligibility requirements for participation in the Plan.
[x] 3. Employees may make Transfer Contributions prior to meeting the
eligibility requirements for participation in the Plan.
H. Changes to Elective Deferrals:
Participants shall be permitted to terminate their Elective Deferrals at
any time upon proper and timely notice to the Employer. Modifications to
Participants' Elective Deferrals will become effective on a prospective basis as
provided for below:
[ ] 1. On a daily basis.
[ ] 2. Upon __________ (not to exceed 90) days notice to the Plan
Administrator.
[ ] 3. On the first day of each quarter.
[ ] 4. On the first day of the next month.
[x] 5. The beginning of the next payroll period.
I. Reinstatement of Elective Deferrals:
Participants who terminate their Elective Deferrals shall be permitted to
reinstate their Elective Deferrals on a prospective basis as provided for below:
[ ] 1. On a daily basis.
[ ] 2. Upon __________ (not to exceed 90) days notice to the Plan
Administrator.
[ ] 3. On the first day of each quarter.
[ ] 4. On the first day of the next month.
[x] 5. The beginning of the next payroll period.
VII. SAFE HARBOR PLAN PROVISIONS
[ ] The Employer elects to comply with the Safe Harbor Cash or Deferred
Arrangement provisions of Article XI of Basic Plan Document #01 and elects one
of the following contribution formulas:
A. Safe Harbor Tests:
[ ] 1. Only the ADP and not the ACP Test Safe Harbor provisions are
applicable.
[ ] 2. Both the ADP and ACP Test Safe Harbor provisions are applicable. If
both ADP and ACP provisions are applicable:
[ ] a. No additional Matching Contributions will be made in any Plan Year
in which the Safe Harbor provisions are used.
[ ] b. The Employer may make Matching Contributions in addition to any Safe
Harbor Matching Contributions elected below. (Complete provisions in Article
VIII regarding Matching Contributions that will be made in addition to those
Safe Harbor Matching Contributions made below.)
[ ] B. Designation of Alternate Plan to Receive Safe Harbor Contribution:
If the Safe Harbor Contribution as elected below is not being made to this
Plan, the name of the other plan that will receive the Safe Harbor Contribution
is:
[ ] C. Basic Matching Contribution Formula:
Matching Contributions will be made on behalf of Participants in an amount
equal to 100% of the amount of the Eligible Participant's Elective Deferrals
that do not exceed 3% of the Participant's Compensation and 50% of the amount of
the Participant's Elective Deferrals that exceed 3% of the Participant's
Compensation but that do not exceed 5% of the Participant's Compensation.
[ ] D. Enhanced Matching Contribution Formula:
Matching Contributions will be made in an amount equal to the sum of:
[ ] 1. __________% (may not be less than 100%) of the Participant's
Elective Deferrals that do not exceed __________% (if more than 6% or if left
blank, the ACP Test will apply) of the Participant's Compensation, plus
[ ] 2. __________% of the Participant's Elective Deferrals that exceed
__________% of the Participant's Compensation but do not exceed __________% (if
more than 6% or if left blank the ACP Test will apply) of the Participant's
Compensation.
This section must be completed so that at any rate of Elective Deferrals,
the Matching Contribution is at least equal to the Matching Contribution
received if the Employer used the Basic Matching Contribution Formula. The rate
of match cannot increase as Elective Deferrals increase. If an additional
discretionary match is made, the dollar amount may not exceed 4% of the
Participant's Compensation.
[ ] E. Guaranteed Non-Elective Contribution Formula:
The Employer shall make a Non-Elective Contribution equal to __________%
(not less than 3%) of the Compensation of each Eligible Participant.
[ ] F. Flexible Non-Elective Contribution Formula:
This provision provides the Employer with the ability to amend the Plan to
comply with the Safe Harbor provisions during the Plan Year. To provide such
option, the Employer must amend the Plan and indicate on Schedule D that the
Safe Harbor Non-Elective Contribution (not less than 3%) will be made for the
specified Plan Year. Such election must comply with all the applicable notice
requirements.
Additional Non-Safe Harbor contributions may be made to the Plan pursuant
to Article XI of Basic Plan Document #01.
[ ] G. Limitations on Safe Harbor Matching Contributions:
If a Safe Harbor Matching Contribution is made to the Plan:
[ ] 1. The Employer will annualize the Safe Harbor Matching Contributions.
[ ] 2. The Employer will not annualize the Safe Harbor Matching
Contributions and elects to match actual Elective Deferrals made:
[ ] a. on a payroll basis.
[ ] b. on a monthly basis.
[ ] c. on a Plan Year quarterly basis.
If no election is made, the payroll period method will be used. If one of
the Matching Contribution calculation periods at Section VII(G)(2) above is
selected Matching Contributions must be deposited to the Plan not later than the
last day of the calendar quarter next following the quarter following to which
they relate.
If the Safe Harbor Plan provisions are elected, the antidiscrimination
tests at Article XI of the Basic Plan Document #01 are not applicable. Safe
Harbor Contributions made are subject to the withdrawal restrictions of Code
Section 401(k)(2)(B) and Treasury Regulations Section 1.401(k)-1(d); such
contributions (and earnings thereon) must not be distributable earlier than
separation from Service, death, Disability, an event described in Code Section
401(k)(10), or in the case of a profit-sharing or stock bonus plan, the
attainment of age 59 1/2. Safe Harbor Contributions are NOT available for
Hardship withdrawals.
The ACP Test Safe Harbor is automatically satisfied if the only Matching
Contribution to the Plan is either a Basic Matching Contribution or an Enhanced
Matching Contribution that does not provide a match on Elective Deferrals in
excess of 6% of Compensation. For Plans that allow Voluntary or Required
After-tax Contributions, the ACP Test is applicable with regard to such
contributions.
Employees eligible to make Elective Deferrals to this Plan must be eligible
to receive the Safe Harbor Contribution in the Plan listed above, to the extent
required by IRS Notices 98-2 and 2000-3.
VIII. EMPLOYER CONTRIBUTIONS
The Employer shall make contributions to the Plan in accordance with the
formula or formulas selected below. The Employer's contribution shall be subject
to the limitations contained in Articles III and X. For this purpose, a
contribution for a Plan Year shall be limited by Compensation earned in the
Limitation Year which ends with or within such Plan Year.
Do not complete this Section of the Adoption Agreement if the Plan only
offers a Safe Harbor Contribution. A Plan that offers both a Safe Harbor
Matching Contribution as well as an additional Matching Contribution which is
specified below, must complete both Sections VII and VIII of the Adoption
Agreement.
A. Matching Employer Contribution:
Select the Matching Contribution Formula, Computation Period and special
Limitations for each contribution type from the options listed below. Enter the
letter of the option(s) selected on the lines provided. Leave the line blank if
no election is required.
================================================================================
Type of Non-Safe Matching Limitations Non-Safe Matching Limitations
Contri- Harbor Computation Harbor Computation
bution Matching Period Matching Period
Formula 1 Formula 2
================================================================================
Elective a h c g
Deferrals
================================================================================
Voluntary
After-tax
================================================================================
Required
After-tax
================================================================================
403(b)
Deferrals
================================================================================
If any election is made with respect to "403(b) Deferrals" above, and if
this Plan is used to fund any Employer Contributions, Employer Contributions
will be based on the Elective Deferrals made to an existing 403(b) plan
sponsored by the Employer.
Name of corresponding 403(b) plan:
1. Matching Contribution Formulas:
Elective Deferral Matching Contribution Formulas:
a. Percentage of Deferral Match: The Employer shall contribute to each
eligible Participant's account an amount equal to 50% of the Participant's
Elective Deferrals up to a maximum of 2.5% or $__________ of Compensation.
b. Uniform Dollar Match: The Employer shall contribute to each eligible
Participant's account $__________ if the Participant who contributes at least
__________% or $__________ Compensation. The Employer's contribution will be
made up to a maximum of __________% of Compensation.
c. Discretionary Match: The Employer's Matching Contribution shall be
determined by the Employer with respect to each Plan Year. The Matching
Contribution shall be contributed to each eligible Participant in accordance
with the nondiscriminatory formula determined by the Employer. If this Plan is
also utilizing a Safe Harbor Contribution, pursuant to Section VII of this
Adoption Agreement, Discretionary Matching Contributions may not exceed 4% of
Compensation.
d. Tiered Match: The Employer shall contribute to each eligible
Participant's account an amount equal to:
__________ % of the first __________ % of the Participant's Compensation
contributed, and
__________% of the next __________% of the Participant's Compensation
contributed, and
__________% of the next __________% of the Participant's Compensation
contributed, and
The Employer's contribution will be made up to the [ ] greater of [ ]
lesser of __________% of Compensation, or $__________.
The percentages specified above may not increase as the percentage of
Participant's contribution increases.
e. Percentage of Compensation Match: The Employer shall contribute to each
eligible Participant's account __________% of Compensation if the eligible
Participant contributes at least __________% of Compensation.
The Employer's contribution will be made up to the [ ] greater of [ ]
lesser of __________% of Compensation, or $__________
f. Proportionate Compensation Match: The Employer shall contribute to each
eligible Participant who defers at least __________% of Compensation, an amount
determined by multiplying such Employer Matching Contribution by a fraction, the
numerator of which is the Participant's Compensation and the denominator of
which is the Compensation of all Participants eligible to receive such an
allocation.
The Employer's contribution will be made up to the [ ] greater of [ ]
lesser of __________% of Compensation, or $__________.
g. Length of Service Match: The Employer shall make Matching Contributions
equal to the formula determined under the following schedule:
Participant's Total Years of Service Matching Contribution Funds
-------------------- ---------------------
-------------------- ---------------------
-------------------- ---------------------
Each separate matching percentage contribution must satisfy Code Section
401(a)(4) nondiscrimination requirements and the ACP test.
