Plan #002
NONSTANDARDIZED
ADOPTION AGREEMENT
PROTOTYPE CASH OR DEFERRED PROFIT-SHARING
PLAN AND TRUST/CUSTODIAL ACCOUNT
Sponsored by
PNC BANK, NATIONAL ASSOCIATION
The Employer named below hereby establishes a Cash or Deferred Profit-Sharing
Plan for eligible Employees as provided in this Adoption Agreement and the
accompanying Basic Prototype Plan and Trust/Custodial Account Basic Plan
Document #04.
1. EMPLOYER INFORMATION
NOTE: If multiple Employers are adopting the Plan, complete this section
based on the lead Employer. Additional Employers may adopt this
Plan by ▇▇▇▇▇▇▇▇▇ executed signature pages to the back of the
Employer's Adoption Agreement.
(a) NAME AND ADDRESS:
Option Care, Inc.
▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
(b) TELEPHONE NUMBER: (▇▇▇) ▇▇▇-▇▇▇▇
(c) TAX ID NUMBER: ▇▇-▇▇▇▇▇▇▇
(d) FORM OF BUSINESS:
[ ] (i) Sole Proprietor
[ ] (ii) Partnership
[ x] (iii) Corporation
[ ] (iv) "S" Corporation (formerly known as Subchapter S)
[ ] (v) Other:
------------------------------------------
1
Prototype Cash or
Deferred Profit-
Sharing Plan #002
(e) NAME OF INDIVIDUAL AUTHORIZED TO ISSUE
INSTRUCTIONS TO THE TRUSTEE/CUSTODIAN:
▇. ▇▇▇▇▇▇▇ ▇▇▇; ▇▇▇▇ ▇▇▇▇▇▇▇; ▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇
(f) NAME OF PLAN: Option Care, Inc. 401(k) Profit Sharing Plan
(g) THREE DIGIT PLAN NUMBER FOR ANNUAL RETURN/REPORT: 002
2. EFFECTIVE DATE
(a) This is a new Plan having an effective date of .
----------------
(b) This is an amended Plan.
The effective date of the original Plan was January 1, 1989.
---------------
The effective date of the amended Plan is January 1, 1996.
---------------
(c) If different from above, the Effective Date for the Plan's Elective
Deferral provisions shall be .
------------------
3. DEFINITIONS
(a) "Collective or Commingled Funds" (Applicable to institutional Trustees
only.) Investment in collective or commingled funds as permitted at
paragraph 13.3(b) of the Basic Plan Document #04 shall only be made to
the following specifically named fund(s):
PNC Profile Funds
Funds made available after the execution of this Adoption Agreement
will be listed on schedules attached to the end of this Adoption
Agreement.
(b) "Compensation" Compensation shall be determined on the basis of the:
[x] (i) Plan Year.
[ ] (ii) Employer's Taxable Year.
2
Prototype Cash or
Deferred Profit-
Sharing Plan #002
[ ] (iii) Calendar Year.
Compensation shall be determined on the basis of the following
safe-harbor definition of Compensation in IRS Regulation Section
1.414(s)-1(c):
[x] (iv) Code Section 6041 and 6051 Compensation,
[ ] (v) Code Section 3401(a) Compensation, or
[ ] (vi) Code Section 415 Compensation.
Compensation [x] shall [ ] shall not include Employer contributions
made pursuant to a Salary Savings Agreement which are not includable in
the gross income of the Employee for the reasons indicated in the
definition of Compensation at 1.12 of the Basic Plan Document #04.
For purposes of the Plan, Compensation shall be limited to $ , the
------
maximum amount which will be considered for Plan purposes. [If an
amount is specified, it will limit the amount of contributions allowed
on behalf of higher compensated Employees. Completion of this section
is not intended to coordinate with the $200,000 of Code Section 415(d),
thus the amount should be less than $200,000 as adjusted for
cost-of-living increases.]
Exclusions From Compensation:
(1) overtime.
(2) bonuses.
(3) commissions.
(4)
-------------------------
Type of Contribution(s) Exclusion(s)
Elective Deferrals [Section 7(b)] ________
Matching Contributions [Section 7(c)] ________
Qualified Non-Elective Contri butions [Section 7(d)] ________
and Non-Elective Contributions [Section 7(e)]
3
Prototype Cash or
Deferred Profit-
Sharing Plan #002
(c) "Entry Date"
[ ] (i) The first day of the Plan Year nearest the date on which an
Employee meets the eligibility requirements.
[ ] (ii) The earlier of the first day of the Plan Year or the first day
of the seventh month of the Plan Year coinciding with or
following the date on which an Employee meets the eligibility
requirements.
[ ] (iii) The first day of the Plan Year following the date on which
the Employee meets the eligibility requirements. If this
election is made, the Service requirement at 4(a)(ii) may not
exceed 1/2 year and the age requirement at 4(b)(ii) may not
exceed 20-1/2.
[x] (iv) The first day of the month coinciding with or following the
date on which an Employee meets the eligibility requirements.
[ ] (v) The first day of the Plan Year, or the first day of the
fourth month, or the first day of the seventh month or the
first day of the tenth month, of the Plan Year coinciding with
or following the date on which an Employee meets the
eligibility requirements.
(d) "Hours of Service" Shall be determined on the basis of the method selected
below. Only one method may be selected. The method selected shall be
applied to all Employees covered under the Plan as follows:
[x] (i) On the basis of actual hours for which an Employee is paid or
entitled to payment.
[ ] (ii) On the basis of days worked. An Employee shall be credited
with ten (10) Hours of Service if under paragraph 1.42 of the
Basic Plan Document #04 such Employee would be credited with
at least one (1) Hour of Service during the day.
[ ] (iii) On the basis of weeks worked. An Employee shall be credited
with forty-five (45) Hours of Service if under paragraph 1.42
of the Basic Plan Document #04 such Employee would be credited
with at least one (1) Hour of Service during the week.
