1
Exhibit 10.4
________________________________________________________________________________
ADOPTION AGREEMENT
FOR THE DATAIR MASS-SUBMITTER PROTOTYPE
STANDARDIZED CASH OR DEFERRED PROFIT SHARING PLAN AND TRUST
(WITH PAIRING PROVISIONS)
________________________________________________________________________________
2
ADOPTION AGREEMENT
FOR THE DATAIR MASS-SUBMITTER PROTOTYPE
STANDARDIZED CASH OR DEFERRED PROFIT SHARING PLAN AND TRUST
(WITH PAIRING PROVISIONS)
The DATAIR Mass-Submitter Prototype Standardized Cash or Deferred Profit
Sharing Plan and Trust (the "Plan and Trust") is hereby adopted by:
SECURITY ASSOCIATES INTERNATIONAL, INC. (the "Employer").
The Plan and Trust as applicable to the Employer shall be known as:
SAI PROFIT SHARING PLAN AND TRUST
The Plan and Trust is effective as of: June 1, 1997.
-------------
(Specify, if applicable.)
( ) a. The Plan and Trust is an amendment of a preexisting Plan which was
originally effective as of:
____________________.
( ) b. The Plan and Trust is an amendment and restatement of a preexisting
Plan which was originally effective as of:
____________________.
*** CAUTION ***
FAILURE TO FILL OUT THE ADOPTION AGREEMENT PROPERLY
MAY RESULT IN DISQUALIFICATION OF THE PLAN
PART I. The following identifying information pertains to the Employer
and the Plan and Trust.
1. Employer Address : ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇., ▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇
2. Employer Telephone : (▇▇▇) ▇▇▇-▇▇▇▇
2
3
3. Employer Tax ID : ▇▇-▇▇▇▇▇▇▇
4. Employer Fiscal Year : January 1 to December 31
5. Three Digit Plan Number : 001
6. Trust ID Number : Applied For
7. Plan Fiscal Year (must
be 12 consecutive months : January 1 to December 31
8. Short Initial Plan Year : June 1, 1997 to December 31, 1997
9. Plan Agent : Security Associates International, Inc.
▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇., ▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇
10. Plan Administrator : Security Associates International, Inc.
▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇., ▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇
11. Plan Administrator
ID Number : ▇▇-▇▇▇▇▇▇▇
12. Plan Trustees : ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
▇▇▇▇▇▇ ▇. ▇▇▇▇▇
▇▇▇▇▇▇▇ ▇▇▇▇▇
▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇., ▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇
13. IRS Determination : N/A
Letter Date
(Leave blank for a new Plan)
14. IRS File Folder Number : N/A
(Leave blank for a new Plan)
15. Legal Organization of Employer
( ) a. Sole Proprietorship
( ) b. Partnership
(x) c. C Corporation
( ) d. S Corporation
( ) e. Not for Profit Corporation
( ) f. Personal Service Corporation
( ) g. Other - Explain :
3
4
16. Business Code :
17. State of Legal Construction : Illinois
18. Other Members of a Controlled Group or Affiliated Service Group
(If any, each member should sign Adoption Agreement or otherwise
satisfy applicable participation requirements. Leave blank if not
applicable)
Controlled Group
( ) a. Not Applicable.
(x) b. Other Members
Security Associates Command Center II, LLC, All-Security Monitoring
Services, LLC and AMJ Central Station Corporation, Inc.
Affiliated Service Group
(x) a. Not Applicable.
( ) b. Other Members
PART II. The Plan contains certain predetermined design features intended to
provide the statutory requirement or most commonly adopted feature
but permits the selection of alternative features. If an Employer
desires to retain the predetermined design feature, select the
provision designated Plan Provision. If an alternative design
feature is desired, select the appropriate provision. Unless
specifically provided to the contrary, only one selection may be
made for each design category. Section references are to relevant
Plan Sections. Defined terms have the meanings provided in the
Plan.
A. ELIGIBILITY AND SERVICE PROVISIONS
1. ELIGIBLE EMPLOYEES - Section 1.2.23 provides that all employees,
including employees of certain related business and leased employees are
eligible except for certain union members and non-resident aliens.
(Specify all applicable)
(x) a. Plan Provision
( ) b. Include members of collective bargaining unit
2. ELIGIBILITY REQUIREMENTS (SEE SECTION 2.1.1) - An Employee is eligible to
participate in Non-Elective Contribution portions of the Plan if he
satisfies the following requirements during the Eligibility Computation
Period. (Specify one option or any combination other than c and d.
Selecting more than one option
4
5
means that an Employee must meet all indicated requirements for
eligibility, except for option e. Option e overrides all other
requirements):
( ) a. Date of hire, i.e. no age or service required (no other choices
may be selected)
(x) b. Minimum Age of 21 years (Not to exceed 21, partial years may be
used)
(x) c. Minimum of 6 months service (Cannot require more than 24
months, or more than 12 months if full vesting after not more
than 2 Years of Service is not selected; if periods other than
who years are selected an Employee cannot be required to complete
any specified number of Hours of Service to receive credit for
the fractional year)
( ) d. _____ Hours of Service required during each 12 month
Eligibility Computation Period (cannot exceed 1000)
( ) e. Employed on ____/____/____. (For new plans only, select an
additional option if this provision is selected)
( ) f. Not applicable. Non-Elective Contributions are not permitted.
