JOHN DOE, M.D., A PROFESSIONAL CORPORATION

PENMAX RETIREMENT PROGRAM

ESTIMATED COST ANALYSIS

Defined Benefit Plan(DB) Age  Compensation   Cost   
DOE M.D., JOHN M.(owner) 56  $        205,000.00  $    149,559.00  
DOE, MARIE(daughter) 24  $          18,000.00  $           191.00  
DOE, SHERRIE(daughter) 21  $          12,000.00  $           108.00  
sub-total for owners          $                                     149,858.00
NURSE, CINDY 49  $          42,000.00  $        5,196.00  
NURSE, LYNN 43  $          41,000.00  $        3,006.00  
sub-total for non-owners        $                                         8,202.00
Total for DB Plan        $                                     158,060.00
Profit Sharing Plan (PS)        
MANAGER, TANYA    $          74,000.00  $        5,550.00  
RECEPTIONIST,RUDY    $          56,000.00  $        4,200.00  
BILLING, MICHELLE    $          20,000.00  $        1,500.00  
ASSISTANT, SUSAN    $          33,000.00  $        2,475.00  
Total for PS Plan        $                                       13,725.00
GRAND TOTAL         $                                     171,785.00
PENMAX contribution breakdown
Owners    $        149,858.00 87.24%  
Non-owner employees    $          21,927.00 12.76%  
     $        171,785.00 100.00%  
         
         
         
PENMAX PROGRAM PLAN DESIGN
Defined Benefit Pension Plan        
Effective Date  1/1/2006  
Eligible Employees Owner + family members + Nurse-Employees  
  Group A: Owner  
  Group B: Owner's family members  
  Group C: Any Participant not included in Group A or Group B
Eligibility Requirements Age 20 + 1 Year of Service  
Normal Retirement Age Age 62 + 5 Years of Participation  
Benefit Formula Group A ===> 7% of average compensation for each year of participation; max 10 years
  Group B ===> 1% of average compensation for each year of participation; max 10 years
  Group C ===> 2% of average compensation for each year of participation; max 10 years
Vesting Schedule 2/20  
         
Profit Sharing Plan        
Effective Date 1/1/2006  
Eligible Employees Any Employee who is not covered by the DB Plan  
Eligibility Requirements Age 20 + 1 Year of Service  
Normal Retirement Age Age 62 and 5 Years of Participation  
Contribution Formula 7.50% of pay (could vary each year)  
Vesting Schedule 2/20  
         
401(k) Plan         
   
Effective Date 1/1/2006      MAXIMUM DEFERRAL 
Eligible Employees ALL Employees    401(k) Plan 
Eligibilty Requirements Age 20 + I Year of Service   $20,500.00
        (if over 50 years of age)
         
  


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