Florida | 65-0341002 |
(State or Other Jurisdiction of Incorporation or Organization) | (IRS Employer Identification No.) |
3000 Taft Street Hollywood, Florida (Address of Principal Executive Offices) | 33021 (Zip Code) |
Large accelerated filer x | Accelerated filer ¨ | Non-accelerated filer ¨ | Smaller reporting company ¨ |
Title of Securities to be Registered | Amount to be Registered | Proposed Maximum Offering Price Per Share (1) | Proposed Maximum Aggregate Offering Price (1) | Amount of Registration Fee |
Common Stock, par value $0.01 per share | 300,000 shares | $58.57 | $17,571,000 | $1,769.40 |
Class A Common Stock, par value $0.01 per share | 300,000 shares | $44.85 | $13,455,000 | $1,354.92 |
Total | $3,124.32 |
(1) | Estimated solely for the purpose of calculating the registration fee which was computed in accordance with Rule 457(c) and Rule 457(h)(1) under the Securities Act of 1933, as amended (the “Securities Act”), on the basis of the average of the high and low sales prices per share of the stock as reported on the New York Stock Exchange on March 8, 2016. |
a) | Our Annual Report on Form 10-K for the year ended October 31, 2015, filed with the SEC on December 17, 2015, and the portions of the Company's proxy statement on Schedule 14A for the Company's Annual Meeting of Shareholders filed with the SEC on February 12, 2016 and incorporated therein; |
b) | Our Quarterly Report on Form 10-Q for the period ended January 31, 2016, filed with the SEC on February 29, 2016; |
c) | Our Current Reports on Form 8-K as filed with the SEC on December 21, 2015 and January 13, 2016; |
d) | The description of our Common Stock contained in our Registration Statement on Form 8-A, filed with the SEC on April 28, 1993, as amended January 27, 1999; and |
e) | The description of our Class A Common Stock contained in our Registration Statement on Form 8-A, filed with the SEC on April 8, 1998, as amended January 27, 1999. |
Exhibit | Description |
3.1 | Articles of Incorporation of HEICO Corporation (incorporated by reference to Exhibit 3.1 to the Company's Registration Statement on Form S-4 (Registration No. 33-57624) Amendment No. 1 filed on March 19, 1993). |
3.2 | Articles of Amendment of the Articles of Incorporation of HEICO Corporation, dated April 27, 1993 (incorporated by reference to Exhibit 3.2 to the Company's Registration Statement on Form 8-B dated April 29, 1993). |
3.3 | Articles of Amendment of the Articles of Incorporation of HEICO Corporation, dated November 3, 1993 (incorporated by reference to Exhibit 3.3 to the Form 10-K for the year ended October 31, 1993). |
3.4 | Articles of Amendment of the Articles of Incorporation of HEICO Corporation, dated March 19, 1998 (incorporated by reference to Exhibit 3.4 to the Company's Registration Statement on Form S-3 (Registration No. 333-48439) filed on March 23, 1998). |
3.5 | Articles of Amendment of the Articles of Incorporation of HEICO Corporation, dated as of November 2, 2003 (incorporated by reference to Exhibit 3.5 to the Form 10-K for the year ended October 31, 2003). |
3.6 | Articles of Amendment of the Articles of Incorporation of HEICO Corporation, dated March 26, 2012 (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed on March 29, 2012). |
3.7 | Amended and Restated Bylaws of HEICO Corporation, effective as of September 22, 2014 (incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K filed on September 25, 2014). |
5.1 | Opinion of Akerman LLP. |
10.1 | HEICO Savings and Investment Plan, as amended and restated effective as of January 1, 2012. |
23.1 | Consent of Akerman LLP (included in Exhibit 5.1). |
23.2 | Consent of Deloitte & Touche LLP. |
24.1 | Power of Attorney (included in the signature pages to the Registration Statement). |
(1) | To file, during any period in which offers or sales are being made, a post-effective amendment to this Registration Statement: |
i. | To include any prospectus required by section 10(a)(3) of the Securities Act of 1933; |
ii. | To reflect in the prospectus any facts or events arising after the effective date of the Registration Statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the Registration Statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20 percent change in the |
iii. | To include any material information with respect to the plan of distribution not previously disclosed in the Registration Statement or any material change to such information in the Registration Statement; |
(2) | That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. |
(3) | To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering. |
(4) | That, for purposes of determining any liability under the Securities Act of 1933, each filing of the Registrant’s annual report pursuant to Section 13(a) or Section 15(d) of the Exchange Act of 1934 (and, where applicable, each filing of an employee benefit plan’s annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934) that is incorporated by reference in the Registration Statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. |
(5) | Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the Commission such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director, officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue. |
Signature | Title(s) | Date | ||
/s/ LAURANS A. MENDELSON Laurans A. Mendelson | Chairman of the Board; Chief Executive Officer; and Director (Principal Executive Officer) | March 9, 2016 | ||
/s/ CARLOS L. MACAU, JR. Carlos L. Macau, Jr. | Executive Vice President-Chief Financial Officer and Treasurer (Principal Financial Officer) | March 9, 2016 |
Signature | Title(s) | Date | ||
/s/ STEVEN M. WALKER Steven M. Walker | Chief Accounting Officer and Assistant Treasurer (Principal Accounting Officer) | March 9, 2016 | ||
/s/ THOMAS M. CULLIGAN Thomas M. Culligan | Director | March 9, 2016 | ||
/s/ ADOLFO HENRIQUES Adolfo Henriques | Director | March 9, 2016 | ||
/s/ SAMUEL L. HIGGINBOTTOM Samuel L. Higginbottom | Director | March 9, 2016 | ||
/s/ MARK H. HILDEBRANDT Mark H. Hildebrandt | Director | March 9, 2016 | ||
/s/ WOLFGANG MAYRHUBER Wolfgang Mayrhuber | Director | March 9, 2016 | ||
/s/ ERIC A. MENDELSON Eric A. Mendelson | Co-President and Director | March 9, 2016 | ||
/s/ VICTOR H. MENDELSON Victor H. Mendelson | Co-President and Director | March 9, 2016 | ||
/s/ JULIE NEITZEL Julie Neitzel | Director | March 9, 2016 | ||
/s/ ALAN SCHRIESHEIM Alan Schriesheim | Director | March 9, 2016 | ||
/s/ FRANK J. SCHWITTER Frank J. Schwitter | Director | March 9, 2016 |
Exhibit | Description |
5.1 | Opinion of Akerman LLP. |
10.1 | HEICO Savings and Investment Plan, as amended and restated effective as of January 1, 2012. |
23.1 | Consent of Akerman LLP (included in Exhibit 5.1). |
23.2 | Consent of Deloitte & Touche LLP. |
24.1 | Power of Attorney (included in the signature pages to the Registration Statement). |
Page | |||||
1 | |||||
1 | |||||
10 | |||||
3.01Participation in the Plan | 10 | ||||
3.02Rollover Contributions | 10 | ||||
3.03Acquisitions | 10 | ||||
10 | |||||
4.01Elective Deferral Contributions | 10 | ||||
4.02Elections Regarding Elective Deferral Contributions | 13 | ||||
4.03Catch-Up Contributions | 13 | ||||
4.04Employer Contributions | 14 | ||||
4.05After-Tax Contributions | 15 | ||||
4.06Rollover Contributions | 15 | ||||
4.07Form and Timing of Contributions | 15 | ||||
4.08Nondeductible Contributions and Contributions Made by Mistake of Fact | 16 | ||||
4.09Forfeitures | 16 | ||||
4.10Investment Funds | 16 | ||||
4.11Investment of Contributions | 17 | ||||
17 | |||||
5.01Limitation on Annual Additions | 17 | ||||
5.02Increase in Limitations on Annual Additions | 19 | ||||
19 | |||||
6.01Participant Accounts | 19 | ||||
6.02Value of Account as of Valuation Date | 19 | ||||
6.03Allocation of Adjustments | 19 | ||||
20 | |||||
7.01Average Actual Deferral Percentage Limitation | 20 | ||||
7.02Average Actual Contribution Percentage Limitation | 23 | ||||
27 | |||||
8.01Vested Percentage of Accounts | 27 | ||||
8.02Amount Subject to Distribution Upon Termination of Employment | 28 | ||||
8.03Forfeitures | 28 | ||||
30 | |||||
9.01Hardship Withdrawals | 30 | ||||
9.02Suspension of Contributions Due to Hardship Withdrawal | 31 | ||||
32 | |||||
10.01Definitions | 32 | ||||
10.02Commencement of Distribution | 32 | ||||
10.03Forms of Payments | 33 | ||||
10.04Prior Employer Accounts | 33 | ||||
10.05Payments When a Loan is Outstanding | 33 |
10.06Minimum Distribution Requirements | 34 | ||||
10.07Qualified Domestic Relations Orders | 38 | ||||
10.08Payment to Minors and Incapacitated Persons | 38 | ||||
10.09Notices to Participants | 38 | ||||
10.10Eligible Rollover Distributions | 39 | ||||
10.11Age 59½ Withdrawals | 40 | ||||
40 | |||||
11.01Availability of Loans | 40 | ||||
11.02Amount of Loans | 40 | ||||
11.03Conditions of the Loan | 40 | ||||
11.04Loan Policy | 41 | ||||
41 | |||||
12.01Effect of Article | 41 | ||||
12.02Definitions | 41 | ||||
12.03Purpose and Nature of the Leveraged ESOP | 42 | ||||
12.04Requirements as to Exempt Loans | 43 | ||||
12.05Use of Exempt Loan Proceeds | 44 | ||||
12.06Allocations and Accounting | 45 | ||||
12.07Use of Cash Dividends on Common Stock | 46 | ||||
12.08Common Stock Cash Dividends | 46 | ||||
12.09Diversification Election | 47 | ||||
12.10Voting and Tendering of Company Stock | 48 | ||||
Article 13 TOP‑HEAVY PROVISIONS | 48 | ||||
13.01Top‑Heavy | 48 | ||||
13.02Modification of Top-Heavy Rules | 50 | ||||
51 | |||||
14.01Committee | 51 | ||||
14.02Powers of the Committee | 51 | ||||
14.03Indemnification of Members of the Committee | 52 | ||||
14.04Liabilities for which Members of the Committee are Indemnified | 52 | ||||
14.05Company’s Right to Settle Claims | 52 | ||||
14.06Fiduciary Liability Insurance | 52 | ||||
14.07Designation of Members of the Committee as Named Fiduciaries | 52 | ||||
14.08Procedures for Allocating or Delegating Fiduciary Responsibilities | 52 | ||||
14.09Filing of Claim | 53 | ||||
14.10Time for Initial Decision | 53 | ||||
14.11Notice of Denial | 53 | ||||
14.12Manner of Reconsideration | 53 | ||||
14.13Time for Reconsideration | 53 | ||||
14.14Notice of Adverse Decision on Reconsideration | 53 | ||||
14.15Expenses of the Committee | 54 | ||||
14.16Conduct of Committee Business | 54 | ||||
14.17Agent for Service of Process | 54 | ||||
54 | |||||
15.01Right to Amend | 54 | ||||
15.02Termination and Discontinuance of Contributions | 54 |
15.03Supplements | 55 | ||||
15.04Merger of the Plan | 55 | ||||
15.05 Transfers to Nonqualified Foreign Trusts | 55 | ||||
56 | |||||
16.01Participation by Participating Employers | 56 | ||||
16.02 Withdrawal of Participating Employers | 56 | ||||
16.03Requirements of Participating Employers | 56 | ||||
16.04Transfers Between Participating Employers | 56 | ||||
16.05Participating Employer Contributions | 57 | ||||
57 | |||||
17.01Laws of Florida to Apply | 57 | ||||
17.02Protected Benefits | 57 | ||||
17.03Credit for Qualified Military Service; Treatment of Differential Wage Payments | 57 | ||||
17.04Exclusive Benefit Rule | 57 | ||||
17.05No Rights under the Plan except as Set Forth Herein | 57 | ||||
17.06Undefined Terms | 58 | ||||
17.07Number and Gender | 58 | ||||
APPENDIX APARTICIPATING EMPLOYERS IN THE HEICO SAVINGS AND INVESTMENT PLAN | 59 | ||||
APPENDIX BPRIOR EMPLOYER ACCOUNTS | 61 |
(a) | Any Employee included in a collective bargaining unit for which a labor organization is recognized as collective bargaining agent unless such Employee has been designated by the Committee as an “Eligible Employee” for the purposes of this Plan; |
(b) | Any Employee who is employed by an Affiliate that is not an Participating Employer; |