3. FOR THE PURPOSES OF HAVING ELECTIVE CONTRIBUTIONS made on the Employee's
behalf, Section 2.1.1 provides that, unless the Employer specifies
otherwise in the Adoption Agreement, an Employee must complete 1000 Hours
of Service during the Eligibility Computation Period. For these purposes,
an Employee is eligible if the following requirements are satisfied:
(Select all applicable. Selecting more than one option means that an
Employee must meet all indicated requirements for eligibility, except for
option e. Option e overrides all other requirements):
( ) a. Date of hire, i.e. no age or service requirement (No other
choices may be selected)
(x) b. Minimum Age of 21 years (Not to exceed 21, partial years may
be specified)
(x) c. Minimum of 6 months service (Not to exceed 12, if other than
full years are selected hours may not be specified)
( ) d. _____ Hours of Service required during each 12 month
Eligibility Computation Period (cannot exceed 1000)
( ) e. Employed on ____/____/____. (For new plans only, select an
additional option if this provision is selected)
4. MATCHING ELIGIBILITY REQUIREMENTS (SEE SECTION 2.1.1) - An Employee is
eligible to participate in the Matching Contributions portion of the Plan
if he satisfies the following requirements during the Eligibility
Computation Period. (Specify one option or any combination other than c
and d. Selecting more than one option means that an Employee must meet
all indicated requirements for eligibility, except for option e. Option e
overrides all other requirements):
5
6
( ) a. Date of hire, i.e. no age or service required (NO other
choices may be selected)
(x) b. Minimum Age of 21 years (Not to exceed 21, partial years may
be used)
(x) c. Minimum of 6 months service (Cannot require more than 24
months, or more than 12 months if full vesting after not more
than 2 Years of Service is not selected; if periods other than
whole years are selected an Employee cannot be required to
complete any specified number of Hours of Service to receive
credit for the fractional year)
( ) d. _____ Hours of Service required during each 12 month Eligibility
Computation Period (cannot exceed 1000)
( ) e. Employed on ____/____/____. (For new plans only, select an
additional option if this provision is selected)
( ) f. Not applicable. Matching Contributions are not permitted.
5. ELIGIBILITY COMPUTATION PERIOD - Section 1.2.22 provides that the initial
eligibility computation period begins on the date of hire and the
subsequent periods commence on each annual anniversary of such date.
(Select one)
(x) a. Plan Provision
( ) b. The eligibility computation periods subsequent to the
initial eligibility computation period are the Plan Year
beginning with the first Plan Year commencing prior to the
first anniversary of the employment commencement date.
6. HOUR OF SERVICE.- Section 1.2.35 provides that service will be credited
on the basis of actual hours for which the employee is paid or entitled to
payment. If records of actual hours are not maintained, credit is given
on the basis of: (Select one)
( ) a. Plan Provision - Records are maintained
( ) b. Days Worked - An Employee will be credited with 10 Hours of
Service if he is credited with at least 1 Hour of Service
during the day
(x) c. Weeks Worked - An employee will be credited with 45 Hours
of Service if he is credited with at least 1 Hour of Service
during the week
( ) d. Semi-Monthly Payroll Period - An Employee will be credited
with 95 Hours of Service if he is credited with at least 1 Hour
of Service during the payroll period
( ) e. Months worked - An Employee will be credited with 190 Hours of
Service if he is credited with at least 1 Hour of Service
during the month
6
7
7. SERVICE WITH PREDECESSOR EMPLOYERS - Section 1.2.35 provides that service
with predecessor employers is treated as service for the Employer. Where
applicable, identify the predecessor employer(s) and any document(s) which
provides for the crediting of service with such predecessor(s):
( ) a. Not applicable.
(x) b. Service with the following entities shall be credited as service
under this plan:
AMJ CENTRAL STATION CORPORATION, INC.
Service with the above entities has been determined under the
terms of the following documents:
____________________________________
8. ENTRY DATE - Section 2.1.2 provides that an Employee who satisfies any
eligibility requirements enters the Plan on the Entry Date. For this
purpose the Entry Date is the: (Select One)
( ) a. First day of next Plan Year or _____ months (Not to exceed 6)
after satisfying the eligibility requirements, if earlier
( ) b. First day of _____ month (Not more than 6) after satisfying
eligibility requirements or the first day of the next Plan
Year, if earlier
( ) ▇. ▇▇▇▇ of satisfying the eligibility requirements
( ) d. First day of Plan Year in which the eligibility requirements are
satisfied
( ) f. Semiannual - ( ) first or ( ) last day of 6 month periods,
beginning with first of Plan Year, coincident with or after
satisfying eligibility requirements
(x) g. Quarterly - (x) first or ( ) last day of 3 month periods,
beginning with first of Plan Year, coincident with or after
satisfying eligibility requirements
( ) h. Monthly - ( ) first or ( ) last day of each month of the Plan
Year coincident with or after satisfying eligibility
requirements
( ) i. First day of the Plan Year coincident with or immediately
following the date the eligibility requirements are satisfied.
(May be selected only if eligibility requirements of Plan do
not require more than 6 months of service (18 months if 100%
immediate vesting) and attainment of age 20 1/2 .)
( ) j. Last day of the Plan Year coincident with or after satisfying
the eligibility requirements. (May be selected only if
eligibility requirements of Plan do not require more than 6
months of service (18 months of 100% immediate vesting) and
attainment of age 20 1/2).
7
8
NOTE: The Entry Date should be coordinated with the Compensation
Computation Period.
9. BREAK IN SERVICE - Section 1.2.8 provides that a Break in Service occurs
if any Employee fails to complete more than 500 hours of service during
the applicable computation period unless a lesser number is specified.
(Select one)
(x) a. Plan Provision
( ) b. A Break will occur if the Employee fails to complete more than
_____ (Not to exceed 500) Hours of Service
B. DATE PROVISIONS
1. ANNIVERSARY DATE - Section 1.2.5 provides that the Anniversary Date is
the last day of the Plan Year unless another date is specified. (Select
ONE)
(x) a. Plan Provision - No other date is specified.
( ) b. The first day of the Plan Year.
( ) c. Other - Specify. (Must be at least annually)
2. VALUATION DATE - Section 1.2.63 provides that the Valuation Date is the
date or dates specified in the Adoption Agreement. (Select one)
( ) a. Anniversary Date
( ) b. Semiannually on the last day of each 6 month period beginning
with the first of the Plan Year.
(x) c. Quarterly on the last day of each 3 month period beginning with
the first of the Plan Year.