Voluntary After-tax Matching Contribution Formulas:
h. Percentage of Deferral Match: The Employer shall contribute to each
eligible Participant's account an amount equal to __________% of the
Participant's Voluntary After-tax Contributions up to a maximum of __________%
or $__________of Compensation.
i. Uniform Dollar Match: The Employer shall contribute to each eligible
Participant's account $__________ if the Participant at contributes least
__________% or $__________ Compensation. The Employer's contribution will be
made up to a maximum of__________% of Compensation.
j. Discretionary Match: The Employer's Matching Contribution shall be
determined by the Employer with respect to each Plan Year. The Matching
Contribution shall be contributed to each eligible Participant in accordance
with the nondiscriminatory formula determined by the Employer.
Required After-tax Matching Contribution Formulas:
k. Percentage of Deferral Match: The Employer shall contribute to each
eligible Participant's account an amount equal to __________ % of the
Participant's Required After-tax Contributions up to a maximum of $__________ of
Compensation.
l. Uniform Dollar Match: The Employer shall contribute to each eligible
Participant's account $__________ if the Participant contributes at least
__________% or $__________ of Compensation. The Employer's contribution will be
made up to a maximum of __________% of Compensation.
m. Discretionary Match: The Employer's Matching Contribution shall be
determined by the Employer with respect to each Plan Year. The Matching
Contribution shall be contributed to each eligible Participant in accordance
with the nondiscriminatory formula determined by the Employer.
If the Matching Contribution formula selected by the Employer is 100%
vested and may not be distributed to the Participant before the earlier of the
date the Participant separates from Service, retires, becomes disabled, attains
59 1/2, or dies, it may be treated as a Qualified Matching Contribution.
403(b) Matching Contribution Formulas:
n. Percentage of Deferral Match: The Employer shall contribute to each
eligible Participant's account an amount equal to __________% of the
Participant's 403(b) Deferrals up to a maximum of __________% or $__________ of
Compensation.
o. Uniform Dollar Match: The Employer shall contribute to each eligible
Participant's account $__________ the Participant contributes at least
__________% or $__________ of Compensation. The Employer's contribution will be
made up to a maximum of __________% of Compensation.
p. Discretionary Match: The Employer's Matching Contribution shall be
determined by the Employer with respect to each Plan Year. The Matching
Contribution shall be contributed to each eligible Participant in accordance
with the nondiscriminatory formula determined by the Employer.
2. Matching Contribution Computation Period: The Compensation or any dollar
limitation imposed in calculating the match will be based on the period selected
below. Matching Contributions will be calculated on the following basis:
a. Weekly e. Quarterly
b. Bi-weekly f. Semi-annually
c. Semi-monthly g. Annually
d. Monthly h. Payroll Based
The calculation of Matching Contributions based on the Computation Period
selected above has no applicability as to when the Employer remits Matching
Contributions to the Trust.
3. Limitations on Matching Formulas:
a. Annualization of Matching Contributions. The Employer elects to
annualize Matching Contributions made to the Plan.
If this election is not made, Matching Contributions will not be
annualized.
b. Contributions to Participants who are not Highly Compensated Employees:
Contribution of the Employer's Matching Contribution will be made only to
eligible Participants who are Non-Highly Compensated Employees.
c. Deferrals withdrawn prior to the end of the Matching Computation Period:
Matching Contributions (whether or not Qualified) will not be made on Employee
contributions withdrawn prior to the end of the [ ] Matching Computation Period,
or [ ] Plan Year.
If elected [ ], this requirement shall apply in the event of a withdrawal
occurring as the result of a termination of employment for reasons of
retirement, Disability or death.
4. Qualified Matching Contributions (QMAC):
[ ] a. For purposes of the ADP or ACP Test, all Matching Contributions made
to the Plan will be deemed "Qualified" for purposes of calculating the Actual
Deferral Percentage and/or Actual Contribution Percentage. All Matching
Contributions must be fully vested when made and are not available for
in-service withdrawal.
[ ] b. For purposes of the ADP or ACP Test, only Matching Contributions
made to the Plan that are needed to meet the Actual Deferral Percentage or
Actual Contribution Percentage Test will be deemed "Qualified" for purposes of
calculating the Actual Deferral Percentage and/or Actual Contribution
Percentage. All such Matching Contributions used must be fully vested when made
and are not available for in-service withdrawal.
5. Qualified Non-Elective Contributions (QNEC):
[ ] a. For purposes of the ADP or ACP Test, all Non-Elective Contributions
made to the Plan will be deemed "Qualified" for purposes of calculating the
Actual Deferral Percentage and/or Actual Contribution Percentage. All
Non-Elective Contributions must be fully vested when made and are not available
for in-service withdrawal.
[ ] b. For purposes of the ADP or ACP Test, only the Non-Elective
Contributions made to the Plan that are needed to meet the Actual Deferral
Percentage or Actual Contribution Percentage Test will be deemed "Qualified" for
purposes of calculating the Actual Deferral Percentage and/or Actual
Contribution Percentage. All such Non-Elective Contributions used must be fully
vested when made and are not available for in-service withdrawal.
B. Qualified Matching (QMAC) and Qualified Non-Elective (QNEC) Employer
Contribution Formulas:
[ ] 1. QMAC Contribution Formula: The Employer may contribute to each
eligible Participant's Qualified Matching account an amount equal to (select one
or more of the following):
[ ] a. $__________ or __________% of the Participant's Elective Deferrals
[ ] b. $__________ or __________% of the Participant's Voluntary After-tax
Contributions.
[ ] c. $__________ or __________% of the Participant's Required After-tax
Contributions.
[ ] 2. Discretionary QMAC Contribution Formula: The Employer shall have the
right to make a discretionary QMAC contribution. The Employer's Matching
Contribution shall be determined by the Employer with respect to each Plan
Year's eligible Participants. This part of the Employer's contribution shall be
fully vested when made.
[ ] 3. Discretionary Percentage QNEC Contribution Formula: The Employer
shall have the right to make a discretionary QNEC contribution which shall be
allocated to each eligible Participant's account in proportion to his or her
Compensation as a percentage of the Compensation of all eligible Participants.
This part of the Employer's contribution shall be fully vested when made. This
contribution will be made to:
[ ] a. All eligible Participants.
[ ] b. Only eligible Participants who are Non-Highly Compensated Employees.
[ ] 4. Discretionary Uniform Dollar QNEC Contribution Formula: The Employer
shall have the right to make a discretionary QNEC contribution which shall be
allocated to each eligible Participant's account in a uniform dollar amount to
be determined by the Employer and allocated in a nondiscriminatory manner. This
part of the Employer's contribution shall be fully vested when made and not
available for in-service withdrawal. This contribution will be made to:
[ ] a. All eligible Participants.
[ ] b. Only eligible Participants who are Non-Highly Compensated Employees.
[ ] 5. Corrective QNEC Contribution Formula: The Employer shall have the
right to make a QNEC contribution in the amount necessary to pass the ADP/ACP
Test or the maximum permitted under Code Section 415. This contribution will be
allocated to some or all Non-Highly Compensated Participants designated by the
Plan Administrator. The allocation will be the lesser of the amount required to
pass the ADP/ACP Test, or the maximum permitted under Code Section 415 and is
not available for in-service withdrawal. This part of the Employer's
contribution shall be fully vested when made.
[ ] C. Discretionary Employer Contribution -- Non-Integrated Formula: The
Employer shall have the right to make a discretionary contribution. The
Employer's contribution for the Plan Year shall be made to the accounts of
eligible Participants as follows:
[ ] 1. Such contribution shall be allocated as a percentage of the
Employer's Net Profits.
[ ] 2. Such contribution shall be allocated as a percentage of Compensation
of eligible Participants for the Plan Year.
[ ] 3. Such contribution shall be allocated in an amount fixed by an
appropriate action of the Employer as of the time prescribed by law.
[ ] 4. Such contribution shall be allocated equally in a uniform dollar
amount to each eligible Participant.
[ ] 5. Such contribution shall be allocated in the same dollar amount to
each eligible Participant per Hour of Service the Participant is entitled to
Compensation.
[ ] D. Discretionary Employer Contribution - Excess Integrated Allocation
Formula: The Employer shall have the right to make a discretionary contribution.
The Employer's contribution for the Plan Year shall be allocated to the accounts
of eligible Participants as follows:
Only one plan maintained by the Employer may be integrated with Social
Security. Any Plan utilizing a Safe Harbor formula provided in Section VII of
this Adoption Agreement may not apply the Safe Harbor Contribution to the
integrated allocation formula. If the Plan is not Top-Heavy or if the Top-Heavy
minimum contribution or benefit is provided under another Plan covering the same
Employees, paragraphs (1) and (2) below may be disregarded and 5.7%, 5.4% or
4.3% may be substituted for 2.7%, 2.4% or 1.3% where it appears in paragraph (3)
below.
1. Step One: To the extent contributions are sufficient, all Participants
will receive an allocation equal to 3% of their Compensation.
2. Step Two: Any remaining Employer contributions will be allocated up to a
maximum of 3% of excess Compensation of all Participants to Participants who
have Compensation in excess of the Integration Level (excess Compensation). Each
such Participant will receive an allocation in the ratio that his or her excess
Compensation bears to the excess Compensation of all Participants. If Employer
contributions are insufficient to fund to this level, the Employer must
determine the uniform allocation percentage to allocate to those Participants
who have Compensation in excess of the Integration Level. To determine this
uniform allocation percentage, the Employer must take the remaining contribution
and divide that amount by the total excess Compensation of Participants.
3. Step Three: Any remaining Employer contributions will be allocated to
all Participants in the ratio that their Compensation plus excess Compensation
bears to the total Compensation plus excess Compensation of all Participants.
Participants may only receive an allocation of up to 2.7% of their Compensation
plus excess Compensation, under this allocation step. If the Integration Level
defined at Section III(E) is less than or equal to the greater of $10,000 or 20%
of the maximum, the 2.7% need not be reduced. If the amount specified is greater
than the greater of $10,000 or 20% of the maximum Taxable Wage Base, but not
more than 80%, 2.7% must be reduced to 1.3%. If the amount specified is greater
than 80% but less than 100% of the maximum Taxable Wage Base, the 2.7% must be
reduced to 2.4%. If Employer contributions are insufficient to fund to this
level, the Employer must determine the uniform allocation percentage to allocate
to those Participants who have Compensation up to the Integration Level and
excess Compensation. To determine this uniform allocation percentage, the
Employer must take the remaining contribution and divide that amount by the
total Compensation including excess Compensation of Participants.