(c) | Any Employee who is a nonresident alien and who does not receive earned income from the Employer that constitutes income from sources within the United States; or |
(d) | Employees who are, according to the Employer’s records, characterized as temporary, seasonal or occasional employees; provided, however, any |
(a) | Any Employee who (1) was a five (5) percent owner at any time during the Plan Year or the preceding Plan Year, or (2) for the preceding Plan Year received compensation in excess of $110,000 beginning after December 31, 2010, (adjusted at the same time and in the same manner as under Code Section 415(d)). |
(b) | A former Employer if the former Employee separated from service from an Employer and all Affiliates (or is deemed to have separated from service from the Employer and all Affiliates) prior to the determination year, performed no services for an Employer during the determination year, and was a highly compensated active employee during the separation year or any determination year ending on or after the date the Employee attains age 55. |
(c) | The determination of who is a Highly Compensated Employee hereunder, including the determination as to the number and identity of employees in the top paid group, and the compensation considered shall be made in accordance with the provisions of Code Section 414(q) and the regulations issued thereunder. |
(d) | For purposes of this Section 2.35, the following terms shall have the following meanings: |
(1) | Compensation shall mean all compensation within the meaning of Code Section 414(s), including elective amounts that are not includible in the gross income of the Employee under Code Section 125, 132(f)(4), 402(e)(3), 402(h), or 403(b). |
(2) | 5 Percent Owner shall mean any Employee who owns or is deemed to own (within the meaning of Code Section 318), more than five percent (5%) of the value of outstanding stock of the Employer or stock possessing more than five percent (5%) of the total combined voting power of the Employer. |
(a) | Each hour for which an Employee is paid, or entitled to payment, for performance of duties for performance of duties for an Employer or Employers. |
(b) | Each hour for which an Employee is paid, or entitled to payment, by an Employer or Employers, on account of a period of time during which no duties are performed (irrespective of whether the employment relationship is terminated) due to vacation, holiday, illness, incapacity, layoff, jury duty, military duty, or leave of absence; provided that in no event, shall an |
(c) | Each hour for which an Employee is absent from work by reason of (1) the pregnancy of the Employee, (2) the birth of a child of the Employee, (3) the placement of a child with the Employee in connection with the adoption of the child by the Employee, or (4) the caring for a child referred to in Sections (1) through (3) immediately following birth or placement. Hours credited under this Section shall be credited at the rate of eight (8) hours per day, but shall not, in the aggregate, exceed the number of hours required to prevent the Employee from incurring a One-Year Break in Service (a maximum of 501 hours) during the first computation period in which a One-Year Break in Service would otherwise occur; provided, however, that this rule shall apply only during the Plan Year in which the absence from work begins and the immediately following Plan Year. |
(d) | Each hour for which back pay, irrespective of mitigation of damages, is either awarded or agreed to by an Employer or Employers. These hours shall be credited to the Employee for the computation period or period to which the award or agreement pertains, rather than the computation period in which the award, agreement, or payment is made. |
(e) | In lieu of the foregoing, an Employee who is not compensated on an hourly basis (such as salary and commission employees) shall be credited with 40 Hours of Service for each week (or 8 Hours of Service for each day) in which such Employee would be credited with Hours of Service in hourly pay. However, this method of computing Hours of Service may not be used for any Employee whose Hours of Service is required to be counted and recorded by an federal law, such as the Fair Labor Standards act. Any such method must yield an equivalency of at least 1,000 hours per computation. |
(f) | The following rules shall apply in determining whether an Employee completes an “Hour of Service: |
(1) | The same hours shall not be credited under Sections (a) or (b) above, as the case may be, and Sections (c) above. |
(2) | The rules relating to determining hours of service for reasons other than the performance of duties and for crediting hours of service to particular periods of employment shall be those rules stated in Department of Labor regulations Title 29, Chapter XXV, subchapter C, part 2530, Sections 200b-2(b) and 200(b)-2(c), respectively. |
(a) | For purposes of applying the vesting rules, a Year of Service shall mean any Computation Period a Participant is credited with 1,000 Hours of Service with an Employer or Affiliate. An Employee will receive credit for a Year of Service as of the end of the Computation Period if the Employee completes the required Hours of Service during such period, even if the Employee is not employed for the entire period. |
(b) | For all periods on or after January 1, 2004, the “Computation Period” shall mean the Plan Year. |
(c) | In the case of a Participant who has five (5) consecutive One Year Breaks in Service, all Years of Service after such period of break will be disregarded for the purpose of vesting in the portion of the Participant’s Employer Accounts that was credited before such period of break. |
(d) | If a Participant has five (5) consecutive One Year Breaks in Service and had no vested interest in his Employer Accounts prior to the period of break, all Years of Service credited before the period of break shall be permanently disregarded for all purposes under the Plan. |
(a) | An Eligible Employee shall become a Participant in (and thereupon be permitted to make Elective Deferral Contributions) the Plan on the Entry Date coincident with the later of (1) the date the Employee is credited with One Hour of Service, or (2) the date the Employee becomes an Eligible Employee, if he was not an Eligible Employee. |
(b) | Prior to becoming a Participant, each Eligible Employee shall be provided an opportunity to designate the percentage of his Compensation to be contributed to the Plan under Section 4.01. Any such designation shall become effective as of the date such Employee becomes a Participant in accordance with Section 3.01(a) above, provided the designation is made in the manner authorized by the Committee. |
(c) | A Participant who has a Termination Date or who ceases to be an Eligible Employee but does not have a Termination Date, then such Participant shall continue to be known as a “Participant”, but shall not be eligible to make Elective Deferral Contributions and shall not be eligible to receive Employer Contributions. |
(d) | If an Employee’s termination of Employment occurs after becoming a Participant and having a vested balance in his Account, such Employee shall become a Participant again on his date of rehire. |
(a) | An arrangement under which Participants may make elective deferrals, such as Elective Deferral Contributions under this Plan is referred to as a cash or deferred arrangement (“CODA”). Under such an arrangement, elective deferrals cannot relate to Compensation that is currently available prior to the adoption or effective date of the CODA. In addition, except for |
(b) | Each Employer shall contribute to the Trust, on behalf of each Participant, Elective Deferral Contributions as specified in a salary reduction agreement between the Participant and such Employer; provided, however, that such contribution for a Participant shall not exceed the limitations set forth in Code Section 402(g) ($17,000 for Plan Years beginning after December 31, 2011), or any successor thereto, for each Plan Year (including any other elective deferrals within the meaning of Code Section 402(g)(3) in the case of all other plans, contracts, or arrangements of the Employer). |
(c) | A Participant may assign to this Plan any Excess Deferral Amounts made during a taxable year of the Participant by notifying the Committee on or before March 1st (or such later date as established by the Committee) of the subsequent year of the amount of the Excess Deferrals Amounts to be assigned to the Plan. Notwithstanding any other provision of the Plan, Excess |
(d) | “Excess Deferral Amount” shall mean those Elective Deferral Contributions that are includable in a Participant’s gross income under Code Section 402(g) to the extent such Participant’s Elective Deferral Contributions for a taxable year exceed the dollar limitation under Code Section 402(g). If an Excess Deferral Amount is not distributed by the first April 15 following the close of the Participant’s taxable year, such amount shall be treated as an annual addition under the Plan. |
(e) | The Participant’s notice of an Excess Deferral Amount made pursuant to Section 4.01(c) shall be in writing; shall be submitted to the Committee no later than March 1 with respect to the preceding calendar year; shall specify the Participant’s Excess Deferral Amount for the preceding calendar year; and shall be accompanied by the Participant’s written statement that if such amounts are not distributed, such Excess Deferral Amount, when added to amounts deferred under other plans or arrangements described in Code Sections 401(k), 408(k), or 403(b), exceeds the limit imposed on the Participant by Code Section 402(g) for the calendar year in which the deferral occurred. A Participant is deemed to notify the Committee of any Excess Deferral Amount that arises by taking into account only those Elective Deferral Contributions made to this Plan and any other plans of this Employer or an Affiliate. |
(f) | The Excess Deferral Amount shall be adjusted for income or loss. The income or loss allocable to the Excess Deferral Amount is equal to the allocable income or loss for the taxable year of the individual as follows: |
(g) | The Excess Deferral Amount, which may be distributed under Section 4.01(c) with respect to an Employee for a taxable year, shall be reduced by any Excess Contributions previously distributed with respect to such Employee for the Plan Year beginning with or within such taxable year. In the event of a reduction under this Section 4.01(g), the amount of Excess Contributions included in the gross income of the Employee and reported by the Employer as a distribution of Excess Contributions shall be reduced by the amount of the reduction under this Section 4.01(g). |
(a) | A Participant may elect to change his Elective Deferral Contribution Amount on a daily basis by contacting the Administrator and executing any forms (whether hardcopy or electronic) as may be required by the Administrator from time to time. Any change a Participant makes shall become effective as soon as administratively feasible following the receipt of such election by the Administrator. |
(b) | A Participant may suspend further Elective Deferral Contributions to the Plan at any time by contacting the Administrator and executing any forms (whether hardcopy or electronic) as may be required by the Administrator from time to time. Any suspension a Participant requests shall become effective as soon as administratively feasible following the receipt of such election by the Administrator. |
(a) | Eligibility. All Employees who are eligible to make Elective Deferral Contributions under this Plan and who are projected to 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, Code Section 414(v). |