( ) d. Monthly on the last day of each month of the Plan Year
( ) e. Last day of Plan Year (use option (a) if Anniversary Date is
last day of the Plan Year
( ) f. Other - Specify. (Must be at least annually)
3. NORMAL RETIREMENT DATE - Section 1.2.46 permits the adoption of a Normal
Retirement Date. (Select one)
(x) a. Date Normal Retirement Age is attained
( ) b. First day of month in which Normal Retirement Age is attained
( ) c. First day of month nearest date Normal Retirement Age is
attained
( ) d. First day of month coincident with or next following the date
Normal Retirement Age is attained
( ) e. Anniversary Date nearest date Normal Retirement Age is attained
( ) f. Anniversary Date coincident with or next following date Normal
Retirement Age is attained
4. NORMAL RETIREMENT AGE - For each Participant the Normal Retirement Age is:
(x) a. Age 65 (not to exceed 65)
8
9
( ) b. The later of age _____ (not to exceed 65) or the _____ (not to
exceed the fifth (5th)) anniversary of the participation
commencement date, if later. The participation commencement
date is the first day of the Plan Year in which a Participant
commenced participation in the Plan. Solely for Plan Years
beginning before 1988, if the normal retirement age was
determined by reference to the anniversary of the participation
commencement date, the anniversary for participants who first
commenced participation before the first Plan Year beginning on
or after January 1, 1988 is the earlier of the tenth
anniversary of the date the participant commenced participation
in the Plan (or such anniversary as had been elected by the
Employer if less than ten) or the fifth anniversary of the
first day of the first Plan Year beginning on or after January
1, 1988.
( ) c. Age _____ and the _____ anniversary of the participation
commencement date, if both requirements are met earlier than
the later age of 65 or the fifth (5th) anniversary of
participation.
5. EARLY RETIREMENT DATE - Section 1.2.17 permits the adoption of an Early
Retirement Date: (Select one)
(x) a. The Plan does not provide an early retirement date
( ) b. The actual date the Participant attains the Early Retirement Age
( ) c. The Anniversary Date coincident with or next following the date
the Participant attains the Early Retirement Age
( ) d. The Valuation Date coincident with or next following the date
the Participant attains the Early Retirement Age
( ) e. The ( ) first ( ) last day of the month coincident with or next
following the date the Participant attains the Early Retirement
Age
6. EARLY RETIREMENT AGE - (Select all applicable. If more than one option
is selected, Early Retirement Age is attained on the first date the
requirements of any option are met.)
( ) a. Age _____ (not to exceed 65)
( ) b. Age _____ and _____ Years of Service
( ) c. Age _____ and _____ Years of Service while a Participant
( ) d. _____ years prior to the Normal Retirement Age
( ) e. Sum of age and Years of Service equals _____
(x) f. Not Applicable
NOTE: Cannot discriminate in favor of Highly Compensated Employees.
9
10
C. COMPENSATION
1. COMPENSATION - See Section 1.2.10. For purposes of the Plan a
Participant's compensation is based on the Compensation Computation Period
and shall: (Select a, b, or c and d if applicable)
( ) a. Equal compensation as defined in Section 3401(a) except as
indicated below
( ) b. Equal compensation as defined in Section 415(c)(3) except as
indicated below
(x) c. Equal compensation as defined for the Wages, Tips, and Other
Compensation Box on Form W-2 except as indicated below
( ) d. Include compensation which is not includable in gross income by
reason of Sections 402(h)(1)(B) (SEP deferrals), 125 (Cafeteria
Plan), 402(a)(8) (401(k) deferrals), 403(b) or 457(b)
2. THE COMPENSATION COMPUTATION PERIOD IS:
(x) a. The Plan Year
( ) b. The calendar year ending with or within the Plan Year
3. FOR THE INITIAL PLAN YEAR OF PARTICIPATION, include Compensation from:
(Select one)
(x) a. Entry Date as a Participant
( ) b. First day of the Compensation Computation Period which ends
during the initial Plan Year of participation
D. CONTRIBUTION AND ALLOCATION
1. NON-ELECTIVE CONTRIBUTION FORMULA - The Employer's Non-Elective
contribution to the Plan shall be: (Select one)
( ) a. Discretionary, out of profits
(x) b. Discretionary, but not limited to profits
( ) c. _____% of each Participant's Compensation. (not to exceed 15%
( ) d. Not applicable. Non-Elective Contributions are not permitted.
2. ALLOCATION METHOD - The Employer Non-Elective contribution is allocated
to Participants: (Select one)
(x) a. Proportionate to Salary. Based upon each Participant's
Compensation in proportion to the Compensation of all
Participants.
( ) b. Integrated with Social Security. See Sections 2.3.1 and 2.3.3.
(Select one of d. through h., below.)
( ) c. Not applicable - No Non-Elective Contributions.
The Social Security Integration Level is equal to:
10
11
( ) d. The taxable wage base under Section 230 of the Social Security
Act in effect as of the first day of the Plan Year.
( ) e. $__________ (Not to exceed the taxable wage base under Section
230 of the Social Security Act in effect as of the first day
of the Plan Year).
( ) f. _____% (Not to exceed 100) of the taxable wage base under
Section 230 of the Social Security Act in effect as of the
first day of the Plan Year.
( ) g. The greater of $10,000 or 20% of the taxable wage base under
Section 230 of the Social Security Act in effect as of the
first day of the Plan Year.
( ) h. 80% of the taxable wage base under Section 230 of the Social
Security Act in effect as of the first day of the Plan Year
plus $1.00.
3. REQUIREMENT TO SHARE IN CONTRIBUTION ALLOCATION - An allocation of the
Employer's Non-Elective Contribution shall be made to each Participant
during the Plan Year who completes more than 500 Hours of Service during
the Plan Year or is employed as of the last day of the Plan Year.
A participant is also eligible to share in the allocation if: (Select
all applicable)
(x) a. The Employee dies during the Plan Year.
(x) b. The Employee retires during the Plan Year.
(x) c. The Employee becomes totally disabled during the Plan Year.
( ) d. Not applicable.
4. REQUIREMENT TO SHARE IN MATCHING ALLOCATION - An allocation of the
Employer's Matching Contribution shall be made to each Participant during
the Plan Year who completes more than 500 Hours of Service during the Plan
Year or is employed as of the last day of the Plan Year.
