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401_k_

VIEWS: 8 PAGES: 28

									                     Welcome to the John Q.
                     Hammons 401(k) Savings Plan


    John Q. Hammons Hotels is committed to supporting the
    needs of our associates and offers you a savings plan to
    assist you in building for your future and helping
    you to retire.




Revised 08/01/01
                   What is the John Q.
                   Hammons Hotels 401(k)
                   Plan?
The John Q. Hammons Hotels 401(k) Plan is a savings plan designed
to help you save and help your money grow.

The primary purpose of the plan is to provide you with a supplemental
retirement income.

The plan allows you, on a voluntary basis, to put a portion of your
earnings into an account where you will not have to pay federal or state
income taxes until the money is withdrawn at retirement.

The Company, John Q. Hammons Hotels, will also contribute to the
plan for you in the form of a matching contribution.
             How does the 401(k) Plan
             help me?

The John Q. Hammons 401(k) Plan is designed to allow you to
contribute from 1% to 15% of your pay to a savings account
on a pre-tax basis. As a result, the money you would have paid
in taxes can now be working to make your savings grow.

To help your money grow even faster, the Company will add
50 cents for every dollar up to 6 percent of your pay that you
place in your 401(k) account. The Company match will go
into your account right along with your money each pay
period. This helps you start earning even sooner and this
helps your savings grow even faster!
                     Do pre-tax savings really make a
                     difference?
Yes, they do! Following are examples of what your take-home pay would
look like if you saved just 2% or 6% on a pre-tax basis with your 401(k).

                                  Not           With 2% 401(k)   With 6% 401(k)
$15,000 Annual Salary           Participating    Participation    Participation

Gross Pay Per Pay Period            576.92           576.92         576.92
401(k) Payroll Deduction              0.00            11.54          34.62
Social Security Tax                  44.13            44.13          44.13
Income Tax Withholding at 20%       115.38          113.08          108.46
Take Home Pay                       417.41          408.17          389.71

Your Annual Contribution               0.00         300.00           900.00
Annual Company Match                   0.00         150.00           450.00
Yearly 401(k) Contribution             0.00         450.00         1,350.00
                                  Not           With 2% 401(k)   With 6% 401(k)
                                Participating    Participation    Participation
$25,000 Annual Salary

Gross Pay Per Pay Period            961.53          961.53           961.53
401(k) Payroll Deduction              0.00           19.23            57.69
Social Security Tax                  73.56           73.56            73.56
Income Tax Withholding at 20%       192.30          188.46           180.77
Take Home Pay                       695.67          680.28           649.51

Your Annual Contribution               0.00         500.00         1,500.00
Annual Company Match                   0.00         250.00           750.00
Yearly 401(k) Contribution             0.00         750.00         2,250.00
                                          How are my contributions made?
                  When you enroll in the 401(k) plan you may elect from
1% to 15% of your pay* to be deferred and put into the plan for you.
These funds will be deducted from your paycheck automatically each pay
period before taxes are taken out.

You may make changes to your contribution amount and changes in your
investment choices by calling the Hotline or dialing into the WEB. Any
change you make will be effective as soon as administratively possible,
usually the first full pay period after you make a change.

When you invest in your 401(k) account you have a savings partner. John Q.
Hammons Hotels will match your contribution to your account at 50 cents
on the dollar up to 6%. These matching funds are placed in your account
each pay period right along with your funds. This allows your account to
grow even faster!

* Up to an annual limit set by the IRS.
                           When does the Company match
                           become mine?
                   Vesting refers to the ownership of the money in your 401(k)
account. When you are vested in the Company match that means you own the
assets and can take that money with you should you leave the Company. You are
always 100% vested in your contributions.

You become vested in the company matching contributions and any investment
earnings on the match according to the following schedule:

        Years of Service           Vested Percent
         Less than 2                        0%
               2                           20%
               3                           40%
               4                           60%
               5                           80%
          6 or more                       100%

Remember, you are always 100% vested in your contributions and any
investment earnings on those contributions.
                      If I want to contribute to the 401(k)
                      Plan, what are my investment
                      choices?
               Glad you asked, you have several investments to choose from.
Following is a brief description of each choice.

As of September 1, 2001, you will have a total of ten investment choices. They are
as follows:
                 Large Cap Value Equity Fund
                 Large Cap Growth Fund
                 Small Cap Growth Fund
                 Small Cap Value Fund
                 International Equity Fund
                 Multi-Sector Fixed Fund
                 S&P 500 Investments
                 Global Sciences and Technology Investments
                 Government Money
                 John Q. Hammons Stock

You can learn more about these funds at the end of this presentation.
                      Those sound great, but what if I
                      don’t know how to invest?