[ ] (iv) On the basis of semi-monthly payroll periods. An Employee
shall be credited with ninety-five (95) Hours of Service if
under paragraph 1.42 of the Basic Plan Document #04 such
Employee
4
Prototype Cash or
Deferred Profit-
Sharing Plan #002
would be credited with at least one (1) Hour of Service during
the semi-monthly payroll period.
[ ] (v) On the basis of months worked. An Employee shall be
credited with one-hundred-ninety (190) Hours of Service if
under paragraph 1.42 of the Basic Plan Document #04 such
Employee would be credited with at least one (1) Hour of
Service during the month.
(e) "Limitation Year" The 12-consecutive month period commencing on January 1
---------
and ending on December 31.
-----------
If applicable, the Limitation Year will be a short Limitation Year
commencing on and ending on . Thereafter, the
------------ ----------
Limitation Year shall end on the date last specified above.
(f) "Net Profit"
[x] (i) Not applicable (profits will not be required for any
contributions to the Plan).
[ ] (ii) As defined in paragraph 1.49 of the Basic Plan Document #04.
[ ] (iii) Shall be defined as:
-----------------------------------------------
(Only use if definition in paragraph 1.49 of the Basic Plan
Document #04 is to be superseded.)
(g) "Plan Year" The 12-consecutive month period commencing on January 1 and
---------
ending on December 31.
-----------
If applicable, the Plan Year will be a short Plan Year commencing on
-------
and ending on . Thereafter, the Plan Year shall end on the date last
--------
specified above.
(h) "Qualified Early Retirement Age" For purposes of making distributions under
the provisions of a Qualified Domestic Relations Order, the Plan's
Qualified Early Retirement Age with regard to the Participant against whom
the order is entered [x] shall [ ] shall not be the date the order is
determined to be qualified. If "shall" is elected, this will only allow
payout to the alternate payee(s).
5
Prototype Cash or
Deferred Profit-
Sharing Plan #002
(i) "Qualified Joint and Survivor Annuity" The safe-harbor provisions of
paragraph 8.7 of the Basic Plan Document #04 [ ] are [x] are not
applicable. If not applicable, the survivor annuity shall be 50 % (50%,
66-2/3%, 75% or 100%) of the annuity payable during the lives of the
Participant and Spouse. If no answer is specified, 50% will be used.
(j) "Taxable Wage Base" [paragraph 1.79]
[ ] (i) Not Applicable - Plan is not integrated with Social Security.
[x] (ii) The maximum earnings considered wages for such Plan Year under
Code Section 3121(a).
[ ] (iii) __% (not more than 100%) of the amount considered wages for such
Plan Year under Code Section 3121(a).
[ ] (iv) $___ , provided that such amount is not in excess of the amount
determined under paragraph 3(j)(ii) above.
[ ] (v) For the 1989 Plan Year $10,000. For all subsequent Plan Years,20%
of the maximum earnings considered wages for such Plan Year unde
Code Section 3121(a).
NOTE: Using less than the maximum at (ii) may result in a change in the
allocation formula in Section 7.
(k) "Valuation Date(s)" Allocations to Participant Accounts will be done in
accordance with Article V of the Basic Plan Document #04:
(i) Daily (v) Quarterly
(ii) Weekly (vi) Semi-Annually
(iii) Monthly (vii) Annually
(iv) Bi-Monthly
Indicate Valuation Date(s) to be used by specifying opotion from list above:
Type of Contribution(s) Valuation Date(s)
----------------------- -----------------
After-Tax Voluntary Contributions [Section 6] ____
6
Prototype Cash or
Deferred Profit-
Sharing Plan #002
Elective Deferrals [Section 7(b)] ____
Matching Contributions [Section 7(c)] ____
Qualified Non-Elective Contributions [Section 7(d)] ____
Non-Elective Contributions [Section 7(e), (f) and (g)] ____
Minimum Top-Heavy Contributions [Section 7(I)] ____
(l) "Year of Service"
(i) For Eligibility Purposes: The 12-consecutive month period during
which an Employee is credited with 1000 (not more than 1,000)
----
Hours of Service.
(ii) For Allocation Accrual Purposes: The 12-consecutive month period
during which an Employee is credited with 1000 (not more than
----
1,000) Hours of Service.
(iii) For Vesting Purposes: The 12-consecutive month period during which
an Employee is credited with 1000 (not more than 1,000) Hours of
----
Service.
4. ELIGIBILITY REQUIREMENTS
(a) Service:
[ ] (i) The Plan shall have no service requirement.
[x] (ii) The Plan shall cover only Employees having completed
at least 1 [not more than three (3)] Years of Service
If more than one (1) is specified, for Plan Years
beginning in 1989 and later,the answer will be deemed
to be one (1).
NOTE: If the eligibility period selected is less than one
year, an Employee will not be required to complete any
specified number of Hours of Service to receive credit
for such period.
(b) Age:
[ ] (i) The Plan shall have no minimum age requirement.
7
Prototype Cash or
Deferred Profit-
Sharing Plan #002
[x] (ii) The Plan shall cover only Employees having attained
age 21 (not more than age 21).
----
(c) Classification:
The Plan shall cover all Employees who have met the age and
service requirements with the following exceptions:
[ ] (i) No exceptions.
[x] (ii) The Plan shall exclude Employees included in a
unit of Employees covered by a collective bargaining
agreement between the Employer and Employee
Representatives, if retirement benefits were the
subject of good faith bargaining. For this purpose,
the term "Employee Representative" does not include
any organization more than half of whose members are
Employees who are owners, officers, or executives of
the Employer.
[ ] (iii) The Plan shall exclude Employees who are
nonresident aliens and who receive no earned income
from the Employer which constitutes income from
sources within the United States.