A Participant is also eligible to share in the allocation if: (Select
all applicable)
(x) a. The Employee dies during the Plan Year.
(x) b. The Employee retires during the Plan Year.
(x) c. The Employee becomes totally disabled during the Plan Year.
( ) d. Not Applicable - No Matching Contributions.
5. MATCHING CONTRIBUTIONS - The Matching Contribution by the Employer for
the Plan Year in accordance with Section 2.2.1(a)(3)(ii) is
( ) a. Matching Contributions are not permitted
(x) b. Discretionary each Plan Year
( ) c. Based upon the Allocation Method set forth below
( ) d. Based upon the Allocation Method set forth below plus a
supplemental discretionary Matching contribution
11
12
6. ALLOCATION METHOD FOR MATCHING CONTRIBUTIONS - Matching Contributions
shall be allocated to eligible Participants in an amount:
(x) a. Proportionate to the Elective Contributions made on behalf of a
Participant
( ) b. Equal to _____% of the Elective Contributions made on behalf of
a Participant
( ) c. Graded based on the dollar amount of the Elective Contribution
of each Participant as follows:
_____% of the first $_____ plus
_____% of the next $_____ plus
_____% of the next $_____ plus
_____% of the next $_____.
( ) d. Graded based on the percentage of compensation of the Elective
Contribution of each Participant as follows:
_____% of the first $_____ plus
_____% of the next $_____ plus
_____% of the next $_____ plus
_____% of the next $_____.
( ) e. Graded based on the dollar amount of the Elective Contribution
of each Participant as follows:
_____% if contribution is $_____ or more;
_____% if contribution is $_____ or more;
_____% if contribution is $_____ or more;
_____% if contribution is $_____ or more.
( ) f. Graded based on the percentage of compensation of the Elective
Contribution of each Participant as follows:
_____% if contribution is _____% or more
_____% if contribution is _____% or more
_____% if contribution is _____% or more
_____% if contribution is _____% or more.
( ) g. Not applicable
NOTE: Graded percentages entered in c. through f. must decrease as
percentage or amount of compensation increases.
7. IF A SUPPLEMENTAL DISCRETIONARY MATCHING CONTRIBUTION is made, Matching
Contributions shall be allocated to eligible Participants in an amount:
( ) a. Proportionate to the Elective Contributions made on behalf of a
Participant
( ) b. According to the method selected in 6b. - f. above
(x) c. Not applicable
8. MATCHING CONTRIBUTION ALLOCATION DATE - Matching Contributions are
allocated as of the Anniversary Date unless an alternate date is selected.
For the purposes of this Plan the Matching Contribution is allocated as
of: (Select one)
12
13
( ) a. Plan Provision - the Anniversary Date
( ) b. The next Valuation Date.
( ) c. Other - Specify. (Must be allocated at least annually)
MATCHING CONTRIBUTIONS ARE ALLOCATED AT EACH PAYROLL DATE AND
REBALANCED AT THE END OF PLAN YEAR.
( ) d. Not applicable
9. LIMITATIONS ON MATCHING CONTRIBUTIONS - The Employer shall not make
Matching Contributions: (Select all applicable)
(x) a. With respect to Elective Contributions in excess of 4 percent
of a Participant's Compensation
( ) b. In excess of $_____ for any Participant
( ) c. To Key Employees
( ) d. Not applicable.
10. ALLOCATION OF QUALIFIED NON-ELECTIVE CONTRIBUTIONS - (Select a or b. If
a is selected, do not complete the remainder of this section)
( ) a. Qualified Non-Elective Contributions are not permitted.
(x) b. Qualified Non-Elective Contributions shall be made at the
Employer's discretion.
Qualified Non-Elective Contributions shall be allocated (complete c and d):
(x) c. On behalf of
( ) All Participants
( ) Solely on behalf of Participants who are not Highly
Compensated Employees
(x) Solely on behalf of Participants who are not Highly
Compensated Employees to the extent necessary to satisfy the
ACP or the ADP test
( ) d. Who are eligible to receive an allocation of
( ) Non-Elective Contributions
( ) Matching Contributions
Qualified Non-Elective Contributions shall be allocated: (Select e or f;
also select g, if applicable)
(x) e. In proportion to a Participant's Compensation.
( ) f. As a uniform dollar amount.
(x) g. To the extent necessary to satisfy the ACP test or the ADP test.
11. LIMITATION YEAR - Section 1.2.40 provides that unless otherwise specified
the Limitation Year for purposes of the limitation imposed by IRC Section
415 is the Plan Year. (Select one)
(x) a. Plan Provision
( ) b. Calendar year coinciding with or ending within the Plan Year
13
14
( ) c. Twelve consecutive month period ending _____/_____.
E. VESTING PROVISIONS
1. YEARS OF SERVICE - Section 1.2.65 provides that a Year of Service is the
12 consecutive month period specified in the Adoption Agreement in which
at least 1000 Hours of Service are performed unless a lesser number is
specified. (Select all applicable)
(x) a. Use the Plan Year as the computation period
( ) b. Use Eligibility Computation Period as the computation period
( ) c. Use _____ in lieu of 1000 Hours of Service (Not to exceed 1000
hours)
2. EXCLUDED YEARS - Section 1.2.65 provides unless otherwise specified all
Years of Service are taken into account.
( ) a. Plan Provision - Include all Years of Service
( ) b. Exclude Plan Years prior to age 18
(x) c. Exclude Plan years prior to adoption of plan or predecessor plan.
Effective date of (prior) plan: JUNE 1ST, 1997
3. VESTING SCHEDULE - Section 2.4.2(f) provides that benefits will vest in
accordance with the method specified in the Adoption Agreement.
Employer Accounts:
( ) a. At the rate of 20% each year after 3 Years of Service.
(20% vested in third year)
( ) b. At the rate of 20% each year after 2 Years of Service. (20%
vested in second year)
( ) c. 100% vesting upon participation.
(x ) d. 100% vesting after 3 Year(s) of
Service (Not to exceed 5)
( ) e. 100% vesting at Early Retirement Date (Must also select another
alternative)
( ) f. Other: (Optional vesting schedule must be at least as favorable
as a. or d.)
