Robert D. Booth and Janice Booth, et al. - Page 38

                                       - 38 -                                         
          cost of their death benefits ($7,500).  Young & Young deducted              
          the full contribution on its 1989 tax return.                               
               Young & Young's three employees (the Youngs and Carleen                
          Garcia) became Covered Employees under the Prime Plan as of                 
          December 1, 1989.  On January 14, 1992, Elaine Young executed an            
          addendum to Young & Young's Adoption Agreement electing                     
          retroactively to waive her right to participate in the Prime                
          Plan.  In all, Young & Young executed the following Adoption                
          Agreements during its participation in the Prime Plan:                      
              Date effective           12/01/89      12/01/89      12/01/89       12/01/89      12/01/89
              DWB percentage           Not listed    Not listed        1.55%         1.907%        3.814%
              Years of service         Not listed    Not listed          10             10            10
              Vesting schedule             4/40          4/40          4/40           4/40          4/40
              Normal retirement age          55            55            55             55            65
              Death benefit multiple   Not listed    Not listed       2.320          3.330         3.330
              Date executed            12/01/89      12/01/89       4/06/90       06/23/92      12/30/92
               D.  Administration of Young & Young's Account in the Prime             
          Plan                                                                        
               Improved Funding Techniques, Inc. (IFTI), prepared the 1989            
          annual report for Young & Young's account in the Prime Plan, and            
          IFTI delivered the report to Howard Young on December 27, 1991.             
          The report included an actuarial valuation signed by Deloitte &             
          Touche and provided the following calculation of vested DWB's for           
          Young & Young's Covered Employees:                                          
                    1988        Accrual Years of         Vesting Vested               
               Compensation   percentage          Service          percent         DWB
          Howard Young       $111,500       3.814%              10              100%$42,526              
          Carleen Garcia       11,3323.814     2         - 0 -          - 0 -                
               The 1989 report addressed only Young & Young's Employee                
          Group, and it did not provide any information concerning the                
          Trust as a whole.  The report used a 3.814 accrual percentage for           





Page:  Previous  28  29  30  31  32  33  34  35  36  37  38  39  40  41  42  43  44  45  46  47  Next

Last modified: May 25, 2011