AMERICA’S CAR-MART, INC.
Exhibit
4.1
AMERICA’S
CAR-MART, INC.
401(K)
PLAN
ADOPTION
AGREEMENT
NONSTANDARDIZED
401(k) PROFIT SHARING PLAN
The
undersigned, America’s
Car-Mart, Inc.
(“Employer”), by executing this Adoption Agreement, elects to establish a
retirement plan and trust (“Plan”) under the Bank
of Oklahoma, N.A.
(basic
plan document # 01 ).
The
Employer, subject to the Employer’s Adoption Agreement elections, adopts fully
the Prototype Plan and Trust provisions. This Adoption Agreement, the basic
plan
document and any attached appendices or addenda, constitute the Employer’s
entire plan and trust document. All
section references within this Adoption Agreement are Adoption Agreement
section
references unless the Adoption Agreement or the context indicate otherwise.
All
article references are basic plan document and Adoption Agreement references
as
applicable. Numbers in parenthesis which follow headings are references to
basic
plan document sections.
The
Employer makes the following elections granted under the corresponding
provisions of the basic plan document.
ARTICLE
I
DEFINITIONS
| 1. |
PLAN (1.21).
The name of the Plan as adopted by the Employer is America’s
Car-Mart, Inc. 401(k)
Plan .
|
| 2. |
TRUSTEE (1.33).
The Trustee executing this Adoption Agreement is: (Choose
one of (a), (b) or (c))
|
| o |
(a) A
discretionary Trustee.
See Plan Section 10.03[A].
|
| x |
(b) A
nondiscretionary Trustee.
See Plan Section 10.03[B].
|
| o |
(c) A
Trustee under a separate trust agreement.
See Plan Section 10.03[G].
|
3. EMPLOYEE (1.11).
The
following Employees are not eligible to participate in the Plan: (Choose
(a) or one or more of (b) through (g) as applicable)
| o |
(a) No
exclusions.
|
| o |
(b) Collective
bargaining Employees.
|
| o |
(c) Nonresident
aliens.
|
| x |
(d) Leased
Employees.
|
| x |
(e) Reclassified
Employees.
|
| o |
(f) Classifications: .
|
|
o
|
(g)
|
Exclusions
by types of contributions. The
following classification(s) of Employees are not eligible for the
specified contributions:
|
Employee
classification:
Contribution
type:
4.
COMPENSATION (1.07).
The
Employer makes the following election(s) regarding the definition of
Compensation for purposes of the contribution allocation formula under Article
III: (Choose
one of (a), (b) or (c))
| x |
(a) W-2
wages increased by Elective
Contributions.
|
| o |
(b) Code
§3401(a) federal income tax withholding wages increased by Elective
Contributions.
|
| o |
(c) 415
compensation.
|
[Note:
Each of the Compensation definitions in (a), (b) and (c) includes Elective
Contributions. See Plan Section 1.07(D). To exclude Elective Contributions,
the
Employer must elect (g).]
Compensation
taken into account.
For the
Plan Year in which an Employee first becomes a Participant, the Plan
Administrator will determine the allocation of Employer contributions (excluding
deferral contributions) by taking into account: (Choose
one of (d) or (e))
| o |
(d) Plan
Year.
The Employee’s Compensation for the entire Plan
Year.
|
| x |
(e) Compensation
while a Participant.
The Employee’s Compensation only for the portion of the Plan Year in which
the Employee actually is a
Participant.
|
1
Modifications
to Compensation definition.
The
Employer elects to modify the Compensation definition elected in (a), (b)
or (c)
as follows. (Choose
one or more of (f) through (n) as applicable. If the Employer elects to allocate
its nonelective contribution under Plan Section 3.04 using permitted disparity,
(i), (j), (k) and (l) do not apply):
|
o
|
(f)
Fringe
benefits.
The Plan excludes all reimbursements or other expense allowances,
fringe
benefits (cash and noncash), moving expenses, deferred compensation
and
welfare benefits.
|
|
o
|
(g)
Elective
Contributions.
The Plan excludes a Participant’s Elective Contributions. See Plan Section
1.07(D).
|
|
o
|
(h)
Exclusion.
The Plan excludes Compensation in excess of: .
|
|
o
|
(i)
Bonuses.
The Plan excludes bonuses.
|
|
o
|
(j)
Overtime.
The Plan excludes overtime.
|
|
o
|
(k)
Commissions.
The Plan excludes commissions.
|
|
o
|
(l)
Nonelective
contributions.
The following modifications apply to the definition of Compensation
for
nonelective contributions: .
|
|
o
|
(m)
Deferral
contributions.
The following modifications apply to the definition of Compensation
for
deferral contributions: .
|
|
o
|
(n)
Matching
contributions.
The following modifications apply to the definition of Compensation
for
matching contributions: .
|
5. PLAN
YEAR/LIMITATION YEAR (1.24).
Plan
Year and Limitation Year mean the 12-consecutive month period (except for
a
short Plan Year) ending every: (Choose
(a) or (b). Choose (c) if applicable)
|
x
|
(a)
December
31.
|
|
o
|
(b)
Other: .
|
|
o
|
(c)
Short
Plan Year:
commencing on:
and ending on: .
|
6. EFFECTIVE
DATE (1.10).
The
Employer’s adoption of the Plan is a: (Choose
one of (a) or (b))
|
o
|
(a)
New
Plan.
The Effective Date of the Plan is: .
|
|
x
|
(b)
Restated
Plan.
The restated Effective Date is: March
1,
2001 .
|
This
Plan
is an amendment and restatement of an existing retirement plan(s) originally
established effective as of:
March
1, 2001 .
7. HOUR
OF SERVICE/ELAPSED TIME METHOD (1.15).
The
crediting method for Hours of Service is: (Choose
one or more of (a) through (d) as applicable)
|
o
|
(a)
Actual
Method.
See Plan Section 1.15(B).
|
|
x
|
(b)
Equivalency
Method.
The Equivalency Method is: monthly
equivalency .
[Note:
Insert “daily,” “weekly,” “semi-monthly payroll periods” or
“monthly.”]
See Plan Section 1.15(C).
|
|
x
|
(c)
Combination
Method.
In
lieu of the Equivalency Method specified in (b), the Actual Method
applies
for purposes of: hourly
paid
employees .
|
|
o
|
(d)
Elapsed
Time Method.
In
lieu of crediting Hours of Service, the Elapsed Time Method applies
for
purposes of crediting Service for: (Choose
one or more of (1), (2) or (3) as applicable)
|
|
o
|
(1)
Eligibility under Article II.
|
|
o
|
(2)
Vesting under Article V.
|
|
o
|
(3)
Contribution allocations under Article
III.
|
2
8. PREDECESSOR
EMPLOYER SERVICE (1.30).
In
addition to the predecessor service the Plan must credit by reason of
Section 1.30 of the Plan, the Plan credits as Service under this Plan,
service
with the following predecessor employer(s): Crown
Group, Inc. and Colonial Auto Finance,
Inc. .
[Note:
If the Plan does not credit any additional predecessor service under this
Section 1.30, insert “N/A” in the blank line. The Employer also may elect to
credit predecessor service with specified Participating Employers only. See
the
Participation Agreement.]
Service
with the designated predecessor employer(s) applies: (Choose
one or more of (a) through (d) as applicable)
|
x
|
(a)
Eligibility.
For eligibility under Article II. See Plan Section 1.30 for time
of Plan
entry.
|
|
x
|
(b)
Vesting.
For vesting under Article V.
|
|
o
|
(c)
Contribution
allocation.
For contribution allocations under Article III.
|
|
o
|
(d)
Exceptions.
Except for the following Service: .
|
ARTICLE
II
ELIGIBILITY
REQUIREMENTS
9. ELIGIBILITY (2.01).
Eligibility
conditions.
To
become a Participant in the Plan, an Employee must satisfy the following
eligibility conditions: (Choose
one or more of (a) through (e) as applicable)
[Note:
If the Employer does not elect (c), the Employer’s elections under (a) and (b)
apply to all types of contributions. The Employer as to deferral contributions
may not elect (b)(2) and may not elect more than 12 months in (b)(4) and
(b)(5).]
|
x
|
(a)
Age.
Attainment of age 21
(not to exceed age 21).
|
||
|
x
|
(b)
Service.
Service requirement. (Choose
one of (1) through (5))
|
||
|
x
|
(1)
One Year of Service.
|
||
|
o
|
(2)
Two Years of Service, without an intervening Break in Service.
See Plan
Section 2.03(A).
|
||
|
o
|
(3)
One Hour of Service (immediate completion of Service requirement).
The
Employee satisfies the Service requirement on his/her Employment
Commencement Date.
|
||
|
o
|
(4)
months (not exceeding 24).
|
||
|
o
|
(5)
An Employee must complete
Hours of Service within the
time period following the Employee’s Employment Commencement Date. If an
Employee does not complete the stated Hours of Service during the
specified time period (if any), the Employee is subject to the
One Year of
Service requirement. [Note:
The number of hours may not exceed 1,000 and the time period may
not
exceed 24 months. If the Plan does not require the Employee to
satisfy the
Hours of Service requirement within a specified time period, insert
“N/A”
in the second blank line.]
|
||
|
o
|
(c)
Alternative
401(k)/401(m) eligibility conditions.
In
lieu of the elections in (a) and (b), the Employer elects the following
eligibility conditions for the following types of contributions:
(Choose
(1) or (2) or both if the Employer wishes to impose less restrictive
eligibility conditions for deferral/Employee contributions or for
matching
contributions)
|
||
|
(1)
|
o
|
Deferral/Employee
contributions: (Choose
one of a. through d. Choose e. if applicable)
|
|||
|
a.
|
o
|
One
Year of Service
|
|||
|
b.
|
o
|
One
Hour of Service (immediate completion of Service
requirement)
|
|||
|
c.
|
o
|
months (not exceeding 12)
|
|||
|
d.
|
o
|
An
Employee must complete
Hours of Service within the
time period following an Employee’s Employment Commencement Date. If an
Employee does not complete the stated Hours of Service during the
specified time period (if any), the Employee is subject to the
One Year of
Service requirement. [Note:
The number of hours may not exceed 1,000 and the time period may
not
exceed 12 months. If the Plan does not require the Employee to
satisfy the
Hours of Service requirement within a specified time period, insert
“N/A”
in the second blank line.]
|
|||
|
e.
|
o
|
Age
(not exceeding age 21)
|
|||
|
(2)
|
o
|
Matching
contributions: (Choose
one of f. through i. Choose j. if applicable)
|
|||
|
f.
|
o
|
One
Year of Service
|
|||
|
g.
|
o
|
One
Hour of Service (immediate completion of Service
requirement)
|
|||
|
h.
|
o
|
months (not exceeding 24)
|
|||
3
|
i.
|
o
|
An
Employee must complete
Hours of Service within the
time period following an Employee’s Employment Commencement Date. If an
Employee does not complete the stated Hours of Service during the
specified time period (if any), the Employee is subject to the
One Year of
Service requirement. [Note:
The number of hours may not exceed 1,000 and the time period may
not
exceed 24 months. If the Plan does not require the Employee to
satisfy the
Hours of Service requirement within a specified time period, insert
“N/A”
in the second blank line.]
|
|||
|
j.
|
o
|
Age
(not exceeding age 21)
|
|||
|
o
|
(d)
Service requirements: .
|
[Note:
Any Service requirement the Employer elects in (d) must be available under
other
Adoption Agreement elections or a combination thereof.]
|
o
|
(e)
Dual eligibility.
The eligibility conditions of this Section 2.01 apply solely to
an
Employee employed by the Employer after .
If the Employee was employed by the Employer by the specified date,
the
Employee will become a Participant on the latest of: (i) the Effective
Date; (ii) the restated Effective Date; (iii) the Employee’s Employment
Commencement Date; or (iv) on the date the Employee attains age
(not exceeding age 21).
|
Plan
Entry Date. “Plan
Entry Date” means the Effective Date and: (Choose
one of (f) through (j). Choose (k) if applicable) [Note:
If the Employer does not elect (k), the elections under
(f) through (j) apply to all types of contributions. The Employer must elect
at
least one Entry Date per Plan Year.]
|
o
|
(f)
Semi-annual
Entry Dates.
The first day of the Plan Year and the first day of the seventh
month of
the Plan Year.
|
|
o
|
(g)
The
first day of the Plan Year.
|
|
o
|
(h) Employment
Commencement Date
(immediate eligibility).
|
|
x
|
(i)
The
first day of each: Plan
Year Quarter
(e.g., “Plan Year quarter”).
|
|
o
|
(j)
The
following Plan Entry Dates: .
|
|
o
|
(k)
Alternative
401(k)/401(m) Plan Entry Date(s).
For the alternative 401(k)/401(m) eligibility conditions under
(c), Plan
Entry Date means: (Choose
(1) or (2) or both as
applicable)
|
|
(1)
|
o
|
Deferral/Employee
contributions
(Choose
one of a. through d.)
|
(2)
|
o
|
Matching
contributions
(Choose
one of e. through h.)
|
||
|
a.
|
o
Semi-annual
Entry Dates
|
e.
|
o
Semi-annual
Entry
Dates
|
||||
|
b.
|
o
The
first day of the Plan Year
|
f.
|
o
The
first day of the Plan
Year
|
||||
|
c.
|
o
Employment
Commencement Date
(immediate
eligibility)
|
g.
|
o
Employment
Commencement
Date
(immediate
eligibility)
|
||||
|
d.
|
o
The
first day of each:
|
h.
|
o
The
first day of each:
|
||||
|
|
|
||||||
Time
of participation.
An
Employee will become a Participant, unless excluded under Section 1.11, on
the
Plan Entry Date (if employed on that date): (Choose
one of (l), (m) or (n). Choose (o) if applicable):
[Note:
If the Employer does not elect (o), the election under (l), (m) or (n) applies
to all types of contributions.]
|
x
|
(l)
Immediately
following or coincident with
|
|
o
|
(m)
Immediately
preceding or coincident with
|
|
o
|
(n)
Nearest
|
|
o
|
(o)
Alternative
401(k)/401(m) election(s): (Choose
(1) or (2) or both as
applicable)
|
|
(1)
|
o
|
Deferral
contributions
|
(2)
|
o
|
Matching
contributions
(Choose
one of b., c. or d.)
|
|||
|
a.
|
o
|
Immediately
following or coincident with
|
b.
|
o
Immediately
following or coincident with
|
||||
| c. |
o Immediately
preceding or coincident with
|
|||||||
| d. |
o Nearest
|
|||||||
the
date
the Employee completes the eligibility conditions described in this Section
2.01. [Note:
Unless otherwise excluded under Section 1.11, an Employee must become a
Participant by the earlier of:
(1) the first day of the Plan Year beginning after the date the Employee
completes the age and service requirements of Code §410(a); or (2) 6 months
after the date the Employee completes those requirements.]