(b) | Election. In order to have Catch-Up Contributions made on his or her behalf for a Plan Year, a Participant shall direct that such Catch-Up Contributions be made pursuant to a procedure prescribed by the Committee whereby such Participant’s annual Compensation shall be reduced by a specified amount not to exceed the limitations of Code Section 414(v), and whereby the Employer agrees to contribute an identical amount on the Participant’s behalf to the Plan on a pre-tax basis under this Section 4.03. |
(c) | Application. Such Catch-Up Contributions shall not be taken into account for purposes of the limitation set forth in Section 5.02 hereof as well as the provisions of the Plan implementing the required limitations of Code Sections 402(g) and 415. The Plan shall not be treated as failing to satisfy the provisions of the Plan implementing the requirements of Code Sections |
(d) | Classification; No Matching Contributions. For purposes of this Plan, except as provided in this Section 4.03, Catch-Up Contributions shall be considered Elective Deferral Contributions and shall be allocated to a Participant’s Elective Deferral Account. Notwithstanding the foregoing, Catch-Up Contributions shall not be considered Elective Deferral Contributions for purposes of allocating Employer Matching Contributions as provided in Section 4.04(a) of this Plan. |
(a) | Employer Matching Contributions. Each Employer shall contribute Employer Matching Contributions, if any, as provided for in this Section 4.04(a). A Participant’s Employer Matching Contribution is a percentage of his or her Elective Deferral Contributions made to the Plan and may be limited to a percentage of the Participant’s Compensation, as determined by the Board of Directors from time to time at its sole discretion. The Employer Matching Contribution percentage may vary (1) among Participants employed by different Employers; or (2) with the Participant’s rate of deferral, but must be uniform for Participants with equal rates of Elective Deferral Contributions and may not increase as the rate of Elective Deferral Contribution increases. Effective for Plan Years beginning on or after January 1, 2009, Employer Matching Contributions shall be calculated quarterly based on Elective Deferral Contributions made during that calendar quarter and Compensation paid for each payroll period for which Elective Deferral Contributions are made (i.e., excluding Compensation paid for any payroll period that the Participant does not contribute any Elective Deferral Contributions to the Plan, and excluding any Compensation paid prior to the payroll period for which the Participant’s first Elective Deferral Contribution was ever made to the Plan), and subject to the requirement set forth in Section 4.04(c)(1) hereof, shall be contributed to the Plan at the end of each calendar quarter on behalf of any Participant who makes Elective Deferral Contributions during that calendar quarter. |
(b) | Equity Builder Contributions. Each Employer may contribute Equity Builder Contributions as provided for in this Section 4.04(b). Subject to the requirement in Section 4.04(c)(2) hereof, a Participant’s share of Equity Builder Contributions for a Plan Year is determined by multiplying (1) the total Equity Builder Contributions to be allocated among all Participants’ Accounts by (2) the Participant’s Compensation for the Plan Year and dividing the result by (3) the Compensation paid for the Plan Year to all Participants eligible for an allocation. Only Compensation paid by Employers on account of service while a Participant is taken into account. A Participant’s share of Equity Builder Contributions shall be in an amount as fixed by the Board of Directors from time to time at its sole discretion. |
(c) | Eligibility to Receive Employer Matching Contributions and Equity Builder Contributions. Effective for Plan Years beginning on or after January 1, 2009, Employer Matching Contributions and Equity Builder Contributions, if any, shall be allocated to the Employer Accounts of Participants based on the following: |
(1) | With respect to each calendar quarter during a Plan Year, Employer Matching Contributions shall be allocated among and credited to the Employer Matching Contributions Account of Participants who are employed by an Employer on the last day of each such calendar quarter. |
(2) | Equity Builder Contributions, if any, shall be allocated to the Employer Accounts of Participants who are credited with 1,000 Hours of Service during the Plan Year with an Employer and are employed on the last day of such Plan Year. |
(a) | Elective Deferral Contributions shall be deducted by the Employer from the Participant’s Compensation and contributed to the Trust as promptly as possible after the end of each regular pay period but in no event later than 15 days after the end of the month in which such Elective Deferral Contributions are retained by the Employer. |
(b) | All Employer Contributions for the purpose of paying or prepaying principal, interest or fees on Plan Indebtedness related to Financed Stock, as defined in Article 12, must be made in cash. All other Employer Contributions may be made in cash, Company Stock or other property, in the contributing Employer’s discretion. All Employer Contributions, whether in cash, Company Stock, or other property, are contingent upon acceptance by the |
(c) | All Employer Contributions shall be contributed to the Trust on or before the time required by law for filing the Employer’s federal income tax return (including extensions) for its taxable year in or with which the Plan Year with respect to which the contribution is made ends. |
(a) | At least once per Plan Year, any amounts which became Forfeitures since the last December 31st shall be made available to (1) reinstate previously forfeited Account balances of Participants, if any, in accordance with Section 8.03, (2) pay administrative expenses of the Plan, and/or (3) reduce Employer Matching Contributions and/or Equity Builder Contributions that Employers would otherwise make on behalf of their current Participants that Plan Year, or Participants in the next Plan Year and each succeeding Plan Year. |
(b) | The term “Forfeiture” shall mean the amount of a Participant’s nonvested Account balance which is forfeited as provided for in Article 8, or any excess Employer Matching Contributions forfeited in accordance with Article 7. The portion of a Participant’s Accounts that are not distributable to him by reason of the provisions Article 7 or Article 8 shall be credited to a Forfeiture Account. The value of the Forfeiture Account shall be the market value as determined on each Valuation Date. |
(c) | Elective Deferral Contributions are to be taken into account in determining a Participant’s vested benefits under the Plan. Thus, for example, the Plan shall take Elective Deferral Contributions into account in determining whether a Participant has a nonforfeitable right to contributions under the Plan for purposes of forfeitures, and for applying provisions permitting the repayment of distributions to have forfeited amounts restored, and the provisions of Code Sections 410(a)(5)(D)(iii) and 411(a)(6)(D)(iii) permitting a plan to disregard certain service completed prior to breaks-in-service (sometimes referred to as “the rule of parity”). |
(a) | Notwithstanding any other provisions of the Plan, the sum of the Annual Additions to a Participant’s Accounts, when combined with Annual Additions to the Participant’s account under all other qualified plans maintained by the Employer, for any Plan Year shall not exceed the lesser of $50,000 (for Plan years ending after December 31, 2011) or 100% of such Participant’s compensation (as such term is defined in Code Section 415(c)(3)). For purposes of the Code Section 415(c)(3), payments made by the later of 2½ months after severance from employment or the end of the limitation year that includes the date of severance from employment are included in compensation for the limitation year if, absent a severance from employment, such payments would have been paid to the employee while the employee continued in employment with the employer and are regular compensation for services during the employee’s regular working hours, compensation for services outside the employee’s regular working hours (such as overtime or shift differential), commissions, bonuses or other similar compensation. Code Section 415(c)(3) compensation shall also include Differential Wage Payments, but only to the extent such payments do not exceed the amounts the individual would have received from the Employer if the individual had continued to perform services for the Employer. |
(1) | such Participant’s allocable share of the Employer Contributions for the Plan Year; |
(2) | such Participant’s Elective Deferral Contributions for the Plan Year; |
(3) | forfeitures allocated to such Participant’s account; and |
(4) | amounts described in Code Sections 415(l)(1) and 419A(d)(2). |
(b) | If it is determined that, but for the limitations contained in Section 5.01(a), the Annual Additions to a Participant’s Accounts for any Plan Year would be in excess of the limitations contained herein, then the Sponsoring Employer will follow the rules of any Employee Plans Compliance Resolution System (EPCRS) or any superseding guidance that is issued by the Internal Revenue Service, including, but not limited to, the preamble of the final Section 415 regulations. |
(c) | For purposes of this Article, all defined contribution plans (without regard to whether a plan has been terminated) ever maintained by the Employer (or a “predecessor employer”) under which the participant receives annual additions are treated as one defined contribution plan as required to be combined pursuant to Code Section 415(f) and Regulation Section 1.415(f)-1. Employer shall mean the employer that adopts this Plan, and all members of a controlled group of corporations (as defined in Code Section 414(b) as modified by Code Section 415(h)), all commonly controlled trades or businesses (as defined in Code Section 414(c) as modified by Code Section 415(h), or affiliated service groups (as defined in Code Section 414(m)) of which the adopting Employer is a part, and any other entity required to be aggregated with the Employer pursuant to regulations under Code Section 414(o). |
(a) | A separate Account shall be maintained for each Participant, or Beneficiary, so long as he has an interest in the Trust Fund. |
(b) | The Committee may divide the Account into sub-accounts and divide any sub-accounts into additional sub-portions as the Committee deems to be necessary or advisable under the circumstances or to establish other accounts or sub-accounts as needed. |
(a) | His total Account as determined on the immediately preceding Valuation Date, plus |
(b) | His Elective Deferral Contributions added to his Account since the immediately preceding Valuation Date, plus |
(c) | His Employer Contributions added to his Account since the immediately preceding Valuation Date, plus |
(d) | His Rollover Contributions which were added to his Account since the immediately preceding Valuation Date, minus |
(e) | His Distributions, if any, since the immediately preceding Valuation Date, plus or minus |
(f) | His allocable share of Adjustments. |
(a) | The Average Actual Deferral Percentage for all Participants who are Highly Compensated Employees may not exceed the greater of: |
(1) | the Average Actual Deferral Percentage for all Participants who are Non-Highly Compensated Employees for the current Plan Year multiplied by 1.25; or |