Year(s) of Service Percent Vesting
------------------ ---------------
Less than 1 ______
1 but less than 2 ______
2 but less than 3 ______
3 but less than 4 ______
4 but less than 5 ______
5 but less than 6 ______
6 but less than 7 ______
7 or more ______
14
15
( ) g. Not applicable - No Non-Elective Employer Contributions
Matching Accounts:
( ) a. At the rate of 20% each year after 3 Years of Service.
(20% vested in third year)
( ) b. At the rate of 20% each year after 2 Years of
Service. (20% vested in second year)
( ) c. 100% vesting upon participation.
(x) d. 100% vesting after 3 Year(s) of Service (Not to exceed 5)
( ) e. 100% vesting at Early Retirement Date (Must also
select another alternative)
( ) f. Other: Optional vesting schedule must be at least
as favorable as a. or d.)
Year(s) of Service Percent Vesting
------------------ ---------------
Less than 1 ______
1 but less than 2 ______
2 but less than 3 ______
3 but less than 4 ______
4 but less than 5 ______
5 but less than 6 ______
6 but less than 7 ______
7 or more ______
( ) g. Not applicable - No Matching Contributions
4. PRIOR VESTING SCHEDULE - Section 3.10.3 provides that if the Vesting
schedule has been amended to a less favorable schedule, participants are
entitled to have their vested interest calculated under the prior schedule
under certain instances.
(x) a. Not applicable. Either not amended or new schedule is more
favorable.
( ) b. The prior schedule was
Employer
Year(s) of Service Percent Vesting
---------------------- ---------------
Less than 1 ______
1 but less than 2 ______
2 but less than 3 ______
3 but less than 4 ______
4 but less than 5 ______
5 but less than 6 ______
6 but less than 7 ______
7 or more ______
15
16
Matching
Year(s) of Service Percent Vesting
------------------ ---------------
Less than 1 ______
1 but less than 2 ______
2 but less than 3 ______
3 but less than 4 ______
4 but less than 5 ______
5 but less than 6 ______
6 but less than 7 ______
7 or more ______
5. TOP HEAVY VESTING SCHEDULE - Section 2.6.1(c) provides that if the Plan
becomes Top Heavy, unless the Employer specifies otherwise, vesting will
be at a rate of 20% per year beginning with the second Year of Service.
Employer Accounts:
( ) a. Plan Provision
( ) b. 100% vested after _____ Year(s) of Service (Not to exceed 3)
(x ) c. Same as non-Top Heavy vesting schedule (Must be at least as
favorable as a or b)
( ) d. Other: (Optional vesting schedule must be at least as
favorable as a. or b.)
Year(s) of Service Percent Vesting
------------------ ---------------
Less than 1 ______
1 but less than 2 ______
2 but less than 3 ______
3 but less than 4 ______
4 but less than 5 ______
5 but less than 6 ______
6 but less than 7 ______
7 or more ______
( ) e. Not Applicable - No Employer Non-Elective Contributions
Matching Accounts:
( ) a. Plan Provision
( ) b. 100% vested after _____ Year(s) of Service (Not to exceed 3)
(x ) c. Same as non-Top Heavy vesting schedule (Must be at least as
favorable as a or b)
( ) d. Other: (Optional vesting schedule must be at least as
favorable as a. or b.)
Year(s) of Service Percent Vesting
------------------ ---------------
Less than 1 ______
16
17
1 but less than 2 ______
2 but less than 3 ______
3 but less than 4 ______
4 but less than 5 ______
5 but less than 6 ______
6 but less than 7 ______
7 or more ______
( ) e. Not Applicable - No Matching Contributions
6. RE-EMPLOYMENT - Section 2.4.4 provides that Years of Service completed
after a Break in Service are not counted for purposes of increasing the
vested percentage attributable to service before the Break unless
reemployed within 5 years.
(x ) a. Plan Provision
( ) b. Count all service after the Break
( ) c. Not applicable - 100% immediate vesting
7. FORFEITURES - Section 2.4.6 provides that forfeitures are determined as
of the last day of the Plan Year in which the Participant's entire
interest is distributed from the Plan.
(x ) a. Plan Provision
( ) b. Determine in Plan Year of 5th consecutive Break in Service.
( ) c. Determination as of the Valuation Date coincident with or next
following the Distribution Date
( ) d. Not applicable - All benefits are fully vested. Leave the
remaining items in this Section E blank.
8. FORFEITURES OF NON-ELECTIVE CONTRIBUTIONS shall be applied to (select all
applicable):
( ) a. Supplement Non-Elective Contributions
(x ) b. Reduce Non-Elective Contributions
( ) c. Reduce Qualified Non-Elective Contributions
( ) d. Supplement Matching Contributions
( ) e. Reduce Matching Contributions
9. FORFEITURES OF NON-ELECTIVE CONTRIBUTIONS shall be reallocated to
participants:
( ) a. In the same manner as Non-Elective Contributions
( ) b. In proportion to each participant's Compensation
(x ) c. Not applicable. Forfeitures are applied to reduce
contributions.
NOTE: If the Plan provides for permitted disparity, forfeitures must
be allocated under the Plan's allocation formula.
10. FORFEITURES OF MATCHING CONTRIBUTIONS SHALL BE APPLIED TO: (Select all
applicable)
17
18
( ) a. Supplement Matching Contributions
(x) b. Reduce Matching Contributions
( ) c. Reduce Qualified Non-Elective Contributions
( ) d. supplement Non-Elective Contributions
( ) e. Reduce Non-Elective Contributions
11. FORFEITURES OF MATCHING CONTRIBUTIONS SHALL BE REALLOCATED to
participants:
( ) a. In the same manner as Non-Elective Contributions
( ) b. In proportion to each participant's Compensation
( ) c. In proportion to Matching Contributions
( ) d. In proportion to Elective Contributions
(x) e. Not applicable. Forfeitures are applied to reduce contributions.