Salomon Smith Barney will assist you with your investment choices. The first
thing you need to do is fill out the Participant Investment Planner questionnaire
(PIP). After you complete this questionnaire, mail it to Salomon Smith Barney
in the envelope provided.

After evaluating your questionnaire Salomon Smith Barney will send you a
personalized investment planner. In this planner you will find Salomon Smith
Barney’s investment advise for you and additional information on the plan
funds. If you need further assistance, you may call one of the brokers listed in
your planner for additional advise.

So let’s take a few moments now to fill out the PIP. When completed, place in
the envelope, seal and give to your Human Resource Manager to mail for you.
              Who is eligible to participate in the
              plan?


                An associate is eligible to enroll in the plan if he/she
is 18 years old, has completed six months of service, and worked a
minimum of 1000 hours.

Once these requirements have been met, the associate may enroll in
the plan the first of the following month or anytime thereafter.
            How do I participate in the Plan?



           If you wish to contribute to the plan, and receive
the company matching contribution, you must complete the
enrollment process. When you enroll in the plan your
contributions, from 1% to 15% of your pay, will be deducted
from your paycheck automatically each pay period before
taxes are taken out. These contributions are deposited in
your 401(k) Plan account.
     After I become a participant, if I work
     less than 1000 hours in a year may I
     still contribute to the plan?

Yes, once you are a participant you remain a participant
until you terminate employment. You may continue to
contribute to the plan and you will continue to receive
Company matching contributions.

However, for those years when you work less than
1000 hours you will not receive any vesting credit.
           Can I contribute now and stop
           contributing later?


Yes, you can stop your contributions anytime by calling the
Hotline or using the WEB to access your account. The
change you make will be effective as soon as administratively
possible. Usually the first full pay period after you make a
change.
                Can I make other contributions to the
                Plan?

Yes, this plan allows rollover contributions. The rollover contribution
to the plan must be an Eligible Rollover Distribution from a prior
qualified retirement plan. If you had previously deposited the Eligible
Rollover Distribution into a rollover IRA, and you made no other
deposits to the rollover IRA except those distributed from the qualified
retirement plan, then you may deposit the money from the rollover
IRA into the plan.

It is not necessary to complete the eligibility requirements before you
deposit a Rollover Contribution, as long as you are a member of an
eligible employee classification (an employee who will become eligible
to participate once the eligibility requirements have been met).
                     What if I have an emergency and
                     need my money?
               The plan allows for Hardship Withdrawals from the employee
contribution funds as well as any rollover accounts if financial hardship can be
demonstrated. Hardships that qualify for a withdrawal include:

         Substantial medical expenses for the participant or an eligible
         dependent which are not covered by health insurance;

         Expenses for higher (post-secondary) education for the next 12
         months for the participant or eligible dependent;

         Purchase of a primary residence other than mortgage payments;
or

         Prevention of eviction of the participant from his/her primary
         residence.
           How would distributions be made
           from the plan?
For the following:
                  Retirement
                   Total Disability
                   Death
your total account balance will be available for distribution.

If you terminate employment for any other reason your
vested account balance will be available for distribution.

The vested portion of your account is the portion that you own.
Remember, you are always 100% vested in your employee
contributions.
                     Tell me how to enroll in the plan!

            The first step is to fill out the Participant Investment Planner
questionnaire if you have not already completed it. Remember, Salomon
Smith Barney will send, directly to your home, a Personalized Investment
Planner to help guide you in making your investment elections.

        After you have received your planner, or if you are sure of your
investment choices now, you will need to complete an enrollment form.

         The enrollment form has your personal information such as name
and address as well as the percent you wish to defer from your pay into your
account, your investment choices and your beneficiary information.
The following slides provide additional
information
   about the investments available to you in your
                  401(k) Savings Plan.
The International Equity Fund seeks to achieve capital appreciation through
investing primarily in equity securities of companies located outside the United
States. The portfolio originally invests at least 80% of its assets in common and
preferred stock and securities such as bonds, rights and warrants that are
convertible into common stock of companies domiciled outside the United States.

As of May 31, 2001, the top 10 holdings for this fund are:

         Total Fina ELF         Glaxosmithkline
         Aventis SA             Reed International
         Vivendi Universal      Vodafone Group
         Suez                   Unilever NV
         Nomura SecuritiesNTT Docomo
                      Investment choices continued -


                       The Large Cap Growth Fund seeks substantial capital
appreciation by investing primarily in a diversified portfolio of common stocks
of established companies which the portfolio’s advisors believe offer favorable
growth prospects. The portfolio’s assets will be invested primarily in common
stocks of issuers with total market capitalization of $1 billion or greater at the
time of purchase.

