Other than the Overview and Page Directory displayed below, he text presented in this web page is directly from the Company's Plan Document, which describes the major provisions of the Employee Stock Ownership Plan and Trust (ESOP). It has been edited only insofar as necessary for it to be viewed on this website.
ESOP Overview
The ESOP provides employees an opportunity to own shares of American Bank stock, funded completely by the company. Full-time employees are eligible to participate after 1 year of service and at at least age 21. Each year the Company determines how much, if any, it will contribute to the Plan, and that amount is divided among participants. The formula for determining your share is:
Your Share = Your Annual Compensation multiplied by the Total Company Contribution, divided by the Total Compensation of All Participants. An example is shown in the Plan Description.
You become vested (gain ownership) of the stock in your account according to the following schedule:
Years of Service
Less than 3 0%
3 - 20%
4 - 40%
5 - 60%
6 - 80%
7 - 100%
Vesting Schedule
You will receive your vested portion of your account upon retirement, disability, or termination of employment, and your beneficiary will receive plan benefits upon your death.
Page Directory
"General Information" - Plan Sponsor, Address and ID, Plan Trustee, etc.
Participation Requirements
Contributions to the Plan
How to calculate your share of contributions
Receiving Benefits from the Plan
Vesting Schedule
Information about Company Stock
"Year of Service" Rules
Statement of ERISA Rights
Employee Stock Ownership Plan and Trust
American Banks of Florida, Inc.
American National Bank of Florida
Post Office Box 10129
Jacksonville, Florida 322470129
The American Banks of Florida, Inc. Employee Stock Ownership Plan and Trust makes each of us an owner of the bank, and provides many benefits upon retirement. Each of us plays an important role in the bank's financial success, primarily through providing the best possible service and quality products to our customers in the spirit of OneToOne banking. As your Company does well and grows in value, so will the value of your ESOP stock, and the amount of benefits you will receive upon retirement.
Our ESOP is provided at no cost to you. The Company pays the full cost. As you read this booklet, you will see exactly how the plan works. If you have any questions, please feel free to contact the Human Resources Department or the Financial Management & Trust Department. Since each plan participant owns "a piece of the rock," the success and growth of our Company can be directly attributed to its hardworking, loyal employees. We all have a vested interest and share directly in the future successes of our Company.
Sincerely,
Raymond K. Mason, Jr.
President
July 1994
AMERICAN BANKS OF FLORIDA, INC.
EMPLOYEE STOCK OWNERSHIP PLAN AND TRUST
SUMMARY PLAN DESCRIPTION
TABLE OF CONTENTS
INTRODUCTION TO YOUR PLAN
GENERAL INFORMATION ABOUT YOUR PLAN
1. General Plan Information
2.Employer Information
3. Plan Administrator Formation
4. Plan Trustee Information
5. Service of Legal Process
PARTICIPATION IN YOUR PLAN
1. Eligibility Requirements
2. Participation Requirements
CONTRIBUTIONS TO YOUR PLAN
1. Employer Contributions to the Plan
2. Your Share of Employer Contributions
3. Compensation
4.Forfeitures
5. Directed Investments
BENEFITS UNDER YOUR PLAN
- Distribution of Benefits Upon Normal Retirement
- Distribution of Benefits Upon Late Retirement
- Distribution of Benefits Upon Death
- Distribution of Benefits Upon Disability
- Distribution of Benefits Upon Termination of Employment
- Vesting in Your Plan
- Benefit Payment Method
- Treatment of Distributions From Your Plan
- Domestic Relations Order
10. Pension Benefit Guaranty Corporation .
INFORMATION REGARDING COMPANY STOCK
- Voting of Company Stock
- Right of First Refusal
- Put Option
YEAR OF SERVICE RULES
- Year of Service and Hour of Service
- 1Year Break in Service
YOUR PLAN'S "TOP HEAVY RULES"
1. Explanation of "Top Heavy Rules"
CLAIMS BY PARTICIPANTS AND BENEFICIARIES
1. The Claims Review Procedure
STATEMENT OF ERISA RIGHTS
1. Explanation of Your ERISA Rights
AMENDMENT AND TERMINATION OF YOUR PLAN
1. Amendment
2. Termination
AMERICAN BANKS OF FLORIDA, INC.