[ ] (iv) The Plan shall exclude from participation any
nondiscriminatory classification of Employees
determined as follows:
__________________________
(d) Employees on Effective Date:
[x] (i) Not Applicable. All Employees will be required to
satisfy both the age and Service requirements
specified above.
[ ] (ii) Employees employed on the Plan's Effective Date
do not have to satisfy the Service requirements
specified above.
[ ] (iii) Employees employed on the Plan's Effective Date
do not have to satisfy the age requirements specified
above.
8
Prototype Cash or
Deferred Profit-
Sharing Plan #002
5. RETIREMENT AGES
(a) Normal Retirement Age:
If the Employer imposes a requirement that Employees retire upon
reaching a specified age, the Normal Retirement Age selected below may
not exceed the Employer imposed mandatory retirement age.
[x] (i) Normal Retirement Age shall be 65 (not to exceed
----
age 65).
[ ] (ii) Normal Retirement Age shall be the later of attaining
age ____ (not to exceed age 65) or the (not to exceed
the 5th) anniversary of the first day of the first
Plan Year in which the Participant commenced
participation in the Plan.
(b) Early Retirement Age:
[ ] (i) Not Applicable.
[x] (ii) The Plan shall have an Early Retirement Age of 55
----
(not less than 55) and completion of 6 Years of
---
Service.
6. EMPLOYEE CONTRIBUTIONS
[x] (a) Participants shall be permitted to make Elective Deferrals in
any amount from 1 % up to 20 % of their Compensation.
--- ----
If (a) is applicable, Participants shall be permitted to amend
their Salary Savings Agreements to change the contribution
percentage as provided below:
[ ] (i) On the Anniversary Date of the Plan,
[ ] (ii) On the Anniversary Date of the Plan and on the first day
of the seventh month of the Plan Year,
[ ] (iii) On the Anniversary Date of the Plan and on the first day
following any Valuation Date, or
[x] (iv) Upon 30 days notice to the Employer.
[ ] (b) Participants shall be permitted to make after tax Voluntary
Contributions.
9
Prototype Cash or
Deferred Profit-
Sharing Plan #002
[ ] (c) Participants shall be required to make after tax Voluntary
Contributions as follows (Thrift Savings Plan):
[ ] (i) ____% of Compensation.
[ ] (ii) A percentage determined by the Employee on his
or her enrollment form.
[x] (d) If necessary to pass the Average Deferral Percentage Test,
Participants [ ] may [x] may not have Elective Deferrals
recharacterized as Voluntary Contributions.
NOTE: The Average Deferral Percentage Test will apply to
contributions under (a) above. The Average Contribution
Percentage Test will apply to contributions under (b) and (c)
above, and may apply to (a).
7. EMPLOYER CONTRIBUTIONS AND ALLOCATION THEREOF
NOTE: The Employer shall make contributions to the Plan in accordance
with the formula or formulas selected below. The Employer's
contribution shall be subject to the limitations contained in
Articles III and X. For this purpose, a contribution for a Plan
Year shall be limited for the Limitation Year which ends with or
within such Plan Year. Also, the integrated allocation formulas
below are for Plan Years beginning in 1989 and later. The
Employer's allocation for earlier years shall be as specified in
its Plan prior to amendment for the Tax Reform Act of 1986.
(a) Profits Requirement:
(i) Current or Accumulated Net Profits are required for:
[ ] (A) Matching Contributions.
[ ] (B) Qualified Non-Elective Contributions.
[ ] (C) discretionary contributions.
(ii) No Net Profits are required for:
[x] (A) Matching Contributions.
[x] (B) Qualified Non-Elective Contributions.
10
Prototype Cash or
Deferred Profit-
Sharing Plan #002
[x] (C) discretionary contributions.
NOTE: Elective Deferrals can always be contributed regardless of profits.
[x] (b) Salary Savings Agreement:
The Employer shall contribute and allocate to each Participant's
account an amount equal to the amount withheld from the
Compensation of such Participant pursuant to his or her Salary
Savings Agreement. If applicable, the maximum percentage is
specified in Section 6 above.
An Employee who has terminated his or her election under the
Salary Savings Agreement other than for hardship reasons may not
make another Elective Deferral:
[ ] (i) until the first day of the next Plan Year.
[ ] (ii) until the first day of the next valuation period.
[x] (iii) for a period of 1 month(s) (not to exceed 12 months).
---
[x] (c) Matching Employer Contribution [See paragraphs (h) and (i)]:
[ ] (i) Percentage Match: The Employer shall contribute
and allocate to each eligible Participant's account an
amount equal to __% of the amount contributed and
allocated in accordance with paragraph 7(b) above and
(if checked) __ % of [ ] the amount of Voluntary
Contributions made in accordance with paragraph 4.1 of
the Basic Plan Document #04. The Employer shall not
match Participant Elective Deferrals as provided above
in excess of $____ or in excess of __% of the
Participant's Compensation or if applicable,
Voluntary Contributions in excess of $____ or in
excess of __% of the Participant's Compensation.
In no event will the match on both Elective
Deferrals and Voluntary Contributions exceed a
combined amount of $____ or __%.
[x] (ii) Discretionary Match: The Employer shall contribute and
allocate to each eligible Participant's account a
percentage of the Participant's Elective Deferral
contributed and allocated in accordance with paragraph
7(b) above. The Employer shall set such percentage
prior to the end of the Plan Year. The Employer shall
not match Participant Elective Deferrals in excess of
$____ or in excess of __% of the Participant's
Compensation.
11
Prototype Cash or
Deferred Profit-
Sharing Pan #002
[ ] (iii) Tiered Match: The Employer shall contribute
and allocate to each Participant's account an amount
equal to % of the first % of the Participant's
Compensation, to the extent deferred.
_____% of the next _____ % of the Participant's
Compensation, to the extent deferred.