4
10. YEAR
OF SERVICE - ELIGIBILITY (2.02).
(Choose
(a) and (b) as applicable):
[Note: If
the Employer does not elect a Year of Service condition or elects the Elapsed
Time Method, the Employer should not complete (a) or (b).]
|
x
|
(a)
Year
of Service.
An
Employee must complete 1000
Hour(s) of Service during an eligibility computation period to
receive
credit for a Year of Service under Article II: [Note:
The number may not exceed 1,000. If left blank, the requirement
is
1,000.]
|
|
x
|
(b)
Eligibility
computation period.
After the initial eligibility computation period described in
Plan Section
2.02, the Plan measures the eligibility computation period as:
(Choose
one of (1) or (2))
|
|
x
|
(1)
The Plan Year beginning with the Plan Year which includes the
first
anniversary of the Employee’s Employment Commencement
Date.
|
|
o
|
(2)
The 12-consecutive month period beginning with each anniversary
of the
Employee’s Employment Commencement
Date.
|
11.
PARTICIPATION
- BREAK IN SERVICE (2.03).
The one
year hold-out rule described in Plan Section 2.03(B): (Choose
one of (a), (b) or (c))
|
x
|
(a)
Not
applicable.
Does not apply to the Plan.
|
|
o
|
(b)
Applicable.
Applies to the Plan and to all Participants.
|
|
o
|
(c)
Limited
application.
Applies to the Plan, but only to a Participant who has incurred
a
Separation from Service.
|
|
12.
ELECTION
NOT TO PARTICIPATE (2.06).
The Plan: (Choose
one of (a) or (b))
|
|
|
x
|
(a)
Election
not permitted.
Does not permit an eligible Employee to elect not to
participate.
|
|
o
|
(b)
Irrevocable
election.
Permits an Employee to elect not to participate if the Employee
makes a
one-time irrevocable election prior to the Employee’s Plan Entry
Date.
|
ARTICLE
III
EMPLOYER
CONTRIBUTIONS, DEFERRAL CONTRIBUTIONS AND FORFEITURES
13.
AMOUNT
AND TYPE (3.01).
The
amount and type(s) of the Employer’s contribution to the Trust for a Plan Year
or other specified period will equal: (Choose
one or more of (a) through (f) as applicable)
|
x
|
(a)
Deferral contributions (401(k) arrangement). The
dollar or percentage amount by which each Participant has elected
to
reduce his/her Compensation, as provided in the Participant’s salary
reduction agreement and in accordance with Section
3.02.
|
|
x
|
(b)
Matching contributions (other than safe harbor matching contributions
under Section 3.01(d)).
The matching contributions made in accordance with Section
3.03.
|
|
x
|
(c)
Nonelective contributions (profit sharing).
The following nonelective contribution (Choose
(1) or (2) or both as applicable):
[Note:
The Employer may designate as a qualified nonelective contribution,
all or
any portion of its nonelective contribution. See Plan Section
3.04(F).]
|
|
x
|
(1)
Discretionary.
An
amount the Employer in its sole discretion may
determine.
|
|
|
o
|
(2)
Fixed.
The following amount:
|
|
|
o
|
(d)
401(k) safe harbor contributions.
The following 401(k) safe harbor contributions described in Plan
Section
14.02(D): (Choose
one of (1), (2) or (3). Choose (4), if
applicable)
|
|
o
|
(1)
Safe
harbor nonelective contribution. The
safe harbor nonelective contribution equals %
of a Participant’s Compensation [Note:
the amount in the blank must be at least 3%.].
|
|
o
|
(2)
Basic
safe
harbor matching contribution.
A
matching contribution equal to 100% of each Participant’s deferral
contributions not exceeding 3% of the Participant’s Compensation, plus 50%
of each Participant’s deferral contributions in excess of 3% but not in
excess of 5% of the Participant’s Compensation. For this purpose,
“Compensation” means Compensation for: .
[Note:
The Employer must complete the blank line with the applicable
time period
for computing the Employer’s basic safe harbor match, such as “each
payroll period,” “each month,” “each Plan Year quarter” or “the Plan
Year”.]
|
|
o
|
(3)
Enhanced
safe harbor matching contribution. (Choose
one of a. or b.).
|
5
|
o
|
a. Uniform
percentage. An amount equal to
% of each
Participant’s deferral contributions not exceeding
% of the
Participant’s Compensation. For this purpose, “Compensation” means
Compensation for: .
[See the Note in (d)(2).]
|
|
o
|
b. Tiered
formula. An amount equal to the specified matching percentage for
the corresponding level of each Participant’s deferral contribution
percentage. For this purpose, “Compensation” means Compensation for:
.
[See the Note in (d)(2).]
|
|
Deferral
Contribution Percentage
|
Matching
Percentage
|
|
|
|
|
|
|
|
|
|
|
|
|
[Note:
The matching percentage may not increase as the deferral contribution percentage
increases and the enhanced matching formula otherwise must satisfy the
requirements of Code §§401(k)(12)(B)(ii) and (iii). If the Employer wishes to
avoid ACP testing on its enhanced safe harbor matching contribution, the
Employer also must limit deferral contributions taken into account (the
“Deferral Contribution Percentage”) for the matching contribution to 6% of Plan
Year Compensation.]
|
o
|
(4) Another
plan. The Employer will satisfy the 401(k) safe harbor
contribution in the following plan:
.
|
|
o
|
(e) ▇▇▇▇▇-▇▇▇▇▇
contributions.
The amount(s) specified for the applicable Plan Year or other applicable
period in the Employer’s ▇▇▇▇▇-▇▇▇▇▇ contract(s). The Employer will make a
contribution only to Participants covered by the contract and only
with
respect to Compensation paid under the contract. If the Participant
accrues an allocation of nonelective contributions (including forfeitures)
under the Plan in addition to the ▇▇▇▇▇-▇▇▇▇▇ contribution, the Plan
Administrator will: (Choose
one of (1) or (2))
|
|
o
|
(1) Not
reduce the Participant’s nonelective contribution allocation by the
▇▇▇▇▇-▇▇▇▇▇ contribution.
|
|
o
|
(2) Reduce
the Participant’s nonelective contribution allocation by the ▇▇▇▇▇-▇▇▇▇▇
contribution.
|
|
o
|
(f) Frozen
Plan. This
Plan is a frozen Plan effective: .
For any period following the specified date, the Employer will not
contribute to the Plan, a Participant may not contribute and an otherwise
eligible Employee will not become a Participant in the
Plan.
|
14. DEFERRAL
CONTRIBUTIONS (3.02).
The
following limitations and terms apply to an Employee’s deferral contributions:
(If
the Employer elects Section 3.01(a), the Employer must elect (a). Choose (b)
or
(c) as applicable)
|
x
|
(a) Limitation
on amount. An Employee’s deferral contributions are subject to
the following limitation(s) in addition to those imposed by the Code:
(Choose (1), (2) or (3) as
applicable)
|
|
o
|
(1) Maximum
deferral amount: .
|
|
o
|
(2) Minimum
deferral amount:
.
|
|
x
|
(3) No
limitations.
|
For
the
Plan Year in which an Employee first becomes a Participant, the Plan
Administrator will apply any percentage limitation the Employer elects in (1)
or
(2) to the Employee’s Compensation: (Choose
one of (4) or (5) unless the Employer elects (3))
|
o
|
(4) Only
for the portion of the Plan Year in which the Employee actually
is a
Participant.
|
|
o
|
(5) For
the entire Plan Year.
|
| x |
(b) Negative
deferral election.
The Employer will withhold %
from the Participant’s Compensation unless the Participant elects a lesser
percentage (including zero) under his/her salary reduction agreement.
See
Plan Section 14.02(C). The negative election will apply to: (Choose
one of (1) or (2))
|
| o |
(1) All
Participants who have not deferred at least the automatic
deferral amount
as of:
.
|
| x |
(2) Each
Employee whose Plan Entry Date is on or following the negative
election
effective
date.
|
| o |
(c) Cash
or deferred contributions.
For each Plan Year for which the Employer makes a designated
cash or
deferred contribution under Plan Section 14.02(B), a Participant
may elect
to receive directly in cash not more than the following portion
(or, if
less, the 402(g) limitation) of his/her proportionate share of
that cash
or deferred contribution: (Choose
one of (1) or (2))
|
|
o
(1) All
or any portion.
o (2)
%.
|
6
Modification/revocation
of salary reduction agreement.
A
Participant prospectively may modify or revoke a salary reduction agreement,
or
may file a new salary reduction agreement following a prior revocation, at
least
once per Plan Year or during any election period specified by the basic plan
document or required by the Internal Revenue Service. The Plan Administrator
also may provide for more frequent elections in the Plan’s salary reduction
agreement form.
15. MATCHING
CONTRIBUTIONS (INCLUDING ADDITIONAL SAFE HARBOR MATCH UNDER PLAN SECTION
14.02(D)(3)) (3.03).
The
Employer matching contribution is: (If
the Employer elects Section 3.01(b), the Employer must elect one or more of
(a),
(b) or (c) as applicable. Choose (d) if applicable)
| o |
(a) Fixed
formula. An amount equal to
% of each
Participant’s deferral
contributions.
|
| x |
(b) Discretionary
formula. An amount (or additional amount) equal to a matching
percentage the Employer from time to time may deem advisable of the
Participant’s deferral contributions. The Employer, in its sole
discretion, may designate as a qualified matching contribution, all
or any
portion of its discretionary matching contribution. The portion of
the
Employer’s discretionary matching contribution for a Plan Year not
designated as a qualified matching contribution is a regular matching
contribution.
|
| o |
(c) Multiple
level formula. An amount equal to the following percentages for
each level of the Participant’s deferral contributions.
[Note: The matching percentage only will apply to
deferral contributions in excess of the previous level and not in
excess of the stated deferral contribution
percentage.]
|
|
Deferral
Contributions
|
|
Matching
Percentage
|
|
|
|
|
|
|
|
|
|
|
|
| o |
(d) Related
Employers. If two or more Related Employers contribute to this
Plan, the Plan Administrator will allocate matching contributions
and
matching contribution forfeitures only to the Participants directly
employed by the contributing Employer. The matching contribution
formula
for the other Related Employer(s) is:
.
[Note: If the Employer does not elect
(d), the Plan Administrator will allocate all matching
contributions and matching forfeitures without regard to which
contributing Related Employer directly employs the
Participant.]
|
Time
period for matching contributions.
The
Employer will determine its matching contribution based on deferral
contributions made during each: (Choose
one of (e) through (h))
| o |
(e) Plan
Year.
|
| o |
(f) Plan
Year quarter.
|
| x |
(g) Payroll
period.
|
| o |
(h) Alternative
time
period: .
[Note: Any alternative time period the Employer elects
in (h) must be the same for all Participants and may not exceed the
Plan
Year.]
|
Deferral
contributions taken into account.
In
determining a Participant’s deferral contributions taken into account for the
above-specified time period under the matching contribution formula, the
following limitations apply: (Choose
one of (i), (j) or (k))
| o |
(i) All
deferral contributions. The Plan Administrator will take into
account all deferral contributions.
|
| o |
(j) Specific
limitation. The Plan Administrator will disregard deferral
contributions exceeding
% of the
Participant’s Compensation. [Note: To avoid the ACP test in a safe
harbor 401(k) plan, the Employer must limit deferrals and Employee
contributions which are subject to match to 6% of Plan Year
Compensation.]
|
| x |
(k) Discretionary.
The Plan Administrator will take into account the deferral
contributions as a percentage of the Participant’s Compensation as the
Employer determines.
|
Other
matching contribution requirements.
The
matching contribution formula is subject to the following additional
requirements: (Choose
(l) or (m) or both if applicable)
| o |
(l) Matching
contribution limits. A Participant’s matching contributions may
not exceed: (Choose one of (1) or
(2))
|
| o |
(1) .
[Note:
The Employer may elect (1) to place an overall dollar or percentage
limit
on matching contributions.]
|
| o |
(2) 4%
of a Participant’s Compensation for the Plan Year under the discretionary
matching contribution formula. [Note: The Employer must elect (2) if
it elects a discretionary matching formula with the safe
harbor 401(k)
contribution formula and wishes to avoid the ACP
test.]
|
7
| o |
(m) Qualified
matching contributions. The Plan Administrator will allocate as
qualified matching contributions, the matching contributions specified
in
Adoption Agreement Section:
.
The Plan Administrator will allocate all other matching contributions
as
regular matching contributions. [Note: If the Employer
elects two matching formulas, the Employer may use (m) to designate
one of
the formulas as a qualified matching
contribution.]
|
| 16. |
CONTRIBUTION
ALLOCATION (3.04).
|
Employer
nonelective contributions (3.04(A)). The
Plan
Administrator will allocate the Employer’s nonelective contribution under the
following contribution allocation formula: (Choose
one of (a), (b) or (c). Choose (d) if applicable)
| x |
(a) Nonintegrated
(pro rata) allocation
formula.
|
| o |
(b) Permitted
disparity. The following permitted disparity formula and
definitions apply to the Plan: (Choose one of (1) or (2). Also choose
(3))
|
|
o
|
(1) Two-tiered
allocation
formula.
|
|
o
|
(2) Four-tiered
allocation
formula.
|
|
o
|
(3) For
purposes of Section 3.04(b), “Excess Compensation” means Compensation in
excess of: (Choose one of a. or
b.)
|
| o |
a. %
of the taxable wage base in effect on the first day of the Plan Year,
rounded to the next highest
$ (not exceeding
the taxable wage base).
|
| o |
b. The
following integration level:
.
