Profit Sharing Retirement Plan (260K)
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CPM DEVELOPMENT CORPORATION
PROFIT SHARING RETIREMENT PLAN
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TABLE OF CONTENTS
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1. DEFINITIONS.................................................................1
1.1 ACP or ACP TEST..............................................1
1.2 ACTUAL DEFERRAL PERCENTAGE TEST..............................1
1.3 ADP or ADP TEST..............................................2
1.4 ADMINISTRATOR................................................3
1.5 ADOPTING EMPLOYER............................................3
1.6 AFFILIATED EMPLOYER..........................................3
1.7 AGE..........................................................3
1.8 ANNIVERSARY DATE.............................................3
1.9 ANNUITY STARTING DATE........................................3
1.10 AVERAGE CONTRIBUTION PERCENTAGE TEST.........................3
1.11 BENEFICIARY..................................................5
1.12 BREAK IN SERVICE.............................................5
1.13 CODE.........................................................5
1.14 COMPENSATION.................................................5
1.15 DAVIS-BACON CONTRIBUTION.....................................6
1.16 DISABILITY...................................................6
1.17 EARLY RETIREMENT AGE.........................................6
1.18 EARNED INCOME................................................6
1.19 ELECTIVE DEFERRAL............................................6
1.20 ELIGIBLE PARTICIPANT.........................................6
1.21 EMPLOYEE.....................................................7
1.22 EMPLOYER.....................................................7
1.23 FIDUCIARY....................................................7
1.24 FISCAL YEAR..................................................7
1.25 FORFEITURE...................................................7
1.26 HCE..........................................................7
1.27 HIGHLY COMPENSATED EMPLOYEE..................................8
1.28 HOUR OF SERVICE..............................................8
1.29 KEY EMPLOYEE.................................................8
1.30 LEASED EMPLOYEE..............................................9
1.31 LIMITATION YEAR..............................................9
1.32 MATCHING CONTRIBUTION........................................9
1.33 MATERNITY OR PATERNITY LEAVE.................................9
1.34 NHCE.........................................................9
1.35 NON-ELECTIVE CONTRIBUTIONS...................................9
1.36 NON-HIGHLY COMPENSATED EMPLOYEE..............................9
1.37 NON-KEY EMPLOYEE.............................................9
1.38 NORMAL RETIREMENT AGE........................................9
1.39 NORMAL RETIREMENT DATE......................................10
1.40 OWNER-EMPLOYEE..............................................10
1.41 PARTICIPANT.................................................10
1.42 PARTICIPANT'S ACCOUNT.......................................10
1.43 PERMISSIVE AGGREGATION GROUP................................10
1.44 PLAN........................................................10
1.45 PLAN YEAR...................................................10
1.46 POLICY......................................................10
1.47 QMAC........................................................10
1.48 QNEC........................................................10
1.49 QUALIFIED MATCHING CONTRIBUTION.............................10
1.50 QUALIFIED NON-ELECTIVE CONTRIBUTIONS........................11
1.51 REQUIRED AGGREGATION GROUP..................................11
1.52 REQUIRED BEGINNING DATE.....................................11
1.53 SECTION 415 COMPENSATION....................................11
1.54 SELF-EMPLOYED INDIVIDUAL....................................12
1.55 SHAREHOLDER-EMPLOYEE........................................12
1.56 SUPER TOP HEAVY.............................................12