EMPLOYEE STOCK OWNERSHIP PLAN AND TRUST
SUMMARY PLAN DESCRIPTION
INTRODUCTION TO YOUR PLAN
American Banks of Florida, Inc. has amended your Employee Stock Ownership Plan as of January 1, 1989. American Banks of Florida, Inc. continues to recognize the efforts you have made to its success. This amended Employee Stock Ownership Plan is for the exclusive benefit of eligible employees and their beneficiaries.
The purpose of this Plan is to reward eligible employees for long and loyal service by providing them with retirement benefits.
Between now and your retirement, your Employer intends to make contributions for you and other eligible employees. Contributions to the Plan will be invested primarily in Company Stock. Your efforts added to the efforts of all other employees contribute to the profitability and growth of the Employer and thereby increase the value of Company Stock and your benefits in the Plan. When you retire, you will be entitled to receive the value of the amounts which have accumulated in your account in the form of Company Stock.
Your Employer has the right to submit this Plan to the Internal Revenue Service for approval. The Internal Revenue Service will issue a "determination letter" to your Employer approving this Plan as a "qualified" retirement plan, if this Plan meets specific legal requirements.
This Summary Plan Description is a brief description of your Plan and your rights, obligations, and benefits under that Plan. Some of the statements made in this Summary Plan Description are dependent upon this Plan being "qualified" under the provisions of the Internal Revenue Code. This Summary Plan Description is not meant to interpret, extend, or change the provisions of your Plan in any way. The provisions of your Plan may only be determined accurately by reading the actual Plan document.
A copy of your Plan is on file at your Employer's office and may be read by you, your beneficiaries, or your legal representatives at any reasonable time. If you have any questions regarding either your Plan or this Summary Plan Description, you should ask your Plan's Administrator. In the event of any discrepancy between this Summary Plan Description and the actual provisions of the Plan, the Plan will govern.
GENERAL INFORMATION ABOUT YOUR PLAN
There is certain general information which you may need to know about your Plan. This information has been summarized for you in this section.
1. General Plan Information
American Banks of Florida, Inc. Employee Stock Ownership Plan and Trust is the name of your Plan.
Your Employer has assigned Plan Number 002 to your Plan.
The amended and restated provisions of your Plan become effective on January l, 1989.
Your Plan's records are maintained on a twelvemonth period of time. This is known as the Plan Year. The Plan Year begins on January 1st and ends on December 31st.
Certain valuations and distributions are made on the Anniversary Date of your Plan. This date is December 31st.
The contributions made to your Plan will be held and invested by the Trustee of your Plan.
Your Plan and Trust will be governed by the laws of the State of Florida
2. Employer Information
Your Employer's name, address and identification number are:
American Banks of Florida, Inc.
2031 Hendricks Avenue
Jacksonville, Florida 32207
591480139
Your Plan allows other employers to adopt its provisions. You or your beneficiaries may examine or obtain a complete list of employers, if any, who have adopted your Plan by making a written request to the Administrator.
3. Plan Administrator Information
The name, address and business telephone number of your Plan's Administrator are:
American Banks of Florida, Inc.
2031 Hendricks Avenue
Jacksonville, Florida 32207
(904) 3968100
Your Plan's Administrator keeps the records for the Plan and is responsible for the administration of the Plan. The Administrator has discretionary authority to construe the terms of the Plan and make determinations on questions which may affect your eligibility for benefits. Your Plan's Administrator will also answer any questions you may have about your Plan.
4. Plan Trustee Information
The name of your Plan's Trustee is:
American National Bank of Florida, Inc.
The principal place of business of your Plan's Trustee is:
2031 Hendricks Avenue
Jacksonville, Florida 32207
Your Plan's Trustee has been designated to hold and invest Plan assets for the benefit of you and other Plan participants. The trust fund established by the Plan's Trustee will be the funding medium used for the accumulation of assets from which benefits will be distributed.
