WORLD ACCEPTANCE CORPORATION
RETIREMENT SAVINGS PLAN
AMENDMENT FOR THE FINAL 415
REGULATIONS
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Effective
date of Amendment. This
Amendment is effective for limitation years and plan years
beginning on or after July 1, 2007, except as otherwise provided
herein.
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Superseding
of inconsistent provisions. This Amendment supersedes the provisions of the
Plan to the extent those provisions are inconsistent with the
provisions of this Amendment.
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1.3
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Employer's
Election. The Employer
adopts all Articles of this Amendment.
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Construction. Except as otherwise provided in this Amendment,
any reference to "Section" in this Amendment refers only to
sections within this Amendment, and is not a reference to the Plan.
The Article and Section numbering in this Amendment is solely for
purposes of this Amendment, and does not relate to any Plan
article, section or other numbering designations.
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Effect of
restatement of Plan. If
the Employer restates the Plan, then this Amendment shall remain in
effect after such restatement unless the provisions in this
Amendment are restated or otherwise become obsolete (e.g., if the
Plan is restated onto a plan document which incorporates the final
Code §415 Regulation provisions).
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ARTICLE II
EMPLOYER
ELECTIONS
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2.1
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Default
Provisions. The following
defaults shall apply.
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(a)
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The provisions
of the Plan setting forth the definition of compensation for
purposes of Code § 415 (hereinafter referred to as "415
Compensation"), as well as compensation for purposes of determining
Highly Compensated Employees pursuant to Code § 414(q) and for
top-heavy purposes under Code § 416 (including the
determination of Key Employees), shall be modified by:
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(1)
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including
payments for unused sick, vacation or other leave paid after
severance of employment, unless the current plan Compensation
definition specifically excludes one or more of these categories.
To the extent some but not all of these forms of leave payments are
currently excluded from plan Compensation, only those particular
excluded categories shall remain excluded for purposes of this
Amendment and 415 Compensation shall be the same as what the Plan
currently provides in this regard (Section 3.2(b)),
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(2)
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including
scheduled payments from nonqualified unfunded deferred compensation
plans paid either before or after severance of employment unless
the current plan Compensation definition excludes such
compensation, then 415 Compensation shall be the same as what the
Plan currently provides in this regard (Section 3.2(b)),
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(3)
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excluding
salary continuation payments for participants in military service
unless the current plan Compensation definition includes such
compensation, then 415 Compensation shall be the same as what the
Plan currently provides in this regard (Section 3.2(c)),
and
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(4)
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excluding
salary continuation payments for disabled participants unless the
current plan Compensation definition includes such compensation,
then 415 Compensation shall be the same as what the Plan currently
provides in this regard (Section 3.2(d)).
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b.
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The "first few
weeks rule" does not apply for purposes of 415 Compensation
(Section 3.3).
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ARTICLE III FINAL SECTION
415
REGULATIONS
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Effective
date. The provisions of
this Article III shall apply to limitation and plan years beginning
on and after July 1, 2007.
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415
Compensation paid after severance from employment.
415 Compensation shall be adjusted,
as set forth herein for the following types of compensation paid
after a Participant's severance from employment with the Employer
maintaining the Plan (or any other entity that is treated as the
Employer pursuant to Code § 414(b), (c), (m) or (o)). However,
amounts described in subsections (a) and (b) below may only be
included in 415 Compensation to the extent such amounts are paid by
the later of 2 1/2 months after severance from employment or by the
end of the limitation year that includes the date of such severance
from employment. Any other payment of compensation paid after
severance of employment that is not described in the following
types of compensation is not considered 415 Compensation within the
meaning of Code § 415(c)(3), even if payment is made within
the time period specified above.
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(a)
Regular pay. 415 Compensation shall include regular pay
after severance of employment if:
(1) The payment is regular
compensation for services during the participant's regular working
hours, or compensation for services outside the participant's
regular working hours (such as overtime or shift differential),
commissions, bonuses, or other similar payments; and
(2) The payment would have been
paid to the participant prior to a severance from employment if the
participant had continued in employment with the
Employer.
(b)
Leave cashouts and deferred compensation. Unless otherwise
specified in Section 2.1 (a), leave cashouts shall be included in
415 Compensation if those amounts would have been included in the
definition of 415 Compensation if they were paid prior to the
participant's severance from employment, and the amounts are
payment for unused accrued bona fide sick, vacation, or other
leave, but only if the participant would have been able to use the
leave if employment had continued. In addition, unless otherwise
specified in Section 2.1(a) deferred compensation shall be included
in 415 Compensation if the compensation would have been included in
the definition of 415 Compensation if it had been paid prior to the
participant's severance from employment, and the compensation is
received pursuant to a nonqualified unfunded deferred compensation
plan, but only if the payment would have been paid at the same time
if the participant had continued in employment with the Employer
and only to the extent that the payment is includible in the
participant's gross income.
(c)
Salary continuation payments for military service
participants. Unless otherwise specified in Section 2.1(a), 415
Compensation does not include payments to an individual who does
not currently perform services for the
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