1.57 TERMINATION OF EMPLOYMENT...................................12
1.58 TERMINATED PARTICIPANT......................................12
1.59 TOP HEAVY...................................................12
1.60 TOP HEAVY MINIMUM ALLOCATION................................12
1.61 TOP HEAVY RATIO.............................................13
1.62 TRUSTEE.....................................................14
1.63 TRUST FUND..................................................14
1.64 VALUATION DATE..............................................14
1.65 VESTED AGGREGATE ACCOUNT....................................14
1.66 VESTED INTEREST.............................................14
1.67 YEAR OF SERVICE.............................................14
2. PLAN PARTICIPATION.........................................................15
2.1 ELIGIBILITY REQUIREMENTS....................................15
2.2 ENTRY DATE..................................................16
2.3 WAIVER OF PARTICIPATION.....................................16
2.4 CESSATION OF PARTICIPATION..................................17
2.5 RESTRICTIONS ON OWNER-EMPLOYEES.............................17
3. CONTRIBUTIONS AND ALLOCATIONS..............................................17
3.1 EMPLOYER CONTRIBUTIONS......................................17
3.2 ALLOCATION OF EMPLOYER CONTRIBUTIONS........................19
3.3 ALLOCATION OF EARNINGS AND LOSSES...........................20
3.4 ALLOCATION OF FORFEITURES...................................20
3.5 TOP HEAVY MINIMUM ALLOCATION................................21
3.6 FAILSAFE ALLOCATION.........................................21
3.7 ROLLOVERS...................................................21
4. PLAN BENEFITS..............................................................22
4.1 BENEFIT UPON NORMAL RETIREMENT..............................22
4.2 BENEFIT UPON LATE RETIREMENT................................22
4.3 BENEFIT UPON DEATH..........................................23
4.4 BENEFIT UPON DISABILITY.....................................23
4.5 BENEFIT UPON TERMINATION....................................23
4.6 DETERMINATION OF VESTED INTEREST............................23
5. DISTRIBUTION OF BENEFITS...................................................24
5.1 BENEFIT UPON RETIREMENT.....................................24
5.2 BENEFIT UPON DEATH..........................................24
5.3 DISABILITY BENEFITS.........................................25
5.4 BENEFIT UPON TERMINATION....................................25
5.5 CASH-OUT OF BENEFITS........................................25
5.6 RESTRICTIONS ON IMMEDIATE DISTRIBUTIONS.....................25
5.7 RESTORATION OF FORFEITED ACCOUNT BALANCE....................26
5.8 SPOUSAL CONSENT REQUIREMENTS................................26
5.9 APPLICATION OF CODE SECTION 401(a)(9).......................27
5.10 STATUTORY COMMENCEMENT OF BENEFITS..........................27
5.11 DETERMINATION OF LIFE EXPECTANCIES..........................27
5.12 SEGREGATION OF BENEFIT BEFORE DISTRIBUTION..................27
5.13 DISTRIBUTION IN EVENT OF INCAPACITY.........................27
5.14 DIRECT ROLLOVERS............................................28
5.15 DISTRIBUTION OF EXCESS ELECTIVE DEFERRALS...................28
5.16 DISTRIBUTION OF EXCESS CONTRIBUTIONS........................29
5.17 DISTRIBUTION OF EXCESS AGGREGATE CONTRIBUTIONS..............30
5.18 FINANCIAL HARDSHIP DISTRIBUTIONS............................32
5.19 PRE-RETIREMENT DISTRIBUTIONS................................33
6. CODE SECTION 415 LIMITATIONS...............................................34
6.1 MAXIMUM ANNUAL ADDITION.....................................34
6.2 ADJUSTMENTS TO MAXIMUM ANNUAL ADDITION......................35
6.3 MULTIPLE PLANS AND MULTIPLE EMPLOYERS.......................35
6.4 MULTIPLE PLAN REDUCTION.....................................35
6.5 ADJUSTMENT FOR EXCESSIVE ANNUAL ADDITIONS...................37
7. DUTIES OF THE TRUSTEE......................................................38
7.1 APPOINTMENT, RESIGNATION, REMOVAL AND SUCCESSION............38