(2) | the Average Actual Deferral Percentage for all Participants who are Non-Highly Compensated Employees for the current Plan Year multiplied by two, but not more than two percentage points in excess of the Average Actual Deferral Percentage of Participants who are Non-Highly Compensated Employees. |
(b) | Should neither limitation (1) or (2) in Section 7.01(a) be met with respect to a Plan Year, the Committee, subject to applicable law and regulations, shall cause Excess Contributions and income allocable thereto to be distributed in accordance with Section 7.01(e) no later than 2½ months (6 months in the case of an Excess Contribution made to an eligible automatic contribution arrangement (as defined in Code Section 414(w)(3)) following the end of any Plan Year to Participants on whose behalf such Excess Contributions were made for the current Plan Year. |
(c) | Distributions of Excess Contributions must be adjusted for income (gain or loss) through the end of the Plan Year for which the contribution was made. The Committee has the discretion to determine and allocate income using any of the methods set forth below: |
(1) | The Committee may use any reasonable method for computing the income allocable to Excess Contributions, provided that the method does not violate Code Section 401(a)(4), is used consistently for all Participants and for all corrective distributions under the Plan for the Plan Year, and is used by the Plan for allocating income to Participant’s Accounts. A Plan will not fail to use a reasonable method for computing the income allocable to Excess Contributions merely because the income allocable to Excess Contributions is determined on a date that is no more than seven (7) days before the distribution. |
(2) | The Committee may allocate income to Excess Contributions for the Plan Year by multiplying the income for the Plan Year allocable to the Elective Deferral Contributions and other amounts taken into account under the Average Actual Deferral Percentage test (including contributions made for the Plan Year), by a fraction, the numerator of which is the Excess Contributions for the Participant for the Plan Year, and the denominator of which is the sum of the: |
(i) | Account balance attributable to Elective Deferral Contributions and other amounts taken into account under the Average Actual Deferral Percentage test as of the beginning of the Plan Year, and |
(ii) | Any additional amount of such contributions made for the Plan Year. |
(d) | The Actual Deferral Percentage for any Participant who is a Highly Compensated Employee for the Plan Year and who is eligible to have Elective Deferral Contributions (as defined in Treasury Regulation Section 1.401(k)-6) allocated to such Participant’s Account under two (2) or more cash or deferred arrangements described in Code Section 401(k) that are maintained by the same Employer or an Affiliate, shall be determined as if all such Elective Deferral Contributions were made under a single arrangement. If a Highly Compensated Employee participates in two or more cash or deferred arrangements of the Employer that have different Plan Years, then all Elective Deferral Contributions made during the Plan Year being tested under all such cash or deferred arrangements shall be aggregated, without regard to the plan years of the other plans. |
(e) | Elective Deferral Contributions exceeding the limitations of Section 7.01(a) (“Excess Contributions”) and any income or loss allocable to such Excess Contribution shall be designated by the Committee as Excess Contributions and shall be distributed to Highly Compensated Employees whose Accounts were credited with Excess Contributions in the current Plan Year. To determine the aggregate amount of Excess Contributions to be distributed, |
(1) | Determine the dollar amount by which the Elective Deferral Contributions of the Highly Compensated Employee(s) with the highest Actual Deferral Percentage must be reduced to equal the second highest Actual Deferral Percentage(s) under the Plan; then |
(2) | Determine the dollar amount by which the Elective Deferral Contributions for the two (or more) Highly Compensated Employees with the highest Actual Deferral Percentage(s) under the Plan must be reduced to equal the third highest Actual Deferral Percentage(s) under the Plan; then |
(3) | Repeat the steps described in (1) and (2) above with respect to the third and successive highest Actual Deferral Percentage levels under the Plan until the Average Actual Deferral Percentage does not exceed the amount allowable under Section 7.01(a); then |
(4) | Add the dollar amounts determined in each of steps (1), (2), and (3) above. |
(1) | First, to those Highly Compensated Employee(s) with the highest amount of Elective Deferral Contributions until each such Participant’s Elective Deferral Contributions equals the second highest Elective Deferral Contributions under the Plan; |
(2) | Second, to the two (or more) Highly Compensated Employees with the next highest dollar amount of Elective Deferral Contributions under the Plan, until each such Participant’s Elective Deferral Contributions equals the third highest amount of Elective Deferral Contributions under the Plan; and |
(3) | Then, the steps described in (1) and (2) above shall be repeated with respect to the third and successive Highly Compensated Employees with the highest amount of Elective Deferral Contributions until all Excess Contributions have been distributed. |
(f) | The income, gain or loss allocable to distributed Excess Contributions for the Plan Year for purposes of Section 4.01(c) is determined by multiplying the income for the Plan Year allocable to Elective Deferral Contributions by a fraction. The numerator of the fraction is the Excess Contribution distributed to the Participant for the Plan Year. The denominator of the fraction is the total Account Balance of the Participant attributable to Elective Deferral Contributions as of the end of the Plan Year, reduced by the gain |
(g) | The determination of the amount of aggregate Excess Contributions to be distributed under Section 4.01(c) with respect to an Employee for a taxable year shall be reduced by any Excess Contributions previously distributed with respect to such Participant for the Plan Year beginning with or within such taxable year. |
(h) | To the extent administratively possible, the Committee shall distribute all Excess Contributions and any income or loss allocable thereto prior to 2½ months (6 months in the case of an Excess Contribution made to an eligible automatic contribution arrangement (as defined in Code Section 414(w)(3)) following the end of the Plan Year in which the Excess Contributions arose. In any event, however, the Excess Contributions and any income or loss allocable thereto shall be distributed prior to the end of the Plan Year following the Plan Year in which the Excess Contributions arose. |
(i) | Notwithstanding anything contained herein to the contrary, the Employer may, in determining whether the Plan satisfies this Section 7.01, exclude from consideration all Participants (other than Highly Compensated Employees) who have not attained age 21 and is credited with one Year of Service, as described in Code Section 410(a)(1)(A). |
(j) | Except as otherwise provided in this Section 7.01, the Plan may use the current year testing method or prior year testing method for the Average Actual Deferral Percentage test for a Plan Year without regard to whether the current year testing method or prior year testing method is used for the Average Actual Contribution Percentage test for that Plan Year. However, if different testing methods are used, then the Plan cannot use: |
(1) | The recharacterization method of Treasury Regulation Section 1.401(k)-2(b)(3) to correct excess contributions for a Plan Year; or |
(2) | The rules of Treasury Regulation Section 1.401(m)-2(a)(6)(ii) to take Elective Deferral Contributions into account under the Average Actual Contribution Percentage test (rather than the Average Actual Deferral Percentage test). |
(a) | The Average Actual Contribution Percentage for Participants who are Highly Compensated Employees may not exceed the greater of: |
(1) | the Average Actual Contribution Percentage for all Participants who are Non-Highly Compensated Employees for the current Plan Year multiplied by 1.25; or |
(2) | the Average Actual Contribution Percentage for all Participants who are Non-Highly Compensated Employees for the current Plan Year multiplied by two, but not more than two percentage points in excess of the Average Actual Contribution Percentage of Participants who are Non-Highly Compensated Employees. |
(b) | An Employer Matching Contribution with respect to an Elective Deferral Contribution for a Plan Year is not taken into account under the Average Actual Contribution Percentage test for a Non-Highly Compensated Employee to the extent it exceeds the greatest of: |
(1) | five percent (5%) of the Non-Highly Compensated Employee’s Code Section 414(s) compensation for the Plan Year; |
(2) | the Non-Highly Compensated Employee’s Elective Deferral Contributions for the Plan Year; and |
(3) | the product of two (2) times the Plan’s “representative matching rate” and the Non-Highly Compensated Employee’s Elective Deferral Contributions for the Plan Year. |
(c) | Excess Aggregate Contributions and income allocable thereto shall be forfeited, if otherwise forfeitable under the terms of this Plan, or if not forfeitable, shall be distributed no later than 2½ months (6 months in the case of an Excess Aggregate Contribution made to an eligible automatic contribution arrangement (as defined in Code Section 414(w)(3)) after the first day of each Plan Year as set forth below. Distributions of Excess Aggregate Contributions must be adjusted for income (gain or loss) through the end of the Plan Year for which the contribution was made. For the purpose of this Section, “income” shall be determined and allocated in accordance with the provisions of Section 7.01(c) of this Plan, except that |
(d) | The Average Actual Contribution Percentage for any Participant who is a Highly Compensated Employee for the Plan Year and who is eligible to receive Employer Matching Contributions allocated to his or her account under two (2) or more plans described in Code Section 401(a), or arrangements described in Code Section 401(k) that are maintained by the same Employer, shall be determined as if the total of such contributions was made under each plan and arrangement. If a Highly Compensated Employee participates in two (2) or more such plans or arrangements that have different plan years, then all matching contributions made during the Plan Year being tested under all such plans and arrangements shall be aggregated, without regard to the plan years of the other plans. In the event this Plan satisfies the requirements of Code Section 410(b) only if aggregated with one or more other plans, or if one or more other plans satisfy the requirements of Code Section 410(b) only if aggregated with this Plan, then this Section 7.02 shall be applied by determining the Actual Contribution Percentage of Participants as if all such plans were a single plan. |
(e) | For purposes of this Plan, “Excess Aggregate Contributions” shall mean, with respect to a Plan Year, the excess of the aggregate amount of the Employer Contributions actually made on behalf of Highly Compensated Employees for such Plan Year, over the maximum amount of such contributions permitted under the limitations of Section 7.02(a). To determine the aggregate amount of Excess Aggregate Contributions to be distributed, the Committee shall first determine the aggregate dollar amount of the distribution as follows: |