5. Service of Legal Process
The name and address of your Plan's agent for service of legal process are:
American Banks of Florida, Inc.
2031 Hendricks Avenue
Jacksonville, Florida 32207
Service of legal process may also be made upon the Trustee or Administrator.
- PARTICIPATION IN YOUR PLAN
Before you become a member or a "participant" in the Plan, there are certain eligibility and participation rules which you must meet. These rules are explained in this section.
1. Eligibility Requirements
You will be eligible to participate in the Plan if you have completed one (1) Year of Service and have attained age 21.
You should review the Article in this Summary entitled "YEAR OF SERVICE RULES" for a further explanation of these eligibility requirements.
2. Participation Requirements
Once you have satisfied your Plan's eligibility requirements, your next step will be to actually become a member or a "participant" in the Plan. You will become a participant on a specified day of the Plan Year. This day is called the Effective Date of Participation.
You will become a participant on the first day of the Plan Year during which you satisfy the eligibility requirements if you meet the requirements during the first six months of the Plan Year. If you satisfy the requirements in the last six months of the Plan Year, you will become a participant on the first day of the Plan Year following the date you satisfy the eligibility requirements.
IV CONTRIBUTIONS TO YOUR PLAN
1. Employer Contributions to the Plan
As a participant, you may be eligible to share in and benefit from the contributions made by your Employer. Each year, your Employer's contribution, if any, will be placed into a trust fund for the benefit of Plan participants. The Administrator of your Plan will then establish and maintain a separate account for you and all other participants, into which the contributions will be placed.
Each year, your Employer will determine the amount to contribute to your Plan. This contribution is discretionary.
You must complete a Year of Service and be actively employed on the last day of the Plan Year to share in this contribution. However, for Plan Years which begin after December 31, 1989, you will be eligible to share in the contribution if you are actively employed on the last day of the Plan Year or complete more than 500 Hours of Service during the Plan Year prior to termination of employment.
In determining your eligibility to share in contributions for the year, there are special rules which apply if your employment terminates due to your Retirement (Normal or Late), Total and Permanent Disability or death.
In such cases, you will be eligible to share in the contributions made by your Employer in accordance with the following:
If the reason your employment terminated is due to your Retirement (Normal or Late), then you will be eligible to share in the contribution for the year without regard to whether you satisfied the requirements explained above.
If the reason your employment terminated is due to your Total and Permanent Disability or death, then you will not be eligible to share in the contribution for the year even if you satisfied the requirements explained above.
2. Your Share of Employer Contributions
Your Employer's contribution will be "allocated" or divided among participants eligible to share in the contribution for the Plan Year. Your share of the contribution will depend upon how much compensation you received during the year and the compensation received by other eligible participants.
Your share of your Employer's discretionary contribution is determined by the following fraction:
Your Compensation x Employer's Discretionary Contribution divided by Total Compensation of All Participants Eligible to Share
For example:
Suppose the Employer's discretionary contribution for the Plan Year is $20,000. Employee A's compensation for the Plan Year is $25,000. The total compensation of all participants eligible to share, including Employee A, is $250,000. Employee A's share will be:
$20,000 x $25,000
$250,000
= $2,000
If, however, your Plan has a loan outstanding, the proceeds of which were used to acquire Company Stock, instead of allocating your Employer's contributions directly to your account as provided above, such amounts may be applied to repay the current installment due on the loan.
All Company Stock acquired by the Plan with the proceeds of a loan are maintained in a suspense account and are withdrawn and allocated to participants' accounts as the loan is paid.
Company Stock withdrawn from the suspense account will be allocated among participants eligible to share in the Employer contribution for the year. Your share of the Company Stock withdrawn is determined by the following fraction:
Number of Shares of X
Company Stock Withdrawn
Your Compensation
Total Compensation of All
Participants Eligible to
Share
In addition, cash dividends on Company Stock in your account may be used to repay a loan to the Plan. Company Stock having a fair market value equal to the amount of cash dividends which would have been allocated to your account will be allocated to your account.
In addition to the Employer's contributions made to your account, your account will be credited annually with a share of the investment earnings or losses of the fund.