4. Step Four: Any remaining Employer contributions will be allocated to all
Participants in the ratio that each Participant's Compensation bears to all
Participants' Compensation.
[ ] E. Discretionary Employer Contribution-- Base Integrated Allocation
Formula: The Employer shall have the right to make a discretionary contribution.
To the extent that such contributions are sufficient, they shall be allocated as
follows:
__________% of each eligible Participant's Compensation, plus
__________% of Compensation in excess of the Integration Level defined at
Section III(E) hereof.
The percentage of excess Compensation may not exceed the lesser of (i) the
amount first specified in this paragraph or (ii) the greater of 5.7% or the
percentage rate of tax under Code Section 3111(a) as in effect on the first day
of the Plan Year attributable to the Old Age (OA) portion of the OASDI
provisions of the Social Security Act. If the employer specifies an Integration
Level in Section III(E) which is lower than the Taxable Wage Base for Social
Security purposes (SSTWB) in effect as of the first day of the Plan Year, the
percentage contributed with respect to excess Compensation must be adjusted. If
the Plan's integration Level is greater than the larger of $10,000 or 20% of the
SSTWB but not more than 80% of the STWB, the excess percentage is 4.3%. If the
Plan's Integration Level is greater than 80% of the SSTWB but less than 100% of
the SSTWB, the excess percentage is 5.4%.
Only one Plan maintained by the Employer may be integrated with Social
Security. Any plan utilizing a Safe Harbor formula as provided in Section VII of
this Adoption Agreement may not apply the Safe Harbor Contribution to the
integrated allocation formula.
[ ] F. Uniform Points Allocation Formula: The allocation for each eligible
Participant will be determined by a uniform points methods. Each eligible
Participant's allocation shall bear the same relationship to the Employer
contribution as the Participant's total points bears to all points awarded. Each
eligible Participant will receive __________ points for each of the following:
[ ] 1. __________ year(s) of age.
[ ] 2. __________ Year(s) of Service determined.
[ ] a. In the same manner as determined for eligibility.
[ ] b. In the same manner as determined for vesting.
[ ] c. Points will not be awarded with respect to Year(s) of Service in
excess of ----------.
[ ] 3. $__________ (not to exceed $200) of Compensation.
[ ] G. Additional Adopting Employers:
[ ] 1. All participating Employers' contributions under Section VIII
entitled "Employer Contributions" above and forfeitures, if applicable,
attributable to each specific contribution source shall be pooled together and
allocated uniformly among all eligible Participants.
[ ] 2. Each participating Employer's contribution under Section VIII above
and forfeitures attributable to each specific contribution source made by such
Employer shall be allocated only to eligible Participants of the participating
Employer.
Where contributions and forfeitures are to be allocated to eligible
Participants by participating Employers, each such Employer must maintain data
demonstrating that the allocations by group satisfy the nondiscrimination rules
under Code Section 401(a)(4).
[x] H. Minimum Employer Contribution Formula Under Top-Heavy Plans:
For any Plan Year during which the Plan is Top-Heavy, the sum of the
contributions (excluding Elective Deferrals and/or Matching Contributions)
allocated to non-Key Employees shall not be less than the amount required under
the Basic Plan Document #01. The eligibility of a Participant to receive
Top-Heavy Contributions mirrors the eligibility for any contribution with the
earliest Entry Date. Top-Heavy minimums will be allocated to:
[x] 1. all eligible Participants.
[ ] 2. only eligible non-Key Employees who are Participants.
IX. ALLOCATIONS TO PARTICIPANTS
A. This is a Safe Harbor Plan:
[ ] Employer Non-Elective and/or Matching Contributions will be made to all
Employees who have satisfied the Safe Harbor eligibility requirements.
B. Allocation Accrual Requirements:
A Year of Service for eligibility to receive an allocation of Employer
contributions will be determined on the basis of the:
[ ] 1. Elapsed Time method.
[x] 2. Hours of Service method. A Year of Service will be credited upon
completion of the requirements below. A Year of Service for allocation accrual
purposes cannot be less than 1 Hour of Service nor greater than 1,000 hours by
operation of law. If left blank, the Plan will use 1,000 hours. Enter whole
digit numbers only.
a. Active Participants:
================================================================================
Contribution Type Hours of Service Requirement
================================================================================
All contributions
================================================================================
Non-Safe Harbor Match Formula 1 1
================================================================================
Employer Discretionary
================================================================================
QNECs
================================================================================
QMACs
================================================================================
Non-Safe Harbor Match Formula 2 1000
================================================================================
b. Terminated Participants:
================================================================================
Contribution Type Hours of Service Requirement
================================================================================
All contributions
================================================================================
Non-Safe Harbor Match Formula 1 1
================================================================================
Employer Discretionary
================================================================================
QNECs
================================================================================
QMACs
================================================================================
Non-Safe Harbor Match Formula 2 1000
================================================================================
C. Allocation of Contributions to Participants:
Employer contributions for a Plan Year will be allocated to all
Participants who have met the allocation accrual requirements at Section IX(B)
above and who have met the following allocation accrual requirements (check all
applicable boxes):
Match Match QNEC QMAC Discretionary
Formula 1 Formula 2
1. For plans using the Elapsed
Time method, contributions
will be allocated to
terminated Participants who
have completed __________
(not more than 12)
months of service [ ] [ ] [ ] [ ] [ ]
2. Employed on the last day
of the Plan Year [ ] [x] [ ] [ ] [ ]
3. The Hours of Service or
Period of Service requirement
in the Plan Year of termination
is waived due to:
a. Retirement [x] [x] [ ] [ ] [ ]
b. Disability [x] [x] [ ] [ ] [ ]
c. Death [x] [x] [ ] [ ] [ ]
d. Other [ ] [ ] [ ] [ ] [ ]
_________________*
e. No last day of the Plan
Year requirement in Plan Year
of any of the above events [x] [x] [ ] [ ] [ ]
[ ] D. Contributions to Disabled Participants:
The Employer will make contributions on behalf of a Participant who is
permanently and totally disabled. These contributions will be based on 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. Such imputed Compensation for
the disabled Participant may be taken into account only if the Participant is
not a Highly Compensated Employee. These contributions will be 100% vested when
made.
X. DISPOSITION OF FORFEITURES
[ ] A. Not applicable. All contributions are fully vested.
If (A) is selected, do not complete (B) or (C) below.
B. Forfeiture Allocation Alternatives:
Select the method in which forfeitures associated with the contribution
type will be allocated (number each item in order of use).
Employer Contribution Type
All Non-Safe Harbor All Other
Disposition Method Matching Contributions Contributions
1. Restoration of Participant's 1
forfeitures. ----- -------------
2. Used to reduce the Employer's
contribution under the Plan ----- -------------
3. Used to reduce the Employer's 2
Matching Contribution. ----- -------------
4. Used to offset Plan expenses. ----- -------------
5. Added to the Employer's contribution
(other than matching) under the Plan. ----- -------------
6. Added to the Employer's Matching
Contribution under the Plan ----- -------------
7. Allocate to all Participants
eligible to share in the
allocations in the same proportion
that each Participant's
Compensation for the year bears
to the Compensation of all other
Participant's Compensation
for the year. ----- -------------
8. Allocate to all NHCEs eligible to
share in the allocations in
proportion to each such
Participant's Compensation
for the year. ----- -------------
9. Allocate to all NCHEs eligible
to share in the allocations
in proportion to each such
Participant's Elective Deferrals
for the year. ----- -------------
10. Allocate to all Participants to
share in the allocations
in the same proportion that
each Participant's Elective
Deferrals for the year bears to
the Elective Deferrals of all
Participants ----- -------------
Participants eligible to share in the allocation of other Employer
Contributions under Section VIII shall be eligible to share in the allocation of
forfeitures except where allocations are only to Non-Highly Compensated
Employees.
C. Timing of Allocation of Forfeitures:
If no distribution or deemed distribution has been made to a former
Participant, nonvested portions shall be forfeited at the end of the Plan Year
during which the former Participant incurs his or her fifth consecutive one-year
Break in Service.
If a former Participant has received the full amount of his or her vested
interest, the nonvested portion of his or her account shall be forfeited and
shall be disposed of:
[ ] 1. during the Plan Year following the Plan Year in which the forfeiture
arose.
[x] 2. as of any Valuation or Allocation Date during the Plan Year (or as
soon as administratively feasible following the close of the Plan Year) in which
the former Participant receives payment of his or her vested benefit.
[ ] 3. at the end of the Plan Year during which the former Participant
incurs his or her __________ (1st, 2nd, 3rd, 4th or 5th) consecutive one-year
Break in Service.
[ ] 4. as of the end of the Plan Year during which the former Participant
received full payment of his or her vested benefit.
[ ] 5. as of the earlier of the first day of the Plan Year, or the first
day of the seventh month of the Plan Year following the date on which the former
Participant has received full payment of his or her vested benefit.
[ ] 6. as of the next Valuation or Allocation Date following the date on
which the former Participant receives full payment of his or her vested benefit.
XI. MULTIPLE PLANS MAINTAINED BY THE EMPLOYER, LIMITATIONS ON ALLOCATIONS,
AND TOP-HEAVY CONTRIBUTIONS
A. Plans Maintained By The Employer:
[x] 1. This is the only Plan the Employer maintains. In the event that the
allocation formula results in an Excess Amount, such excess, after distribution
of Employee contributions pursuant to paragraph 10.2 of the Basic Plan Document
#01, shall be:
[ ] a. Placed in a suspense account for the benefit of the Participant
without the crediting of gains or losses for the benefit of the Participant.
[x] b. Reallocated as additional Employer contributions to all other
Participants to the extent that they do not have any Excess Amount.