(1) | Determine the dollar amount by which the Excess Aggregate Contributions of the Highly Compensated Employee(s) with the highest Actual Contribution Percentage must be reduced to equal the second highest Actual Contribution Percentage (s) under the Plan; then |
(2) | Determine the dollar amount by which the Excess Aggregate Contributions for the two (or more) Highly Compensated Employees with the highest Actual Contribution Percentage (s) under the Plan must be reduced to equal the third highest Actual Contribution Percentage (s) under the Plan; then |
(3) | Repeat the steps described in (1) and (2) above with respect to the third and successive highest Actual Contribution Percentage levels under the Plan until the Average Actual Contribution Percentage does not exceed the amount allowable under Section 7.02(a); then |
(4) | Add the dollar amounts determined in each of steps (1), (2), and (3) above. |
(1) | First, to those Highly Compensated Employee(s) with the highest amount of Excess Aggregate Contributions until the sum of each such Participant’s Employer Matching Contributions equals the sum of the second highest Employer Matching Contributions under the Plan; then |
(2) | Second, to the two (or more) Highly Compensated Employees with the next highest dollar amount of Excess Aggregate Contributions under the Plan, until the sum of each such Participant’s Employer Matching Contributions equals the sum of the third highest Employer Matching Contributions under the Plan; and |
(3) | Then, the steps described in (1) and (2) above shall be repeated with respect to the third and successive Highly Compensated Employees with the highest amount of Excess Aggregate Contributions until all Excess Aggregate Contributions have been distributed. |
(f) | The income, gain or loss allocable to distributed Excess Aggregate Contributions for the Plan Year is determined by multiplying the income for the Plan Year allocable to Employer Matching Contributions by a fraction. The numerator of the fraction is the Excess Aggregate Contributions made on behalf of the Participant for the Plan Year. The denominator of the fraction is the total Account Balance of the Participant attributable to Employer Matching Contributions as of the end of the Plan Year, reduced by the gain allocable to such total amount for the Plan Year and increased by the loss allocable to such total amount for the Plan Year. |
(g) | The determination and correction of Excess Aggregation Contributions of a Highly Compensated Employee shall be calculated in accordance with Treasury Regulation Sections 1.401(m)‑1(e)(4)(iii) and 1.401(m)‑1(f)(13)(iii). |
(h) | Excess Aggregate Contributions shall be forfeited if otherwise forfeitable under the terms of the Plan (or if not forfeitable, distributed) from the Employer Matching Contributions Account of the Participant in proportion to the Employer Matching Contributions for the Plan Year. |
(i) | Amounts forfeited by Highly Compensated Employees under this Section 7.02 shall be treated as Annual Additions and applied to reduce subsequent Employer Contributions to the Plan. |
(j) | Notwithstanding the foregoing, no forfeitures arising under this Section 7.02 shall be allocated to the Account of any Highly Compensated Employee. |
(k) | Except as otherwise provided in this Section 7.02, the Plan may use the current year testing method or prior year testing method for the Average Actual Contribution Percentage test for a Plan Year without regard to whether the current year testing method or prior year testing method is used for the Average Actual Deferral Percentage test for that Plan Year. However, if different testing methods are used, then the Plan cannot use: |
(1) | The recharacterization method of Treasury Regulation Section 1.401(k)-2(b)(3) to correct excess contributions for a Plan Year; or |
(2) | The rules of Treasury Regulation Section 1.401(m)-2(a)(6)(ii) to take Elective Deferral Contributions into account under the Average Actual Contribution Percentage test (rather than the Average Actual Deferral Percentage test). |
(a) | 100% of his Elective Deferral Contributions Account, Rollover Contributions Account and Prior Employer Accounts, if any, plus |
(b) | a percentage of his Employer Accounts, which shall vest in accordance with the following schedule: |
Years of Service | Vested Percentage |
less than 2 | 0% |
2 but less than 3 | 20% |
3 but less than 4 | 40% |
4 but less than 5 | 60% |
5 but less than 6 | 80% |
6 or more | 100% |
(c) | Notwithstanding the above, a Participant’s Account shall become fully (100%) vested upon (1) his Early Retirement Date or Normal Retirement Date, if he is then an Employee, (2) his death, if he was an Employee immediately before his death, or (3) the determination that he is unable to continue his previous employment on account of Disability. If a Participant dies while performing qualified military service (as defined in Code Section 414(u)), the survivors of the Participant are entitled to any additional benefits (other than benefit accruals relating to the period of qualified military service) provided under the Plan as if the Participant had resumed and then terminated employment on account of death, including accelerated vesting. |
(d) | A Participant shall become fully vested in all cash dividends received by the Trust for which an election is offered pursuant to Section 12.08. |
(a) | When a Participant has a Termination of Employment but does not receive a distribution of his vested Employer Account prior to incurring five consecutive One Year Break in Service, the Employer Account shall continue to be credited with investment gains and losses until distribution of the vested percentage of the Employer Account commences. Upon incurring five consecutive One Year Breaks in Service, the Participant’s non-vested Account balance shall be forfeited. |
(b) | If a Participant has a Termination of Employment and receives a distribution of his entire vested Employer Account prior to incurring five consecutive |
(c) | When a Participant forfeits the non-vested portion of his Employer Account, to the extent possible, Financed Stock released from the Stock Suspense Account in accordance with the provisions of Section 12.05(c) and allocated in accordance with the provisions of Sections 12.06(c) and (d) must be forfeited only after all other assets. If the Participant has an interest in more than one class of Financed Stock which have been released from the Stock Suspense Account and allocated to a Participant’s Employer Account (and any other Account holding employer securities), to the extent possible, all Qualifying Employer Securities must be forfeited in the same proportion of each such class of Financed Stock. |
(d) | A Participant is eligible to have a previous Forfeiture restored, if (1) he previously incurred a Forfeiture under this Article, (2) he again becomes an Employee before he has five (5) consecutive One Year Breaks in Service, and (3) he repays any distribution that he previously received, in the manner specified in Section 8.03(f). |
(e) | Any repayment in accordance with (d) above must be made no later than the earlier of (1) the end of the Plan Year in which the individual incurs a five (5) consecutive One Year Breaks in Service, counting from the Plan Year beginning immediately after distribution or deemed distribution that resulted in his Forfeiture or (2) the fifth (5th) anniversary of his reemployment. |
(f) | In order to exercise his right of repayment, the Participant must repay to the Trust, without interest (1) an amount equal to any cash he received as part of the distribution that resulted in his Forfeiture, plus (2) all Company Stock that was then distributed to him. Cash or other property may not be restored to the Trust in lieu of Company Stock, but the shares restored need not be the same ones that were originally distributed. A Participant who had no vested interest in his Accounts at the time of his Forfeiture is automatically deemed to have complied with the terms of this Section as of the date on which he becomes eligible to make a repayment. |
(g) | If a Participant complies with the conditions of the applicable provisions of this Section 8.03, his Accounts will be credited with both the cash and Company Stock that he has repaid and the interest in his Accounts that he had previously forfeited, unadjusted for any income, expenses, gains or losses since the time of forfeiture. This restoration is to be made, first, out of Forfeitures arising in the Plan Year of repayment, and, second, out of Employer Contributions and shares of Company Stock released from the Unallocated Stock Account in the Plan Year of repayment. The Participant’s Employer is required to make any contributions necessary to make a complete restoration. |
(a) | A distribution will be deemed to be made on account of an immediate and heavy financial need of the participant only if the distribution is on account of the financial needs described in this Section 9.01(a), in which case the Administrator may reasonably rely upon the participant’s representation that the financial need is on account of: |
(1) | Expenses for (or necessary to obtain) medical care that would be deductible under Code Section 213(d) (determined without regard to whether the expenses exceed 7.5% of adjusted gross income); |
(2) | Costs directly related to the purchase of a principal residence for the Participant (excluding mortgage payments); |
(3) | Payment of tuition, related educational fees, and room and board expenses, for up to the next twelve (12) months of post‑secondary education for the Participant, the Participant’s spouse, children, or dependents (as defined in Code Section 152, without regard to Code Sections 152(b)(1), (b)(2), and (d)(1)(B)) and such expenses of the Participant’s primary beneficiary under the Plan (as defined below); |
(4) | Payments necessary to prevent the eviction of the Participant from the Participant’s principal residence or foreclosure on the mortgage on that residence; |
(5) | Payments for burial or funeral expenses for the Participant’s deceased parent, spouse, children or dependents (as defined in Code Section 152, and without regard to Code Section 152(d)(1)(B)) and such expenses of the Participant’s primary beneficiary under the Plan (as defined below); or |
(6) | Expenses for the repair of damage to the Employee’s principal residence that would qualify for the casualty deduction under Code |
(b) | A distribution will be deemed to be necessary to satisfy an immediate and heavy financial need of a Participant if all of the following requirements are satisfied: |
(1) | the distribution is not in excess of the amount of the immediate and heavy financial need of the Participant, including any amounts necessary to satisfy applicable federal, state and local income taxes, excise taxes and penalty taxes which may be reasonably anticipated to result from the distribution; |
(2) | the Participant has obtained all distributions (including distributions currently available to the Participant as provided for in Section 12.09), other than hardship distributions, and all non‑taxable loans currently available under all plans maintained by the Employer; and |
(3) | the Participant does not make a contribution to this Plan or to any other plan of deferred compensation contrary to the provisions of Section 9.02. |
(a) | Elective Deferrals for the six-month period following the date of receipt of the hardship withdrawal; and |
(b) | Contributions to any other qualified or nonqualified plan of deferred compensation maintained by the Employer including, but not limited to, stock option plans and stock purchase plans for the six-month period following the date of receipt of the hardship withdrawal. |