You should also be aware that the law imposes certain limits on how much money may be allocated to your account for a year. These limits are extremely complex but generally no more than the lesser of $30,000 or 25% of your compensation may be allocated to you (excluding earnings or losses) in any year. The Administrator will inform you if these limits have affected You.
3. Compensation
For the purposes of your Plan, compensation has a special meaning. Compensation is defined as your total compensation during a Plan Year that is subject to income tax and is reflected on your W2 Form.
including your salary reduction contributions to any plan or arrangement maintained by your Employer. Your compensation shall include amounts payable under all stock bonus plans of your Employer.
For the first year of your participation in the Plan, your compensation will be recognized for benefit purposes for the entire Plan Year.
For Plan Years beginning in 1994, the Plan, by law, cannot recognize compensation in excess of $150,000. This amount will be adjusted in future years for cost of living increases. It will also be applied to certain highly compensated employees and their family members as if they were a single participant. If you or a member of your family may be affected by this rule, ask your Administrator for further details. For any short Plan Year, the adjusted $150,000 limit will be prorated based upon the number of full months in the short Plan Year.
4. Forfeitures
Forfeitures are created when participants terminate employment before becoming entitled to their full benefits under the Plan. Your account may grow from the forfeitures of other participants. Forfeitures will be "allocated" or divided among participants eligible to share for a Plan Year.
5. Directed Investments
When you have completed ten (10) Plan Years of Service as a participant and have attained age fiftyfive (55), you will have the right to direct the investment of a portion of your account attributable to Company Stock. The Administrator will advise you of any such rights.
V. BENEFITS UNDER YOUR PLAN
1. Distribution of Benefits Upon Normal Retirement
Your Normal Retirement Date is the first day of the month nearest your Normal Retirement Age.
You will attain your Normal Retirement Age when you reach your 65th birthday. However, if you first commenced participation in the Plan prior to the first day of the Plan Year beginning in 1988, your Normal Retirement Age will not be earlier than the earlier of your 10th anniversary of joining the Plan, or your 5th anniversary of the Burst day of the Plan Year beginning after 1987.
At your Normal Retirement Age, you will be entitled to 100% of your account balance. Payment of your benefits will, at your election, occur as soon as practicable following your actual retirement but not prior to your Normal Retirement Date.
2. Distribution of Benefits Upon Late Retirement
You may remain employed past your Plan's Normal Retirement Date and retire instead on your Late Retirement Date. Your Late Retirement Date is the first day of the month coinciding with or next following the date you choose to retire, after first having reached your Normal Retirement Date. On your Late Retirement Date, you will be entitled to 100% of your Account. Actual benefit payment will occur as soon as practicable following your Late Retirement Date.
3. Distribution of Benefits Upon Death
Your beneficiary will be entitled to a single lumpsum distribution of 100% of your account balance upon your death.
If you are married at the time of your death, your spouse will be the beneficiary of the death benefit, unless you otherwise elect in writing on a form to be furnished to you by the Administrator. If you wish to designate a beneficiary other than your spouse, however, your spouse must irrevocably consent to waive any right to the death benefit. Your spouse's consent must be in writing, be witnessed by a notary or a plan representative and acknowledge the specific non spouse
If, however, outlined above,
(a) your spouse has validly waived any right to the death benefit in the manner
(b) your spouse cannot be located; or
(c) you are not married at the time of your death,
then your death benefit will be paid to the beneficiary of your own choosing in a single lump sum. You may designate the beneficiary on a form to be supplied to you by the Administrator. If you change your designation, your spouse must again consent to the change.
Regardless of the method of distribution selected, your entire death benefit must be paid to your beneficiaries within five years after your death. However, if your spouse is your designated beneficiary, then payment of your death benefit may be delayed until the year in which you would have attained age 70 1/2. Minimum distributions must then be made over a period which does not exceed your spouse's life expectancy.
Since your spouse has certain rights in the death benefit, you should immediately report any change in your marital status to the Administrator.
4. Distribution of Benefits Upon Disability
Under your Plan, disability is defined as a physical or mental condition resulting from bodily injury, disease, or mental disorder which renders you incapable of continuing your usual and customary employment with your Employer. Your disability will be determined by a licensed physician chosen by the Administrator.