If no method is specified, the suspense account method will be used.
[ ] 2. The Employer does maintain another Plan [including a Welfare Benefit
Fund or an individual medical account as defined in Code Section 415(l)(2)],
under which amounts are treated as Annual Additions and has completed the proper
sections below.
a. If the Participant is covered under another qualified Defined
Contribution Plan maintained by the Employer, other than a Master or Prototype
Plan:
[ ] i. The provisions of Article X of the Basic Plan Document #01 will
apply as if the other plan were a Master or Prototype Plan.
[ ] ii. The Employer has specified below the method under which the plans
will limit total Annual Additions to the Maximum Permissible Amount, and will
properly reduce any Excess Amounts in a manner that precludes Employer
discretion.
Employers who maintained a qualified Defined Benefit Plan, prior to January
1, 2000, should complete Schedule C to document the preamendment operation of
the Plan.
b. Allocation of Excess Annual Additions: In the event that the allocation
formula results in an Excess Amount, such excess, after distribution of Employee
contributions, shall be:
[ ] i. Placed in a suspense account for the benefit of the Participant
without the crediting of gains or losses for the benefit of the Participant.
[ ] ii. Reallocated as additional Employer contributions to all other
Participants to the extent that they do not have any Excess Amount.
If no method is specified, the suspense account method will be used.
B. Top-Heavy Provisions:
In the event the Plan is or becomes Top-Heavy, the minimum contribution or
benefit required under Code Section 416 relating to Top-Heavy Plans shall be
satisfied in the elected manner:
[x] 1. This is the only Plan the Employer maintains or ever maintained. The
minimum contribution will be satisfied by this Plan.
[ ] 2. The Employer does maintain another Defined Contribution Plan. The
minimum contribution will be satisfied by:
[ ] a. this Plan.
[ ] b.
--------------------------------------------------------------------
(Name of other Qualified Plan)
[ ] 3. The Employer maintains a Defined Benefit Plan. A method is stated
below under which the minimum contribution and benefit provisions of Code
Section 416 will be satisfied.
XII. ANTIDISCRIMINATION TESTING
For Plans which are being amended and restated for GUST, please complete
Schedule C outlining the preamendment operation of the Plan, as well as this
section of the Adoption Agreement. The testing elections made below will apply
to the future operation of the Plan.
[ ] A. The Plan is not subject to ADP or ACP testing. The Plan does not
offer Voluntary After-tax or Required After-tax Contributions and it either
meets the Safe Harbor provisions of Section VII of this Adoption Agreement, or
it does not benefit any Highly Compensated Employees.
[x] B. Testing Elections:
[ ] 1. This Plan is using the Prior Year testing method for purposes of the
ADP and ACP Tests.
[x] 2. This Plan is using the Current Year testing method for purposes of
the ADP and ACP Tests.
If no election is made, the Plan will use the Current Year testing method.
This election cannot be rescinded for a Plan Year unless (1) the Plan has
been using the Current Year testing method for the preceding 5 Plan Years or, if
lesser, the number of Plan Years the Plan has been in existence; or (2) the Plan
otherwise meets one of the conditions specified in IRS Notice 98-1 (or other
superseding guidance) for changing from the Current Year testing method.
A Prototype Plan must use the same testing method for both the ADP and ACP
tests for Plan Years beginning on or after the date the Employer adopts its
GUST-restated Plan document.
[ ] C. Testing Elections for the First Plan Year:
Complete only when Prior Year testing method election is made.
[ ] 1. If this is not a successor Plan, then for the first Plan Year this
Plan permits (a) any Participant to make Employee contributions, (b) provides
for Matching Contributions or (c) both, the ACP used in the ACP Test for
Participants who are Non-Highly Compensated Employees shall be such first Plan
Year's ACP. Do not select this option if the Employer is using the "deemed 3%"
rule.
[ ] 2. If this is not a successor Plan, then for the first Plan Year this
Plan permits any Participant to make Elective Deferrals, the ADP used in the ADP
Test for Participants who are Non-Highly Compensated Employees shall be such
first Plan Year's ADP. Do not select this option if the Employer is using the
"deemed 3%" rule.
[ ] D. Recharacterization:
Elective Deferrals may be recharacterized as Voluntary After-tax
Contributions to satisfy the ADP Test. The Employer must have elected to permit
Voluntary After-tax Contributions in the Plan for this election to be operable.
XIII. VESTING
Participants shall always have a fully vested and nonforfeitable interest
in their Employee contributions (including Elective Deferrals, Required
After-tax and Voluntary After-tax Contributions), Qualified Matching
Contributions ("QMACs"), Qualified Non-Elective Contributions ("QNECs") or Safe
Harbor Matching or Non-Elective Contributions and their investment earnings.
Each Participant shall acquire a vested and nonforfeitable percentage in
his or her account balance attributable to Employer contributions and their
earnings under the schedule(s) selected below except in any Plan Year during
which the Plan is determined to be Top-Heavy. In any Plan Year in which the Plan
is Top-Heavy, the Two-twenty vesting schedule [option (B)(4)] or the three-year
cliff schedule [option (B)(3)] shall automatically apply unless the Employer has
already elected a faster vesting schedule. If the Plan is switched to option
(B)(4) or (B)(3), because of its Top-Heavy status, that vesting schedule will
remain in effect even if the Plan later becomes non-Top-Heavy until the Employer
executes an amendment of this Adoption Agreement.
A. Vesting Computation Period:
A Year of Service for vesting will be determined on the basis of the
(choose one):
[ ] 1. Not applicable. All contributions are fully vested.
[ ] 2. Elapsed Time method.
[ ] 3. Hours of Service method. A Year of Service will be credited upon
completion of 1000 Hours of Service. A Year of Service for vesting purposes will
not be less than 1 Hour of Service nor greater than 1,000 hours of operation by
law. If left blank, the Plan will use 1,000 hours.
The computation period for purposes of determining Years of Service and
Breaks in Service for purposes of computing a Participant's nonforfeitable right
to his or her account balance derived from Employer contributions:
[ ] 4. shall not be applicable since Participants are always fully vested.
[ ] 5. shall not be applicable, as the Plan is using Elapsed Time.
[ ] 6. shall commence on the date on which an Employee first performs an
Hour of Service for the Employer and each subsequent 12-consecutive month period
shall commence on the anniversary thereof.
[x] 7. shall commence on the first day of the Plan Year during which an
Employee first performs an Hour of Service for the Employer and each subsequent
12-consecutive month period shall commence on the anniversary thereof.
For Plans not using Elapsed Time, a Participant shall receive credit for a
Year of Service if he or she completes the number of hours specified above at
any time during the 12-consecutive month computation period. A Year of Service
may be earned prior to the end of the 12-consecutive month computation period
and the Participant need not be employed at the end of the 12-consecutive month
computation period to receive credit for a Year of Service.
B. Vesting Schedules:
Select the appropriate schedule for each contribution type and complete any
blank vesting percentages from the list below and insert the option number in
the vesting schedule chart below.
Years of Service
================================================================================
1 2 3 4 5 6 7
- - - - - - -
================================================================================
1. Full and immediate vesting.
================================================================================
2. __% 100%
================================================================================
3. __% ___% 100%
================================================================================
4. 0% 20% 40% 60% 80% 100%
================================================================================
5. __% ___% 20% 40% 60% 80% 100%
================================================================================
6. 10% 20% 30% 40% 60% 80% 100%
================================================================================
7. __% ___% ___% ___% 100%
================================================================================
8. __% ___% __% ___% ___% ___% 100%
================================================================================
The percentages selected for schedule (8) may not be less for any year than
the percentages shown at schedule (5).
Vesting Schedule Chart Employer Contribution Type
- ----------------------- ---------------------------------------
4 All Employer Contributions
---
--- Safe Harbor Contributions (Matching or Non-Elective)
1 QMACs and QNECs
---
--- Non-Safe Harbor Match - Formula 1
--- Non-Safe Harbor Match - Formula 2
--- Match on Voluntary After-tax Contributions
--- Match on Required After-tax Contributions
--- Discretionary Contributions
4 Top-Heavy Minimum Contribution
---
--- Other Employer Contribution
C. Service Disregarded for Vesting:
[ ] 1. Not applicable. All Service is recognized.
[ ] 2. Service prior to the Effective Date of this Plan or a predecessor
plan is disregarded when computing a Participant's vested and nonforfeitable
interest.
[x] 3. Service prior to a Participant having attained age 18 is disregarded
when computing a Participant's vested and nonforfeitable interest.
[ ] D. Full Vesting of Employer Contributions for Current Participants:
Notwithstanding the elections above, all Employer contributions made to a
Participant's account shall be 100% fully vested if the Participant is employed
on the Effective Date of the Plan (or such other date as entered herein):
XIV. SERVICE WITH PREDECESSOR ORGANIZATION
[ ] A. Not applicable. The Plan does not recognize Service with any
predecessor organization.
[x] B. The Plan recognizes Service with all predecessor organizations.
[ ] C. Service with the following organization(s) will be recognized for
the Plan purpose indicated:
Eligibility Allocation Accrual Vesting
[ ] [ ] [ ]
[ ] [ ] [ ]
Attached additional pages as necessary
XV. IN-SERVICE WITHDRAWALS
A. In-Service Withdrawals:
[ ] 1. In-service withdrawals are not permitted in the Plan.