[Note:
The integration level cannot exceed the taxable wage base
in effect for the Plan Year for which this Adoption
Agreement first
is effective.]
|
| o |
(c) Uniform
points allocation formula. Under the uniform points allocation
formula, a Participant receives: (Choose (1) or both (1) and (2) as
applicable)
|
|
o
|
(1)
point(s) for each Year of Service. Year of Service
means:
.
|
|
o
|
(2) One
point for each $
[not to exceed $200] increment of Plan Year
Compensation.
|
| o |
(d) Incorporation
of contribution formula. The Plan Administrator will allocate the
Employer’s nonelective contribution under Section(s) 3.01(c)(2), (d)(1) or
(e) in accordance with the contribution formula adopted by the Employer
under that Section.
|
Qualified
nonelective contributions. (3.04(F)).
The Plan
Administrator will allocate the Employer’s qualified nonelective contributions
to: (Choose
one of (e) or (f))
| x |
(e) Nonhighly
compensated Employees
only.
|
| o |
(f) All
Participants.
|
Related
Employers. (Choose
(g) if applicable)
| o |
(g) Allocate
only to directly employed Participants. If two or more Related
Employers adopt this Plan, the Plan Administrator will allocate all
nonelective contributions and forfeitures attributable to nonelective
contributions only to the Participants directly employed by the
contributing Employer. If a Participant receives Compensation from
more
than one contributing Employer, the Plan Administrator will determine
the
allocations under this Section 3.04 by prorating the Participant’s
Compensation between or among the participating Related Employers.
[Note: If the Employer does not elect 3.04(g), the Plan
Administrator will allocate all nonelective contributions
and forfeitures without regard to which contributing Related
Employer directly employs the Participant. The Employer may not elect
3.04(g) under a safe harbor 401(k)
Plan.]
|
17. FORFEITURE
ALLOCATION (3.05).
The
Plan Administrator will allocate a Participant forfeiture: (Choose
one or more of (a), (b) or (c) as applicable)
[Note:
Even if the Employer elects immediate vesting, the Employer should complete
Section 3.05. See Plan Section 9.11.]
| x |
(a) Matching
contribution forfeitures. To the extent attributable to matching
contributions: (Choose one of (1) through
(4))
|
| o |
(1) As
a discretionary matching
contribution.
|
| x |
(2) To
reduce matching contributions.
|
| o |
(3) As
a discretionary nonelective
contribution.
|
8
| o |
(4) To
reduce nonelective contributions.
|
| x |
(b) Nonelective
contribution forfeitures. To the extent attributable to Employer
nonelective contributions: (Choose one of (1) through
(4))
|
| o |
(1) As
a discretionary nonelective
contribution.
|
| o |
(2) To
reduce nonelective contributions.
|
| o |
(3) As
a discretionary matching
contribution.
|
| x |
(4)
To
reduce matching
contributions.
|
| o |
(c) Reduce
administrative expenses. First to reduce the Plan’s ordinary and
necessary administrative expenses for the Plan Year and then allocate
any
remaining forfeitures in the manner described in Sections 3.05(a)
or (b)
as applicable.
|
Timing
of forfeiture allocation.
The Plan
Administrator will allocate forfeitures under Section 3.05 in the Plan Year:
(Choose
one of (d) or (e))
| x |
(d) In
which the forfeiture occurs.
|
| o |
(e) Immediately
following the Plan Year in which the forfeiture
occurs.
|
| 18. |
ALLOCATION
CONDITIONS (3.06).
|
Allocation
conditions.
The Plan
does not apply any allocation conditions to deferral contributions, 401(k)
safe
harbor contributions (under Section 3.01(d)) or to ▇▇▇▇▇-▇▇▇▇▇ contributions
(except as the ▇▇▇▇▇-▇▇▇▇▇ contract provides). To receive an allocation of
matching contributions, nonelective contributions, qualified nonelective
contributions or Participant forfeitures, a Participant must satisfy the
following allocation condition(s): (Choose
one or more of (a) through (i) as applicable)
| o |
(a) Hours
of Service condition. The Participant must complete at least the
specified number of Hours of Service (not exceeding 1,000) during
the Plan
Year:
.
|
| x |
(b) Employment
condition.
The Participant must be employed by the Employer on the last day
of the
Plan
Year (designate
time period).
|
| o |
(c) No
allocation conditions.
|
| o |
(d) Elapsed
Time Method. The Participant must complete at least the specified
number (not exceeding 182) of consecutive calendar days of employment
with
the Employer during the Plan Year:
.
|
| o |
(e) Termination
of Service/501 Hours of Service coverage rule. The Participant
either must be employed by the Employer on the last day of the Plan
Year
or must complete at least 501 Hours of Service during the Plan Year.
If
the Plan uses the Elapsed Time Method of crediting Service, the
Participant must complete at least 91 consecutive calendar days of
employment with the Employer during the Plan
Year.
|
| o |
(f) Special
allocation conditions for matching contributions. The Participant
must complete at least
Hours of Service during the
(designate time period) for the matching contributions made for
that time period.
|
| o |
(g) Death,
Disability or Normal Retirement Age. Any condition specified in
Section 3.06
applies if the Participant incurs a Separation from Service during
the
Plan Year on account of:
(e.g., death, Disability or Normal Retirement
Age).
|
| x |
(h) Suspension
of allocation conditions for coverage. The suspension of
allocation conditions of Plan Section 3.06(E) applies to the
Plan.
|
| x |
(i) Limited
allocation conditions. The Plan does not impose an allocation
condition for the following types of contributions:
Employer Matching
Contributions . [Note: Any
election to limit the Plan’s allocation conditions to certain
contributions must be the same for all Participants, be definitely
determinable and not discriminate in favor of Highly Compensated
Employees.]
|
ARTICLE
IV
PARTICIPANT
CONTRIBUTIONS
19. EMPLOYEE (AFTER TAX) CONTRIBUTIONS (4.02). The following elections apply to Employee contributions: (Choose one of (a) or (b). Choose (c) if applicable)
| x |
(a) Not
permitted. The Plan does not permit Employee
contributions.
|
9
| o |
(b) Permitted.
The Plan permits Employee contributions subject to the following
limitations:
.
[Note:
Any designated limitation(s) must be the same for all Participants,
be
definitely determinable and not discriminate in favor of Highly
Compensated Employees.]
|
| o |
(c) Matching
contribution. For each Plan Year, the Employer’s matching
contribution made with respect to Employee contributions is:
.
|
ARTICLE
V
VESTING
REQUIREMENTS
20. NORMAL/EARLY
RETIREMENT AGE (5.01). A Participant attains Normal
Retirement Age (or Early Retirement Age, if applicable) under the Plan on the
following date: (Choose one of (a) or (b). Choose (c) if
applicable)
| x |
(a) Specific
age. The date the Participant attains age
65 .
[Note: The age may not exceed age
65.]
|
| o |
(b) Age/participation.
The later of the date the Participant attains
years of age or the
anniversary of the first day of the Plan Year in which the Participant
commenced participation in the Plan. [Note: The
age may not exceed age 65 and the anniversary may not exceed
the 5th.]
|
| o |
(c) Early
Retirement Age. Early Retirement Age is the later of: (i) the
date a Participant attains age
or (ii) the date a Participant reaches his/her
anniversary of the first day of the Plan Year in which the Participant
commenced participation in the
Plan.
|
21. PARTICIPANT’S
DEATH OR DISABILITY (5.02). The 100% vesting rule
under Plan Section 5.02 does not apply to: (Choose (a) or (b) or both as
applicable)
| o |
(a) Death.
|
| o |
(b) Disability.
|
22. VESTING
SCHEDULE (5.03). A Participant has a 100% Vested
interest at all times in his/her deferral contributions, qualified nonelective
contributions, qualified matching contributions, 401(k) safe harbor
contributions and ▇▇▇▇▇-▇▇▇▇▇ contributions (unless otherwise indicated in
(f)).
The following vesting schedule applies to Employer regular matching
contributions and to Employer nonelective contributions: (Choose (a) or
choose one or more of (b) through (f) as applicable)
| o |
(a) Immediate
vesting. 100% Vested at all times. [Note: The
Employer must elect (a) if the Service condition under Section 2.01
exceeds One Year of Service or more than twelve
months.]
|
| x |
(b) Top-heavy
vesting schedules. [Note: The Employer must choose one of
(b)(1), (2) or (3) if it does not elect
(a).]
|
| o |
(1) 6-year
graded as specified in the
Plan. x (3) Modified
top-heavy schedule
|
| o |
(2) 3-year
cliff as specified in the Plan.
|
|
Years
of
Service
|
Vested
Percentage
|
|
|
Less
than 1
|
0%
|
|
|
1
|
20%
|
|
|
2
|
40%
|
|
|
3
|
60%
|
|
|
4
|
80%
|
|
|
5
|
100%
|
|
|
6
or more
|
100%
|
10
| o |
(c) Non-top-heavy
vesting schedules. [Note: The Employer may elect one of
(c)(1), (2) or (3) in addition to
(b).]
|
| o |
(1) 7-year
graded as specified in the Plan. o (3) Modified
non-top-heavy schedule
|
| o |
(2) 5-year
cliff as specified in the Plan.
|
|
Years
of
Service
|
Vested
Percentage
|
||
|
Less
than 1
|
%
|
||
|
1
|
%
|
||
|
2
|
%
|
||
|
3
|
%
|
||
|
4
|
%
|
||
|
5
|
%
|
||
|
6
|
%
|
||
|
7 or more
|
100%
|
||
If
the
Employer does not elect (c), the vesting schedule elected in (b) applies to
all
Plan Years. [Note:
The modified top-heavy schedule of (b)(3) must satisfy Code §416. If the
Employer elects (c)(3), the modified non-top-heavy schedule must satisfy Code
§411(a)(2).]
| o |
(d) Separate
vesting election for regular matching contributions. In lieu of
the election under (a), (b) or (c), the following vesting schedule
applies
to a Participant’s regular matching contributions: (Choose one of (1)
or (2))
|
| o |
(1) 100%
Vested at all times.
|
| o |
(2) Regular
matching vesting schedule:
.
[Note:
The vesting schedule completed under (d)(2) must comply with Code
§411(a)(4).]
|
| o |
(e) Application
of top-heavy schedule. The non-top-heavy schedule elected under
(c) applies in all Plan Years in which the Plan is not a top-heavy
plan.
[Note: If the Employer does not elect (e), the top-heavy vesting
schedule will apply for the first Plan Year in which the Plan is
top-heavy
and then in all subsequent Plan
Years.]
|
| o |
(f) Special
vesting
provisions: .
[Note: Any special vesting provision must satisfy Code
§411(a). Any special vesting provision must be definitely determinable,
not discriminate in favor of Highly Compensated Employees and not
violate
Code §401(a)(4).]
|
23. YEAR
OF SERVICE - VESTING (5.06).
(Choose
(a) and (b)):
[Note:
If the Employer elects the Elapsed Time Method or elects immediate vesting,
the
Employer should not complete (a) or (b).]
| x |
(a) Year
of Service. An Employee must complete at least
1000
Hours of Service during a vesting computation period to receive credit
for
a Year of Service under Article V. [Note: The number may not exceed
1,000. If left blank, the requirement is
1,000.]
|
| x |
(b) Vesting
computation period. The Plan measures a Year of Service on the
basis of the following 12-consecutive month period: (Choose one of (1)
or (2))
|
| x |
(1) Plan
Year.
|
| o |
(2) Employment
year (anniversary of Employment Commencement
Date).
|
24. EXCLUDED
YEARS OF SERVICE - VESTING (5.08).
The
Plan excludes the following Years of Service for purposes of vesting:
(Choose
(a) or choose one or more of (b) through (f) as applicable)
| x |
(a) None.
None other than as specified in Plan Section
5.08(a).
|
| o |
(b) Age
18. Any Year of Service before the Year of Service during which
the Participant attained the age of
18.
|
| o |
(c) Prior
to Plan establishment. Any Year of Service during the period the
Employer did not maintain this Plan or a predecessor
plan.
|
| o |
(d) Parity
Break in Service. Any Year of Service excluded under the rule of
parity. See Plan Section 5.10.
|
11
| o |
(e) Prior
Plan terms. Any Year of Service disregarded under the terms of
the Plan as in effect prior to this restated
Plan.
|
| o |
(f) Additional
exclusions. Any Year of Service before:
.
[Note:
Any exclusion specified under (f) must comply with Code §411(a)(4).
Any exclusion must be definitely determinable, not discriminate
in
favor of Highly Compensated Employees and not violate Code
§401(a)(4). If the Employer elects immediate vesting, the
Employer should not complete Section
5.08.]
|
ARTICLE
VI
DISTRIBUTION
OF ACCOUNT BALANCE
25. TIME
OF PAYMENT OF ACCOUNT BALANCE (6.01).
The
following time of distribution elections apply to the Plan:
Separation
from Service/Vested Account Balance not exceeding $5,000.
Subject
to the limitations of Plan Section 6.01(A)(1), the Trustee will distribute
in a
lump sum (regardless of the Employer’s election under Section 6.04) a separated
Participant’s Vested Account Balance not exceeding $5,000: (Choose
one of (a) through (d))
| x |
(a) Immediate.
As soon as administratively practicable following the
Participant’s Separation from
Service.
|
| o |
(b) Designated
Plan Year. As soon as administratively practicable in the
Plan Year beginning after the Participant’s Separation from
Service.
|
| o |
(c) Designated
Plan Year quarter. As soon as administratively practicable in the
Plan Year quarter beginning after the Participant’s Separation from
Service.
|
| o |
(d) Designated
distribution. As soon as administratively practicable in the:
following
the Participant’s Separation from Service. [Note: The designated
distribution time must be the same for all Participants, be definitely
determinable, not discriminate in favor of Highly Compensated Employees
and not violate Code
§401(a)(4).]
|
Separation
from
Service/Vested Account Balance exceeding $5,000.
A
separated Participant whose Vested Account Balance exceeds $5,000 may elect
to
commence distribution of his/her Vested Account Balance no earlier than:
(Choose
one of (e) through (i). Choose (j) if applicable)
| x |
(e) Immediate.