12. REQUIREMENT TO SHARE IN ALLOCATION OF FORFEITURES - In order to share in
the allocation of Forfeitures which supplement rather than reduce other
contributions, a Participant: (Select all applicable)
( ) a. Must be eligible to receive an allocation of the respective
type of contribution, i.e. Matching or Non-elective
(x) b. Not applicable. Forfeitures reduce contributions.
13. RESTORATION OF FORFEITURES. - If a Participant is entitled to a
restoration of a forfeiture, the amount to be restored shall be restored
by:
( ) a. An additional contribution by the Employer specifically
allocated to the Participant's Account.
(x) b. Allocating other forfeitures arising in the year of restoration
to the Participant's Account to the extent thereof and an
additional contribution by the Employer specifically allocated
to the Participant's Account to the extent that allocable
forfeitures are insufficient.
F. CODA LIMITATION PROVISIONS
1. ACTUAL DEFERRAL PERCENTAGES - Qualified Non-Elective Contributions may be
taken into account for purposes of calculating the ADP-Actual Deferral
Percentages. For purposes of the ADP test in Section 2.7.1, the amount
taken into account shall be:
( ) a. All Qualified Non-Elective Contributions.
(x) b. The Qualified Non-Elective Contributions that are needed to
meet the ADP test.
2. AVERAGE CONTRIBUTION PERCENTAGE - The amount of Elective Deferrals and
Qualified Non-Elective Contributions taken into account as contribution
percentage amounts for the purpose of calculating the ACP-Average
Contribution Percentage, subject to such other requirements as may be
prescribed by the Secretary of the Treasury, shall be:
18
19
For elective deferrals:
( ) a. All such Elective Deferrals.
(x) b. Only those Elective Deferrals that are needed to meet the
Average Contribution Percentage test.
( ) c. Elective Deferrals are not to be included in the ACP test.
( ) d. Not applicable.
For Qualified Non-Elective Contributions:
( ) e. All such Qualified Non-Elective contributions.
(x) f. Only those Qualified Non-Elective Contributions that are needed
to meet the Average Contribution Percentage test.
( ) g. Qualified Non-Elective Contributions are not to be included in
the ACP test.
( ) h. Not applicable.
3. EXCESS AGGREGATE CONTRIBUTIONS - Forfeitures of Excess Aggregate
Contributions pursuant to Section 2.7.7 shall be:
(x) a. Applied to reduce Employer contributions.
( ) b. Allocated, after all other forfeitures under the Plan,
to each Participant's Matching Contribution Account in the
ratio which each Participant's Compensation for the Plan Year
bears to the total Compensation of all Participants for the
Plan Year. Such forfeitures will not be allocated to the
Account of any Highly Compensated Employee.
G. DISTRIBUTION PROVISIONS
1. FORM OF DISTRIBUTIONS - Section 2.5.2 provides that the Employer may
elect to permit Plan distributions to be made in the form of: (Select all
applicable)
(x) a. Lump sum without regard to amount.
( ) b. Lump sum but not to exceed $______.
( ) c. Installments over ____ years payable: (Select one or more)
( ) c.1. annually
( ) c.2. quarterly
( ) c.3. monthly
( ) d. Installments over a period of years certain selected by the
Participant that is less than the life of the Participant
payable (Select one or more.)
( ) d.1. annually
( ) d.2. quarterly
( ) d.3. monthly
( ) e. An annuity for not more than ___
( ) f. An annuity for the life of: (Select one or more)
( ) f.1. the Participant
19
20
( ) f.2. the Participant and spouse
( ) f.3. the Participant and a designated beneficiary
( ) g. An annuity for ___ years certain and thereafter for the life
of:
(Select one or more)
( ) g.1. the Participant
( ) g.2. the Participant and spouse
( ) g.3. the Participant and a designated beneficiary
( ) h. An annuity for a period certain selected by the Participant
that is less than the life of: (Select one or more)
( ) h.1. the Participant
( ) h.2. the Participant and spouse
( ) h.3. the Participant and a designated beneficiary
NOTE: Any number of options may be selected. Once selected, however, any
option may not thereafter be eliminated.
In an annuity option of life or longer is selected Qualified Joint and
Survivor Annuity provisions are required.
2. SURVIVOR ANNUITY PERCENTAGE - If a Joint and Survivor Annuity is payable,
Section 1.2.37 provides that the normal survivor annuity is 50% of the
amount payable during the joint lives of the participant and spouse,
unless the Employer elects a different percentage (Select one):
( ) a. Plan Provision - 50%
( ) b. Other Percentage - ___% (Not less than 50% nor more than 100%)
( ) c. Other Percentage selected by the Participant (Not less than
50% or more than 100%)
3. TIME OF DISTRIBUTION - Section 2.5.1(b) provides that distributions are
deferred to Participants who resign or are discharged prior to retirement
until the retirement date unless the employer elects to permit
distributions in advance of such date.
( ) a. Plan Provision without advance distribution election.
(x) b. Distributions may be made at the Participant's election
within a reasonable period following the Distribution Date.
4. DISTRIBUTION DATE - Section 2.4.5 provides that, subject to the necessity
of obtaining the consent of a Participant and spouse, for the purposes of
determining the amount to be distributed, the Distribution Date:
For a Participant who is not fully vested, is
( ) a. The Anniversary Date coinciding with or following the date of
termination.
(x) b. The Valuation Date coinciding with or following the date of
termination.
20
21
( ) c. As soon as practical but prior to the Anniversary Date
coinciding with or following the date of termination, based
on the preceding Valuation Date.
( ) d. the ( ) Valuation Date ( ) Anniversary Date following ___
consecutive Breaks in Service.
( ) e. The Participant's Normal or Early Retirement Date
For a Participant who is fully vested but who terminates employment
prior to death, total and permanent disability or retirement as
his retirement date is:
( ) a. The Anniversary Date coinciding with or following the date of
termination.
(x) b. The Valuation Date coinciding wit or following the date of
termination.
( ) c. As soon as practical but prior to the Anniversary Date
following the date of termination, based upon the preceding
Valuation Date
( ) d. The Participant's Normal or Early Retirement Date
For a Participant who terminates employment as a result of death, total
and permanent disability or retirement at his retirement date, is:
( ) a. The Anniversary Date coinciding with or following the date of
termination.