[x] 2. In-service withdrawals are permitted in the Plan. Participants may
withdraw the following contribution types after meeting the following
requirements (select one or more of the following options):
Withdrawal Restrictions
Contribution Types A B C D E F G
================================================================================
a. All Contributions [ ] n/a n/a [ ] [x] n/a n/a
b. Voluntary After-tax [ ] [ ] [ ] [ ] [ ] [ ] n/a
c. Required After-tax [ ] [ ] [ ] [ ] [ ] [ ] n/a
d. Rollover [ ] [ ] [ ] [ ] [ ] [ ] n/a
e. Transfer [ ] [ ] [ ] [ ] [ ] [ ] [ ]
f. Elective Deferrals [ ] n/a n/a [ ] [ ] n/a n/a
g. Qualified Non-Elective [ ] n/a n/a [ ] [ ] n/a n/a
h. Qualified Matching [ ] n/a n/a [ ] [ ] n/a n/a
i. Safe Harbor Matching [ ] n/a n/a [ ] [ ] n/a n/a
j. Safe Harbor Non-
Elective [ ] n/a n/a [ ] [ ] n/a n/a
k. Vested Non-Safe Harbor [ ] [ ] [ ] [ ] [ ] [ ] [ ]
Matching Formula 1
l. Vested Non-Safe Harbor
Matching [ ] [ ] [ ] [ ] [ ] [ ] [ ]
Formula 2
m. Vested Discretionary [ ] [ ] [ ] [ ] [ ] [ ] [ ]
Withdrawal Restriction Key
A. Not available for in-service withdrawals.
B. Available for in-service withdrawals.
C. Participants having completed five years of Plan participation may elect
to withdraw all or any part of their Vested Account Balance.
D. Participants may withdraw all or any part of their Account Balance after
having attained the Plan's Normal Retirement Age.
E. Participants may withdraw all or any part of their Vested Account
Balance after having attained age 59.5 (not less than age 59 1/2).
F. Participants may elect to withdraw all or any part of their Vested
Account Balance which has been credited to their account for a period in excess
of two years.
G. Available for withdrawal only if the Participant is 100% vested.
B. Hardship Withdrawals:
[ ] 1. Hardship withdrawals are not permitted in the Plan.
[x] 2. Hardship withdrawals are permitted in the Plan and will be taken
from the Participant's account as follows (select one or more of these options):
[x] a. Participants may withdraw Elective Deferrals.
[ ] b. Participants may withdraw Elective Deferrals and any earnings
credited as of December 31, 1988 (or if later, the end of the last Plan Year
ending before July 1, 1989).
[x] c. Participants may withdraw Rollover Contributions plus their
earnings.
[x] d. Participants may withdraw Transfer Contributions plus their
earnings.
[ ] e. Participants may withdraw fully vested Employer contributions plus
their earnings.
[x] f. Participants may withdraw vested Non-Safe Harbor Matching Formula 1
Contributions plus their earnings..
[x] g. Participants may withdraw vested Non-Safe Harbor Matching Formula 2
Contributions plus their earnings.
[ ] h. Participants may withdraw Qualified Matching Contributions and
Qualified Non-Elective Contributions plus their earnings, and the earnings on
Elective Deferrals which have been credited to the Participant's account as of
December 31, 1988 (or if later, the end of the last Plan Year ending before July
1, 1989).
XVI. LOAN PROVISIONS
[ ] A. Participant loans are permitted in accordance with the Employer's
established loan procedures.
[ ] B. Loan payments will be suspended under the Plan as permitted under
Code Section 414(u) in compliance with the Uniformed Services Employment and
Reemployment Rights Act of 1994.
XVII. INVESTMENT MANAGEMENT
A. Investment Management Responsibility:
[ ] 1. The Employer shall appoint a discretionary Trustee to manage the
assets of the Plan.
[ ] 2. The Employer shall retain investment management responsibility
and/or authority.
[x] 3. The party designated below shall be responsible for the investment
of the Participant's account.
By selecting a box, the Employer is making a designation as to whom will
have authority to issue investment directives with respect to the specified
contribution type (check all applicable boxes):
Trustee Employer Participant
a. All Contributions n/a n/a [x]
b. Employer Contributions [ ] [ ] [ ]
c. Elective Deferrals [ ] [ ] [ ]
d. Voluntary After-tax [ ] [ ] [ ]
e. Required After-tax [ ] [ ] [ ]
f. Safe Harbor Contributions [ ] [ ] [ ]
g. Non-Safe Harbor Match Formula 1 [ ] [ ] [ ]
h. QMACs [ ] [ ] [ ]
i. QNECs [ ] [ ] [ ]
j. Non-Safe Harbor Match Formula 2 [ ] [ ] [ ]
k. Rollover Contributions [ ] [ ] [ ]
l. Transfer Contributions [ ] [ ] [ ]
To the extent that Participant self-direction was previously permitted, the
Employer shall have the right to either make the assets part of the general
fund, or leave them as self-directed subject to the provisions of the Basic Plan
Document #01.
B. Limitations on Participant Directed Investments:
[x] 1. Participants are permitted to invest among only those investment
alternatives made available by the Employer under the Plan.
[ ] 2. Participants are permitted to invest in any investment alternative
permitted under the Basic Plan Document #01.
[ ] C. Insurance:
The Plan permits insurance as an investment alternative.
[x] D. ERISA Section 404(c):
The Employer intends to be covered by the fiduciary liability provisions
with respect to Participant directed investments under ERISA Section 404(c).
XVIII. DISTRIBUTION OPTIONS
A. Timing of Distributions [both (1) and (2) must be completed]:
1. Distributions payable as a result of termination for reasons other than
death, Disability or retirement shall be paid c [select from the list at (A)(3)
below].
2. Distributions payable as a result of termination for death, Disability
or retirement shall be paid c [select from the list at (A)(3) below].
3. Distribution Options:
a. As soon as administratively feasible on or after the Valuation Date
following the date on which a distribution is requested or is otherwise payable.
b. As soon as administratively feasible following the close of the Plan
Year during which a distribution is requested or is otherwise payable.
c. As soon as administratively feasible following the date on which a
distribution is requested or is otherwise payable. (This option is recommended
for daily valuation plans.)
d. As soon as administratively feasible after the close of the Plan Year
during which the Participant incurs __________ (cannot be more than 5)
consecutive one-year Breaks in Service. [This formula can only be used in
(A)(1).]
e. As soon as administratively feasible after the close of the Plan Year
during which the Participant incurs __________ (cannot be more than 5)
consecutive one-year Breaks in Service. [This formula can only be used in
(A)(2).]
f. Only after the Participant has attained the Plan's Normal Retirement Age
or Early Retirement Age, if applicable.
B. Required Beginning Date:
The Required Beginning Date of a Participant with respect to a Plan is
(select one from below):
[ ] 1. The April 1 of the calendar year following the calendar year in
which the Participant attains age 70 1/2.
[ ] 2. The April 1 of the calendar year following the calendar year in
which the Participant attains age 70 1/2 except that distributions to a
Participant (other than a 5% owner) with respect to benefits accrued after the
later of the adoption of this Plan or Effective Date of the amendment of this
Plan must commence no later than the April 1 of the calendar year following the
later of the calendar year in which the Participant attains age 70 1/2 or the
calendar year in which the Participant retires.
[x] 3. 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 except that
distributions to a 5% owner must commence by the April 1 of the calendar year
following the calendar year in which the Participant attains age 70 1/2.
Except that such Participant [x] may [ ] may not elect to begin receiving
distributions as of April 1 of the calendar year following the calendar year in
which the Participant attains age 70 1/2. Any distributions made pursuant to
such an election will not be considered required minimum distributions. Such
distributions will be considered in-service distributions and as such, will be
subject to applicable withholding.
Plans which are an amendment or restatement of an existing Plan which
provided for the provisions of Code Section 401(a)(9) currently in effect prior
to the amendment of the Small Business Job Protection Act of 1996 must complete
Schedule C.
C. Forms of Payment (select all that apply):
[ ] 1. Lump sum.
[ ] 2. Installment payments.
[ ] 3. Partial payments; the minimum amount will be $__________.
[ ] 4. Life annuity.
[ ] 5. Term certain annuity with payments guaranteed for __________ years
(not to exceed 20).
[ ] 6 Joint and [ ] 50%, [ ] 66%, [ ] 75% or [ ] 100% survivor annuity.
[ ] 7. The default form of payment will be a direct rollover into an
individual retirement account or annuity for any "cash out" distribution made
pursuant to Code Sections 411(a)(7), 411(a)(11) and 417(e)(1).
[ ] 8. Cash.
[ ] 9. Employer securities.
[ ] 10. Other marketable securities.
The normal form of payment is determined at Section III(J) of this Adoption
Agreement.
D. Recalculation of Life Expectancy:
[ ] 1. Recalculation is not permitted.
[x] 2. Recalculation is permitted. When determining installment payments in
satisfying the minimum distribution requirements under the Plan, and life
expectancy is being recalculated:
[ ] a. only the Participant's life expectancy shall be recalculated.
[ ] b. both the Participant's and Spouse's life expectancy shall be
recalculated.
[x] c. the Participant will determine whose life expectancy is
recalculated.
XIX. SPONSOR INFORMATION AND ACCEPTANCE
This Plan may not be used and shall not be deemed to be a Prototype Plan
unless an authorized representative of the Sponsor has acknowledged the use of
the Plan. Such acknowledgment that the Employer is using the Plan does not
represent that the Adoption Agreement (as completed) and Basic Plan Document
have been reviewed by a representative of the Sponsor or constitute a qualified
retirement plan.
Acknowledged and accepted by the Sponsor this __________ day of __________,
_____.
Name: Karen M. Hook, QPA
Title: VP Administration
Signature:
----------------------------
Questions concerning the language contained in and qualification of the
Prototype should be addressed to: Karen M. Hook, QPA
(Position): VP Administration (Phone Number): 515-225-7144
In the event that the Sponsor amends, discontinues or abandons this
Prototype Plan, notification will be provided to the Employer's address provided
on the first page of this Adoption Agreement.
XX. SIGNATURE:
The Sponsor recommends that the Employer consult with its legal counsel
and/or tax advisor before executing this Adoption Agreement. The Employer
understands that its failure to properly complete or amend this Adoption
Agreement may result in failure of the Plan to qualify or disqualification of
the Plan. The Employer by executing this Adoption Agreement acknowledges that
this is a legal document with significant tax and legal ramifications.
A. Employer:
This Adoption Agreement and the corresponding provisions of Basic Plan
Document #01 are adopted by the Employer this __________ day of __________,
__________.
Name of Employer: Hallett Construction Company
Executed on behalf of the Employer by: Kurt Rasmussen
Title: President
Signature:
---------------------------------
Participating Employer:
Name and address of any Participating Employer.