As soon as administratively practicable following the
Participant’s Separation from
Service.
|
| o |
(f) Designated
Plan Year. As soon as administratively practicable in the
Plan Year beginning after the Participant’s Separation from
Service.
|
| o |
(g) Designated
Plan Year quarter. As soon as administratively practicable in the
Plan Year quarter following the Plan Year quarter in which the Participant
elects to receive a distribution.
|
| o |
(h) Normal
Retirement Age. As soon as administratively practicable after the
close of the Plan Year in which the Participant attains Normal Retirement
Age and within the time required under Plan Section
6.01(A)(2).
|
| o |
(i) Designated
distribution. As soon as administratively practicable in the:
following the Participant’s Separation from Service. [Note: The
designated distribution time must be the same for all Participants,
be
definitely determinable, not discriminate in favor of Highly Compensated
Employees and not violate Code
§401(a)(4).]
|
| o |
(j) Limitation
on Participant’s right to delay distribution. A Participant may
not elect to delay commencement of distribution of his/her Vested
Account
Balance beyond the later of attainment of age 62 or Normal Retirement
Age.
[Note: If the Employer does not elect (j), the Plan permits a
Participant who has Separated from Service to delay distribution
until
his/her required beginning date. See Plan Section
6.01(A)(2).]
|
Participant
elections
prior to Separation from Service.
A
Participant, prior to Separation from Service may elect any of the following
distribution options in accordance with Plan Section 6.01(C). (Choose
(k) or choose one or more of (l) through (o) as applicable). [Note:
If the Employer elects any in-service distributions option, a Participant
may
elect to receive one in-service distribution per Plan Year unless the Plan’s
in-service distribution form provides for more frequent in-service
distributions.]
| o |
(k) None.
A Participant does not have any distribution option prior to Separation
from Service, except as may be provided under Plan Section
6.01(C).
|
| x |
(l) Deferral
contributions. Distribution of all or any portion (as permitted
by the Plan) of a Participant’s Account Balance attributable to deferral
contributions if: (Choose one or more of (1), (2) or (3) as
applicable)
|
| x |
(1) Hardship
(safe harbor hardship rule). The Participant has incurred a
hardship in accordance with Plan Sections 6.09 and
14.11(A).
|
| o |
(2) Age.
The Participant has attained age
(Must be at least age 59
1/2).
|
| o |
(3) Disability.
The Participant has incurred a
Disability.
|
12
| o |
(m) Qualified
nonelective contributions/qualified matching contributions/safe harbor
contributions. Distribution of all or any portion of a
Participant’s Account Balance attributable to qualified nonelective
contributions, to qualified matching contributions, or to 401(k)
safe
harbor contributions if: (Choose (1) or (2) or both as
applicable)
|
| o |
(1) Age.
The Participant has attained age
(Must
be at least age 59 1/2).
|
| o |
(2) Disability.
The Participant has incurred a
Disability.
|
| o |
(n) Nonelective
contributions/regular matching contributions. Distribution of all
or any portion of a Participant’s Vested Account Balance attributable to
nonelective contributions or to regular matching contributions if:
(Choose one or more of (1) through (5) as
applicable)
|
| o |
(1) Age/Service
conditions. (Choose one or more of a. through d. as
applicable):
|
| o |
a. Age.
The Participant has attained age
.
|
| o |
b. Two-year
allocations. The Plan Administrator has allocated the
contributions to be distributed for a period of not less than
Plan Years before the distribution date. [Note: The minimum number of
years is 2.]
|
| o |
c. Five
years of participation. The Participant has participated in the
Plan for at least
Plan Years. [Note: The minimum number of years is
5.]
|
| o |
d. Vested.
The Participant is
%
Vested in his/her Account Balance. See Plan Section 5.03(A).
[Note: If an Employer makes more than one election under
Section 6.01(n)(1), a Participant must satisfy all conditions before
the Participant is eligible for the
distribution.]
|
| o |
(2) Hardship.
The Participant has incurred a hardship in accordance with Plan Section
6.09.
|
| o |
(3) Hardship
(safe harbor hardship rule). The Participant has incurred a
hardship in accordance with Plan Sections 6.09 and
14.11(A).
|
| o |
(4) Disability.
The Participant has incurred a
Disability.
|
| o |
(5) Designated
condition. The Participant has satisfied the following
condition(s):
.
[Note:
Any designated condition(s) must be the same for all Participants,
be
definitely determinable and not discriminate in favor of Highly
Compensated Employees.]
|
| x |
(o) Participant
contributions. Distribution of all or any portion of a
Participant’s Account Balance attributable to the following Participant
contributions described in Plan Section 4.01: (Choose one of (1), (2)
or (3))
|
| o |
(1) All
Participant contributions.
|
| o |
(2) Employee
contributions only.
|
| x |
(3) Rollover
contributions only.
|
Participant
loan default/offset.
See
Section 6.08 of the Plan.
26. DISTRIBUTION
METHOD (6.03).
A
separated Participant whose Vested Account Balance exceeds $5,000 may elect
distribution under one of the following method(s) of distribution described
in
Plan Section 6.03: (Choose
one or more of (a) through (d) as applicable)
| x |
(a) Lump
sum.
|
| o |
(b) Installments.
|
| x |
(c) Installments
for required minimum distributions
only.
|
| o |
(d) Annuity
distribution
option(s): .
[Note:
Any optional method of distribution may not be subject
to Employer,
Plan Administrator or Trustee
discretion.]
|
27. JOINT
AND SURVIVOR ANNUITY REQUIREMENTS (6.04).
The
joint and survivor annuity distribution requirements of Plan Section
6.04:
(Choose
one of (a) or (b))
13
| x |
(a) Profit
sharing plan exception. Do not apply to a Participant, unless the
Participant is a Participant described in Section 6.04(H) of the
Plan.
|
| o |
(b) Applicable.
Apply to all Participants.
|
ARTICLE
IX
PLAN
ADMINISTRATOR - DUTIES WITH RESPECT TO PARTICIPANTS’
ACCOUNTS
28. ALLOCATION
OF NET INCOME, GAIN OR LOSS (9.08).
For
each type of contribution provided under the Plan, the Plan allocates net
income, gain or loss using the following method: (Choose
one or more of (a) through (e) as applicable)
| x |
(a) Deferral
contributions/Employee contributions. (Choose one or
more of (1) through (5) as
applicable)
|
| x |
(1) Daily
valuation method. Allocate on each business day of the Plan Year
during which Plan assets for which there is an established market
are
valued and the Trustee is conducting
business.
|
| o |
(2) Balance
forward method. Allocate using the balance forward
method.
|
| o |
(3) Weighted
average method. Allocate using the weighted average method, based
on the following weighting period:
.
See Plan Section 14.12.
|
| o |
(4) Balance
forward method with adjustment. Allocate pursuant to the balance
forward method, except treat as part of the relevant Account at the
beginning of the valuation period
% of the
contributions made during the following valuation period:
.
|
| o |
(5) Individual
account method. Allocate using the individual account method. See
Plan Section 9.08.
|
| x |
(b) Matching
contributions. (Choose one or more of (1) through (5) as
applicable)
|
| x |
(1) Daily
valuation method. Allocate on each business day of the Plan Year
during which Plan assets for which there is an established market
are
valued and the Trustee is conducting
business.
|
| o |
(2) Balance
forward method. Allocate using the balance forward
method.
|
| o |
(3) Weighted
average method. Allocate using the weighted average method, based
on the following weighting period:
.
See Plan Section 14.12.
|
| o |
(4) Balance
forward method with adjustment. Allocate pursuant to the balance
forward method, except treat as part of the relevant Account at the
beginning of the valuation period
% of the
contributions made during the following valuation period:
.
|
| o |
(5) Individual
account method. Allocate using the individual account method. See
Plan Section 9.08.
|
| x |
(c) Employer
nonelective contributions. (Choose one or more of (1)
through (5) as applicable)
|
| x |
(1) Daily
valuation method. Allocate on each business day of the Plan Year
during which Plan assets for which there is an established market
are
valued and the Trustee is conducting
business.
|
| o |
(2) Balance
forward method. Allocate using the balance forward
method.
|
| o |
(3) Weighted
average method. Allocate using the weighted average method, based
on the following weighting period:
.
See Plan Section 14.12.
|
| o |
(4) Balance
forward method with adjustment. Allocate pursuant to the balance
forward method, except treat as part of the relevant Account at the
beginning of the valuation period
% of the
contributions made during the following valuation period:
.
|
| o |
(5) Individual
account method. Allocate using the individual account method. See
Plan Section 9.08.
|
| o |
(d) Specified
method. Allocate pursuant to the following method:
.
[Note:
The specified method must be a definite predetermined formula which
is not
based on Compensation, which satisfies the nondiscrimination requirements
of Treas. Reg. §1.401(a)(4) and which is applied uniformly to all
Participants.]
|
| o |
(e) Interest
rate factor. In accordance with Plan Section 9.08(E), the Plan
includes interest at the following rate on distributions made more
than 90
days after the most recent valuation date:
.
|
14
ARTICLE
X
TRUSTEE
AND CUSTODIAN, POWERS AND DUTIES
29. INVESTMENT
POWERS (10.03).
The
following additional investment options or limitations apply under Plan
Section
10.03: N/A .
[Note:
Enter “N/A” if not applicable.]
30. VALUATION
OF TRUST (10.15).
In
addition to the last day of the Plan Year, the Trustee must value the Trust
Fund
on the following valuation date(s): (Choose
one of (a) through (d))
| x |
(a) Daily
valuation dates. Each business day of the Plan Year on which Plan
assets for which there is an established market are valued and the
Trustee
is conducting business.
|
| o |
(b) Last
day of a specified period. The last day of each
of the Plan Year.
|
| o |
(c) Specified
dates: .
|
| o |
(d) No
additional valuation
dates.
|
15
Execution
Page
The
Trustee (and Custodian, if applicable), by executing this Adoption Agreement,
accepts its position and agrees to all of the obligations, responsibilities
and
duties imposed upon the Trustee (or Custodian) under the Prototype Plan
and
Trust The Employer hereby agrees to the provisions of this Plan and Trust,
and
in witness of its agreement, the Employer by its duly authorized officers,
has
executed this Adoption Agreement, and the Trustee (and Custodian, if applicable)
has signified its acceptance, on:
_____________________________________________________________________________________________________________________.
|
Name
of Employer: America’s
Car-Mart, Inc.
|
|
|
Employer’s
EIN:
▇▇-▇▇▇▇▇▇▇
|
|
|
Signed:
|
|
|
Name(s)
of Trustee:
|
|
|
Bank
of Arkansas,
N.A.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust
EIN (Optional):
|
|
|
|
|
|
Signed:
|
|
|
|
|
|
[Name/Title]
|
|
|
Signed:
|
|
|
|
|
|
[Name/Title]
|
|
|
Signed:
|
|
|
|
|
|
[Name/Title]
|
|
|
Signed:
|
|
|
|
|
|
[Name/Title]
|
|
|
Name
of Custodian (Optional):
|
|
|
N/A
|
|
|
Signed:
|
|
|
|
|
|
[Name/Title]
|
31. Plan
Number.
The
3-digit plan number the Employer assigns to this Plan for ERISA reporting
purposes (Form 5500 Series) is: 001 .
Use
of Adoption Agreement.
Failure
to complete properly the elections in this Adoption Agreement may result
in
disqualification of the Employer’s Plan. The Employer only may use this Adoption
Agreement in conjunction with the basic plan document referenced by its document
number on Adoption Agreement page one.
Execution
for Page Substitution Amendment Only.
If this
paragraph is completed, this Execution Page documents an amendment to Adoption
Agreement Section(s) 3.02
(b)
effective February
7, 2005 ,
by
substitute Adoption Agreement page number(s)
6 .
Prototype
Plan Sponsor.
The
Prototype Plan Sponsor identified on the first page of the basic plan document
will notify all adopting employers of any amendment of this Prototype Plan
or of
any abandonment or discontinuance by the Prototype Plan Sponsor of its
maintenance of this Prototype Plan. For inquiries regarding the adoption
of the
Prototype Plan, the Prototype Plan Sponsor’s intended meaning of any Plan
provisions or the effect of the opinion letter issued to the Prototype Plan
Sponsor, please contact the Prototype Plan Sponsor at the following address
and
telephone number: ▇.▇.
▇▇▇ ▇▇▇, ▇▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇, ▇▇▇-▇▇▇-▇▇▇▇ or
▇▇▇-▇▇▇-▇▇▇▇
.
16
Reliance
on Sponsor Opinion Letter.
The
Prototype Plan Sponsor has obtained from the IRS an opinion letter specifying
the form of this Adoption Agreement and the basic plan document satisfy,
as of
the date of the opinion letter, Code §401. An adopting Employer may rely on the
Prototype Sponsor’s IRS opinion letter only
to the
extent provided in Announcement 2001-77, 2001-30 I.R.B. The Employer may
not
rely on the opinion letter in certain other circumstances or with respect
to
certain qualification requirements, which are specified in the opinion letter
and in Announcement 2001-77. In order to have reliance in such circumstances
or
with respect to such qualification requirements, the Employer must apply
for a
determination letter to Employee Plans Determinations of the Internal Revenue
Service.
17
PARTICIPATION
AGREEMENT
x Check
here if not
applicable and do not
complete this page.
The
undersigned Employer, by executing this Participation Agreement, elects to
become a Participating Employer in the Plan identified in Section 1.21 of
the
accompanying Adoption Agreement, as if the Participating Employer were a
signatory to that Adoption Agreement. The Participating Employer accepts,
and
agrees to be bound by, all of the elections granted under the provisions
of the
Prototype Plan as made by the Signatory Employer to the Execution Page of
the
Adoption Agreement, except as otherwise provided in this Participation
Agreement.
32. EFFECTIVE
DATE (1.10).
The
Effective Date of the Plan for the Participating Employer is: __________________________ .
33. NEW
PLAN/RESTATEMENT.
The
Participating Employer’s adoption of this Plan constitutes: (Choose
one of (a) or (b))
| o |
(a) The
adoption of a new plan by the Participating
Employer.
|
| o |
(b) The
adoption of an amendment and restatement of a plan currently maintained
by
the Participating Employer, identified
as: ____________________________________, and having an original
effective date
of: ___________________________________________________.
|
34. PREDECESSOR
EMPLOYER SERVICE (1.30).