_____% of the next _____ % of the Participant's
Compensation, to the extent deferred.
NOTE: Percentages specified in (iii) above may not increase
as the percentage of Participant's
contribution increases.
[ ] (iv) Flat Dollar Match: The Employer shall
contribute and allocate to each Participant's account
$______ if the Participant defers at least 1% of
Compensation.
[ ] (v) Percentage of Compensation Match: The Employer
shall contribute and allocate to each Participant's
account _____% of Compensation if the Participant
defers at least 1% of Compensation.
[ ] (vi) Proportionate Compensation Match: The Employer
shall contribute and allocate to each Participant who
defers at least 1% of Compensation, an amount
determined by multiplying such Employer Matching
Contribution by a fraction the numerator of which is
the Participant's Compensation and the denominator of
which is the Compensation of all Participants eligible
to receive such an allocation. The Employer shall set
such discretionary contribution prior to the end of
the Plan Year.
[ ] (vii) Qualified Match: Employer Matching Contributions will
be treated as Qualified Matching Contributions to the
extent specified below:
[ ] (A) All Matching Contributions.
[ ] (B) None.
[ ] (C) _____% of the Employer's Matching
Contribution.
[ ] (D) Up to ____% of each Participant's
Compensation.
12
Prototype Cash or
Deferred Profit-
Sharing Plan #002
[ ] (E) The amount necessary to meet the [ ] Average
Deferral Percentage (ADP) Test, [ ] Average
Contribution Percentage (ACP) Test, [ ] Both
the ADP and ACP Tests.
(viii) Matching Contribution Computation Period: The
time period upon which matching contributions will be
based shall be
[ ] (A) weekly
[ ] (B) bi-weekly
[ ] (C) semi-monthly
[ ] (D) monthly
[ ] (E) quarterly
[ ] (F) semi-annually
[x] (G) annually
(ix) Eligibility for Match: Employer Matching
Contributions, whether or not Qualified, will only be
made on Employee Contributions not withdrawn prior to
the end of the [x] valuation period [ ] Plan Year.
[x] (d) Qualified Non-Elective Employer Contribution - [See
paragraphs (h) and (i)] These contributions are fully vested when
contributed.
The Employer shall have the right to make an additional
discretionary contribution which shall be allocated to each
eligible Employee in proportion to his or her Compensation as a
percentage of the Compensation of all eligible Employees. This
part of the Employer's contribution and the allocation thereof
shall be unrelated to any Employee contributions made hereunder.
The amount of Qualified non-Elective Contributions taken into
account for purposes of meeting the ADP or ACP test requirements
is:
[ ] (i) All such Qualified non-Elective Contributions.
[x] (ii) The amount necessary to meet [ ] the ADP test, [ ] the
ACP test, [x] Both the ADP and ACP tests.
13
Qualified non-Elective Contributions will be made to:
[ ] (iii) All Employees eligible to participate.
[x] (iv) Only non-Highly Compensated Employees eligible to
participate.
[ ] (e) Additional Employer Contribution Other Than Qualified
Non-Elective Contributions - Non-Integrated [See paragraphs (h)
and (i)]
The Employer shall have the right to make an additional
discretionary contribution which shall be allocated to each
eligible Employee in proportion to his or her Compensation as a
percentage of the Compensation of all eligible Employees. This
part of the Employer's contribution and the allocation thereof
shall be unrelated to any Employee contributions made hereunder.
[x] (f) Additional Employer Contribution - Integrated Allocation
Formula [See paragraphs (h) and (i)]
The Employer shall have the right to make an additional
discretionary contribution. The Employer's contribution for the
Plan Year plus any forfeitures shall be allocated to the accounts
of eligible Participants as follows:
(i) First, to the extent contributions and forfeitures are
sufficient, all Participants will receive an allocation
equal to 3% of their Compensation.
(ii) Next, any remaining Employer Contributions and forfeitures
will be allocated to Participants who have Compensation in
excess of the Taxable Wage Base (excess Compensation).
Each such Participant will receive an allocation in the
ratio that his or her excess compensation bears to the
excess Compensation of all Participants. Participants may
only receive an allocation of 3% of excess Compensation.
(iii) Next, any remaining Employer contributions and forfeitures
will be allocated to all Participants in the ratio that
their Compensation plus excess Compensation bears to the
total Compensation plus excess Compensation of all
Participants. Participants may only receive an allocation
of up to 2.7% of their Compensation plus excess
Compensation, under this allocation method. If the Taxable
Wage Base defined at Section 3(j) is less than or equal to
the greater of $10,000 or 20% of the maximum, the 2.7%
need not be reduced. If the amount specified is greater
than the greater of $10,000 or 20% of the maximum Taxable
Wage Base, but not more than 80%, 2.7% must be reduced to
1.3%. If the amount
14
Prototype Cash or
Deferred Profit-
Sharing Plan #002
specified is greater than 80% but less than 100% of the
maximum Taxable Wage Base, the 2.7% must be reduced to
2.4%.
NOTE: If the Plan is not Top-Heavy or if the Top-Heavy minimum
contribution or benefit is provided under another Plan
[see Section 11(c)(ii)] covering the same Employees,
sub-paragraphs (i) and (ii) above may be disregarded and
5.7%, 4.3% or 5.4% may be substituted for 2.7%, 1.3% or
2.4% where it appears in (iii) above.
(iv) Next, any remaining Employer contributions and forfeitures
will be allocated to all Participants (whether or not they
received an allocation under the preceding paragraphs) in
the ratio that each Participant's Compensation bears to
all Participants' Compensation.