As of May 31, 2001, the top 10 holding for this fund are:

         General Electric Co.                   Microsoft Corp
         Pfizer Inc.                            AOL Time Warner Inc.
         Cisco Systems Inc.                     Home Depot Inc.
         Progressive Corp. Ohio                 Intel Corp
         Amgen Inc.                             Qualcomm Inc.
                      Investment choices continued -

                    The Small Cap Growth Fund seeks capital appreciation by
investing primarily in equity securities (including common and preferred stocks,
convertible debt securities and other securities having equity features) of small
growth companies with market capitalization of less than $1 billion at the time
of initial purchase.

As of May 31, 2001, the top 10 holdings of this fund are:

         Insight Communications                Patterson Uti Energy I
         Key Energy Services, Inc.             Invitrogen Corp.
         Cephalon, Inc.                        Gene Logic, Inc.
         Polymedica Corp.                      Career Education Corp.
         American Eagle Outfitt                Cabletron Systems, Inc.
                      Investment choices continued -

                    The Large Cap Value Fund’s objective is total return by
investing in a portfolio of highly liquid common stocks that have above average
price appreciation potential at the time of purchase. These securities are
characterized as having above average dividend yields and below average price
earnings relative to the stock market in general. The portfolio’s assets will be
invested primarily in common stocks of issuers with total market capitalization
of $1 billion or greater at the time of purchase.

As of March 31, 2001, the top 10 holdings for this fund are:

         Exxon Mobil Corp.                    AT&T Corp.
         Chase Manhattan Corp.                Bank of American Corp.
         American Int’l Group Inc.            SBC Communications, Inc.
         Morgan Stanley Dean Witter & Co.     Motorola, Inc.
         Fannie Mae                           BellSouth Corp.
                      Investment choices continued -

                    The Multi-Sector Fixed Income Fund seeks total return
consisting of capital appreciation and income. The Portfolio invests a portion
of its assets in high-yield securities. These involve a substantial risk of loss and
are less liquid than investment grade debt securities.

As of May 31, 2001, the top 10 holdings for this fund were:

         United States Treasury (6.00%, 2009)
         FNMA Pass-Thru (6.00%)
         Federal National Mortgage Association (6.62%, 2030)
         FHLMC PC (7.00%, 2029)
         American Health Ppty (7.05%, 2030)
         Bank of America Corp (7.80%, 2010)
         FHLMC PC (6.00% , 2029)
         Residential Accredit (5.65%, 2028)
         United Dominion Real (8.62%, 2003)
                      Investment choices continued -


                   The Small Cap Value Fund seeks to achieve above average
capital appreciation by investing primarily in a diversified portfolio of common
stocks of small-capitalization “value” companies.

As of May 31, 2001, the top 10 holdings of this fund were:

         Wallace Computer Servi               Landauer, Inc.
         PSS World Med Inc                    Artic Cat Inc
         Schawk Inc                           Tetra Technologies Inc
         IPC Hldgs Ltd                        Compx International In
         Martin Marietta Matls                Federal Signal Corp
                      Investment choices continued -


                   The Standard & Poors Index 500 Fund seeks to provide
investment results that, before expenses, correspond to price and yield
performance of the S&P 500 Index.

As of May 31, 2001, the top 10 holdings of this fund were:

         General Electric Co                 Microsoft Corporation
         Exxon Mobil Corporation             Pfizer Inc.
         Citigroup, Inc.                     Wal Mart Stores Inc.
         AOL Time Warner, Inc.               International Business
         American Intl Group In              Intel Corporation
                       Investment choices continued -

                  The Global Sciences and Technology Investments
Portfolio seeks capital appreciation by investing primarily in equity securities of
both domestic and foreign companies. The Portfolio invests primarily in the
securities of companies principally engaged in the technology,
telecommunications and healthcare sectors.

As of March 31, 2001, the top 10 holdings of this fund were:

         Compaq Computer Corp.                  Dell Computer Corp.
         Kla-Tencor Corp.                       Worldcom, Inc.
         Microsoft Corp.                        Solectron Corp.
         Applied Materials, Inc.                Intel Corp.
         Lam Research Group                     Comcast Corp. (cl. A) spl
                       Investment choices continued -



                  The Government Money Fund is managed to provide
current income consistent with the maintenance of liquidity and the
preservation of capital by investing exclusively in short-term securities issued or
guaranteed by the United States government, its agencies or instrumentalities
and repurchase agreements with respect to those securities.


The John Q. Hammons Stock Fund consist of publicly traded shares of
common stock of John Q. Hammons, Hotels, Inc.

								
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