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PROFIT SHARING PLAN THIS PROFIT SHARING PLAN (this “Plan”) is entered into this ____ day of ____, 20__ (the “Effective Date”) by and between ______________________, a _________, corporation (the “Company”) and _______________, an individual (“Employee”) who is an employee of the Company. Recitals WHEREAS, the purpose of this Plan is to encourage Employees to systematically save and invest part of their Compensation such that they may have a source of additional income upon their retirement or disability or for their family in the event of death. WHEREAS, Company shall make contributions to a trust fund (the “Fund”), from which benefits shall be paid pursuant to the terms and conditions of this Agreement. WHERAS, this Plan is conditioned upon its continued qualification under Section __ of the ________ Code, as amended from time to time, with employer contributions being deductible Section __ of the ______ Code, or any other applicable sections thereof, as amended from time to time. WHEREAS, it is intended by Company for this Plan qualify as a profit sharing plan. Terms SECTION I. DEFINITIONS Defined terms are found in Exhibit “A” attached hereto. SECTION II. SERVICE CREDIT AND PARTICIPATION A. Hour of Service An Hour of Service is any hour for which an Employee is directly or indirectly paid or entitled to payment for the performance of his or her duties. B. Service Service is the period of employment used in determining eligibility for participation in this Plan, as well as in determining eligibility for benefits. Subject to the loss of service rules below in this Section, a year of Service is the twelve month period beginning with the date of the Employee’s first Hour of Service. C. Participation Originating Under This Plan
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Each Employee shall become a member in this Plan on the first day of the month on which he: (i) is in Covered Employment; (ii) has attained his ___th birthday; and (iii) has completed a year of Service. SECTION III. CONTRIBUTIONS A. Contributions by Employer 1. The Employer shall, during a Plan Year, contribute to the Trust an amount determined at the Employer’s discretion. 2. Notwithstanding the above, such contributions shall be made only from the Employer’s current or retained earnings or profits and shall be limited to the amount deductible by the Employer. B. Member Voluntary Contributions 1. When Employee becomes a Member hereunder and as of the beginning of each Plan Year thereafter, a Member may, through payroll deduction, elect to make voluntary contributions. 2. A Member may withdraw all or any part of his Employee Contribution Account by filing a written application on a form to be prescribed by the Committee, with at least ________ days’ advance notice, no more than once in any Plan Year. 3. Members are not required or permitted to make any contributions under this Plan. SECTION IV. RETIREMENT Upon his Normal Retirement Date, a Member shall have a fully vested and non-forfeitable interest in his Individual Accounts hereunder. Distribution shall be made upon Retirement. The amount of his or her Individual Accounts shall be the balance as of the Valuation Date concurrent with or next preceding the date of his Retirement, plus any contributions allocated to his Individual Accounts since such Valuation Date, except that, if a retired Member who retired other than on a Valuation Date so elects, his balance shall be determined as of the Valuation Date next following the date of his Retirement, including allocation of any contribution then being allocated hereunder, as if he met any applicable employment and service requirements for such contribution. SECTION V. DEATH A. Designation of Beneficiary Each Member may designate _______ or more Beneficiaries and contingent Beneficiaries to receive the benefits payable hereunder in the event of the death of such Member. B. Benefit
Upon the death of an Employee who is a Member, his designated Beneficiary, or Beneficiaries, is fully vested with respect to the balance of his Individual Accounts as of the Valuation Date concurrent with or next preceding the date of his death, plus any contributions allocated to the Member’s Individual Accounts since such Valuation Date, except that, if the Beneficiary of a Member who died other than on a Valuation Date so elects, such balance shall be determined as of the Valuation Date next following the date of death, including allocation of any contribution then being allocated hereunder as if the Member had met any applicable employment and service requirements for such contributi