[ ] (g) Additional Employer Contribution-Alternative Integrated
Allocation Formula. [See paragraph (h) and (i)]
The Employer shall have the right to make an additional
discretionary contribution. To the extent that such contributions
are sufficient, they shall be allocated as follows:
_____% of each eligible Participant's Compensation plus _____% of
Compensation in excess of the Taxable Wage Base defined at
Section 3(j) hereof. The percentage on excess compensation may
not exceed the lesser of (i) the amount first specified in this
paragraph or (ii) the greater of 5.7% or the percentage rate of
tax under Code Section 3111(a) as in effect on the first day of
the Plan Year attributable to the Old Age (OA) portion of the
OASDI provisions of the Social Security Act. If the Employer
specifies a Taxable Wage Base in Section 3(j) which is lower than
the Taxable Wage Base for Social Security purposes (SSTWB) in
effect as of the first day of the Plan Year, the percentage
contributed with respect to excess Compensation must be adjusted.
If the Plan's Taxable Wage Base is greater than the larger of
$10,000 or 20% of the SSTWB but not more than 80% of the SSTWB,
the excess percentage is 4.3%. If the Plan's Taxable Wage Base is
greater than 80% of the SSTWB but less than 100% of the SSTWB,
the excess percentage is 5.4%.
NOTE: Only one plan maintained by the Employer may be integrated
with Social Security.
15
Prototype Cash or
Deferred Profit-
Sharing Plan #002
(h) Allocation of Excess Amounts (Annual Additions)
In the event that the allocation formula above results in an
Excess Amount, such excess shall be:
[] (i) placed in a suspense account accruing no gains or
losses for the benefit of the Participant.
[x] (ii) reallocated as additional Employer contributions
to all other Participants to the extent that they do
not have any Excess Amount.
(i) Minimum Employer Contribution Under Top-Heavy Plans:
For any Plan Year during which the Plan is Top-Heavy, the sum of
the contributions and forfeitures as allocated to eligible
Employees under paragraphs 7(d), 7(e), 7(f), 7(g) and 9 of this
Adoption Agreement shall not be less than the amount required
under paragraph 14.2 of the Basic Plan document #04. Top-Heavy
minimums will be allocated to:
[ ] (i) all eligible Participants.
[x] (ii) only eligible non-Key Employees who are Participants.
(j) Return of Excess Contributions and/or Excess Aggregate
Contributions:
In the event that one or more Highly Compensated Employees is
subject to both the ADP and ACP tests and the sum of such tests
exceeds the Aggregate Limit, the limit will be satisfied by
reducing the:
[x] (i) the ADP of the affected Highly Compensated Employees.
[ ] (ii) the ACP of the affected Highly Compensated
Employees.
[ ] (iii) a combination of the ADP and ACP of the affected
Highly Compensated Employees.
8. ALLOCATIONS TO TERMINATED EMPLOYEES
[ ] (a) The Employer will not allocate Employer related
contributions to Employees who terminate during a Plan Year,
unless required to satisfy the requirements of Code Section
401(a)(26) and 410(b). (These requirements are effective for
1989 and subsequent Plan Years.)
16
Prototype Cash or
Deferred Profit-
Sharing Plan #002
[x] (b) The Employer will allocate Employer matching and other
related contributions as indicated below to Employees who
terminate during the Plan Year as a result of:
Matching Other
________ _____
[ ] [x] (i) Retirement.
[ ] [x] (ii) Disability.
[ ] [x] (iii) Death.
[ ] [x] (iv) Other termination of employment
provided that the Participant has
completed a Year of Service as
defined for Allocation Accrual
Purposes.
[x] [ ] (v) Other termination of employment even
though the Participant has not
completed a Year of Service.
[ ] [ ] (vi) Termination of employment (for any
reason provided that the Participant
had completed a Year of Service for
Allocation Accrual Purposes.
9. ALLOCATION OF FORFEITURES
NOTE: Subsections (a), (b) and (c) below apply to forfeitures of
amounts other than Excess Aggregate Contributions.
(a) Allocation Alternatives:
If forfeitures are allocated to Participants, such
allocation shall be done in the same manner as the
Employer's contribution.
[ ] (i) Not Applicable. All contributions are always
fully vested.
[ ] (ii) Forfeitures shall be allocated to
Participants in the same manner as the
Employer's contribution.
17
Prototype Cash or
Deferred Profit-
Sharing Plab #002
If allocation to other Participants is selected,
the allocation shall be as follows:
[1] Amount attributable to Employer discretionary
contributions and Top-Heavy minimums will be
allocated to:
[ ] all eligible Participants under the Plan.
[ ] only those Participants eligible for an
allocation of Employer contributions in
the current year.
[ ] only those Participants eligible for an
allocation of matching contributions in
the current year.
[2] Amounts attributable to Employer Matching
contributions will be allocated to:
[ ] all eligible Participants.
[ ] only those Participants eligible for
allocations of matching contributions in
the current year.
[x] (iii) Forfeitures shall be applied to reduce the
Employer's contribution for such Plan Year.
[ ] (iv) Forfeitures shall be applied to offset
administrative expenses of the Plan. If forfeiture
exceed these expenses, (iii) above shall apply.
(b) Date for Reallocation:
NOTE: If no distribution has been made to a former Participant,
sub-section (i) below will apply to such Participant even
if the Employer elects (ii), (iii) or (iv) below as its
normal administrative policy.
[ ] (i) Forfeitures shall be reallocated at the end of
the Plan Year during which the former Participant
incurs his or her fifth consecutive one year Break
In Service.
[ ] (ii) Forfeitures will be reallocated immediately
(as of the next Valuation Date).
18
Prototype Cash or
Deferred Profit-
Sharing Plan #002
[ ] (iii) Forfeitures shall be reallocated at the end
of the Plan Year during which the former Employee
incurs his or her ___(1st, 2nd, 3rd, or 4th)
consecutive one year Break In Service.
[x] (iv) Forfeitures will be reallocated immediately (as
of the Plan Year end).
(c) Restoration of Forfeitures:
If amounts are forfeited prior to five consecutive 1-year Breaks in
Service, the Funds for restoration of account balances will be
obtained from the following resources in the order indicated (fill in
the appropriate number):
[1] (i) Current year's forfeitures.