If you become disabled while a participant, you will be entitled to 100% of your account balance. Payment of your disability benefits will be made to you as if you had retired. (See the Section in this Article entitled "Benefit Payment Method.")
5. Distribution of Benefits Upon Termination of Employment
Your Plan is designed to encourage you to stay with your Employer until retirement. Payment of your account balance under your Plan is only available Upon your death, disability or retirement.
If your employment terminates for reasons other than those listed above, you will be entitled to receive only your "vested percentage" of your account balance and the remainder of your account will be forfeited. Only contributions made by your Employer are subject to forfeiture. (See the Section in this Article entitled "Vesting in Your Plan.")
If you so elect, the Administrator will direct the Trustee to distribute your vested benefit to you before the date it would normally be distributed (upon your death, disability or retirement) as soon as administratively feasible, but not until after you incur a 1Year Break in Service. Any such distribution of your vested benefit which includes Company Stock acquired with the proceeds of a loan which has not been repaid in full will be postponed. If your vested benefit under the Plan at the time of any prior distribution exceeded $3,500 or currently exceeds $3,500, you must give written consent before the distribution may be made. Amounts of $3,500 or less will be distributed without the need for consent.
6. Vesting in Your Plan
Your "vested percentage" in your account is determined under the following schedule and is based on vesting Years of Service. You will always, however, be 100% vested upon your Normal Retirement Age. (See the Section in this Article entitled "Distribution of Benefits Upon Normal Retirement.")
Years of Service// Percentage Vested
Less than 3 ………….… 0%
3 ………………….……20%
4 …………………….…40%
5 ………………….……60%
6 ………………….……80%
7 ……………………...100%
Your vested percentage will not be less than your vested percentage under the Plan before this amendment and restatement.
If you have completed 3 Years of Service with your Employer you may elect to have your "vested percentage" determined under the preamendment vesting schedule. This election should be made on a form provided by the Employer. The preamendment vesting schedule is as follows:
<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<Fix the Chart>>>>>>
Years of Service
4 ………………………………. 40%
5 ………………………………. 50%
6 ………………………………. 60%
7 ……………………………… 70%
8 …………………………… …80%
9 ………………………………90%
10 ………………………….…100%
PreAmendment Vesting Schedule
Percentage
10 % 20 % 30 % 40 % 50 % 60 % 70 % 80 %
90 %
100 %
<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<End of Repair
Your vested benefit will normally be distributed to you or your beneficiary upon your death, disability or retirement. If you terminate employment before any of these events, however, your unpaid vested benefit may be segregated in a special account.
7. Benefit Payment Method
At the time you are entitled to receive a distribution under the Plan, the Administrator will direct the Trustee to pay your benefits to you in one lumpsum payment.
Plan;
Distribution of your account at retirement will be in the form of cash or Company Stock or both. However, you or your beneficiary may demand distribution of your entire account in the form of Company Stock. Cash may be paid (1) in lieu of partial shares of Company Stock, or (2) in certain circumstances where it may not be possible for the Plan to purchase Company Stock for distribution.
Generally, whenever a distribution is to be made to you on or as of an anniversary date, it may be made on such date or as soon thereafter as is practicable. However, unless you elect in writing to defer the receipt of benefit s. Distribution must occur no later than the 60th day after the close of the plan year in which the latest of the following events occurs:
(a) the date on which you reach the age of 65 or your Normal Retirement Age;
(b) the 10th anniversary of the year in which you became a participant in the
(c) the date you terminated employment with your Employer.
Regardless of whether you elect to delay the receipt of benefits, there are other rules which generally require payment of your benefits to be made no later than the April 1st following the year in which you reach age 70. You should see the Administrator if you feel you may be affected by this rule.