In
addition to the predecessor service credited by reason of Section 1.30
of the
Plan, the Plan credits as Service under this Plan, service with this
Participating Employer. (Choose
one or more of (a) through (d) as applicable):
[Note:
If the Plan does not credit any additional predecessor service under Section
1.30 for this Participating Employer, do not complete this
election.]
| o |
(a) Eligibility.
For eligibility under Article II. See Plan Section 1.30
for time
of Plan entry.
|
| o |
(b) Vesting.
For vesting under Article
V.
|
| o |
(c) Contribution
allocation. For contribution allocations under Article
III.
|
| o |
(d) Exceptions.
Except for the following Service:
.
|
|
Name
of Plan:
|
Name
of Participating Employer:
|
|
| Signed: | ||
|
[Name/Title]
|
||
|
|
||
|
Participating
Employer’s EIN:
|
Acceptance
by the Signatory Employer to the Execution Page of the Adoption Agreement
and by
the Trustee.
|
Name
of Signatory Employer:
|
Name(s)
of Trustee:
|
|
|
[Name/Title]
|
[Name/Title]
|
|
|
Signed:
|
Signed:
|
|
|
|
|
|
|
[Date]
|
[Date]
|
[Note:
Each Participating Employer must execute a separate Participation Agreement.
If
the Plan does not have a Participating Employer, the Signatory Employer may
delete this page from the Adoption Agreement.]
18
APPENDIX
A
TESTING
ELECTIONS/EFFECTIVE DATE ADDENDUM
35. The
following
testing elections and special effective dates apply:
(Choose one or more of (a) through (n) as applicable)
|
o
|
(a)
Highly
Compensated Employee (1.14).
For Plan Years beginning after ,
the Employer makes the following election(s) regarding the definition
of
Highly Compensated Employee:
|
|
|
(1) o
Top paid group election.
|
|
|
(2) o
Calendar year data election (fiscal year
plan).
|
|
x
|
(b)
401(k)
current year testing.
The Employer will apply the current year testing method in applying
the
ADP and ACP tests effective for Plan Years beginning after: December
31, 2001 .
[Note:
For Plan Years beginning on or after the Employer’s
execution of
its “GUST” restatement, the Employer must use the same testing method
within the same Plan Year for both the ADP and ACP tests.]
|
|
o
|
(c)
Compensation.
The Compensation definition under Section 1.07 will apply for Plan
Years
beginning after: .
|
|
o
|
(d)
Election
not to participate.
The election not to participate under Section 2.06 is effective:
.
|
|
o
|
(e)
401(k)
safe harbor.
The 401(k) safe harbor provisions under Section 3.01(d) are effective:
.
|
|
o
|
(f)
Negative
election.
The negative election provision under Section 3.02(b) is effective:
.
|
|
o
|
(g)
Contribution/allocation
formula.
The specified contribution(s) and allocation method(s) under Sections
3.01
and 3.04 are effective: .
|
|
o
|
(h)
Allocation
conditions.
The allocation conditions of Section 3.06 are effective: .
|
|
o
|
(i)
Benefit
payment elections.
The distribution elections of Section(s)
are effective: .
|
|
o
|
(j)
Election
to continue pre-SBJPA required beginning date.
A
Participant may not elect to defer commencement of the distribution
of
his/her Vested Account Balance beyond the April 1 following the calendar
year in which the Participant attains age 70 1/2. See Plan Section
6.02(A).
|
|
o
|
(k)
Elimination
of age 70 1/2 in-service distributions.
The Plan eliminates a Participant’s (other than a more than 5% owner)
right to receive in-service distributions on April 1 of the calendar
year
following the year in which the Participant attains age 70 1/2 for
Plan
Years beginning after: .
|
|
o
|
(l)
Allocation
of earnings.
The earnings allocation provisions under Section 9.08 are effective:
.
|
|
o
|
(m)
Elimination
of optional forms of benefit.
The Employer elects prospectively to eliminate the following optional
forms of benefit: (Choose
one or more of (1), (2) and (3) as
applicable)
|
|
o
|
(1)
QJSA and QPSA benefits as described in Plan Sections 6.04,
6.05 and 6.06
effective: .
|
|
o
|
(2)
Installment distributions as described in Section 6.03 effective:
.
|
|
o
|
(3)
Other optional forms of benefit (Any election to eliminate must be
consistent with Treas. Reg. §1.411(d)-4): .
|
|
x
|
(n)
Special
effective date(s): Sections
1.11(e) and 3.02 are effective January 1,
2002 .
|
For
periods
prior to the above-specified special effective date(s), the Plan terms in effect
prior to its restatement under this Adoption Agreement will control for purposes
of the designated provisions. A special effective date may not result in the
delay of a Plan provision beyond the permissible effective date under any
applicable law.
19
APPENDIX
B
GUST
Remedial Amendment Period Elections
| 36. |
The
following GUST restatement elections apply: (Choose
one or more of (a) through (j) as
applicable)
|
|
o
|
(a)
Highly Compensated Employee elections.
The Employer makes the following remedial amendment period elections
with
respect to the Highly Compensated Employee
definition:
|
|
(1)
1997:
|
o
Top
paid group election.
|
o Calendar
year election.
|
|
o Calendar
year data election.
|
||
|
(2)
1998:
|
o Top
paid group election.
|
o
Calendar
year data election.
|
|
(3)
1999:
|
o Top
paid group election.
|
o Calendar
year data election.
|
|
(4)
2000:
|
o Top
paid group election.
|
o Calendar
year data election.
|
|
(5)
2001:
|
o Top
paid group election.
|
o Calendar
year data election.
|
|
(6)
2002:
|
o Top
paid group election.
|
o Calendar
year data election.
|
|
x
|
(b)
401(k)
testing methods.
The Employer makes the following remedial amendment period elections
with
respect to the ADP test and the ACP test: [Note:
The Employer may use a different testing method for the ADP and
ACP tests
through the end of
the Plan Year in which the Employer executes its GUST restated
Plan.]
|
|
ADP
test
|
ACP
test
|
|||
|
(1)
1997:
|
o
prior year
|
o
current year
|
1997:
o
prior year
|
o current
year
|
|
(2)
1998:
|
o
prior year
|
o
current year
|
1998:
o
prior year
|
o
current year
|
|
(3)
1999:
|
o
prior year
|
o
current year
|
1999:
o
prior year
|
o
current year
|
|
(4)
2000:
|
o
prior year
|
o
current year
|
2000: o
prior year
|
o
current year
|
|
(5)
2001:
|
o
prior year
|
xcurrent
year
|
2001:
o
prior year
|
xcurrent
year
|
|
(6)
2002:
|
o
prior year
|
o
current year
|
2002:
o
prior year
|
o
current year
|
|
o
|
(c)
Delayed
application of SBJPA required beginning date.
The Employer elects to delay the effective date for the required
beginning
date provision of Plan Section 6.02 until Plan Years beginning after:
.
|
|
x
|
(d)
Model
Amendment for required minimum distributions.
The Employer adopts the IRS Model Amendment in Plan Section 6.02(E)
effective March
1, 2001 .
[Note: The
date must not be earlier than January 1, 2001.]
|
Defined
Benefit Limitation
|
o
|
(e)
Code
§415(e) repeal.
The repeal of the Code §415(e) limitation is effective for Limitation
Years beginning after .
[Note:
If the Employer does not make an election under (e), the repeal is
effective for Limitation Years beginning after December 31,
1999.]
|
Code
§415(e)
limitation.
To the
extent necessary to satisfy the limitation under Plan Section 3.17 for
Limitation Years beginning prior to the repeal of Code §415(e),
the Employer will reduce: (Choose
one of (f) or (g))
|
o
|
(f)
The Participant’s projected annual benefit under the defined benefit
plan.
|
|
o
|
(g)
The Employer’s contribution or allocation on behalf of the Participant to
the defined contribution plan and then, if necessary, the Participant’s
projected annual benefit under the defined benefit
plan.
|
Coordination
with top-heavy minimum allocation.
The Plan
Administrator will apply the top-heavy minimum allocation provisions of Article
XII with the following modifications: (Choose
(h) or choose (i) or (j) or both as applicable)
|
o
|
(h)
No modifications.
|
|
o
|
(i)
For Non-Key Employees participating only in this Plan, the top-heavy
minimum allocation is the minimum allocation determined by substituting
%
(not less than 4%) for “3%,” except: (Choose
one of (1) or (2))
|
|
o
|
(1)
No
exceptions.
|
|
o
|
(2)
Plan Years in which the top-heavy ratio exceeds
90%.
|
|
o
|
(j)
For Non-Key Employees also participating in the defined benefit plan,
the
top-heavy minimum is: (Choose
one of (1) or (2))
|
|
o
|
(1)
5% of Compensation irrespective of the contribution rate of any Key
Employee: (Choose
one of a. or b.)
|
|
o
|
a.
No exceptions.
|
|
o
|
b.
Substituting “7 1/2%” for “5%” if the top-heavy ratio does not exceed
90%.
|
|
o
|
(2)
0%. [Note: The defined benefit plan must satisfy the top-heavy minimum
benefit requirement for these Non-Key
Employees.]
|
Actuarial
assumptions for top-heavy calculation. To
determine the top-heavy ratio, the Plan Administrator will use the following
interest rate and mortality assumptions to value accrued benefits under a
defined benefit plan: .
20
CHECKLIST
OF EMPLOYER INFORMATION
AND
EMPLOYER ADMINISTRATIVE ELECTIONS
Commencing
with the 2002
Plan Year
The
Prototype Plan permits the Employer to make certain administrative elections
not
reflected in the Adoption Agreement. This form lists those administrative
elections and provides a means of recording the Employer’s elections.
This
checklist is not part of the Plan document.
| 37. |
Employer
Information.
|
America’s
Car-Mart,
Inc.
[Employer
Name]
▇▇▇▇
▇▇▇▇▇ ▇▇▇
▇▇.
#▇
[Address]
|
▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇
▇▇▇▇▇
|
▇▇▇-▇▇▇-▇▇▇▇ |
|
[City,
State and Zip Code]
|
[Telephone Number] |
|
38.
|
Form
of Business.
|
|
(a) x Corporation
|
(b) o S
Corporation
|
|
(c)
o Limited
Liability Company
|
(d) o Sole
Proprietorship
|
|
(e) oPartnership
|
(f)
o
|
|
39.
|
Section
1.07(F) - Nondiscriminatory
definition of Compensation.
When testing nondiscrimination under the Plan, the Plan permits the
Employer to make elections regarding the definition of Compensation.
[Note:
This election solely is for purposes of nondiscrimination testing.
The
election does not affect the Employer’s elections under Section 1.07 which
apply for purposes of allocating Employer contributions and Participant
forfeitures.]
|
(a)
x The
Plan
will “gross up” Compensation for Elective Contributions.
(b) o The
Plan
will exclude Elective Contributions.
|
40.
|
Section
4.04 - Rollover
contributions.
|
(a)
x The
Plan
accepts rollover contributions.
(b)
o The
Plan
does not
accept
rollover contributions.
|
41.
|
Section
8.06 - Participant direction of investment/404(c).
The Plan authorizes Participant direction of investment with Trustee
consent. If the Trustee permits Participant direction of investment,
the
Employer and the Trustee should adopt a policy which establishes
the
applicable conditions and limitations, including whether they intend
the
Plan to comply with ERISA §404(c).
|
(a)
x The
Plan
permits Participant direction of investment and is a 404(c) plan.
(b)
o The
Plan
does not
permit
Participant direction of investment or is a non-404(c) plan.
|
42.
|
Section
9.04[A] - Participant loans.
The Plan authorizes the Plan Administrator to adopt a written loan
policy
to permit Participant loans.
|
(a)
x The
Plan
permits Participant loans subject to the following conditions:
(1) x Minimum
loan amount: $ 1000 .
(2) x Maximum
number of outstanding loans: 1 .
(3) x Reasons
for which a Participant may request a loan:
a. x Any
purpose.
b.
o Hardship
events.
c. o Other:
.
(4)
x Suspension
of loan repayments:
a. o Not
permitted.
b. x Permitted
for non-military leave of absence.
c.
x Permitted
for military
service leave of absence.
(5)
x The
Participant must be a party in interest.
(b) o The
Plan
does not
permit
Participant loans.
|
43.
|
Section
11.01 - Life insurance.
The Plan with Employer approval authorizes the Trustee to acquire
life
insurance.
|
(a) o The
Plan
will invest in life insurance contracts.
(b) x The
Plan will
not invest in life insurance contracts.
| 44. |
Surety
bond company: .
Surety bond amount: $
|
21
EGTRRA
AMENDMENT
TO THE
COLONIAL
AUTO FINANCE, INC.
401(K)
PLAN
ARTICLE
I
PREAMBLE
|
1.1
|
Adoption
and effective date of amendment.
This amendment of the plan is adopted to reflect certain provisions
of the
Economic Growth and Tax Relief Reconciliation Act of 2001 (“EGTRRA”). This
amendment is intended as good faith compliance with the requirements
of
EGTRRA and is to be construed in accordance with EGTRRA and guidance
issued thereunder. Except as otherwise provided, this amendment shall
be
effective as of the first day of the first plan year beginning after
December 31, 2001.
|
|
1.2
|
Supersession
of inconsistent provisions.
This amendment shall supersede the provisions of the plan to the
extent
those provisions are inconsistent with the provisions of this
amendment.
|
ARTICLE
II
ADOPTION
AGREEMENT ELECTIONS
The
questions in this Article II only need to be completed in order to override
the
default provisions set forth below. If all of the default provisions will apply,
then these questions should be skipped.