Old Castle IA, Inc. d/b/a Des Moines Asphalt and Paving Co.
This Adoption Agreement and the corresponding provisions of Basic Plan
Document #01 are adopted by the Participating Employer this __________ day of
__________, __________.
Executed on behalf of the
Participating Employer by: Kurt Rasmussen
Title: President
Signature:
---------------------------------
Attach additional signature pages as necessary.
Employer's Reliance: The adopting Employer may rely on an Opinion Letter
issued by 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 obtain reliance in such
circumstances or with respect to such qualification requirements, application
for a determination letter must be made to Employee Plans Determinations of the
Internal Revenue Service.
This Adoption Agreement may only be used in conjunction with Basic Plan
Document #01.
The Sponsor recommends that the Employer consult with its legal counsel
and/or tax advisor before executing this Adoption Agreement. The Employer
understands that its failure to properly complete or amend this Adoption
Agreement may result in failure of the Plan to qualify or disqualification of
the Plan. The Employer by executing this Adoption Agreement acknowledges that
this is a legal document with significant tax and legal ramifications.
Participating Employer:
Name and address of Employer if different than specified in Section I
above.
OMG Iowa, Inc. d/b/a American Concrete Products, Inc. and Nuckoll's
Concrete Services, Inc.
This Adoption Agreement and the corresponding provisions of Basic Plan
Document #01 are adopted by the Participating Employer __________ day of
__________, __________.
Executed on behalf of the
Participating Employer: Kurt Rasmussen
Title: President
Signature:
------------------------------
Attach additional signature pages as necessary.
Employer's Reliance: The adopting Employer may rely on an Opinion Letter
issued by 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 obtain reliance in such
circumstances or with respect to such qualification requirements, application
for a determination letter must be made to Employee Plans Determinations of the
Internal Revenue Service.
This Adoption Agreement may only be used in conjunction with Basic Plan
Document #01.
B. Trustee:
Trust Agreement:
[x] Not applicable. Plan assets will be invested in Group Annuity
Contracts. There is no Trustee and the terms of the contract(s) will apply.
[ ] The Trust provisions used will be as contained in the Basic Plan
Document #01.
[ ] The Trust provisions used will be as contained in the accompanying
executed Trust Agreement between the Employer and the Trustee attached hereto.
Complete the remainder of this section only if the Trust provisions used
are as contained in the Basic Plan Document #01.
Name and address of Trustee:
The assets of the Plan shall be invested in accordance with Article XIII of
the Basic Plan Document #01. The Employer's Plan and Trust as contained herein
is accepted by the Trustee this __________ day of __________, __________.
Accepted on behalf of the Trustee by:
------------------------------------
Title:
-------------------------------------
Signature:
-------------------------------------
Accepted on behalf of the Trustee by:
-------------------------------------
Title:
-------------------------------------
Signature:
-------------------------------------
Accepted on behalf of the Trustee by:
-------------------------------------
Title:
-------------------------------------
Signature:
-------------------------------------
C. Custodian:
Custodial Agreement:
[x] Not applicable. There is no Custodian.
[ ] Not applicable. Plan assets will be invested in Group Annuity
Contracts. There is no Custodian and the terms of the contract(s) will apply.
[ ] The Custodial provisions used will be as contained in Basic Plan
Document #01.
[ ] The Custodial provisions used will be as contained in the accompanying
executed Custodial Agreement between the Employer and the Custodian attached
hereto.
Complete the remainder of this section only if the Custodial provisions
used are as contained in the Basic Plan Document #01.
Name and address of Custodian:
The assets of the Plan shall be invested in accordance with Article XIII of
the Basic Plan Document #01. The Employer's Plan and Custodial Account as
contained herein are accepted by the Custodian this __________ day of
__________, __________.
Accepted on behalf of the Custodian by:
-------------------------------------
Title:
-------------------------------------
Signature:
-------------------------------------
SCHEDULE A
PROTECTED BENEFITS
This Schedule includes any prior Plan protected benefits which are not
available in Basic Plan Document #01. Complete as applicable.
1. Plan Provision:
Effective Date:
2. Plan Provision:
Effective Date:
3. Plan Provision:
Effective Date:
4. Plan Provision:
Effective Date:
5. Plan Provision:
SCHEDULE B
PRIOR PLAN PROVISIONS
This Schedule should be used if a prior plan contains provisions not found
in Basic Plan Document #01, or where the Employer wishes to document
transactions or historical provisions of the Employer's Plan.
1. Plan Provision:
Effective Date:
2. Plan Provision:
3. Plan Provision:
Effective Date:
4. Plan Provision:
Effective Date:
5. Plan Provision:
Effective Date:
SCHEDULE C
PREAMENDMENT OPERATION OF THE PLAN
The following are the adopting Employer's elective Plan provisions which
conform the terms of this Prototype Plan to the preamendment operation of the
Plan during the transition period between the earliest effective date under GUST
(as defined below) and the effective date of adoption of this Prototype Plan and
Trust which takes into account all of the changes in the qualification
requirements made by the following: The Uruguay Round Agreements, Pub. L.
103-465 (GATT); The Uniformed Services Employment and Reemployment Rights Act of
1994, Pub. L. 103-353 (USERRA); The Small Business Job Protection Act of 1996,
Pub. L. 104-188 (SBJPA) [including Section 414(u) of the Internal Revenue Code];
The Taxpayer Relief Act of 1997, Pub. L. 105-34 (TRA'97); and The Internal
Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105-206 (IRSRRA);
and The Community Renewal Tax Relief Act of 2000, Pub. L. 106-554 (CRA),
hereinafter referred to collectively as GUST.
Complete as applicable and appropriate.
I. Plan Provision: Highly Compensated Employees
For Plan Years beginning after 1996, the Employer may elect a "Top-Paid
Group" election and the Calendar Year Data election to determine the definition
of Highly Compensated Employee:
[ ] A. Top-Paid Group Election: A Participant (who is not a 5% owner at any
time during the determination year or the look-back year) who earned more than
$80,000 as indexed for the look-back year is a Highly Compensated Employee if
the Employee was in the Top-Paid Group for the look-back year. The election was
applicable for:
[ ] 1. 1997 Plan Year.
[ ] 2. 1998 Plan Year.
[ ] 3. 1999 Plan Year.
[ ] 4. 2000 Plan Year.
[ ] 5. 2001 Plan Year.
[ ] 6. 2002 Plan Year.
[ ] B. Calendar Year Data Election: In determining who is a Highly
Compensated Employee (other than a 5% owner) the Employer makes a calendar year
data election. The look-back year is the calendar year beginning with or within
the look-back year. The election was applicable for:
[ ] 1. 1998 Plan Year.
[ ] 2. 1999 Plan Year.
[ ] 3. 2000 Plan Year.
[ ] 4. 2001 Plan Year.
[ ] 5. 2002 Plan Year.
If the elections above are made, such election shall apply to all Plans
maintained by the Employer.
[ ] C. Calendar Year Calculation Election (for 1997 Plan Year only):
Indicate below whether the Calendar Year calculation election was made for Plan
Years beginning in 1997:
[ ] Yes [ ] No
II. Plan Provision: Family Aggregation
Did the Pre-SBJPA Family Aggregation rules of Code Sections 401(a)(17)(a)
and 414(q)(6), both in effect for Plan Years beginning before January 1, 1997,
continue to apply for any purpose for Plan Years beginning after 1996?
[ ] No
[ ] Yes; explain the application:
-------------------------------
- --------------------------------------------------------------------------------
If this rule was subsequently discontinued, indicate when rule no longer
Employers who adopt this Prototype Plan may not elect to continue to apply
the pre-SBJA Family Aggregation rules.
III. Plan Provision: Combined Plan Limit of Code Section 415(e)
Did the Employer maintain a Defined Benefit Plan prior to January 1, 2000?
[ ] Yes [ ] No
Did the Plan continue to apply the combined Plan limit of Code Section
415(e) (as in effect for Limitation Years beginning before January 1, 2000) in
limitation years beginning after December 31, 1999, to the extent that such
election conforms to the Plan's operation?
[ ] Yes [ ] No
If yes, specify provisions below that will satisfy the 1.0 limitation of
Code Section 415(e). Such language must preclude Employer discretion. The
Employer must also specify the interest and mortality assumptions used in
determining Present Value in the Defined Benefit Plan.
Employers who adopt this Prototype Plan may not elect to continue to apply
the combined Plan limit of Code Section 415(e) in years beginning after the date
the Employer adopts its GUST-related Plan.
IV. Plan Provision: Nondiscrimination Testing
The Small Business Job Protection Act permits the Employer to use the ADP
and/or ACP of Non-Highly Compensated Employees for the prior year or current
year in determining whether the plan satisfied the nondiscrimination tests.
Employers who adopt this Prototype Plan must use the same testing method
for both the ADP and ACP tests for Plan Years beginning on or after the date the
Employer adopts this GUST-restated Plan. This restriction does not apply with
respect to Plan Years beginning before the date the Employer adopts this
GUST-restated plan.
1. ADP Testing Election:
[ ] a. Current year data for all Participants was used.
[ ] 1. 1997 Plan Year.
[ ] 2. 1998 Plan Year.
[ ] 3. 1999 Plan Year.
[ ] 4. 2000 Plan Year.
[ ] 5. 2001 Plan Year.
[ ] 6. 2002 Plan Year.
[ ] b. Prior year data for Participants who are Non-Highly Compensated
Employees was used.
[ ] 1. 1997 Plan Year.
[ ] 2. 1998 Plan Year.
[ ] 3. 1999 Plan Year.
[ ] 4. 2000 Plan Year.
[ ] 5. 2001 Plan Year.
[ ] 6. 2002 Plan Year.
2. ACP Testing Election:
[ ] a. Current year data for all Participants was used:
[ ] 1. 1997 Plan Year.
[ ] 2. 1998 Plan Year.