(a) | “Designated Beneficiary” shall mean the individual who is designated as the beneficiary under Section 2.10 of the Plan and is the designated beneficiary under Code Section 401(a)(9) and Treasury Regulation Section 1.401(a)(9)-l, Q&A-4. |
(b) | “Distribution Calendar Year” shall mean 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 10.06(b)(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. |
(c) | “Life Expectancy” shall mean life expectancy as computed by use of the Single Life Table in Treasury Regulation Section 1.401(a)(9)-9. |
(d) | “Participant’s Account Balance” shall mean 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 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. |
(a) | Termination of Employment. If a Participant has a Termination Date other than on account of death, the Participant’s Account shall be distributed as soon as administratively feasible following the Participant’s Termination Date and receipt by the Committee of the Participant’s request for a distribution. A Participant shall be treated as having a Termination of Employment for purposes of the restrictions on the distribution of Elective Deferrals under Code Section 401(k)(2)(B)(i)(I) during any period the Participant is performing service in the uniformed services (as described in |
(b) | Death. If a Participant has a Termination Date on account of death, the Participant’s Account shall be distributed within ninety (90) days after the Participant’s death unless the particular facts and circumstances require a longer wait. |
(c) | Consent of Participant. A Participant’s consent to a distribution of his Account shall be subject to the following: |
(1) | If the total value of the Participant’s vested Accounts to be distributed is less than or equal to $1,000, determined any time on or after the Participant’s Termination Date, the Participant’s vested Account balance shall be distributed as soon as administratively feasible to the Participant in a lump sum payment. |
(2) | If the total value of the Participant’s vested Accounts to be distributed is greater than $1,000, determined on or after the Participant’s Termination Date, the Participant’s consent to a distribution shall be required; provided that, notwithstanding the lack of consent, distribution shall be made no later than the date established under Section 10.06 for mandatory distributions. |
(d) | Retirement After Age 65. Notwithstanding any other provision of the Plan, unless the Participant otherwise elects, the payment of benefits under this Plan shall begin not later than the 60th day after the latest of the close of the Plan Year in which occurs (1) the Participant’s Normal Retirement Age or (2) the Participant’s Termination Date. |
(a) | General Rules |
(1) | Requirements of Treasury Regulations Incorporated. All distributions required under this Section 10.06 will be determined and made in accordance with the Treasury Regulations under Code Section 401(a)(9). |
(2) | TEFRA Section 242(b)(2) Elections. Notwithstanding the other provisions of this Section 10.06, 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. |
(b) | Time and Manner of Distribution. |
(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. For purposes of this Section: |
(i) | The term “required beginning date” of a Participant is the later of the first day of April of the calendar year following: (A) the calendar year in which the Participant attains age 70½, or (B) the calendar year in which the Participant retires if the Participant is not a 5–percent owner of the Employer. |
(ii) | The “required beginning date” for a Participant who is a 5-percent Owner (as defined in Code Section 401(a)(9)) shall not be later than April 1 of the calendar year following the calendar year in which the participant attains age 70½. |
(iii) | Once distributions have begun to a 5–percent owner under this Section, they must continue to be distributed, even if the Participant ceases to be a 5–percent owner in a subsequent year. |
(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: |
(i) | If the Participant’s surviving spouse is the Participant’s sole designated beneficiary, then 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 70½, if later. |
(ii) | If the Participant’s surviving spouse is not the Participant’s sole designated beneficiary, then distributions to the designated beneficiary will begin by December 31 of the calendar year immediately following the calendar year in which the Participant died. |
(iii) | 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. |
(iv) | 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 10.06(b)(2), other than Section 10.06(b)(2)(i), will apply as if the surviving spouse was the Participant. |
(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 10.06(c) and 10.06(d) of the Plan. 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 Code Section 401(a)(9) and the Treasury Regulations. |
(c) | Required Minimum Distributions During Participant’s Lifetime. |
(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: |
(i) | 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 |
(ii) | 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. |
(2) | Lifetime Required Minimum Distributions Continue Through Year of Participant’s Death. Required minimum distributions will be determined under this Section 10.06(c) beginning with the first distribution calendar year and up to and including the distribution calendar year that includes the Participant’s date of death. |
(d) | Required Minimum Distributions After Participant’s Death. |
(1) | Death On or After Date Distributions Begin. |
(i) | 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: |
(A) | 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. |
(B) | 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 |
(C) | 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. |
(ii) | 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. |
(e) | Death Before Date Distributions Begin. |
(1) | Participant Survived by Designated Beneficiary. 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 10.06(d)(1). |
(2) | 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. |
(3) | 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 10.06(b)(2), this Section 10.06(e)(3) will apply as if the surviving spouse were the Participant. |
(f) | Notwithstanding the foregoing provisions of this Section 10.06, if the total value of a Participant’s vested Accounts to be distributed is less than or equal to $1,000, determined any time on or after the Participant’s Termination Date, |
(g) | 2009 Required Minimum Distributions. Notwithstanding the foregoing provisions of this Section 10.06, a Participant or Beneficiary who would have been required to receive required minimum distributions for 2009 but for the enactment of Code Section 401(a)(9)(H) (the “2009 required minimum distributions”), and who would have satisfied that requirement by receiving distributions that are (1) equal to the 2009 required minimum distributions or (2) one or more payments in a series of substantially equal distributions (that include the 2009 required minimum distributions) made at least annually and expected to last for the life (or life expectancy) of the Participant, the joint lives (or joint life expectancy) of the Participant and the Participant’s Designated Beneficiary, or for a period of at least 10 years, will not receive those distributions for 2009 unless the Participant or Beneficiary chooses to receive such distributions. |
(a) | By payment to the legal representative of such minor or such person; |
(b) | By payment directly to such minor or such person; |
(c) | By payment in discharge of bills incurred by or for the benefit of such minor or such person. The Trustee shall make such payments as directed by the Committee without the necessary intervention of any guardian or like fiduciary and without any obligation to require bond or to see the further application of such payment. Any payment so made shall be in complete discharge of the Plan’s obligation to the Participant and his Beneficiaries. |
(a) | A Participant may elect, at a time and in the manner prescribed by Committee, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the Participant in a direct rollover. An eligible rollover distribution shall be a distribution of all or any portion of the balance to the credit of a Participant, except that an eligible rollover distribution shall not include any distribution which is part of a series of installment payments over a period of ten years or more, any distribution to the extent such distribution is required under Code Section 401(a)(9), and the portion of any distribution that is not includable in gross income (determined without regard to the exclusion for net unrealized appreciation with respect to employer securities). An eligible individual retirement plan is an individual retirement account as described in Code Section 408(a), an individual retirement annuity as described in Code Section 408(b), or a qualified trust described in Code Section 401 which accepts the Participant’s eligible rollover distribution. This Section shall also apply to distributions to the surviving spouse of a deceased Participant, or to the alternate payee of a Participant under a Qualified Domestic Relations Order, provided that, in the case of a distribution to a surviving spouse, an eligible retirement plan shall include only an individual retirement account or an individual retirement annuity. |
(b) | Notwithstanding the above, an eligible retirement plan shall also mean an annuity contract described in Code Section 403(b) and an eligible plan under Code Section 457(b) 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 Code Section 414(p). A Participant may elect to roll over directly an eligible rollover distribution to a Roth IRA described in Code Section 408A(b). |
(c) | For purposes of this Section 10.10, 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. |
(d) | Non-spouse beneficiary rollover right. A non-spouse beneficiary who is a Beneficiary under the Plan who also qualifies as a designated beneficiary |
(d) | 50% of the combined current value of the Participant’s Elective Deferral Account, Rollover Contributions Account and the vested portion of Employer Accounts, determined on the date of such Participant’s request for a loan, reduced by the outstanding balance of all other loans from the Plan, or |
(e) | the vested portion of his Accounts up to $50,000, reduced by the greater of (1) the highest outstanding balance of loans from the Plan during the one-year period ending on the day before the date on which such loan is made, or (2) the outstanding balance of loans from the Plan on the date on which such loan is made. |
(a) | The interest rate on all loans shall be commercially reasonable at the time the Administrator approves the loan. All loans shall be evidenced by a note and shall be adequately secured as to principal and interest. No more than |
(b) | The Administrator shall be responsible for the collection of all loans. Upon default of any loan, the entire unpaid balance shall, if the immediate distribution of the Participant’s Account is to be made, be offset against that portion of the Participant’s Account which serve as security for his loan, upon his first becoming entitled to receive a distribution in accordance with the relevant portion of Article 10 of the Plan, whether or not the Participant elects to have his payments commence at that time. |
(a) | “Disqualified Person” shall mean a person defined in Code Section 4975(e)(2) and shall mean a party in interest as defined in ERISA Section 3(14). |
(b) | “Exempt Loan” shall mean any Loan that satisfies the provisions of Section 12.04. |