Unless
the employer elects otherwise in this Article II, the following defaults
apply:
| 1) |
The
vesting schedule for matching contributions will be a 6 year graded
schedule (if the plan currently has a graded schedule that does not
satisfy EGTRRA) or a 3 year cliff schedule (if the plan currently
has a
cliff schedule that does not satisfy EGTRRA), and such schedule will
apply
to all matching contributions (even those made prior to
2002).
|
| 2) |
Rollovers
are automatically excluded in determining whether the $5,000 threshold
has
been exceeded for automatic cash-outs (if the plan is not subject
to the
qualified joint and survivor annuity rules and provides for automatic
cash-outs). This is applied to all participants regardless of when
the
distributable event
occurred.
|
| 3) |
The
suspension period after a hardship distribution is made will be 6
months
and this will only apply to hardship distributions made after
2001.
|
| 4) |
Catch-up
contributions will be
allowed.
|
| 5) |
For
target benefit plans, the increased compensation limit of $200,000
will be
applied retroactively (i.e., to years prior to
2002).
|
|
2.1
|
Vesting
Schedule for Matching
Contributions
|
If
there
are matching contributions subject to a vesting schedule that does not satisfy
EGTRRA, then unless otherwise elected below, for participants who complete
an
hour of service in a plan year beginning after December 31, 2001, the following
vesting schedule will apply to all matching contributions subject to a vesting
schedule:
If
the
plan has a graded vesting schedule (i.e., the vesting schedule includes a vested
percentage that is more than 0% and less than 100%) the following will
apply:
|
Years
of vesting service
|
Nonforfeitable
percentage
|
|
2
|
20%
|
|
3
|
40%
|
|
4
|
60%
|
|
5
|
80%
|
|
6
|
100%
|
If
the
plan does not have a graded vesting schedule, then matching contributions will
be nonforfeitable upon the completion of 3 years of vesting
service.
In
lieu
of the above vesting schedule, the employer elects the following
schedule:
|
a.
|
o
|
3
year cliff (a participant’s accrued benefit derived from employer matching
contributions shall be nonforfeitable upon the participant’s completion of
three years of vesting service).
|
|
b.
|
o
|
6
year graded schedule (20% after 2 years of vesting service and
an
additional 20% for each year
thereafter).
|
|
c.
|
o
|
Other
(must be at least as liberal as a. or the b.
above):
|
|
Years
of vesting service
|
Nonforfeitable
percentage
|
|
________
|
_________%
|
|
________
|
_________%
|
|
________
|
_________%
|
|
________
|
_________%
|
|
________
|
_________%
|
1
The
vesting schedule set forth herein shall only apply to participants who complete
an hour of service in a plan year beginning after December 31, 2001, and, unless
the option below is elected, shall apply to all
matching
contributions subject to a vesting schedule.
|
d.
|
o
|
The
vesting schedule will only apply to matching contributions made
in plan
years beginning after December 31, 2001 (the prior schedule will
apply to
matching contributions made in prior plan
years).
|
|
2.2
|
Exclusion
of Rollovers in Application of Involuntary Cash-out Provisions (for
profit
sharing and 401(k) plans only). If
the plan is not subject to the qualified joint and survivor annuity
rules
and includes involuntary cash-out provisions, then unless one of
the
options below is elected, effective for distributions made after
December
31, 2001, rollover contributions will be excluded in determining
the value
of the participant’s nonforfeitable account balance for purposes of the
plan’s involuntary cash-out rules.
|
|
a.
|
o
|
Rollover
contributions will not be excluded.
|
|
|
b.
|
o
|
Rollover
contributions will be excluded only with respect to distributions
made
after .
(Enter a date no earlier than December 31,
2001.)
|
|
|
c.
|
o
|
Rollover
contributions will only be excluded with respect to participants
who
separated from service after .
(Enter a date. The date may be earlier than December 31,
2001.)
|
|
2.3
|
Suspension
period of hardship distributions.
If
the plan provides for hardship distributions upon satisfaction of
the safe
harbor (deemed) standards as set forth in Treas. Reg. Section
1.401(k)-1(d)(2)(iv), then, unless the option below is elected, the
suspension period following a hardship distribution shall only apply
to
hardship distributions made after December 31,
2001.
|
| o |
With
regard to hardship distributions made during 2001, a participant
shall be
prohibited from making elective deferrals and employee contributions
under
this and all other plans until the later of January 1, 2002, or 6
months
after receipt of the distribution.
|
|
2.4
|
Catch-up
contributions (for 401(k) profit sharing plans only):
The plan permits catch-up contributions (Article VI) unless the option
below is elected.
|
| o |
The
plan does not permit catch-up contributions to be
made.
|
|
2.5
|
For
target benefit plans only:
The increased compensation limit ($200,000 limit) shall apply to
years
prior to 2002 unless the option below is
elected.
|
| o |
The
increased compensation limit will not apply to years prior to
2002.
|
ARTICLE
III
VESTING
OF MATCHING CONTRIBUTIONS
|
3.1
|
Applicability.
This Article shall apply to participants who complete an Hour of
Service
after December 31, 2001, with respect to accrued benefits derived
from
employer matching contributions made in plan years beginning after
December 31, 2001. Unless otherwise elected by the employer in Section
2.1
above, this Article shall also apply to all such participants with
respect
to accrued benefits derived from employer matching contributions
made in
plan years beginning prior to January 1,
2002.
|
|
3.2
|
Vesting
schedule.
A
participant’s accrued benefit derived from employer matching contributions
shall vest as provided in Section 2.1 of this
amendment.
|
ARTICLE
IV
INVOLUNTARY
CASH-OUTS
|
4.1
|
Applicability
and effective date.
If the plan provides for involuntary cash-outs of amounts less than
$5,000, then unless otherwise elected in Section 2.2 of this amendment,
this Article shall apply for distributions made after December 31,
2001,
and shall apply to all participants. However, regardless of the preceding,
this Article shall not apply if the plan is subject to the qualified
joint
and survivor annuity requirements of Sections 401(a)(11) and 417
of the
Code.
|
|
4.2
|
Rollovers
disregarded in determining value of account balance for involuntary
distributions.
For purposes of the Sections of the plan that provide for the involuntary
distribution of vested accrued benefits of $5,000 or less, the value
of a
participant’s nonforfeitable account balance shall be determined without
regard to that portion of the account balance that is attributable
to
rollover contributions (and earnings allocable thereto) within the
meaning
of Sections 402(c), 403(a)(4), 403(b)(8), 408(d)(3)(A)(ii), and 457(e)(16)
of the Code. If the value of the participant’s nonforfeitable account
balance as so determined is $5,000 or less, then the plan shall
immediately distribute the participant’s entire nonforfeitable account
balance.
|
ARTICLE
V
HARDSHIP
DISTRIBUTIONS
|
5.1
|
Applicability
and effective date.
If the plan provides for hardship distributions upon satisfaction
of the
safe harbor (deemed) standards as set forth in Treas. Reg. Section
1.401(k)-1(d)(2)(iv), then this Article shall apply for calendar
years
beginning after 2001.
|
|
5.2
|
Suspension
period following hardship distribution.
A
participant who receives a distribution of elective deferrals after
December 31, 2001, on account of hardship shall be prohibited from
making
elective deferrals and employee contributions
under this and all other plans of the employer for 6 months after
receipt
of the distribution. Furthermore, if elected by the employer in Section
2.3 of this amendment, a participant who receives a distribution
of
elective deferrals in calendar year 2001 on account of hardship shall
be
prohibited from making elective deferrals and employee contributions
under
this and all other plans until the later of January 1, 2002, or 6
months
after receipt of the
distribution.
|
2
ARTICLE
VI
CATCH-UP
CONTRIBUTIONS
Catch-up
Contributions.
Unless
otherwise elected in Section 2.4 of this amendment, all employees who are
eligible to make elective deferrals under this plan and who have attained age
50
before the close of the plan year shall be eligible to make catch-up
contributions in accordance with, and subject to the limitations of, Section
414(v) of the Code. Such catch-up contributions shall not be taken into account
for purposes of the provisions of the plan implementing the required limitations
of Sections 402(g) and 415 of the Code. The plan shall not be treated as failing
to satisfy the provisions of the plan implementing the requirements of Section
401(k)(3), 401(k)(11), 401(k)(12), 410(b), or 416 of the Code, as applicable,
by
reason of the making of such catch-up contributions.
ARTICLE
VII
INCREASE
IN COMPENSATION LIMIT
Increase
in Compensation Limit.
The
annual compensation of each participant taken into account in determining
allocations for any plan year beginning after December 31, 2001, shall not
exceed $200,000, as adjusted for cost-of-living increases in accordance with
Section 401(a)(17)(B) of the Code. Annual compensation means compensation during
the plan year or such other consecutive 12-month period over which compensation
is otherwise determined under the plan (the determination period). If this
is a
target benefit plan, then except as otherwise elected in Section 2.5 of this
amendment, for purposes of determining benefit accruals in a plan year beginning
after December 31, 2001, compensation for any prior determination period shall
be limited to $200,000. The cost-of-living adjustment in effect for a calendar
year applies to annual compensation for the determination period that begins
with or within such calendar year.
ARTICLE
VIII
PLAN
LOANS
Plan
loans for owner-employees or shareholder-employees.
If the
plan permits loans to be made to participants, then effective for plan loans
made after December 31, 2001, plan provisions prohibiting loans to any
owner-employee or shareholder-employee shall cease to apply.
ARTICLE
IX
LIMITATIONS
ON CONTRIBUTIONS (IRC SECTION 415 LIMITS)
|
9.1
|
Effective
date.
This Section shall be effective for limitation years beginning after
December 31, 2001.
|
|
9.2
|
Maximum
annual addition.
Except to the extent permitted under Article VI of this amendment
and
Section 414(v) of the Code, if applicable, the annual addition that
may be
contributed or allocated to a participant’s account under the plan for any
limitation year shall not exceed the lesser
of:
|
| a. |
$40,000,
as adjusted for increases in the cost-of-living under Section 415(d)
of
the Code, or
|
|
b.
|
100
percent of the participant’s compensation, within the meaning of Section
415(c)(3) of the Code, for the limitation
year.
|
The
compensation limit referred to in b. shall not apply to any contribution for
medical benefits after separation from service (within the meaning of Section
401(h) or Section 419A(f)(2) of the Code) which is otherwise treated as an
annual addition.
ARTICLE
X
MODIFICATION
OF TOP-HEAVY RULES
|
10.1
|
Effective
date.
This Article shall apply for purposes of determining whether the
plan is a
top-heavy plan under Section 416(g) of the Code for plan years beginning
after December 31, 2001, and whether the plan satisfies the minimum
benefits requirements of Section 416(c) of the Code for such years.
This
Article amends the top-heavy provisions of the
plan.
|
|
10.2
|
Determination
of top-heavy status.
|
|
10.2.1
|
Key
employee.
Key employee means any employee or former employee (including any
deceased
employee) who at any time during the plan year that includes the
determination date was an officer of the employer having annual
compensation greater than $130,000 (as adjusted under Section 416(i)(1)
of
the Code for plan years beginning after December 31, 2002), a 5-percent
owner of the employer, or a 1-percent owner of the employer having
annual
compensation of more than $150,000. For this purpose, annual compensation
means compensation within the meaning of Section 415(c)(3) of the
Code.
The determination of who is a key employee will be made in accordance
with
Section 416(i)(1) of the Code and the applicable regulations and
other
guidance of general applicability issued
thereunder.
|
3
|
10.2.2
|
Determination
of present values and amounts.
This Section 10.2.2 shall apply for purposes of determining the present
values of accrued benefits and the amounts of account balances of
employees as of the determination
date.
|
|
a.
|
Distributions
during year ending on the determination date.
The present values of accrued benefits and the amounts of account
balances
of an employee as of the determination date shall be increased by
the
distributions made with respect to the employee under the plan and
any
plan aggregated with the plan under Section 416(g)(2) of the Code
during
the 1-year period ending on the determination date. The preceding
sentence
shall also apply to distributions under a terminated plan which,
had it
not been terminated, would have been aggregated with the plan under
Section 416(g)(2)(A)(i) of the Code. In the case of a distribution
made
for a reason other than separation from service, death, or disability,
this provision shall be applied by substituting “5-year period” for
“1-year period.”
|
|
b.
|
Employees
not performing services during year ending on the determination
date.
The accrued benefits and accounts of any individual who has not performed
services for the employer during the 1-year period ending on the
determination date shall not be taken into
account.
|
|
10.3
|
Minimum
benefits.
|
|
10.3.1
|
Matching
contributions.
Employer matching contributions shall be taken into account for purposes
of satisfying the minimum contribution requirements of Section 416(c)(2)
of the Code and the plan. The preceding sentence shall apply with
respect
to matching contributions under the plan or, if the plan provides
that the
minimum contribution requirement shall be met in another plan, such
other
plan. Employer matching contributions that are used to satisfy the
minimum
contribution requirements shall be treated as matching contributions
for
purposes of the actual contribution percentage test and other requirements
of Section 401(m) of the Code.
|
|
10.3.2
|
Contributions
under other plans.
The employer may provide, in an addendum to this amendment, that
the
minimum benefit requirement shall be met in another plan (including
another plan that consists solely of a cash or deferred arrangement
which
meets the requirements of Section 401(k)(12) of the Code and matching
contributions with respect to which the requirements of Section 401(m)(11)
of the Code are met). The addendum should include the name of the
other
plan, the minimum benefit that will be provided under such other
plan, and
the employees who will receive the minimum benefit under such other
plan.
|
ARTICLE
XI
DIRECT
ROLLOVERS
|
11.1
|
Effective
date.
This Article shall apply to distributions made after December 31,
2001.
|
|
11.2
|
Modification
of definition of eligible retirement plan.
For purposes of the direct rollover provisions of the plan, an eligible
retirement plan shall also mean an annuity contract described in
Section
403(b) of the Code and an eligible plan under Section 457(b) of the
Code
which is maintained by a state, political subdivision of a state,
or any
agency or instrumentality of a state or political subdivision of
a state
and which agrees to separately account for amounts transferred into
such
plan from this plan. The definition of eligible retirement plan shall
also
apply in the case of a distribution to a surviving spouse, or to
a spouse
or former spouse who is the alternate payee under a qualified domestic
relation order, as defined in Section 414(p) of the
Code.
|
|
11.3
|
Modification
of definition of eligible rollover distribution to exclude hardship
distributions.
For purposes of the direct rollover provisions of the plan, any amount
that is distributed on account of hardship shall not be an eligible
rollover distribution and the distributee may not elect to have any
portion of such a distribution paid directly to an eligible retirement
plan.
|
|
11.4
|
Modification
of definition of eligible rollover distribution to include after-tax
employee contributions.