[ ] 3. 1999 Plan Year.
[ ] 4. 2000 Plan Year.
[ ] 5. 2001 Plan Year.
[ ] 6. 2002 Plan Year.
[ ] b. Prior year data for Participants who are Non-Highly Compensated
Employees was used.
[ ] 1. 1997 Plan Year.
[ ] 2. 1998 Plan Year.
[ ] 3. 1999 Plan Year.
[ ] 4. 2000 Plan Year.
[ ] 5. 2001 Plan Year.
[ ] 6. 2002 Plan Year.
V. Plan Provision: First Plan Year Testing Elections:
For a new 401(k) Plan, the Employer could use either the current or prior
year testing methods as well as a rule that deems the prior year ADP/ACP to be
3%.
1. ADP Testing Election:
[ ] a. Current year data for all Participants was used.
[ ] 1. 1997 Plan Year.
[ ] 2. 1998 Plan Year.
[ ] 3. 1999 Plan Year.
[ ] 4. 2000 Plan Year.
[ ] 5. 2001 Plan Year.
[ ] 6. 2002 Plan Year.
[ ] b. Current year data for Participants who are Highly Compensated
Employees will be used. The ADP for Participants who are Non-Highly Compensated
Employees was assumed to be 3% or the actual ADP if greater.
[ ] 1. 1997 Plan Year.
[ ] 2. 1998 Plan Year.
[ ] 3. 1999 Plan Year.
[ ] 4. 2000 Plan Year.
[ ] 5. 2001 Plan Year.
[ ] 6. 2002 Plan Year.
2. ACP Testing Election:
[ ] a. Current year data for all Participants was used:
[ ] 1. 1997 Plan Year.
[ ] 2. 1998 Plan Year.
[ ] 3. 1999 Plan Year.
[ ] 4. 2000 Plan Year.
[ ] 5. 2001 Plan Year.
[ ] 6. 2002 Plan Year.
[ ] b. Current year data for Participants who are Highly Compensated
Employees will be used. The ACP for Participants who are Non-Highly Compensated
Employees was assumed to be 3% or the actual ACP if greater.
[ ] 1. 1997 Plan Year.
[ ] 2. 1998 Plan Year.
[ ] 3. 1999 Plan Year.
[ ] 4. 2000 Plan Year.
[ ] 5. 2001 Plan Year.
[ ] 6. 2002 Plan Year.
VI. Plan Provision: Distribution Alternatives For Participants Who Are Not
A More Than 5% Owner
Select (A), (B), (C) and/or (D), whichever is applicable. Subsection (D)
must be selected to the extent that there would otherwise be an elimination of a
pre-retirement age 70 1/2 distribution option for Employees other than those
listed above.
[ ] A. Any Participant who has not had a separation from Service who had
attained age 70 1/2 in years after 1995 may elect by April 1 of the calendar
year following the calendar year in which the Participant attained age 70 1/2(or
by December 31, 1997, in the case of a Participant attaining age 70 1/2in 1996)
to defer distributions until the calendar year in which the Participant retires.
If no such election is made, the Participant will begin receiving distributions
by the April 1 of the calendar year following the calendar year in which the
Participant attained age 70 1/2(or by December 31, 1997, in the case of a
Participant attaining age 70 1/2in 1996).
[ ] B. Any Participant who has not had a separation from Service and is
currently in benefit payment status because of attainment of age 70 1/2 in years
prior to 1997 may elect to stop distributions and recommence by the April 1 of
the calendar year following the calendar year in which the Participant retires.
There is either (select one):
[ ] 1. a new Annuity Starting Date upon recommencement, or
[ ] 2. no new Annuity Starting Date upon recommencement.
[ ] C. Any Participant who has not had a separation from Service, and is
currently in benefit payment status because of attainment of age 70 1/2 in 1997
or in a later year (or attained age 70 1/2 in 1996, but had not commenced
required minimum distributions in 1996) may elect to stop distributions and
recommence by the April 1 of the calendar year following the calendar year in
which the Participant retires. There is either (select one):
[ ] 1. a new Annuity Starting Date upon recommencement, or
[ ] 2. no new Annuity Starting Date upon recommencement.
[ ] D. The pre-retirement distribution option is only eliminated with
respect to Employees who reach age 70 1/2in or after a calendar year that begins
after the later of December 31, 1998, or the adoption of the amendment to the
Plan. The pre-retirement age 70 1/2distribution option is an optional form of
benefit under which benefits are payable in a particular distribution form
(including any modifications that may be elected after benefit commencement) and
commencing at a time during the period that begins on or after January 1 of the
calendar year following the calendar year in which an Employee attains age 70
1/2and ends April 1 of the immediately following calendar year.
VII. Plan Provision: Mandatory Cash-out Rule
[ ] For Plan Years beginning after August 9, 1997, the $3,500 cash-out
limit is increased to $5,000.
VIII. Plan Provision: 30-Day Waiver Period
For Plan Years beginning after December 31, 1996, if the Plan is subject to
the Joint and Survivor rules did the Plan provide distributions prior to the
expiration of the 30-day waiting period?
[ ] Yes [ ] No
IX. Plan Provision: Suspension of Loan Repayments
On or after December 12, 1994, did the Employer permit the suspension of
loan repayments due to qualified military leave?
[ ] Yes [ ] No
Effective Date:
--------------------
X. Plan Provision: Hardship Distributions Treated as Eligible Rollover
Distributions
The Employer had the option with respect to Hardship distributions made
after December 31, 1998 to treat as eligible rollover distributions, or to delay
the Effective Date until January 1, 2000. Hardship distributions were not
treated as eligible rollover distributions effective as of:
[ ] January 1, 1999
[ ] January 1, 2000
[ ] Other (specify date):
XI. Plan Provision: 401(k) Safe Harbor Provisions
For Plan Years beginning after 1998, the Employer may implement safe harbor
provisions under Code Sections 401(m)(11) and 401(k)(12). Did the Plan elect
safe harbor status?
[ ] Yes
[x] No
If yes, enter the formulas below:
Date Plan Year Begins Section 401(k) Section 401(m)
================================================================================
_____/_____/99
================================================================================
_____/_____/00
================================================================================
_____/_____/01
================================================================================
_____/_____/02
================================================================================
XII. Other Plan Provisions:
Effective Date:
SCHEDULED
SAFE HARBOR ELECTIONS FOR FLEXIBLE NON-ELECTIVE CONTRIBUTION
The following elections are made with regard to the Plan's Safe Harbor
status pursuant to Section VII herein. For Plan Years indicated below, the Plan
hereby invokes a Safe Harbor status in accordance with IRS Notices 98-52 and
2000-3.
For all Plan Years in which this Safe Harbor election is being made, the
limitations and restrictions found in Section VII herein apply.
1. For the Plan Year beginning __________ and ending __________, the
Employer hereby invokes a Safe Harbor status as provided in IRS Notice 2000-3.
The Safe Harbor Contribution will be an amount equal to __________% (not less
than 3%) of Compensation. This election is made on this __________ day of
__________, __________ (date may not be later than 30 days prior to the end of
the Plan Year in which such election is being made).
2. For the Plan Year beginning __________ and ending __________, the
Employer hereby invokes a Safe Harbor status as provided in IRS Notice 2000-3.
The Safe Harbor Contribution will be an amount equal to __________% (not less
than 3%) of Compensation. This election is made on this __________ day of
__________, __________ (date may not be later than 30 days prior to the end of
the Plan Year in which such election is being made).
3. For the Plan Year beginning __________ and ending __________, the
Employer hereby invokes a Safe Harbor status as provided in IRS Notice 2000-3.
The Safe Harbor Contribution will be an amount equal to __________% (not less
than 3%) of Compensation. This election is made on this ___________ day of
__________, __________ (date may not be later than 30 days prior to the end of
the Plan Year in which such election is being made).
4. For the Plan Year beginning __________ and ending __________, the
Employer hereby invokes a Safe Harbor status as provided in IRS Notice 2000-3.
The Safe Harbor Contribution will be an amount equal to ___________% (not less
than 3%) of Compensation. This election is made on this __________ day of
__________, __________ (date may not be later than 30 days prior to the end of
the Plan Year in which such election is being made).
5. For the Plan Year beginning __________ and ending __________, the
Employer hereby invokes a Safe Harbor status as provided in IRS Notice 2000-3.
The Safe Harbor Contribution will be an amount equal to __________% (not less
than 3%) of Compensation. This election is made on this __________ day of
__________, __________ (date may not be later than 30 days prior to the end of
the Plan Year in which such election is being made).
SCHEDULE E
COLLECTIVE AND COMMINGLED FUNDS
The Trustee is authorized to invest all or any part of the Fund in the
following Collective and Commingled Funds as provided for in the Basic Plan
Document #01:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
AMENDMENT
TO THE
NONSTANDARDIZED
CASH OR DEFERRED PROFIT-SHARING PLAN
ADOPTION AGREEMENT #010
1. Except as otherwise noted, effective as of the first day of the first
Plan Year beginning after December 31, 2001, Section VI of the Nonstandardized
Cash or Deferred Profit-Sharing Plan Adoption Agreement #010 entitled "EMPLOYEE
CONTRIBUTIONS" is amended by adding the following new sections:
"J". Catch-up Contributions (select one):
[x] 1. Shall apply to contributions after 12/31/2001. (enter December 31,
2001 or a later date).
[ ] 2. Shall not apply.
K. Direct Rollovers:
The Plan will accept a Direct Rollover of an Eligible Rollover Distribution
from (check each that apply):
[x] 1. A Qualified Plan described in Code Section 401(a) or 403(a),
excluding Voluntary After-tax Contributions.
[ ] 2. A Qualified Plan described in Code Section 401(a) or 403(a),
including Voluntary After-tax Contributions.
[x] 3. An annuity contract described in Code Section 403(b), excluding
Voluntary After-tax Contributions.
[ ] 4. An eligible plan under Code Section 457(b) which is maintained by a
state, political subdivision of a state, or an agency or instrumentality of a
state or political subdivision of a state.