(c) | “Financed Stock” shall mean Common Stock acquired with the proceeds of an Exempt Loan. |
(d) | “Indebtedness” shall mean the principal amount of any indebtedness incurred by the Plan in connection with the acquisition of Financed Stock. |
(e) | “Interest” shall mean interest payable by the Plan with respect to Indebtedness. |
(f) | “Leveraged ESOP” shall mean the portion of the Plan described in this Article 12. |
(g) | “Loan” shall mean any loan made to the Leveraged ESOP, by a Disqualified Person or guaranteed by a Disqualified Person. |
(h) | “Release Date” shall mean each date specified in Section 12.05(c) for the release of shares of Common Stock from the Stock Suspense Account for allocation to Participants’ Employer Accounts. |
(i) | “Stock Suspense Account” shall mean an account credited with the Financed Stock prior to the release there from in accordance with Section 12.05(d). |
(j) | “Unallocated Financed Stock” shall mean shares of Financed Stock that remain in the Stock Suspense Account prior to the release of such shares from the Stock Suspense Account and the allocation of such shares to Participants’ Employer Accounts. |
(a) | The primary purpose of the Leveraged ESOP is to enable Participants to share in the growth and prosperity of HEICO Corporation and its Affiliates by enabling Participants to acquire stock ownership interests in the form of Common Stock. Accordingly, the Leveraged ESOP is an employee stock ownership plan within the meaning of Code Section 4975(e)(7) which is designed to invest primarily in Common Stock. The Leveraged ESOP may engage in loans (or other extensions of credit) to finance its acquisition of Common Stock, including such Loans (or extensions of credit) from or secured primarily by a guarantee of the Company or an Affiliated Company or the expectation that the Company and its Affiliated Companies will make contributions to the Leveraged ESOP in amounts sufficient to enable the Leveraged ESOP to amortize such loans (or extensions of credit). |
(b) | The Leveraged ESOP is intended to be and shall be a stock bonus plan within the meaning of Treasury Regulation Section 1.401‑1(b)(1)(iii) that is qualified under Code Section 401(a). It is designed to meet the requirements for an employee stock ownership plan within the meaning of Code Section 4975(e)(7) and ERISA Section 407(d)(6) and regulations thereunder and may enter into one or more Exempt Loans pursuant to this Article 12. Separate accounting shall be maintained with respect to the Leveraged ESOP, any Exempt Loan and Financed Stock acquired with the proceeds of such Exempt Loan. |
(c) | The terms of any Exempt Loan shall comply with all the requirements necessary to constitute an “exempt loan” within the meaning of Treasury Regulation Section 54.4975‑7(b). |
(a) | the terms shall be as favorable to the Plan as the terms of a comparable loan from arms‑length negotiations between independent parties; |
(b) | the interest rate shall be no more than a reasonable interest rate considering all relevant factors including the amount and duration of the loan, the security and guarantee involved, the credit standing of the Plan and the guarantor of the loan, and the interest rate prevailing for comparable loans; |
(c) | the loan shall be without recourse against the Plan; |
(d) | the loan must be for a specific term under which the number of years to maturity is definitely ascertainable at all times; |
(e) | the loan may not be payable at the demand of any person except in the case of default; |
(f) | the only assets of the Plan that may be given as collateral on the loan are Common Stock acquired with the proceeds of the Exempt Loan or Common Stock used as collateral on a prior Exempt Loan repaid with the proceeds of the Exempt Loan; |
(g) | no person entitled to payment under the loan shall have any right to assets of the Plan other than collateral given for the loan, contributions made to the Plan to enable it to meet its obligations under the loan, and earnings attributable to such collateral and such contributions; |
(h) | the value of Plan assets transferred in satisfaction of the loan upon an event of default shall not exceed the amount of the default; |
(i) | if the lender is a Disqualified Person, Plan assets may only be transferred upon default only upon and to the extent of the failure of the Plan to meet the payment schedule of the loan; |
(j) | upon payment of any portion of the balance due on the loan, the assets pledged as collateral for such portion shall be released from encumbrance; |
(k) | the loan shall be repaid only from proceeds of an Exempt Loan, amounts contributed to the Plan by the Company or its Affiliated Companies to enable the Plan to repay such loan, earnings on such contributions, and earnings on Financed Stock acquired with the proceeds of such loan (including dividends and proceeds of sale of such Financed Stock, so long as such use of proceeds |
(l) | the payments made with respect to an Exempt Loan must not exceed an amount equal to the sum of such contributions and earnings received during or prior to the year less such payments in prior year, and such contributions and earnings must be accounted for separately in the books and accounts of the ESOP until the Exempt Loan is repaid; and |
(m) | the loan must be primarily for the benefit of Participants and their beneficiaries. |
(a) | The proceeds of any Exempt Loan shall be used within a reasonable time after receipt thereof to acquire Common Stock, to repay such loan, or to repay a prior Exempt Loan as determined by the Committee in its sole discretion. Except as permitted by law, Common Stock acquired with the proceeds of an Exempt Loan may not at that time or at any time thereafter be subject to any put, call, option, buy‑sell or other similar arrangement when held by and distributed from the Plan, whether or not the Plan is then an employee stock ownership plan. The rights and protections granted in this paragraph are non-terminable and will continue to exist as long as any Company Stock acquired with an Exempt Loan is held by the Plan or by any Participant or any other person for whose benefit such protections and rights have been created, and neither the repayment of such loan nor the failure of the Plan to be an employee stock ownership plan, nor any amendment of the Plan, will cause a termination of the protections and rights. |
(b) | All shares of Common Stock acquired by the Trustee with the proceeds of an Exempt Loan shall be allocated to a separate Stock Suspense Account within the Trust and be held therein until allocated to the Employer Accounts of Participants pursuant to the provisions of Section (d) below. |
(c) | As of the last day of any Plan Year (each date being referred to as a “Release Date”), there shall be released from the Stock Suspense Account and allocated to Participants’ Employer Accounts in accordance with the provisions of Section 12.06(c) below a number of shares of Financed Stock, as determined in a reasonable and nondiscriminatory manner by the Committee and subject to the provisions of Sections (d) and (e) below. |
(d) | If the conditions of this Section 12.05(d) are satisfied, the percentage of Financed Stock to be released on each Release Date equals the Indebtedness repaid during the current Plan Year divided by the Indebtedness originally incurred. |
(1) | The formula set forth in this Section 12.05(d) may be used if (i) the Board elects its use no later than the time when stock acquired under a particular Loan Agreement is first released, (ii) the term of the |
(e) | If the formula set forth in Section 12.05(d) is not used, the percentage of shares of Financed Stock so released from the Stock Suspense Account, as of each Release Date shall not be less than the total number of shares of Financed Stock in the Stock Suspense Account immediately prior to the first day of such Plan Year multiplied by a fraction, the numerator of which is equal to the total dollar amount of Indebtedness and Interest actually paid by the Trustee with respect to such Plan Year to amortize the Exempt Loan and the denominator of which is the sum of the numerator plus the total dollar amount of Indebtedness and Interest due for all future periods of such Exempt Loan after the end of such Plan Year. |
(a) | The provisions of this Section 12.06 shall govern the allocation of Employer Contributions that are used to make payments on an Exempt Loan. |
(b) | Any Financed Stock acquired by the Leveraged ESOP shall be allocated initially to the Stock Suspense Account. Each Participant’s Employer Account shall reflect such Participant’s interest in the Leveraged ESOP. |
(1) | Each Participant’s Employer Account shall be credited with its allocated share of Common Stock released from the Stock Suspense Account pursuant to Sections 12.05(d) and 12.05(e). Each Participant’s Employer Account will be credited with its allocable share of cash dividends on Common Stock allocated to such Participant’s Employer Account and proceeds from the sale of such shares of Common Stock. |
(2) | Each Participant’s Employer Account shall be debited for Common Stock distributed to said Participant from such Employer Account pursuant to applicable Plan provisions, or for its allocable share of Common Stock sold by the Trustee or otherwise removed from such Employer Account in accordance with any applicable provisions of the Plan. Each Participant’s Employer Account shall be debited for cash payments which are distributed to said Participant from such Account pursuant to applicable Plan provisions. |
(c) | All Common Stock released from the Stock Suspense Account as of any Release Date are allocated among the Participants’ Employer Matching Contributions Account, to the extent that Employer Matching Contributions made on their behalf were utilized to pay Interest or repay Indebtedness. Common Stock not so allocated is allocated to the Equity Builder Contributions Account of active Participants in accordance with the provisions of Section 4.04(b). |
(d) | As of each Release Date in each Plan Year, the Financed Stock that is released from the Stock Suspense Account, if any, pursuant to the provisions of Sections 12.05(d) and 12.05(e) shall be allocated to the Employer Accounts of Participants. Each Participant’s allocable share of Financed Stock shall be calculated by multiplying the aggregate number of shares of Financed Stock released on such Release Date by a fraction, the numerator of which is the Contribution made for such Plan Year by the Employer on behalf of such Participant pursuant to Section 4.04, and the denominator of which is the aggregate contribution to be made by the Employer on behalf of all Participants pursuant to Section 4.04 for such Plan Year. |
(a) | All dividends received with respect to Financed Stock are used to pay Interest or repay Indebtedness. If, however, dividends that would otherwise be allocated to Participants’ Accounts or distributed to them in accordance with Section 12.08 are used to pay Interest or repay Indebtedness, Company Stock equal in value to the dividends so applied must be allocated to each Participant’s Equity Builder Account, in addition to any other allocations under this Plan. |
(b) | After a loan has been repaid, dividends on stock acquired with the proceeds of the loan are distributed or allocated in accordance with Section 12.08. The refinancing of a loan through a new loan transaction is not deemed to be repayment for purposes of this Section 12.07. |
(a) | Cash Dividends Paid |
(1) | Notwithstanding any other provision of Article 12 to the contrary, each Participant may elect to: |