7.2 INVESTMENT ALTERNATIVES OF THE TRUSTEE......................38
7.3 VALUATION OF THE TRUST FUND.................................40
7.4 COMPENSATION AND EXPENSES...................................40
7.5 PAYMENTS FROM THE TRUST FUND................................41
7.6 PAYMENT OF TAXES............................................41
7.7 ACCOUNTS, RECORDS AND REPORTS...............................41
7.8 EMPLOYMENT OF AGENTS AND COUNSEL............................41
7.9 DIVISION OF DUTIES AND INDEMNIFICATION......................41
7.10 APPOINTMENT OF INVESTMENT MANAGER...........................43
7.11 ASSIGNMENT AND ALIENATION OF BENEFITS.......................43
7.12 EXCLUSIVE BENEFIT RULE......................................43
7.13 PURCHASE OF INSURANCE.......................................43
7.14 LOANS TO PARTICIPANTS.......................................43
7.15 DIRECTED INVESTMENT ACCOUNTS................................45
8. DUTIES OF THE ADMINISTRATOR................................................46
8.1 APPOINTMENT, RESIGNATION, REMOVAL AND SUCCESSION............46
8.2 POWERS AND DUTIES OF THE ADMINISTRATOR......................47
8.3 EMPLOYMENT OF AGENTS AND COUNSEL............................47
8.4 COMPENSATION AND EXPENSES...................................47
8.5 CLAIMS PROCEDURES...........................................47
8.6 QUALIFIED DOMESTIC RELATIONS ORDERS.........................48
9. AMENDMENT, TERMINATION, AND MERGER.........................................49
9.1 AMENDMENT...................................................49
9.2 TERMINATION.................................................50
9.3 MERGER OR CONSOLIDATION.....................................50
10. MISCELLANEOUS PROVISIONS..................................................50
10.1 NO CONTRACT OF EMPLOYMENT...................................50
10.2 TITLE TO ASSETS.............................................50
10.3 QUALIFIED MILITARY SERVICE..................................50
10.4 BONDING OF FIDUCIARIES......................................50
10.5 SEVERABILITY OF PROVISIONS..................................50
10.6 GENDER AND NUMBER...........................................51
10.7 HEADINGS AND SUBHEADINGS....................................51
10.8 LEGAL ACTION................................................51
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CPM DEVELOPMENT CORPORATION
PROFIT SHARING RETIREMENT PLAN
THIS AGREEMENT is made and entered into this ____day of ______________,
2000, between CPM DEVELOPMENT CORPORATION (hereafter called the Employer) and
WELLS FARGO BANK (hereafter called the Trustee).
W I T N E S S E T H:
WHEREAS, the Employer originally established a 401(k) profit sharing plan
and trust (hereafter called the Plan), effective April 2, 1960, to provide
retirement and other incidental benefits to Employees who are eligible to
participate in the Plan; and
WHEREAS, the Employer believes that continued contributions to the Plan
will help to strengthen the bonds of loyalty and mutual understanding that have
existed between the Employer and its employees, thereby making possible the
continued growth of its business; and
WHEREAS, in accordance with the terms of the Plan, the Employer has the
ability at any time, and from time to time, to amend the Plan;
NOW, THEREFORE, effective January 1, 2000 (except for those sections of the
Plan that have an alternative effective date), the Employer and the Trustee
hereby amend and restate the Plan as follows to comply with all applicable
statutes, including the Employee Retirement Income Security Act of 1974 (ERISA)
and the Internal Revenue Code of 1986, as amended by the Uruguay Round
Agreements Act, the Small Business Job Protection Act of 1996, the Taxpayer
Relief Act of 1997, the Uniform Services Employment and Reemployment Rights Act,
and all applicable rulings and regulations issued thereunder:
ARTICLE 1.
DEFINITIONS
1.1 ACP or ACP TEST. The term ACP means the Average Contribution Percentage
as defined in Section 1.10(e). The term ACP Test means the Average Contribution
Percentage Test.