(x) b. The Valuation Date coinciding with or following the date of
termination.
( ) c. As soon as practical but prior to the Anniversary Date
following the date of termination, based upon the preceding
Valuation Date
In the case of a Participant's interest in an Elective Account, Voluntary
Account or Segregated Account attributable to a rollover contribution
from another plan, notwithstanding the foregoing, the Distribution
Date, is:
( ) a. Not applicable - The Distribution Date is determined in the
manner indicated above for the fully vested Participants
( ) b. The Anniversary Date coinciding with or following the date of
termination.
(x) c. The Valuation Date coinciding with or following the date
of termination.
( ) d. As soon as practical but prior to the Anniversary Date
following the date of termination, based upon the preceding
Valuation Date
5. HARDSHIP DISTRIBUTIONS - Section 2.5.5. provides that an Employer may
permit distributions to Participants while employed in the event of
financial hardship as specified in the Plan:
( ) a. Hardship distributions are permitted.
(x) b. Hardship distributions are not permitted.
21
22
Hardship Distributions may be made from a Participants Account as elected
below in c and d, provided that Hardship Distributions of earnings on
elective Deferrals may only be made on such earnings credited to the
Participant's account as of the end of the last Plan Year ending before
July 1, 1989. Therefore, subject to such limitation, Hardship
Distributions may be taken from:
( ) c. all of Participant's Accounts.
( ) d. only the Participant's Account balances attributable to the
following accounts:
( ) d.1. Employer Account
( ) d.2. Qualified Non-Elective Contribution Account
( ) d.3. Elective Contribution Account
( ) d.4. Matching Account
( ) d.5. Segregated Account (attributable to a rollover)
( ) d.6. Voluntary Account
6. IN SERVICE DISTRIBUTIONS -Section 2.5.6 provides that an Employer may
permit distributions to fully vested Participants over the age of 59-1/2
prior to termination of employment if the amounts withdrawn have been
allocated to the Participant for two (2) or more years or the Participant
has been a Participant for at least five (5) years. (Select all
applicable)
(x) a. Plan Provision.
( ) b. Require that amounts have been allocated for ___ years.
(Must be at least 2)
( ) c. Require participation for at least __ years. (Must be at
least 5)
( ) d. In Service Distributions are permitted upon reaching Normal
Retirement Date
( ) e. In Service Distribution are permitted for amounts attributable
to a rollover from another plan regardless of age or periods of
participation
( ) f. In Service Distributions are not permitted.
7. QUALIFIED DOMESTIC RELATIONS ORDERS - Section 3.12.9 provides that the
Employer may elect to permit distributions to an alternate payee pursuant
to the terms of a qualified domestic relations order even if the
Participant continues to be employed. (Select one)
( ) a. Distributions to an alternate payee are not permitted while the
Participant continues to be employed.
( ) b. Distributions to an alternate payee are permitted while the
Participant continues to be employed.
H. OTHER ADMINISTRATIVE PROVISIONS
1. EARNINGS -Section 3.1.2 permits the Employer to specify the manner in
which earnings are allocated to Participants who receive distributions on
any date other than a Valuation Date. Select any of the following:
22
23
(x) a. Earnings will be credited solely as of the immediately preceding
Valuation Date.
( ) b. Actual earnings will be credited to the date of distribution.
( ) c. Earnings will be credited solely as of the immediately preceding
Valuation Date if distribution is within ___ days of such
Valuation Date and will be credited to date of distribution
otherwise.
( ) d. Earnings will be credited to the date of distribution based
upon an estimate of earnings equal to ___% annually.
( ) e. Earnings will be credited to the date of distribution based
upon an estimate of earnings equal to the average rate of
earnings during the preceding
( ) e.1. Valuation Period.
( ) e.2. Plan Year.
( ) e.3. ___ Valuation Periods.
2. LOANS -Section 3.7.1. provides that the Employer may elect to permit
loans to Participants and Beneficiaries in accordance with a participant
loan program adopted by the Trustee.
(x) a. Loans are permitted.
( ) b. Loans are not permitted.
3. ROLLOVERS.- Section 3.11.3 authorizes the Employer to permit the transfer
of interests in other qualified plans to the Plan.
( ) a. Rollover contributions are not permitted.
( ) b. Rollover contributions are permitted only from other plans of
the Employer.
( ) c. Rollover contributions are permitted only by Employees who have
satisfied the conditions for participation.
(x) d. Rollover contributions are permitted from any employee even if
not otherwise eligible to be a Participant.
4. INVESTMENT CONTROL - Section 3.6.5 provides that the Employer may elect
to permit Participants to control the investment of their Accounts.
( ) a. Participants may not control their investments.
( ) b. Participants may control the investment of their Accounts if
fully vested in the Account.
( ) c. Participants may control the investment of their Accounts to
the extent vested.
(x) d. Participants may control their investments without regard to
heir vested interest.
( ) e. Participants may control their investments solely with respect
to amounts attributable to: (Select all applicable)
( ) e.1. Non-Elective Contributions
( ) e.2. Qualified Non-Elective Contributions
( ) e.3. Elective Contributions
23
24
( ) e.4. Matching Contributions
( ) e.5. Voluntary Contributions
( ) e.6. Amounts rolled over and held in a Segregated Account
5. TOP HEAVY ASSUMPTIONS - (This question applies only if the Employer has a
Defined Benefit plan.) The interest rate used to establish the Present
Value of Accrued Benefits in order to calculate the top heavy ratio under
IRC Section 416 shall be ____% and the mortality tables used shall be
____________________.
6. VALUATION DATE - For purposes of computing the top-heavy ratio, the
Valuation Date is (Select one):
(x) a. the first day of Plan Year.
( ) b. the last day of the Plan Year.
( ) c. Other - Specify. __/__ (Must be at least annually)
7. SINGLE PLAN MINIMUM TOP-HEAVY ALLOCATION - For purposes of minimum
top-heavy allocations, contributions and forfeitures equal to the
following percentage of each non-Key Employee's compensation will be
allocated to the Employee's account when the Plan is top-heavy (Select
one):
(x) a. 3% or the highest percentage allocated to any Key Employee if
less.