[2] (ii) Additional Employer contribution.
[ ] (iii) Income or gain to the Plan.
(d) Forfeitures of Excess Aggregate Contributions shall be:
[x] (i) Applied to reduce Employer contributions.
[ ] (ii) Allocated, after all other forfeitures under the
Plan, to the Matching Contribution account of each
non-highly compensated Participant who made Elective
Deferrals or Voluntary Contributions in the ratio which each
such Participant's Compensation for the Plan Year bears to
the total Compensation of all Participants for such Plan
Year. Such forfeitures cannot be allocated to the account of
any Highly Compensated Employee.
Forfeitures of Excess Aggregate Contributions will be so applied at
the end of the Plan Year in which they occur.
10. CASH OPTION
[ ] (a) The Employer may permit a Participant to elect to defer to
the Plan, an amount not to exceed % of any Employer paid cash
bonus made for such Participant for any year. A Participant must
file an election to defer such contribution at least fifteen (15)
days prior to the end of the Plan Year. If the Employee fails to
make such an election, the entire Employer paid cash bonus to
which the Participant would be entitled shall be paid as cash and
not to the Plan. Amounts
19
Protoype Cash or
Deferred Profit-
Sharing Plan #002
deferred under this section shall be treated for all purposes as
Elective Deferrals. Notwithstanding the above, the election to
defer must be made before the bonus is made available to the
Participant.
[x] (b) Not Applicable.
11.LIMITATIONS ON ALLOCATIONS
[ ] This is the only Plan the Employer maintains or ever maintained,
therefore, this section is not applicable.
[x] The Employer does maintain or has maintained another Plan (including a
Welfare Benefit Fund or an individual medical account (as defined in
Code Section 415(l)(2)), under which amounts are treated as Annual
Additions) and has completed the proper sections below.
Complete (a), (b) and (c) only if the Employer maintains or ever
maintained another qualified plan, including a Welfare Benefit Fund or
an individual medical account [as defined in Code Section 415(l)(2)]
in which any Participant in this Plan is (or was) a participant or
could possibly become a participant.
(a) If the Participant is covered under another qualified Defined
Contribution Plan maintained by the Employer, other than a Master or
Prototype Plan:
[x] (i) The provisions of Article X of the Basic Plan Document #04
will apply, as if the other plan were a Master or Prototype
Plan.
[ ] (ii) Attach provisions stating the method under which the
plans will limit total Annual Additions to the Maximum
Permissible Amount, and will properly reduce any Excess
Amounts, in a manner that precludes Employer discretion.
(b) If a Participant is or ever has been a participant in a Defined
Benefit Plan maintained by the Employer:
Attach provisions which will satisfy the 1.0 limitation of Code
Section 415(e). Such language must preclude Employer discretion. The
Employer must also specify the interest and mortality assumptions used
in determining Present Value in the Defined Benefit Plan.
20
Protoype Cash or
Deferred Profit-
Sharing Plan #002
(c) The minimum contribution or benefit required under Code Section 416
relating to Top-Heavy Plans shall be satisfied by:
[x] (i) this Plan.
[ ] (ii) (Name of other qualified plan of the Employer).
[ (iii) Attach provisions stating the method under which the
minimum contribution and benefit provisions of Code Section
416 will be satisfied. If a Defined Benefit Plan is or was
maintained, an attachment must be provided showing interest
and mortality assumptions used in the Top-Heavy Ratio.
12.VESTING
Employees shall have a fully vested and nonforfeitable interest in any
Employer contribution and the investment earnings thereon made in
accordance with paragraphs (select one or more options) [ ] 7(c), [ ]
7(e), [ ] 7(f), [ ] 7(g) and [ ] 7(i) hereof. Contributions under
paragraph 7(b), 7(c)(vii) and 7(d) are always fully vested. If one or more
of the foregoing options are not selected, such Employer contributions
shall be subject to the vesting table selected by the Employer.
Each Participant shall acquire a vested and nonforfeitable percentage in
his or her account balance attributable to Employer contributions and the
earnings thereon under the procedures selected below except with respect
to any Plan Year during which the Plan is Top-Heavy, in which case the
Two-twenty vesting schedule [Option (b)(iv)] shall automatically apply
unless the Employer has already elected a faster vesting schedule. If the
Plan is switched to option (b)(iv), because of its Top-Heavy status, that
vesting schedule will remain in effect even if the Plan later becomes
non-Top-Heavy until the Employer executes an amendment of this Adoption
Agreement indicating otherwise.
(a) Computation Period:
The computation period for purposes of determining Years of
Service and Breaks in Service for purposes of computing a
Participant's nonforfeitable right to his or her account balance
derived from Employer contributions:
[ ] (i) shall not be applicable since Participants are
always fully vested,
21
Protoype Cash or
Deferred Profit-
Sharing Plan #002
[ ] (ii) 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, or
[x] (iii) shall commence on the first day of the Plan Year
during which an Employee first performs an Hour of
Service for the Employer and each subsequent
12-consecutive month period shall commence on the
anniversary thereof.
A Participant shall receive credit for a Year of Service if he or she
completes at least 1,000 Hours of Service [or if lesser, the number of
hours specified at 3(l)(iii) of this Adoption Agreement] at any time
during the 12-consecutive month computation period. Consequently, a Year
of Service may be earned prior to the end of the 12-consecutive month
computation period and the Participant need not be employed at the end of
the 12-consecutive month computation period to receive credit for a Year
of Service.
(b) Vesting Schedules:
NOTE: The vesting schedules below only apply to a Participant who has
at least one Hour of Service during or after the 1989 Plan Year.
If applicable, Participants who separated from Service prior to
the 1989 Plan Year will remain under the vesting schedule as in
effect in the Plan prior to amendment for the Tax Reform Act of
1986.