For purposes of the direct rollover provisions in the plan, a portion
of a
distribution shall not fail to be an eligible rollover distribution
merely
because the portion consists of after-tax employee contributions
which are
not includible in gross income. However, such portion may be transferred
only to an individual retirement account or annuity described in
Section
408(a) or (b) of the Code, or to a qualified defined contribution
plan
described in Section 401(a) or 403(a) of the Code that agrees to
separately account for amounts so transferred, including separately
accounting for the portion of such distribution which is includible
in
gross income and the portion of such distribution which is not so
includible.
|
ARTICLE
XII
ROLLOVERS
FROM OTHER PLANS
Rollovers
from other plans.
The
employer, operationally and on a nondiscriminatory basis, may limit the source
of rollover contributions that may be accepted by this plan.
4
ARTICLE
XIII
REPEAL
OF MULTIPLE USE TEST
Repeal
of Multiple Use Test.
The
multiple use test described in Treasury Regulation Section 1.401(m)-2 and the
plan shall not apply for plan years beginning after December 31,
2001.
ARTICLE
XIV
ELECTIVE
DEFERRALS
|
14.1
|
Elective
Deferrals - Contribution Limitation.
No participant shall be permitted to have elective deferrals made
under
this plan, or any other qualified plan maintained by the employer
during
any taxable year, in excess of the dollar limitation contained in
Section
402(g) of the Code in effect for such taxable year, except to the
extent
permitted under Article VI of this amendment and Section 414(v) of
the
Code, if applicable.
|
|
14.2
|
Maximum
Salary Reduction Contributions for SIMPLE plans.
If this is a SIMPLE 401(k) plan, then except to the extent permitted
under
Article VI of this amendment and Section 414(v) of the Code, if
applicable, the maximum salary reduction contribution that can be
made to
this plan is the amount determined under Section 408(p)(2)(A)(ii)
of the
Code for the calendar year.
|
ARTICLE
XV
SAFE
HARBOR PLAN PROVISIONS
Modification
of Top-Heavy Rules.
The
top-heavy requirements of Section 416 of the Code and the plan shall not apply
in any year beginning after December 31, 2001, in which the plan consists solely
of a cash or deferred arrangement which meets the requirements of Section
401(k)(12) of the Code and matching contributions with respect to which the
requirements of Section 401(m)(11) of the Code are met.
ARTICLE
XVI
DISTRIBUTION
UPON SEVERANCE OF EMPLOYMENT
|
16.1
|
Effective
date.
This Article shall apply for distributions and transactions made
after
December 31, 2001, regardless of when the severance of employment
occurred.
|
|
16.2
|
New
distributable event.
A
participant’s elective deferrals, qualified nonelective contributions,
qualified matching contributions, and earnings attributable to these
contributions shall be distributed on account of the participant’s
severance from employment. However, such a distribution shall be
subject
to the other provisions of the plan regarding distributions, other
than
provisions that require a separation from service before such amounts
may
be distributed.
|
This
amendment has been executed this _________________ day of
______________________________, ________.
Name
of
Employer:
America’s Car-Mart, Inc.
By:
_________________________________________
EMPLOYER
Name
of
Plan: Colonial
Auto Finance, Inc. 401(k) Plan
5
POST-EGTRRA
AMENDMENT
TO THE
COLONIAL
AUTO FINANCE, INC.
401(K)
PLAN
ARTICLE
I
PREAMBLE
| 1.1 |
Adoption
and effective date of amendment.
This amendment of the plan is adopted to reflect certain provisions
of the
Economic Growth and Tax Relief Reconciliation Act of 2001 (“EGTRRA”), the
Job Creation and Worker Assistance Act of 2002, IRS Regulations issued
pursuant to IRC §401(a)(9), and other IRS guidance. This amendment is
intended as good faith compliance with the requirements of EGTRRA
and is
to be construed in accordance with EGTRRA and guidance issued thereunder.
Except as otherwise provided, this amendment shall be effective as
of the
first day of the first plan year beginning after December 31,
2001.
|
| 1.2 |
Supersession
of inconsistent provisions.
This amendment shall supersede the provisions of the plan to the
extent
those provisions are inconsistent with the provisions of this
amendment.
|
| 1.3 |
Adoption
by prototype sponsor.
Except as otherwise provided herein, pursuant to Section 5.01 of
Revenue
Procedure 2000-20, the sponsor hereby adopts this amendment on behalf
of
all adopting employers.
|
ARTICLE
II
ADOPTION
AGREEMENT ELECTIONS
The
questions in this Article II only need to be completed in order to override
the
default provisions set forth below. If all of the default provisions will apply,
then these questions should be skipped.
Unless
the employer elects otherwise in this Article II, the following defaults
apply:
|
1.
|
If
catch-up contributions are permitted, then the catch-up contributions
are
treated like any other elective deferrals for purposes of determining
matching contributions under the plan.
|
|
2.
|
For
plans subject to the qualified joint and survivor annuity rules,
rollovers
are automatically excluded in determining whether the $5,000 threshold
has
been exceeded for automatic cash-outs (if the plan provides for automatic
cash-outs). This is applied to all participants regardless of when
the
distributable event
occurred.
|
|
3.
|
The
minimum distribution requirements are effective for distribution
calendar
years beginning with the 2002 calendar year. In addition, participants
or
beneficiaries may elect on an individual basis whether the 5-year
rule or
the life expectancy rule in the plan applies to distributions after
the
death of a participant who has a designated
beneficiary.
|
|
4.
|
Amounts
that are “deemed 125 compensation” are not included in the definition of
compensation.
|
|
2.1
|
Exclusion
of Rollovers in Application of Involuntary Cash-out Provisions.
If
the plan is subject to the joint and survivor annuity rules and includes
involuntary cash-out provisions, then unless one of the options below
is
elected, effective for distributions made after December 31, 2001,
rollover contributions will be excluded in determining the value
of a
participant’s nonforfeitable account balance for purposes of the plan’s
involuntary cash-out rules.
|
|
a.
|
o
|
Rollover
contributions will not be excluded.
|
|
b.
|
o
|
Rollover
contributions will be excluded only with respect to distributions
made
after
(Enter a date no earlier than December 31,
2001).
|
|
c.
|
o
|
Rollover
contributions will only be excluded with respect to participants
who
separated from service after .
(Enter a date. The date may be earlier than December 31,
2001.)
|
|
2.2
|
Catch-up
contributions (for 401(k) profit sharing plans only):
The plan permits catch-up contributions effective for calendar years
beginning after December 31, 2001, (Article V) unless otherwise elected
below.
|
|
a.
|
o
|
The
plan does not permit catch-up contributions to be
made.
|
|
b.
|
o
|
Catch-up
contributions are permitted effective as of:
(enter a date no earlier than January 1,
2002).
|
And,
catch-up
contributions will be taken into account in applying any matching contribution
under the Plan unless otherwise elected below.
|
c.
|
o
|
Catch-up
contributions will not be taken into account in applying any matching
contribution under the Plan.
|
2.3 Amendment
for Section 401(a)(9) Final and Temporary Treasury
Regulations.
| a. |
Effective
date.
Unless a later effective date is specified in below, the provisions
of
Article VI of this amendment will apply for purposes of determining
required minimum distributions for calendar years beginning with
the 2002
calendar year.
|
| o |
This
amendment applies for purposes of determining required minimum
distributions for distribution calendar years beginning with
the 2003
calendar year, as well as required minimum distributions for
the 2002
distribution calendar year that are made on or after
(leave blank if this amendment does not apply to any minimum
distributions
for the 2002 distribution calendar
year).
|
1
b. Election
to not permit Participants or Beneficiaries to Elect 5-Year
Rule.
Unless
elected below, Participants or beneficiaries may elect on an individual basis
whether the 5-year rule or the life expectancy rule in Sections 6.2.2 and 6.4.2
of this amendment applies to distributions after the death of a Participant
who
has a designated beneficiary. The election must be made no later than the
earlier of September 30 of the calendar year in which distribution would be
required to begin under Section 6.2.2 of this amendment, or by September 30
of
the calendar year which contains the fifth anniversary of the Participant’s (or,
if applicable, surviving spouse’s) death. If neither the Participant nor
beneficiary makes an election under this paragraph, distributions will be made
in accordance with Sections 6.2.2 and 6.4.2 of this amendment and, if
applicable, the elections in Section 2.3.c of this amendment below.
|
o
|
The
provision set forth above in this Section 2.3.b shall not apply.
Rather,
Sections 6.2.2 and 6.4.2 of this amendment shall apply except as
elected
in Section 2.3.c of this amendment below.
|
c. Election
to Apply 5-Year Rule to Distributions to Designated
Beneficiaries.
|
o
|
If
the Participant dies before distributions begin and there is a designated
beneficiary, distribution to the designated beneficiary is not required
to
begin by the date specified in the Plan, but the Participant’s entire
interest will be distributed to the designated beneficiary by December
31
of the calendar year containing the fifth anniversary of the Participant’s
death. If the Participant’s surviving spouse is the Participant’s sole
designated beneficiary and the surviving spouse dies after the Participant
but before distributions to either the Participant or the surviving
spouse
begin, this election will apply as if the surviving spouse were the
Participant.
|
|
If
the above is elected, then this election will apply
to:
|
1. o All
distributions.
2. o The
following
distributions:
.
d. Election
to Allow Designated Beneficiary Receiving Distributions Under 5-Year Rule to
Elect Life Expectancy Distributions.
|
o
|
A
designated beneficiary who is receiving payments under the 5-year
rule may
make a new election to receive payments under the life expectancy
rule
until December 31, 2003, provided that all amounts that would have
been
required to be distributed under the life expectancy rule for all
distribution calendar years before 2004 are distributed by the earlier
of
December 31, 2003, or the end of the 5-year
period.
|
|
2.4
|
Deemed
125 Compensation. Article
VII of this amendment shall not apply unless otherwise elected
below.
|
|
o
|
Article
VII of this amendment (Deemed 125 Compensation) shall apply effective
as
of Plan Years and Limitation Years beginning on or after
(insert the later of January 1, 1998, or the first day of the first
plan
year the Plan used this
definition).
|
ARTICLE
III
INVOLUNTARY
CASH-OUTS
|
3.1
|
Applicability
and effective date.
If the plan is subject to the qualified joint and survivor annuity
rules
and provides for involuntary cash-outs of amounts less than $5,000,
then
unless otherwise elected in Section 2.1 of this amendment, this Article
shall apply for distributions made after December 31, 2001, and shall
apply to all participants.
|
|
3.2
|
Rollovers
disregarded in determining value of account balance for involuntary
distributions.
For purposes of the Sections of the plan that provide for the involuntary
distribution of vested accrued benefits of $5,000 or less, the value
of a
participant’s nonforfeitable account balance shall be determined without
regard to that portion of the account balance that is attributable
to
rollover contributions (and earnings allocable thereto) within the
meaning
of Sections 402(c), 403(a)(4), 403(b)(8), 408(d)(3)(A)(ii), and 457(e)(16)
of the Code. If the value of the participant’s nonforfeitable account
balance as so determined is $5,000 or less, then the plan shall
immediately distribute the participant’s entire nonforfeitable account
balance.
|
ARTICLE
IV
HARDSHIP
DISTRIBUTIONS
Reduction
of Section 402(g) of the Code following hardship distribution.
If the
plan provides for hardship distributions upon satisfaction of the safe harbor
(deemed) standards as set forth in Treas. Reg. Section 1.401(k)-1(d)(2)(iv),
then effective as of the date the elective deferral suspension period is reduced
from 12 months to 6 months pursuant to EGTRRA, there shall be no reduction
in
the maximum amount of elective deferrals that a Participant may make pursuant
to
Section 402(g) of the Code solely because of a hardship distribution made by
this plan or any other plan of the Employer.
2
ARTICLE
V
CATCH-UP
CONTRIBUTIONS
Catch-up
Contributions.
Unless
otherwise elected in Section 2.2 of this amendment, effective for calendar
years
beginning after December 31, 2001, all employees who are eligible to make
elective deferrals under this plan and who have attained age 50 before the
close
of the calendar year shall be eligible to make catch-up contributions in
accordance with, and subject to the limitations of, Section 414(v) of the Code.
Such catch-up contributions shall not be taken into account for purposes of
the
provisions of the plan implementing the required limitations of Sections 402(g)
and 415 of the Code. The plan shall not be treated as failing to satisfy the
provisions of the plan implementing the requirements of Sections 401(k)(3),
401(k)(11), 401(k)(12), 410(b), or 416 of the Code, as applicable, by reason
of
the making of such catch-up contributions.
If
elected in Section 2.2, catch-up contributions shall not be treated as elective
deferrals for purposes of applying any Employer matching contributions under
the
plan.
ARTICLE
VI
REQUIRED
MINIMUM DISTRIBUTIONS
6.1
GENERAL
RULES
|
6.1.1
|
Effective
Date.
Unless a later effective date is specified in Section 2.3.a of this
amendment, the provisions of this amendment will apply for purposes
of
determining required minimum distributions for calendar years beginning
with the 2002 calendar year.
|
|
6.1.2
|
Coordination
with Minimum Distribution Requirements Previously in
Effect.
If the effective date of this amendment is earlier than calendar
years
beginning with the 2003 calendar year, required minimum distributions
for
2002 under this amendment will be determined as follows. If the total
amount of 2002 required minimum distributions under the Plan made
to the
distributee prior to the effective date of this amendment equals
or
exceeds the required minimum distributions determined under this
amendment, then no additional distributions will be required to be
made
for 2002 on or after such date to the distributee. If the total amount
of
2002 required minimum distributions under the Plan made to the distributee
prior to the effective date of this amendment is less than the amount
determined under this amendment, then required minimum distributions
for
2002 on and after such date will be determined so that the total
amount of
required minimum distributions for 2002 made to the distributee will
be
the amount determined under this
amendment.
|
|
6.1.3
|
Precedence.
The requirements of this amendment will take precedence over any
inconsistent provisions of the
Plan.
|
|
6.1.4
|
Requirements
of Treasury Regulations Incorporated.
All distributions required under this amendment will be determined
and
made in accordance with the Treasury regulations under Section 401(a)(9)
of the Internal Revenue Code.
|
|
6.1.5
|
TEFRA
Section 242(b)(2) Elections.