8. Treatment of Distributions From Your Plan
Whenever you receive a distribution from your Plan, it will normally be subject to income taxes. You may, however, reduce, or defer entirely, the tax due on your distribution through use of one of the following methods:
(a) The rollover of all or a portion of the distribution to an Individual Retirement Account (IRA) or another qualified employer plan. This will result in no tax being due until you begin withdrawing funds from the IRA or other qualified employer plan. The rollover of the distribution, however, MUST be made within strict time frames (normally, within 60 days after you receive your distribution). Under certain circumstances all or a portion of a distribution may not qualify for this rollover treatment. In addition, most distributions will be subject to mandatory federal income tax withholding at a rate of 2()%. This will reduce the amount you actually receive. For this reason, if you wish to rollover all or a portion of your distribution amount, the direct transfer option described in paragraph (b) below would be the better choice.
(b) You may request for most distributions that a direct transfer of all or a portion of your distribution amount be made to either an Individual Retirement Account (IRA) or another qualified employer plan willing to accept the transfer. A direct transfer will result in no tax being due until you withdraw funds from the IRA or other qualified employer plan. Like the rollover, under certain circumstances all or a portion of the amount to be distributed may not qualify for this direct transfer. If you elect to actually receive the distribution rather than request a direct transfer, then in most cases 20% of the distribution amount will be withheld for federal income tax purposes.
(c) The election of favorable income tax treatment under "10year forward averaging," "5year forward averaging" or, if you qualify, "capital gains" method of taxation.
Whenever you receive a distribution, the administrator will deliver to you a more detailed explanation of these options. However, the rules which determine whether you qualify for favorable tax treatment are very complex. You should consult with qualified tax counsel before making a choice.
9. Domestic Relations Order
As a general rule, your interest in your account, including your "vested interest," may not be alienated. This means that your interest may not be sold, used as collateral for a loan, given away or otherwise transferred. In addition, your creditors may not attach, garnish or otherwise interfere with your account.
There is an exception, however, to this general rule. The Administrator may be required by law to recognize obligations you incur as a result of court ordered child support or alimony payments. The Administrator must honor a "qualified domestic relations order." A "qualified domestic relations order" is defined as a decree or order issued by a court that obligates you to pay child support or alimony, or otherwise allocates a portion of your assets in the Plan to your spouse, former spouse, child or other dependent. If a qualified domestic relations order is received by the Administrator, all or a portion of your benefits may be used to satisfy the obligatiots Sans MS Schoolbook BalchJoanne Balch Balch Word for Windows 95 Pat Christmas Ornaments (cash or check made payable to “Pat Barley”)in the attached envelope. Please have your child give it to me directly as we will want to keep this hush hush from Mr. Keefe. I will need all contributions no later than Monday, December 16, 1996 in order to allow time for me to go shopping. I will be sending more information home to you in regard to our Christmas Party planned for December 20th as it becomes available. Thank you for your time. I look forward to meeting all of you that are new to Mr. Keefe purchase the stock at a price equal to its value, and to pay you for the stock in cash or in installments over a period of time (not in excess of five (5) years and in certain cases not in excess of ten (10) years). The first 60 day put option period will begin on the day following the date your Company Stock is distributed, and if not exercised, the second
60 day option period will begin as of the first day of the fifth month of the Plan Year next following the date your Company Stock was distributed.
VII. YEAR OF SERVICE RULES
1. Year of Service and Hour of Service
The term "Year of Service" is used throughout this Summary Plan Description and throughout your Plan. A Year of Service for eligibility purposes is defined as follows:
You will have completed a Year of Service if, at the end of your first twelve consecutive months of employment with your Employer, you have been credited with 1000 Hours of Service.
If you have not been credited with 1000 Hours of Service by the end of your first twelve consecutive months of employment, you will have completed a Year of Service at the end of any following Plan Year during which you were credited with 1000 Hours of Service.
You will have completed a Year of Service for vesting purposes if you are credited with 1000 Hours of Service during a Plan Year, even if you were not employed on the first or last day of the Plan Year.
You will have completed a Year of Service for purposes of sharing in Employer contributions if you are credited with 1000 Hours of Service during a Plan Year.
For purposes of determining whether you have completed a Year of Service where the computation period is based upon a short Plan Year, your Administrator will notify you of the number of the Hours of Service that are required and the method of calculating a Year of Service.