(i) Full and immediate vesting.
Years of Service
----------------
1 2 3 4 5 6 7
-- -- -- -- -- -- --
(ii) ___% 100%
(iii) ___% ___% 100%
(iv) ___% 20% 40% 60% 80% 100%
(v) ___% ___% 20% 40% 60% 80% 100%
(vi) 10% 20% 30% 40% 60% 80% 100%
(vii) 20% 40% 60% 80% 100%
(viii) ___% ___% ___% ___% ___% ___% 100%
NOTE: The percentages selected for schedule (viii) may not be less for
any year than the percentages shown at schedule (v).
22
Prototype Cash or
Deferred Profit-
Sharing Plan #002
[x] All contributions other than those which are fully vested when
contributed will vest under schedule vii above.
[ ] Contributions other than those which are fully vested when
contributed will vest as provided below:
Vesting
Option Selected Type Of Employer Contribution
--------------- -----------------------------
______ 7(c) Employer Match on Salary Savings
______ 7(c) Employer Match on
Employee Voluntary
______ 7(e) Employer Discretionary
______ 7(f) & (g) Employer Discretionary-Integrated
(c) Service disregarded for Vesting:
[x] (i) Not Applicable. All Service shall be considered.
[ ] (ii) Service prior to the Effective Date of this Plan or
a predecessor plan shall be disregarded when computing a
Participant's vested and nonforfeitable interest.
[ ] (iii) Service prior to a Participant having attained age
18 shall be disregarded when computing a Participant's
vested and nonforfeitable interest.
13. SERVICE WITH PREDECESSOR ORGANIZATION
For purposes of satisfying the Service requirements for eligibility, Hours
of Service shall include Service with the following predecessor
organization(s): (These hours will also be used for vesting purposes.)
See Appendix A.
14. ROLLOVER/TRANSFER CONTRIBUTIONS
(a) Rollover Contributions, as described at paragraph 4.3 of the Basic
Plan Document #04, [x] shall [ ] shall not be permitted. If permitted,
Employees [x] may [ ] may not make
(b) Optional Forms of Payment:
[x] (i) Lump Sum
23
Prototype Cash or
Deferred Profit-
Sharing Plan #002
Rollover Contributiuons priot to meeting the eligibility requirements
for participation in the Plan.
(b) Transfer Contributions, as described at paragraph 4.4 of the Basic
Plan Document #04 [x] shall [ ] shall not be permitted. If permitted,
Employees [x] may [ ] may not make Transfer Contributions prior to
meeting the eligibility requirements for participation in the Plan.
NOTE: Even if available, the Employer may refuse to accept such
contributions if its Plan meets the safe-harbor rules of paragraph 8.
of the Basic Plan Document #04.
15. HARDSHIP WITHDRAWALS
Hardship withdrawals, as provided for in paragraph 6.9 of the Basic Plan
Document #04, [x] are [ ] are not permitted.
16. PARTICIPANT LOANS
Participant loans, as provided for in paragraph 13.5 of the Basic Plan
Document #04, [x] are [ ] are not permitted. If permitted, repayments of
principal and interest shall be repaid to [x] the Participant's segregated
account or [ ] the general Fund.
17. INSURANCE POLICIES
The insurance provisions of paragraph 13.6 of the Basic Plan Document #04
[ ] shall [x] shall not be applicable.
18. EMPLOYER INVESTMENT DIRECTION
The Employer investment direction provisions, as set forth in paragraph
13.7 of the Basic Plan Document #04, [x] shall [ ] shall not be applicable.
19. EMPLOYEE INVESTMENT DIRECTION
(a) The Employee investment direction provisions, as set forth in
paragraph 13.8 of the Basic Plan Document #04, [x] shall [ ] shall
not be applicable.
If applicable, Participants may direct their investments:
[x] (i) among funds offered by the Trustee
24
Prototype Cash or
Deferred Profit-
Sharing Plan #002
[ ] (ii) among any allowable investments.
(b) Participants may direct the following kinds of contributions and the
earnings thereon (check all applicable):
[x] (i) All Contributions
[ ] (ii) Elective Deferrals
[ ] (iii) Employee Voluntary Contributions (after-tax)
[ ] (iv) Employee Mandatory Contributions (after-tax)
[ ] (v) Employer Qualified Matching Contributions
[ ] (vi) Other Employer Matching Contributions
[ ] (vii) Employer Qualified Non-Elective Contributions
[ ] (viii) Employer Discretionary Contributions
[ ] (ix) Rollover Contributions
[ ] (x) Transfer Contributions
[ ] (xi) All of above which are checked, but only to the
extent that the Participant is vested in those
contributions.
NOTE: To the extent that Employee investment direction was previously
allowed, the Trustee shall have the right to either make the
assets part of the general Trust, or leave them as separately
invested subject to the rights of paragraph 13.8.
20. EARLY PAYMENT OPTION
(a) A Participant who separates from Service prior to retirement,
death or Disability [x] may [ ] may not make application to the
Employer requesting an early payment of his or her vested
account balance.
(b) A Participant who has attained age 59-1/2 and who has not
separated from Service [ ] may [x] may not obtain a distribution
of his or her vested Employer contributions. Distribution can
only be made if the Participant is 100% vested.
25
Prototype Cash or
Deferred Profit-
Sharing Plan #002
(c) A Participant who has attained the Plan's Normal Retirement Age
and who has not separated from Service [x] may [ ] may not receive
a distribution of his or her vested account balance.
NOTE: If the Participant has had the right to withdraw his or her
account balance in the past, this right may not be taken away.
Notwithstanding the above, to the contrary, required minimum
distributions will be paid. For timing of distributions, see
item 21(a) below.