Notwithstanding the other provisions of this amendment, distributions
may
be made under a designation made before January 1, 1984, in accordance
with Section 242(b)(2) of the Tax Equity and Fiscal Responsibility
Act
(TEFRA) and the provisions of the Plan that relate to Section 242(b)(2)
of
TEFRA.
|
6.2 TIME
AND MANNER OF DISTRIBUTION
|
6.2.1
|
Required
Beginning Date.
The Participant’s entire interest will be distributed, or begin to be
distributed, to the Participant no later than the Participant’s required
beginning date.
|
|
6.2.2
|
Death
of Participant Before Distributions Begin.
If the Participant dies before distributions begin, the Participant’s
entire interest will be distributed, or begin to be distributed,
no later
than as follows:
|
(a) If
the
Participant’s surviving spouse is the Participant’s sole designated beneficiary,
then, except as provided in Article VI, distributions to the surviving spouse
will begin by December 31 of the calendar year immediately following the
calendar year in which the Participant died, or by December 31 of the calendar
year in which the Participant would have attained age 70 1/2, if
later.
(b) If
the
Participant’s surviving spouse is not the Participant’s sole designated
beneficiary, then, except as provided in Section 2.3 of this amendment,
distributions to the designated beneficiary will begin by December 31 of the
calendar year immediately following the calendar year in which the Participant
died.
(c) If
there
is no designated beneficiary as of September 30 of the year following the year
of the Participant’s death, the Participant’s entire interest will be
distributed by December 31 of the calendar year containing the fifth anniversary
of the Participant’s death.
3
(d) If
the
Participant’s surviving spouse is the Participant’s sole designated beneficiary
and the surviving spouse dies after the Participant but before distributions
to
the surviving spouse begin, this Section 6.2.2, other than Section 6.2.2(a),
will apply as if the surviving spouse were the Participant.
For
purposes of this Section 6.2.2 and Section 2.3, unless Section 6.2.2(d) applies,
distributions are considered to begin on the Participant’s required beginning
date. If Section 6.2.2(d) applies, distributions are considered to begin on
the
date distributions are required to begin to the surviving spouse under Section
6.2.2(a). If distributions under an annuity purchased from an insurance company
irrevocably commence to the Participant before the Participant’s required
beginning date (or to the Participant’s surviving spouse before the date
distributions are required to begin to the surviving spouse under Section
6.2.2(a)), the date distributions are considered to begin is the date
distributions actually commence.
|
6.2.3
|
Forms
of Distribution.
Unless the Participant’s interest is distributed in the form of an annuity
purchased from an insurance company or in a single sum on or before
the
required beginning date, as of the first distribution calendar year
distributions will be made in accordance with Sections 6.3 and 6.4
of this
amendment. If the Participant’s interest is distributed in the form of an
annuity purchased from an insurance company, distributions thereunder
will
be made in accordance with the requirements of Section 401(a)(9)
of the
Code and the Treasury regulations.
|
6.3 REQUIRED
MINIMUM DISTRIBUTIONS DURING PARTICIPANT’S LIFETIME
|
6.3.1
|
Amount
of Required Minimum Distribution For Each Distribution Calendar
Year.
During the Participant’s lifetime, the minimum amount that will be
distributed for each distribution calendar year is the lesser
of:
|
(a) the
quotient obtained by dividing the Participant’s account balance by the
distribution period in the Uniform Lifetime Table set forth in Section
1.401(a)(9)-9 of the Treasury regulations, using the Participant’s age as of the
Participant’s birthday in the distribution calendar year; or
(b) if
the
Participant’s sole designated beneficiary for the distribution calendar year is
the Participant’s spouse, the quotient obtained by dividing the Participant’s
account balance by the number in the Joint and Last Survivor Table set forth
in
Section 1.401(a)(9)-9 of the Treasury regulations, using the Participant’s and
spouse’s attained ages as of the Participant’s and spouse’s birthdays in the
distribution calendar year.
|
6.3.2
|
Lifetime
Required Minimum Distributions Continue Through Year of Participant’s
Death.
Required minimum distributions will be determined under this Section
6.3
beginning with the first distribution calendar year and up to and
including the distribution calendar year that includes the Participant’s
date of death.
|
6.4 REQUIRED
MINIMUM DISTRIBUTIONS AFTER PARTICIPANT’S DEATH
6.4.1 Death
On or After Date Distributions Begin.
(a) Participant
Survived by Designated Beneficiary.
If the
Participant dies on or after the date distributions begin and there is a
designated beneficiary, the minimum amount that will be distributed for each
distribution calendar year after the year of the Participant’s death is the
quotient obtained by dividing the Participant’s account balance by the longer of
the remaining life expectancy of the Participant or the remaining life
expectancy of the Participant’s designated beneficiary, determined as
follows:
(1) The
Participant’s remaining life expectancy is calculated using the age of the
Participant in the year of death, reduced by one for each subsequent
year.
(2) If
the
Participant’s surviving spouse is the Participant’s sole designated beneficiary,
the remaining life expectancy of the surviving spouse is calculated for each
distribution calendar year after the year of the Participant’s death using the
surviving spouse’s age as of the spouse’s birthday in that year. For
distribution calendar years after the year of the surviving spouse’s death, the
remaining life expectancy of the surviving spouse is calculated using the age
of
the surviving spouse as of the spouse’s birthday in the calendar year of the
spouse’s death, reduced by one for each subsequent calendar year.
(3) If
the
Participant’s surviving spouse is not the Participant’s sole designated
beneficiary, the designated beneficiary’s remaining life expectancy is
calculated using the age of the beneficiary in the year following the year
of
the Participant’s death, reduced by one for each subsequent year.
(b) No
Designated Beneficiary.
If the
Participant dies on or after the date distributions begin and there is no
designated beneficiary as of September 30 of the year after the year of the
Participant’s death, the minimum amount that will be distributed for each
distribution calendar year after the year of the Participant’s death is the
quotient obtained by dividing the Participant’s account balance by the
Participant’s remaining life expectancy calculated using the age of the
Participant in the year of death, reduced by one for each subsequent
year.
4
6.4.2 Death
Before Date Distributions Begin.
(a) Participant
Survived by Designated Beneficiary.
Except
as provided in Section 2.3, if the Participant dies before the date
distributions begin and there is a designated beneficiary, the minimum amount
that will be distributed for each distribution calendar year after the year
of
the Participant’s death is the quotient obtained by dividing the Participant’s
account balance by the remaining life expectancy of the Participant’s designated
beneficiary, determined as provided in Section 6.4.1.
(b) No
Designated Beneficiary.
If the
Participant dies before the date distributions begin and there is no designated
beneficiary as of September 30 of the year following the year of the
Participant’s death, distribution of the Participant’s entire interest will be
completed by December 31 of the calendar year containing the fifth anniversary
of the Participant’s death.
(c) Death
of Surviving Spouse Before Distributions to Surviving Spouse Are Required to
Begin.
If the
Participant dies before the date distributions begin, the Participant’s
surviving spouse is the Participant’s sole designated beneficiary, and the
surviving spouse dies before distributions are required to begin to the
surviving spouse under Section 6.2.2(a), this Section 6.4.2 will apply as if
the
surviving spouse were the Participant.
6.5
DEFINITIONS
|
6.5.1
|
Designated
beneficiary.
The individual who is designated as the Beneficiary under the Plan
and is
the designated beneficiary under Section 401(a)(9) of the Internal
Revenue
Code and Section 1.401(a)(9)-1, Q&A-4, of the Treasury
regulations.
|
|
6.5.2
|
Distribution
calendar year.
A
calendar year for which a minimum distribution is required. For
distributions beginning before the Participant’s death, the first
distribution calendar year is the calendar year immediately preceding
the
calendar year which contains the Participant’s required beginning date.
For distributions beginning after the Participant’s death, the first
distribution calendar year is the calendar year in which distributions
are
required to begin under Section 6.2.2. The required minimum distribution
for the Participant’s first distribution calendar year will be made on or
before the Participant’s required beginning date. The required minimum
distribution for other distribution calendar years, including the
required
minimum distribution for the distribution calendar year in which
the
Participant’s required beginning date occurs, will be made on or before
December 31 of that distribution calendar
year.
|
|
6.5.3
|
Life
expectancy.
Life expectancy as computed by use of the Single Life Table in Section
1.401(a)(9)-9 of the Treasury
regulations.
|
|
6.5.4
|
Participant’s
account balance.
The account balance as of the last valuation date in the calendar
year
immediately preceding the distribution calendar year (valuation calendar
year) increased by the amount of any contributions made and allocated
or
forfeitures allocated to the account balance as of the dates in the
valuation calendar year after the valuation date and decreased by
distributions made in the valuation calendar year after the valuation
date. The account balance for the valuation calendar year includes
any
amounts rolled over or transferred to the Plan either in the valuation
calendar year or in the distribution calendar year if distributed
or
transferred in the valuation calendar
year.
|
|
6.5.5
|
Required
beginning date.
The date specified in the Plan when distributions under Section 401(a)(9)
of the Internal Revenue Code are required to
begin.
|
ARTICLE
VII
DEEMED
125 COMPENSATION
If
elected, this Article shall apply as of the effective date specified in Section
2.4 of this amendment. For purposes of any definition of compensation under
this
Plan that includes a reference to amounts under Section 125 of the Code, amounts
under Section 125 of the Code include any amounts not available to a Participant
in cash in lieu of group health coverage because the Participant is unable
to
certify that he or she has other health coverage. An amount will be treated
as
an amount under Section 125 of the Code only if the Employer does not request
or
collect information regarding the Participant’s other health coverage as part of
the enrollment process for the health plan.
5
Except
with respect to any election made by the employer in Article II, this amendment
is hereby adopted by the prototype sponsor on behalf of all adopting employers
on
[Sponsor’s
signature and Adoption Date are on file with Sponsor]
NOTE:
The employer only needs to execute this amendment if an election has been made
in Article II of this amendment.
This
amendment has been executed this _________________ day of
______________________________, ________.
Name
of
Plan: America’s
Car-Mart, Inc. 401(k) Plan
Name
of
Employer: America’s
Car-Mart,
Inc.
By:
_______________________________________
EMPLOYER
6
MANDATORY
DISTRIBUTION AMENDMENT
(Code
Section 401(a)(31)(B))
ARTICLE
I
APPLICATION
OF AMENDMENT
|
1.1
|
Effective
Date.
Unless a later effective date is specified in Article III of this
Amendment, the provisions of this Amendment will apply with respect
to
distributions made on or after March 28,
2005.
|
|
1.2
|
Precedence.
This Amendment supersedes any inconsistent provision of the
Plan.
|
|
1.3
|
Adoption
by prototype sponsor.
Except as otherwise provided herein, pursuant to authority granted
by
Section 5.01 of Revenue Procedure 2000-20, the sponsoring organization
of
the prototype hereby adopts this amendment on behalf of all adopting
employers.
|
ARTICLE
II
DEFAULT
PROVISION: AUTOMATIC ROLLOVER
OF
AMOUNTS OVER $1,000
Unless
the Employer otherwise elects in Article III of this Amendment, the provisions
of the Plan concerning mandatory distributions of amounts not exceeding $5,000
are amended as follows:
In
the
event of a mandatory distribution greater than $1,000 that is made in accordance
with the provisions of the Plan providing for an automatic distribution to
a
Participant without the Participant’s consent, if the Participant does not elect
to have such distribution paid directly to an “eligible retirement plan”
specified by the Participant in a direct rollover (in accordance with the direct
rollover provisions of the Plan) or to receive the distribution directly, then
the Administrator shall pay the distribution in a direct rollover to an
individual retirement plan designated by the Administrator.
ARTICLE
III
EMPLOYER’S
ALTERNATIVE ELECTIONS
|
3.1
|
(
)
|
Effective
Date of Plan Amendment
|
This
Amendment applies with respect to distributions made on or after
(may be
a date later than March 28, 2005, only if the terms of the Plan already comply
with Code Section 401(a)(31)(B)).
|
3.2
|
(
)
|
Election
to apply Article II of this Amendment to distributions of $1,000
or
less.
|
In
the
event of a mandatory distribution that is made in accordance with the provisions
of the Plan providing for an automatic distribution to a Participant without
the
Participant’s consent, if the Participant does not elect to have such
distribution paid directly to an “eligible retirement plan” specified by the
Participant in a direct rollover (in accordance with the direct rollover
provisions of the Plan) or to receive the distribution directly, then the
Administrator shall pay the distribution in a direct rollover to an individual
retirement plan designated by the Administrator.
|
3.3
|
(
)
|
Election
to reduce or eliminate mandatory distribution provisions of Plan
(may not
be elected if 3.2 above is
elected)
|
The
provisions of the Plan that provide for the involuntary distribution of vested
accrued benefits of $5,000 or less, are modified as follows (choose a, b, or
c
below):
| a. ( ) |
No
mandatory distributions.
Participant consent to the distribution now shall be required before
the
Plan may make the distribution.
|
|
b.
|
(
)
|
Reduction
of $5,000 threshold to $1,000.
The $5,000 threshold in such provisions is reduced to $1,000 and
the value
of the Participant’s interest in the Plan for such purpose shall include
any rollover contributions (and earnings thereon) within the meaning
of
Code Sections 402(c), 403(a)(4), 403(b)(8), 408(d)(3)(A)(ii), and
457(e)(16).
|
|
c.
|
(
)
|
Reduction
of $5,000 threshold to amount less than $1,000.
The $5,000 threshold in such provisions is reduced to $
(enter an amount less than $1,000) and the value of the Participant’s
interest in the Plan for such purpose shall include any rollover
contributions (and earnings thereon) within the meaning of Code Sections
402(c), 403(a)(4), 403(b)(8), 408(d)(3)(A)(ii), and
457(e)(16).
|
Except
with respect to any election made by the employer in Article III, this amendment
is hereby adopted by the prototype sponsor on behalf of all adopting employers
on:
[Sponsor’s
signature and Adoption Date are on file with Sponsor]
NOTE:
The employer only needs to execute this amendment if an election has been made
in Article III herein.
This
amendment has been executed this _________________ day of
______________________________, ________.
Name
of
Plan: America’s
Car-Mart, Inc. 401(k) Plan
Name
of
Employer: America’s
Car-Mart, Inc.
By:
____________________________________
EMPLOYER
2