L. Participant Rollover Contributions from Other Plans:
The Plan will accept a Participant Rollover Contribution of an Eligible
Rollover Distribution from (check only those that apply):
[x] 1. A Qualified Plan described in Code Section 401(a) or 403(a).
[x] 2. An annuity contract described in Code Section 403(b).
[ ] 3. An eligible plan under Code Section 457(b) which is maintained by a
state, political subdivision of a state, or any agency or instrumentality of a
state or political subdivision of a state.
M. Participant Rollover Contributions from IRAs:
The Plan (select one):
[x] 1. will
[ ] 2. will not
accept a Participant Rollover Contribution of the portion of a distribution
from an Individual Retirement Account [which was not used as a conduit] or
Annuity described in Code Section 408(a) or 408(b) that is eligible to be rolled
over and would otherwise be includable in gross income.
N. Effective Date of Direct Rollover and Participant Rollover Contribution
Provisions:
The provisions of (K), (L) and (M) above as they apply to Paragraph 4.4 of
the Basic Plan Document #01 entitled "Rollover Contributions" shall be effective
1/1/2002 (enter a date no earlier than January 1, 2002)."
2. Section VIII(A) of the Nonstandardized Cash or Deferred Profit-Sharing
Plan Adoption Agreement #010 entitled, "Matching Employer Contributions" will be
amended effective ____________________ by the addition of a new paragraph 6,
which shall read as follows:
"6. Catch-Up Contributions:
[x] a. Catch-Up contributions made by the Participants will not be matched
by the Employer.
[ ] b. Catch-Up Contributions made by the Participants will be matched on
the same formula, terms and conditions as provided in Section VIII of the
Adoption Agreement. A Matching Contribution will be made on the basis of the
contribution type(s) selected below:
[ ] i. Elective Deferrals
[ ] ii. 403(b) Deferrals"
3. Section XI of the Nonstandardized Cash or Deferred Profit-Sharing Plan
Adoption Agreement #010 entitled, "MULTIPLE PLANS MAINTAINED BY THE SAME
EMPLOYER, LIMITATIONS ON ALLOCATIONS, AND TOP-HEAVY CONTRIBUTIONS" will be
amended effective by the addition of a new paragraph (C) which shall read as
follows:
"C. Minimum Benefits for Employees Also Covered Under Another Plan:
The Employer should describe below the extent, if any, to which the
Top-Heavy Minimum Benefit requirements of Code Section 416(c) and paragraph 14.2
of the Basic Plan Document #01 shall be met in another plan. Please list the
name of the other plan, the minimum benefit that will be provided under such
other plan, and the Employees who will receive the minimum benefit under such
other plan."
4. Section XIII of the Nonstandardized Cash or Deferred Profit-Sharing Plan
Adoption Agreement #010 entitled, "VESTING" will be amended effective
_______________ by the addition of a new paragraph (E) which shall read as
follows:
Note: First select to whom the vesting schedule will apply. Number 1 should
be elected if only active Participants' Matching Contributions accounts will be
affected. Letter (a) should be selected if the Employer wishes only to change
the vesting schedule for contributions made to the Plan after December 31, 2001.
Letter (b) should be selected if the Employer wants to change the vesting
schedule for all Matching Contributions to the Plan (regardless of when made).
Number 2 should be selected if the Employer wants to change the vesting schedule
on Matching Contributions for all Participants - regardless of whether they are
active or inactive. The applicable vesting schedule shall be selected from
number 3 through 7 below.
"E. Vesting of Employer Matching Contributions:
[ ] 1. Participants who have completed one Hour of Service after 2001
[ ] a. The vesting schedule of Employer Matching Contributions as described
in paragraph 9.2 of the Basic Plan Document #01 shall be selected below and
shall apply only to account balances derived from Employer Matching
Contributions attributable to a Plan Year beginning after December 31, 2001.
[ ] b. The vesting schedule of Employer Matching Contributions as described
in paragraph 9.2 of the Basic Plan Document #01 shall be selected below and
shall apply to all Participants with an account balance derived from Employer
Matching Contributions.
[ ] 2. All Plan Participants:
The vesting schedule of Employer Matching Contributions as described in
paragraph 9.2 of the Basic Plan Document #01 shall be selected below and shall
apply to all Participants with an account balance derived from Employer Matching
Contributions.
The vesting schedule for Employer Matching Contributions shall be as
follows:
[ ] 3. Not applicable. There are not Matching Contributions made to the
Plan.
[x] 4. Not applicable. The current formula(s) are equal to or greater than
the three year cliff or six year graded vesting schedules.
[ ] 5. A Participant's account balance derived from Employer Matching
Contributions shall be fully and immediately vested.
[ ] 6. A Participant's account balance derived from Employer Matching
Contributions shall be nonforfeitable upon the Participant's completion of three
(3) years of vesting Service.
[ ] 7. A Participant's account balance derived from Employer Matching
Contributions shall best according to the following schedule:
Years of Vesting Service Vested Percentage
------------------------ -----------------
2 20%
3 40%
4 60%
5 80%
6 100%
6. Section XVIII of the Nonstandardized Cash or Deferred Profit-Sharing
Plan Adoption Agreement #010 entitled, "DISTRIBUTION OPTIONS" will be amended
effective 1/1/2002 by the addition of the following:
"E. Treatment of Rollovers in Application of Involuntary Cash-out
Provisions: The Plan (select one):
[x] Elects to exclude Rollover Contributions in determining the value of
the Participant's nonforfeitable account balance for purposes of the Plan's
involuntary cash-out rules.
[ ] Does not elect to exclude Rollover Contributions in determining the
value of the Participant's nonforfeitable account balance for purposes of the
Plan's involuntary cash-out rules.
If the Employer has elected to exclude Rollover Contributions, the election
shall apply with respect to distributions made after 1/1/2002 (enter a date no
earlier than December 31, 2001) with respect to Participants who separated from
Service after 1/1/2002 (enter the date; this date may be earlier than December
31, 2001)."
F. Distribution Upon Severance from Employment:
Distribution upon severance from employment as described in paragraph
6.6(d) of the Basic Plan Document #01 shall apply for distributions after
1/1/2002 (enter a date no earlier than December 31, 2001):
[x] regardless of when the severance from employment occurred.
[ ] for severance from employment occurring after __________ (enter the
Effective Date if different than the Effective Date above)."
Executed this __________ day of __________.
Name of Employer Hallett Construction Company
Signed by
Signature
Second Additional Adopting Employer: Kurt Rasmussen
Signed by
Signature
Third Additional Adopting Employer: Kurt Rasmussen
Signed by
Signature
AMENDMENT TO THE ADOPTION AGREEMENT FOR THE
FINAL AND TEMPORARY MINIMUM DISTRIBUTION RULES
OF CODE SECTION 401(a)(9)
Except as otherwise noted, effective as of the first day of the first Plan
Year beginning after December 31, 2001, on the Adoption Agreement the section
entitled "Distribution Options" is amended by adding the following new section
to the Adoption Agreement.
Minimum Distribution Requirements
Check and complete Section A below if any required minimum distributions
for the 2002 distribution calendar year were made in accordance with the
ss.401(a)(9) Final and Temporary Regulations.
[x] A. Effective Date of Plan Amendment for Section 401(a)(9) Final and
Temporary Treasury Regulations.
Article XVII, Minimum Distribution Requirements, applies for purposes of
determining Required Minimum Distributions for Distribution Calendar Years
beginning with the 2003 calendar year, as well as Required Minimum Distributions
for the 2002 Distribution Calendar Year that are made on or after 1/1/2002
(insert Effective Date).
Check and complete any of the remaining sections if you wish to modify the
rules in paragraphs 17.7 and 17.12 of Article XVII of the Plan.
[ ] B. Election to Apply 5-Year Rule to Distributions to Designated
Beneficiaries:
If the Participant dies before distributions begin and there is a
designated Beneficiary, distribution to the designated Beneficiary is not
required to begin by the date specified in paragraph 17.7 of the Basic Plan
Document #01 but the Participant's entire interest will be distributed to the
designated Beneficiary by December 31 of the calendar year containing the fifth
anniversary of the Participant's death. If the Participant's surviving Spouse is
the Participant's sole designated Beneficiary and the surviving Spouse dies
after the Participant but before distributions to either the Participant or the
surviving Spouse begin, this election will apply as if the surviving Spouse were
the Participant.
This election will apply to:
[ ] 1. All distributions.
[ ] 2. The following distributions:
[x] C. Election to Allow Participants or Beneficiaries to Elect 5-Year
Rule:
Participants or Beneficiaries may elect on an individual basis whether the
5-year rule or the life expectancy rule in paragraph 17.7 and 17.12 of the Basic
Plan Document #01 applies to distributions after the death of a Participant who
has a designated Beneficiary. The election must be made no later than the
earlier of September 30 of the calendar year in which distribution would be
required to begin under paragraph 17.7, or by September 30 of the calendar year
which contains the fifth anniversary of the Participant's (or, if applicable,
surviving Spouse's) death. If neither the Participant nor Beneficiary makes an
election under this paragraph, distributions will be made in accordance with
paragraph 17.7 and 17.12 of the Basic Plan Document #01 and, if applicable, the
elections in section B above.
[x] D. Election to Allow Designated Beneficiary Receiving Distributions
Under 5-Year Rule to Elect Life Expectancy Distributions:
A designated Beneficiary who is receiving payments under the 5-year rule
may make a new election to receive payments under the life expectancy rule until
December 31, 2003, provided that all amounts that would have been required to be
distributed under the life expectancy rule for all distribution calendar years
before 2004 are distributed by the earlier of December 31, 2003 or the end of
the 5-year period.
IN WITNESS WHEREOF, the Employer has caused this Amendment to be executed
this __________ day of --------------------.
Name of Employer Hallett Construction Company
Signed by
Signature
Second Additional Adopting Employer: Kurt Rasmussen
Signed by
Signature
Third Additional Adopting Employer: Kurt Rasmussen
Signed by
Signature