( ) b. ________% (Must be at least 3).
8. MULTIPLE PLANS PROVISION - The Employer which maintains or ever
maintained another qualified defined benefit plan or welfare benefit fund
or individual medical account in which any participant in the Plan is, was
or could become a participant adds the following optional provisions which
it deems necessary to satisfy Section 415 or 416 of the Code because of
the required aggregation of multiple plans: (Select one)
(x) a. Not applicable (No other plan or other plan terminated
prior to the Effective Date of this Adoption Agreement).
( ) b. A minimum contribution allocation of 5% of each Non-Key
Participant's total compensation shall be provided in a defined
contribution plan of the Employer.
( ) c. A minimum contribution allocation of 7.5% of each Non-Key
Participant's total compensation shall be provided in a defined
contribution plan of the Employer.
( ) d. A minimum benefit of _______ (must be at least the lesser of 2%
times years of service of 20%) of each Non-Key Participant's
total compensation shall be provided in a defined benefit plan
of the Employer.
( ) e. A minimum benefit of ______ (must be the lesser of 2% times
years of service or 20%) of each Non-Key Participant's total
compensation shall be provided in a defined benefit plan of the
Employer but offset by the amount contributed on such
24
25
participant's behalf under any defined contribution plan
of the Employer.
( ) f. Other - Specify.
NOTE: The method selected must preclude Employer discretion and the
Employer must obtain a determination letter in order to continue
reliance on the Plan's qualified status.
9. MULTIPLE DEFINED CONTRIBUTION PLANS. If the Participant is covered under
another qualified defined contribution plan maintained by the Employer,
other than a master or prototype plan: (Select one)
(x) a. Not applicable.
( ) b. The provisions of this Plan limiting annual additions
will apply as if the other plan is a master or prototype plan.
( ) c. Other - Specify.
NOTE: Specify 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.
10. TOP HEAVY DUPLICATIONS - The Employer who maintains two or more Defined
Contribution plans makes the following election:
(x) a. Not applicable
( ) b. A minimum non-integrated contribution of 3% of each Non-Key
Participant's Compensation shall be provided by:
( ) b.1. this Plan.
( ) b.2. the following defined contribution plan:
__________________________
( ) c. Other - Specify.
NOTE: The method selected must preclude Employer discretion and avoid
inadvertent omissions, including any adjustments required under
code Section 415(e). The employer must obtain a determination
letter in order to continue reliance on the Plan's qualified
status. If the plan is to be paired another defined
contribution plan:
(a) if the plans benefit the same participants, one of the
paired plans must provide the top-heavy minimum
contribution.
(b) if the plans do not benefit the same participants, then
each plan must make its own top-heavy minimum
contributions.
11. ANNUAL ADDITION LIMITATION - If a Participant is or has ever been a
participant in a defined benefit pension plan maintained by the Employer,
Section 3.2.1(c) provides that Annual Additions shall be limited.
25
26
(x) a. Not applicable.
( ) b. The contribution to the Plan allocable to the Participant shall
be reduced so that the limitations are not exceeded.
( ) c. Other - Specify
NOTE: Specify the method under which the plans will limit total
additions to the maximum permissible amount, and will properly
reduce any excess amounts in a manner that precludes employer
discretion.
12. SECTION 415 COMPENSATION DEFINITION - For purposes of calculating an
Employee's compensation pursuant to Section 3.2.1(h), relating to
limitations on contributions and benefits, Compensation means all of each
Participant's
( ) a. Wages are computed for Wages, Tips, and Other Compensation Box
on Form W-2.
( ) b. Section 3401(a) wages.
(x) c. Section 415 safe harbor compensation.
13. PAIRED PLAN - Indicate whether the Plan is to be paired with another
DATAIR Mass-Submitter Prototype Plan.
(x) a. No or not applicable.
( ) b. Yes. Paired with:
Plan Name __________________
Three Digit Plan Number ____________
26
27
The name, address and telephone number of the Plan Sponsor is:
DATAIR Employee Benefit Systems, Inc.
▇▇▇ ▇. ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇
(▇▇▇) ▇▇▇-▇▇▇▇
Applicable requirements mandate that the use of this Prototype Document be
registered by the Plan Sponsor with the Internal Revenue Service. Unregistered
use may cause the Plan to become disqualified because it may not be maintained
as required by law.
The Plan Sponsor will inform the Employer of any amendments made to the Plan or
of the discontinuance or abandonment of the Plan.
NOTE: An employer may rely on the notification letter issued by the National
Office of the Internal Revenue Service as evidence that the plan is qualified
under Section 401 of the Internal Revenue Code unless the Employer has ever
maintained or who later adopts another plan in addition to the Plan (including
a welfare benefit fund which provides post-retirement medical benefits
allocated to separate accounts for key employees or an individual medical
account plan) other than DATAIR Mass-Submitter paired plans. If the Employer
who adopts or maintains multiple plans wishes to obtain reliance that the plans
are qualified, application for a determination letter should be made to the
appropriate Key District Director of Internal Revenue.
This Adoption Agreement may be used only in conjunction with the DATAIR
Mass-Submitter Prototype Defined Contribution Plan and Trust, Revised 05/06/92.
The Employer and Trustee hereby adopt the Plan and Trust as evidenced by the
foregoing Adoption Agreement on this 28th day of April, 1997.
Employer: Trustee:
Security Associates International, Inc.
/s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇ /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
--------------------------------------- --------------------
▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
President Trustee
/s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇
--------------------
▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Trustee
27
28
/s/ ▇▇▇▇▇▇▇ ▇▇▇▇▇
--------------------
▇▇▇▇▇▇▇ ▇▇▇▇▇
Trustee
/s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
----------------------------------
Security Associates Command Center II, LLC
▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Manager
/s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
----------------------------------
All-Security Monitoring Services, LLC
▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Manager
/s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
----------------------------------
AMJ Central Station Corporation, Inc.
▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
President
28