An "Hour of Service" has a special meaning for Plan purposes. You will be credited with an Hour of Service for:
(a) each hour for which you are directly or indirectly compensated by your Employer for the performance of duties during the Plan Year;
(b) each hour for which you are directly or indirectly compensated by your Employer for reasons other than performance of duties (such as vacation, holidays, sickness, disability, layoff, military duty, jury duty or leave of absence during the Plan Year); and
(c) each hour for back pay awarded or agreed to by your Employer.
You will not be credited for the same Hours of Service both under (a) or (b), as the case may be, and under (c).
2. 1Year Break in Service
A 1Year Break in Service is a computation period during which you have not completed more than 500 Hours of Service with your Employer.
A 1Year Break in Service does NOT occur, however, in the computation period in which you enter or leave the Plan for reasons of:
(a) an authorized leave of absence;
(b) certain maternity or paternity absences.
The Administrator will be required to credit you with Hours of Service for a maternity or paternity absence. These are absences taken on account of pregnancy, birth, or adoption of your child. No more than 501 Hours of Service shall be credited for this purpose and these Hours of Service shall be credited solely to avoid your incurring a 1Year Break in Service. The Administrator may require you to furnish proof that your absence qualifies as a maternity or paternity absence.
VIII. YOUR PLAN'S "TOP HEAVY RULES"
1. Explanation of "Top Heavy Rules"
A Plan that primarily benefits "key employees" is called a "top heavy plan." Key employees are certain owners or officers of your Employer. A Plan is a "top heavy plan" when more than 60% of the contributions or benefits have been allocated to key employees.
Each year, the Administrator is responsible for determining whether your Plan is a "top heavy" plan. If your Plan becomes top heavy in any Plan Year, then nonkey employees will be entitled to certain "top heavy minimum benefits," and other special rules will apply. Among these top heavy rules are the following:
(a) Your Employer may be required to make a contribution equal to 3% of your compensation to your account;
(b) Instead of the vesting schedule outlined in the Article and Section in this Summary entitled "BENEFITS UNDER YOUR PLAN: Vesting in Your Plan," your nonforfeitable right to benefits or contributions derived from Employer contributions will be determined according to the following schedule:
Years of Service// Percentage Vested
Less than 2 ………….… 0%
2 ………………….……20%
3 …………………….…40%
4 ………………….……60%
5 ………………….……80%
6 ……………………...100%
(c) If you are a participant in more than one Plan, you may not be entitled to minimum benefits under both Plans.
CLAIMS BY PARTICIPANTS AND BENEFICIARIES
Benefits will be paid to participants and their beneficiaries without the necessity of formal claims. You or your beneficiaries, however, may make a request for any Plan benefits to which you may be entitled. Any such request must be made in writing, and it should be made to the Administrator. (See the Article in this Summary entitled "GENERAL INFORMATION ABOUT YOUR PLAN.")
Your request for Plan benefits shall be considered a claim for Plan benefits, and it will be subject to a full and fair review. If your claim is wholly or partially denied, the Administrator will furnish you with a written notice of this denial. This written notice must be provided to you within a reasonable period of time (generally 90 days) after the receipt of your claim by the Administrator. The written notice must contain the following information:
(a) the specific reason or reasons for the denial;
(b) specific reference to those Plan provisions on which the denial is based;
(c) a description of any additional information or material necessary to correct your claim and an explanation of why such material or information is necessary; and
(d) appropriate information as to the steps to be taken if you or your beneficiary wishes to submit your claim for review.
If notice of the denial of a claim is not furnished to you in accordance with the above within a reasonable period of time, your claim will be deemed denied. You will then be permitted to proceed to the review stage described in the following paragraphs.
If your claim has been denied, and you wish to submit your claim for review, you must follow the Claims Review Procedure.
1. The Claims Review Procedure
(a) Upon the denial of your claim for benefits, you may file your claim for review, in writing, with the Administrator.
(b) you must file the claim for review no later than 60 days after you have received written notification of the denial of your claim for benefits, or if no written denial of your claim was provided, no later than 60 days after the deemed denial of your claim.