(i) | receive a distribution in cash equal to the value of any cash dividends paid by the Company and received by the Trust with respect to shares of Common Stock allocated to his Employer Accounts at the close of business on the ex-dividend date established for the payment of such cash dividends; or |
(ii) | reinvest in the Company Stock Fund any cash dividends paid by the Company and received by the Trust with respect to shares of Common Stock allocated to his Employer Accounts at the close of business on the ex-dividend date established for the payment of such cash dividends. |
(2) | Any distribution pursuant to paragraph (a)(1)(i) shall be made as soon as is administratively feasible following the receipt of the cash dividends by the Trust, but in no event later than 90 days after the |
(3) | If a Participant fails to make an election pursuant to paragraph (a)(1)(i), he shall be deemed to have made an election pursuant to paragraph (a)(1)(ii). |
(4) | Cash dividends subject to an election pursuant to paragraph (a)(1) shall be fully vested in accordance with Section 8.01(d). |
(b) | Elections. The Committee shall specify the manner in which Participants will be required to make their elections subject to the following conditions: |
(1) | The Committee shall provide no less than annually each Participant an opportunity to make an election. |
(2) | A Participant’s election shall take effect immediately following receipt by the Committee and shall remain in effect until an election to the contrary is filed by such Participant. |
(3) | A Participant’s election shall become irrevocable the latter of (i) that date on which the cash dividends attributable to such election are paid to the Trust, or (ii) the date established by the Committee for revoking such an election. |
(4) | The rules established by the Committee for making an election shall be applied in a uniform and nondiscriminatory manner. |
(a) | With respect to any shares of Common Stock allocated to the Account of a Participant, alternate payee who has an account under the Plan, or a beneficiary of a deceased Participant, the individual shall be entitled to elect to direct the Plan to divest any such shares and to reinvest an equivalent amount in other Investment Funds which satisfy the requirements of Section 12.09(c) hereof. |
(b) | Except as otherwise determined by the Committee as may be necessary and appropriate, a Participant’s election to divest pursuant to Section 12.09(a) as to a Plan Year may be made at any time by filing a written election with the Administrator. The Committee shall impose restrictions on the divestiture of Common Stock this is either required in order to ensure compliance with applicable securities laws or is reasonably designed to ensure compliance with applicable securities laws. The Administrator shall direct the Trustee in writing to liquidate, including a specific direction as to the manner in which to liquidate, the shares of Common Stock as to which a Participant has made a transfer election and to transfer such cash proceeds to the other Investment Fund or Funds elected as soon as administratively feasible after such transfer election has been made. |
(c) | For purposes of this Section 12.09, other Investment Funds must include not less than three (3) Investment Funds, other than Company Stock, to which the Participant may direct the proceeds of divestment of Company Stock required by this Section 12.09, each of which options is diversified and has materially different risk and return characteristics. |
(a) | The following terms when used in this Article 13 shall have the designated meaning unless a different meaning is plainly required by the context in which the term is used: |
(1) | “Key Employee” shall mean any individual who meets the criteria of a Key Employee as defined in Code Section 416(i)(1). |
(2) | “Determination Date” shall mean, with respect to any Plan Year, the last day of the immediately preceding Plan Year. |
(3) | “Permissive Aggregation Group” means any grouping of plans of the Employer which includes the Required Aggregation Group, plus any other plans of the Employer that allow, when aggregated, the resulting group of plans to meet the requirements of Code Sections 401(a)(4) and 410. |
(4) | “Required Aggregation Group” means each plan of the Employer in which a Key Employee is a participant, and each other plan of the Employer which enables any plan in which a Key Employee |
(5) | “Non‑Key Employee” shall mean any individual who is not a Key Employee. |
(b) | The Plan will be considered a Top‑Heavy Plan for the Plan Year, if, as of the last Determination Date: |
(1) | the aggregate of the Accounts of Participants who are Key Employees exceeds 60% of the aggregate of the accounts of all Participants (the “60% Test”); or |
(2) | the Plan is part of a Required Aggregation Group and the Required Aggregation Group meets the requirements of Section 13.01(b)(1). |
(c) | The minimum annual contribution for a Non‑Key Employee shall be equal to the lesser of: |
(1) | 3% of his compensation (within the meaning of Code Section 415); or |
(2) | the percentage at which contributions are made (or required to be made) under the Plan, including Elective Deferral Contributions, for the plan year for the Key Employee for whom such percentage is the highest. |
(d) | If the Plan is top‑heavy for any Plan Year, a Participant’s Account shall continue to be vested in accordance with the vesting schedule provided in Section 8.01 of the Plan. |
(a) | Determination of top-heavy status. |
(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 $165,000 (for Plan Years beginning after December 31, 2011, as adjusted under Code Section 416(i)(1)), 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 Code Section 415(c)(3). The determination of who is a key employee will be made in accordance with Code Section 416(i)(1) and the applicable regulations and other guidance of general applicability issued thereunder. |
(2) | 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 Code Section 416(g)(2) during the 1-year period ending on the determination date. The preceding |
(3) | 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. |
(b) | Minimum benefits. Employer Matching Contributions shall be taken into account for purposes of satisfying the minimum contribution requirements of Code Section 416(c)(2) and the 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 Code Section 401(m). |
(a) | to determine all questions relating to eligibility to participate in the Plan; |
(b) | to compute and certify to the Trustee the amount and kind of distributions payable to Participants and their Beneficiaries; |
(c) | to maintain all records necessary for the administration of the Plan except for those maintained by the Company or Trustee; |
(d) | to interpret the provisions of the Plan and to make and publish such rules for the administration of the Plan not inconsistent with the terms thereof; |
(e) | to establish and modify the method of accounting for the Plan or the Trust; |
(f) | to employ counsel, accountants and other consultants to aid in exercising its powers and carrying out its duties hereunder; |
(g) | to appoint, at the direction of the Company, an Investment Manager (as defined in ERISA Section 3(38)), who shall have responsibility for investment of the Trust Fund; and |
(h) | to perform any other acts necessary and proper for the administration of the Plan, except such acts that are to be performed by the Company or the Trustee. |
(a) | Permit any part of the Trust Fund (other than such part as is required to pay taxes and administrative expenses) to be used for or diverted to purposes other than for the exclusive benefit of the Participant or their Beneficiaries; |
(b) | Cause or permit any portion of the Trust Fund to revert to or become the property of the Employer; |
(c) | Change the duties, liabilities, or responsibilities of the Trustee without its prior written consent. |
(a) | Each Participant would (if either this Plan or the other plan then terminated) receive a benefit immediately after the merger, consolidation or transfer which is equal to or greater than the benefit, which he would have been entitled to receive immediately before the merger, consolidation or transfer (if this Plan had been terminated); |
(b) | Resolutions of the Boards of Directors of all Employers under this Plan and of any new or successor employer of the affected Participants shall authorize such transfer of assets; and |
(c) | Such other plan is qualified under Code Section 401(a) and the related trust is exempt from tax under Code Section 501(a). |
By: | /s/ CARLOS L. MACAU, JR. |
Participating Employer | EIN | Effective Date |
HEICO Corporation | 65-0341002 | January 1, 1985 |
Jet Avion Corporation | 59-2699611 | July 1, 1985 |
LPI Industries Corporation | 65-0054782 | April 1, 1989 |
HEICO Aerospace Corporation | 59-0791770 | April 27, 1993 |
Aircraft Technology, Inc. | 65-0233725 | October 1, 1998 |
Radiant Power Corp. | 65-0892651 | February 1, 1999 |
McClain International, Inc. | 58-0876596 | October 1, 1998 |
Rogers-Dierks, Inc. | 58-2428936 | October 1, 1999 |
Turbine Kinetics, Inc. | 65-0845883 | October 1, 1999 |
Thermal Structures, Inc. | 95-3575611 | August 1, 1999 |
Santa Barbara Infrared, Inc. | 77-0111325 | January 1, 2000 |
Northwings Accessories Corp. | 65-0312802 | January 1, 2000 |
Leader Tech, Inc. | 04-2667972 | April 1, 2000 |
Future Aviation, Inc. | 65-1011336 | April 1, 2001 |
Analog Modules, Inc. | 59-2074349 | May 1, 2001 |
Jetseal, Inc. | 91-1433851 | January 1, 2002 |
Inertial Airline Services, Inc. | 34-1823836 | January 1, 2002 |
HEICO Aerospace Parts Corp. | 65-1146790 | July 1, 2002 |
Aviation Facilities, Inc. | 03-0377215 | July 1, 2002 |
Aero Design, Inc. | 62-1858631 | January 1, 2003 |
Niacc-Avitech Technologies, Inc. | 51-0453669 | July 1, 2003 |
Sierra Microwave Technology, LLC | 37-1480034 | January 1, 2004 |
Connectronics Corp. | 20-1971140 | December 1, 2004 |
Lumina Power, Inc. | 20-2350926 | May 1, 2005 |
Engineering Design Team, Inc. | 93-0964386 | January 1, 2006 |
Arger Enterprises, Inc. | 95-3296745 | January 1, 2007 |
Prime Air, LLC | 20-5545289 | January 1, 2007 |
DEC Technologies, Inc. | 26-0348155 | January 1, 2008 |
Meridian Industrial, Inc. | 26-0837681 | January 1, 2008 |
Sunshine Avionics LLC | 26-1913893 | July 1, 2008 |
HEICO Parts Group, Inc. | 26-3082967 | January 1, 2009 |
VPT, Inc. | 54-1684156 | June 1, 2009 |
dB Control Corp. | 27-1784894 | July 1, 2010 |
3D Plus U.S.A., Inc. | 74-2947071 | January 1, 2012 |
Switchcraft, Inc. | 36-2051512 | January 1, 2012 |
Conxall Corporation | 36-2944789 | January 1, 2012 |
Ramona Research, Inc. | 45-4786673 | July 1, 2012 |
CSI Aerospace, Inc. | 45-5531151 | October 1, 2012 |
Action Research Corporation | 46-1086859 | January 1, 2013 |
Reinhold Industries, Inc. | 13-2596288 | September 1, 2013 |
Participating Employer | EIN | Effective Date |
Lucix Corporation | 77-0504129 | November 15, 2013 |
SI-REL, Inc. | 46-3801015 | January 1, 2014 |
Seal Dynamics LLC | 20-3713644 | January 1, 2015 |
Harter Aerospace, LLC | 47-2458702 | April 1, 2015 |
Thermal Energy Products, Inc. | 33-0238469 | October 1, 2015 |
Astroseal Products Mfg. Corporation | 06-0808406 | January 1, 2016 |
Midwest Microwave Solutions, Inc. | 27-0124198 | January 1, 2016 |
(1) | Air Radio & Instrument Corp. Profit Sharing Plan as in existence prior to its merger with and into this Plan as of June 30, 2000. |
(2) | California Manufacturing Enterprises and Affiliates 401(k) Profit Sharing Plan as in existence prior to the transfer of assets into this Plan as of March 15, 2000. |
(3) | Santa Barbara Infrared, Inc. 401(k) Profit Sharing Plan as in existence prior to its merger with and into this Plan as of December 31, 2001. |