Lawrence L. and Kathleen J. Kelter - Page 3

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            The Pension Plan                                                                              
                  Petitioner had carried on his dental practice as an employee                            
            of Kelter Professional Corp. (the corporation).  Petitioner was                               
            the sole officer, director, and shareholder of the corporation.                               
            On December 31, 1984, the corporation adopted the “Kelter                                     
            Professional Corporation Restated Pension Plan No. Two” (the                                  
            Plan), a defined benefit plan.  Section 9.3 of the Plan is                                    
            entitled “Disability”, and provides:                                                          
                  A participant who becomes totally and permanently                                       
                  disabled prior to his Normal Retirement Date shall be                                   
                  vested one hundred percent (100%) in his Accrued                                        
                  Benefit.  The determination of the Committee based upon                                 
                  competent medical advice which shall include the                                        
                  opinion of a licensed physician shall be final as to                                    
                  whether any Participant is totally and permanently                                      
                  disabled within the meaning of this paragraph.  * * *                                   
                  Benefits payable under this Section 9.3 shall be deemed                                 
                  made from a disability plan maintained by the Employer                                  
                  pursuant to Sections 105(c) and 105(e) of the Code.                                     
                  The “Committee” specified in section 9.3 of the Plan (the                               
            Committee) consisted only of petitioner and his wife.  As defined                             
            by the Committee, the term “totally and permanently disabled”                                 
            meant that the participant would be unable to do any job.  The                                
            term “Accrued Benefit” is defined in the Plan to mean, “at any                                
            time the monthly retirement benefit to which a Participant is                                 
            entitled * * * [subject to certain limitations] commencing at his                             
            Normal Retirement Date based upon his number of Years of                                      
            Participation to the date of determination.”                                                  







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