(c) You may review all pertinent documents relating to the denial of your claim and submit any issues and comments, in writing, to the Administrator.
(d) Your claim for review must be given a full and fair review. If your claim is denied, the Administrator must provide you with written notice of this denial within 60 days after the Administrator's receipt of your written claim for review. There may be times when this 60 day period may be extended. This extension may only be made, however, where there are special circumstances which are communicated to you in writing within the 60 day period. If there is an extension, a decision shall be made as soon as possible, but not later than 120 days after receipt by the Administrator of your claim for review.
(e) The Administrator's decision on your claim for review will be communicated to you in writing and will include specific references to the pertinent Plan provisions o
which the decision was based.
(f) If the Administrator's decision on review is not furnished to you within the time limitations described above, your claim will be deemed denied on review.
(g) If benefits are provided or administered by an insurance company, insurance service, or other similar organization which is subject to regulation under the insurance laws, the claims procedure relating to these benefits may provide for review. If so, that company, service, or organization will be the entity to which claims are addressed. If you have any questions regarding the proper person or entity to address claims, you should ask the Administrator.
STATEMENT OF ERISA RIGHTS
1. Explanation of Your ERISA Rights
As a participant in this Plan you are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974, also called ERISA. ERISA provides that all Plan participants are entitled to:
(a) examine, without charge, all Plan documents, including:
( 1 ) insurance contracts;
(2) collective bargaining agreements; and
(3) copies of all documents filed by the Plan with the U.S. Department of Labor, such as detailed annual reports and Plan descriptions.
This examination may take place at the Administrator's office and at other specified employment locations of the Employer. (See the Article in this Summary entitled "GENERAL INFORMATION ABOUT YOUR PLAN");
(b) obtain copies of all Plan documents and other Plan information upon written request to the Plan Administrator. The Administrator may make a reasonable charge for the copies;
(c) receive a summary of the Plan's annual financial report. The Administrator is required by law to furnish each participant with a copy of this summary annual report;
- obtain a statement telling you whether you have a right to receive a retirement benefit at Normal Retirement Age and, if so, what your benefits would be at Normal Retirement Age if you stop working under the Plan now. If you do not have a right to a retirement benefit, the statement will tell you how many years you have to work to get a right to a retirement benefit. This statement must be requested in writing and is not required to be given more than once a year. The Plan must provide the statement free of charge.
In addition to creating rights for Plan participants, ERISA imposes duties upon the people who are responsible for the operation of the Plan. The people who operate your Plan, called "fiduciaries" of the Plan, have a duty to do so prudently and in the interest of you and other Plan participants and beneficiaries. No one, including your employer or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a pension benefit or exercising your rights under ERISA.
If your claim for a retirement benefit is denied in whole or in part, you must receive a written explanation of the reason for the denial. You have the right to have the Administrator review and reconsider your claim. (See the Article in this Summary entitled "CLAIMS BY PARTICIPANTS BENEFICIARIES.")
Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request materials from the Plan and do not receive them within 30 days, you may file suit in a federal court. In such a case, the court may require the Administrator to provide the materials and pay you up to $100.00 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the Administrator
If you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit in a state or federal court.
If the Plan's fiduciaries misuse the Plan's money, or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a federal court. The court will decide who should pay court costs and legal fees. If you are successful, the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees if, for example, it finds your claim is frivolous.
If you have any questions about this statement, or about your rights under ERISA, you should contact the nearest Area Office of the U.S. LaborManagement Services Administration, Department of Labor.
XI AMENDMENT AND TERMINATION OF YOUR PLAN
Amendment
Your Employer has the right to amend your Plan at any time. Any such amendment shall be adopted by formal action of the Employer's board of directors and executed by an officer authorized to act on behalf of the Employer. In no event, however, will any amendment:
(a) authorize or permit any part of the Plan assets to be used for purposes other than the exclusive benefit of participants or their beneficiaries; or
(b) cause any reduction in the amount credited to your account.
2. Termination
Your Employer has the right to terminate the Plan at any time. Upon termination, all amounts credited to your accounts will become 100% vested. A complete discontinuance of contributions by your Employer will constitute a termination.