21. DISTRIBUTION OPTIONS
(a) Timing of Distributions:
In cases of termination for other than death, Disability or
retirement, benefits shall be paid:
[x] (i) As soon as administratively feasible, following
the close of the valuation period during which a
distribution is requested or is otherwise payable.
[ ] (ii) As soon as administratively feasible following
the close of the Plan Year during which a distribution
is requested or is otherwise payable.
[ ] (iii) As soon as administratively feasible, following
the date on which a distribution is requested or is
otherwise payable.
[ ] (iv) As soon as administratively feasible, after the
close of the Plan Year during which the Participant
incurs consecutive one-year Breaks in Service.
[ ] (v) Only after the Participant has achieved the
Plan's Normal Retirement Age, or Early Retirement Age,
if applicable.
In cases of death, Disability or retirement, benefits shall be paid:
[x] (vi) As soon as administratively feasible, following the
close of the valuation period during which a
distribution is requested or is otherwise payable.
[ ] (vii) As soon as administratively feasible following
the close of the Plan Year during which a distribution
is requested or is otherwise payable.
[ ] (viii) As soon as administratively feasible,
following the date on which a distribution is
requested or is otherwise payable.
26
Prototype Cash or
Deferred Profit-
Sharing Plan #002
(b) Optional Forms of Payment:
[x] (i) Lump Sum.
[x] (ii) Installment Payments.
[x] (iii) Life Annuity*.
[x] (iv) Life ▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇*. Life Annuity with payments
guaranteed for 5, 10, or 15 years (not to exceed 20
-------------
years, specify all applicable).
[x] (v) Joint and [x] 50%, [x] 66-2/3%, [ ] 75% or [x] 100%
survivor annuity* (specify all applicable).
[x] (vi) Other form(s) specified: See Attached
------------
* Not available in Plan meeting provisions of paragraph 8.7
of Basic Plan Document #04.
(c) Recalculation of Life Expectancy:
In determining required distributions under the Plan, Participants
and/or their Spouse (Surviving Spouse) [x] shall [ ] shall not
have the right to have their life expectancy recalculated
annually.
If "shall",
[ ] only the Participant shall be recalculated.
[ ] both the Participant and Spouse shall be recalculated.
[x] who is recalculated shall be determined by the Participant.
27
Prototype Cash or
Deferred Profit-
Sharing Plan #002
22. SPONSOR CONTACT
Employers should direct questions concerning the language contained in
and qualification of the Prototype to:
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇ (Job Title) Manager, Client Services (Phone Number)
(▇▇▇) ▇▇▇-▇▇▇▇
In the event that the Sponsor amends, discontinues or abandons this
Prototype Plan, notification will be provided to the Employer's
address provided on the first page of this Agreement.
28
Prototype Cash or
Deferred Profit-
Sharing Plan #00
23. SIGNATURES:
Due to the significant tax ramifications, the Sponsor recommends that
before you execute this Adoption Agreement, you contact your attorney
or tax advisor, if any.
(a) EMPLOYER:
Name and address of Employer if different than specified in
Section 1 above.
This agreement and the corresponding provisions of the Plan and
Trust/Custodial Account Basic Plan Document #04 were adopted by
the Employer the _____ day of _________ , 19___.
Signed for the Employer by:
Title:
Signature: ___________________________________
The Employer understands that its failure to properly complete
the Adoption Agreement may result in disqualification of its
Plan.
Employer's Reliance: The adopting Employer may not rely on an
opinion letter issued by the National Office of the Internal
Revenue Service as evidence that the Plan is qualified under Code
Section 401. In order to obtain reliance with respect to Plan
qualification, the Employer must apply to the appropriate Key
District Office for a determination letter.
This Adoption Agreement may only be used in conjunction with
Basic Plan Document #04.
29
Prototype Cash or
Deferred Profit-
Sharing Plan #002
23. SIGNATURES:
Due to the significant tax ramifications, the Sponsor recommends that
before you execute this Adoption Agreement, you contact your attorney
or tax advisor, if any.
(a) EMPLOYER:
Name and address of Employer if different than specified in
Section 1 above.
Option Care, Inc. (California)
This agreement and the corresponding provisions of the Plan
and Trust/Custodial Account Basic Plan Document #04 were adopted
by the Employer the _____ day of_______________, 19___.
Signed for the Employer by:
Title:
Signature: ___________________________________
The Employer understands that its failure to properly complete
the Adoption Agreement may result in disqualification of its
Plan.
Employer's Reliance: The adopting Employer may not rely on an
opinion letter issued by the National Office of the Internal
Revenue Service as evidence that the Plan is qualified under Code
Section 401. In order to obtain reliance with respect to Plan
qualification, the Employer must apply to the appropriate Key
District Office for a determination letter.
This Adoption Agreement may only be used in conjunction with
Basic Plan Document #04.
30
Prototype Cash or
Deferred Profit-
Sharing Plan #002
[x] (b) TRUSTEE:
Name of Trustee:
PNC Bank, N.A.
The assets of the Fund shall be invested in accordance with
paragraph 13.3 of the Basic Plan Document #04 as a Trust. As
such, the Employer's Plan as contained herein was accepted by the
Trustee the _____ day of __________, 19___.
Signed for the Trustee by:▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Title: Vice President
Signature: ___________________________________
[ ] (c) CUSTODIAN
Name of Custodian:
The assets of the Fund shall be invested in accordance with
paragraph 13.4 of the Basic Plan Document #04 as a Custodial
Account. As such, the Employer's Plan as contained herein was
accepted by the Custodian the ______ day of ___________ , 19__.
Signed for the Custodian by:
Title:
Signature: ___________________________________
[ ] (d) SPONSOR:
The Employer's Agreement and the corresponding provisions of the
Plan and Trust/Custodial Account Basic Plan Document #04 were
accepted by the Sponsor the ______ day of ___________ , 19__.
Signed for the Sponsor by: ▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Title: Vice President
Signature: ___________________________________