1.2 ACTUAL DEFERRAL PERCENTAGE TEST. The term Actual Deferral Percentage
Test means one of the following tests for Elective Deferrals: (a) the ADP for
Participants who are HCEs in the current Plan Year will not exceed the current
Plan Year's ADP for Participants who are NHCEs in the current Plan Year
multiplied by 1.25; or (b) the ADP for Participants who are HCEs for the current
Plan Year will not exceed the current Plan Year's ADP for Participants who are
NHCEs in the current Plan Year multiplied by 2.0, provided that the ADP for
Participants who are HCEs in the current Plan Year does not exceed the ADP for
Participants who are NHCEs in the current Plan Year by more than two (2)
percentage points. The ADP Test will be determined as follows:
(a) Definition Of Actual Deferral Percentage: The term Actual Deferral
Percentage (ADP) means, for a specified group of Participants for a Plan Year,
the average of the ratios calculated separately for each Participant in such
group of (1) the amount of Employer Contributions actually paid on behalf of
such Participant for the Plan Year to (2) the Participant's Compensation for
such Plan Year. Employer Contributions made on behalf of any Participant will
include a Participant's Elective Deferrals, including Excess Elective Deferrals
of HCEs, but excluding Excess Elective Deferrals of NHCEs that arise solely from
Elective Deferrals made to this Plan or any other plans maintained by this
Employer and Elective Deferrals used in the ACP Test if the ADP Test is
satisfied both with and without exclusion of these Elective Deferrals. In
computing ADPs, an Employee who would be a Participant but for the failure to
make Elective Deferrals will be treated as a Participant on whose behalf no
Elective Deferrals are made.
(b) Highly Compensated Employees: A Participant is a HCE for a particular
Plan Year if he or she meets the definition of a HCE in effect for that Plan
Year. A Participant is a NHCE for a particular Plan Year if he or she does not
meet the definition of a HCE in effect for that Plan Year. The ADP for any
Participant who is a HCE for the Plan Year and who is eligible to have Elective
Deferrals allocated to his or her accounts under two or more arrangements
described in Code ss. 401(k) that are maintained by this Employer will be
determined as if such Elective Deferrals were made under a single arrangement.
If a HCE participates in two or more cash or deferred arrangements that have
different Plan Years, all cash or deferred arrangements ending with or within
the same calendar year will be treated as a single arrangement. However, certain
plans will be treated as separate if mandatorily disaggregated under regulations
under Code ss. 401(k).
(c) Other Rules: In determining the ADP Test, (1) if this Plan satisfies
the requirements of Code ss.ss. 401(k), 401(a)(4), or 410(b) only if aggregated
with one or more other plans, or if one or more other plans satisfy such
requirements only if aggregated with this Plan, then this Section will be
applied by determining the ADP of Employees as if all such plans were a single
plan. Plans may be aggregated in order to satisfy Code ss. 401(k) only if they
have the same Plan Year and use the same ADP testing method; (2) Elective
Deferrals, QNECs and QMACs must be made before the last day of the twelve (12)
month period immediately following the Plan Year to which contributions relate;
(3) the Employer will maintain records sufficient to demonstrate satisfaction of
the ADP Test and the amount of QNECs and/or QMACs used in such test; and (4) the
determination and treatment of the ADP amounts of any Participant will satisfy
such other requirements as may be prescribed by the Secretary of the Treasury.
(d) Change To Prior Year Testing: The Employer can only elect to change to
prior year testing in accordance with Notice 98-1 (or superseding guidance). If
the Employer does elect to change to prior year testing, the ADP for NHCEs for
the prior year will be determined by taking into account only (1) Elective
Deferrals for those NHCEs that were taken into account for purposes of the ADP
Test (and not the ACP Test) under the current year testing method for the prior
year, and (2) QNECs that were allocated to the accounts of those NHCEs for the
prior year but that were not used to satisfy the ADP Test or the ACP Test under
the current year testing method for the prior year. Thus, if the Employer elects
to change to prior year testing, the following contributions made for the prior
year will be disregarded: QNECs used to satisfy either the ADP Test or ACP Test
under the current year testing method for the prior testing year, Elective
Deferrals taken into account for purposes of the ACP Test, and all QMACs. These
limitations on double counting do not apply for testing years beginning before
January 1, 1999, and if the Plan changes to prior year testing for the first
time for the 1998 Plan Year, the ADP for NHCEs will be the same as for the 1997
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