Due Diligence Summary

To begin preparation of a Due Diligence Summary we generally request copies of the following materials be forwarded to our attention:

• Any employee handbooks given to new employees, or any internal employment policies and procedures.
• Any materials provided to new employees to explain an employer's benefit programs, and any individual elections, including Election Forms.
• All plan documents for qualified retirement, medical, Section 125, short‑term and long‑term disability, life insurance, severance and other welfare plans.
• All Summary Plan Descriptions ("SPDs") for the above plans.
• Any documents for nonqualified retirement programs and other supplemental benefits.
• All incentive and nonqualified stock option plans, and documents for any Section 423 employee
• stock purchase plans.
• Copies of the most recent Form 5500s filed for all pension and welfare programs
• Copies of all COBRA and HIPAA Forms, certificates and compliance procedures.

Upon receipt of the above information we prepare a Draft Due Diligence Summary for purposes of discussion. The Draft Summary includes the following:

• A listing of all pension and welfare employee benefit plans, payroll practices, fringe benefits, etc.
• The identification of all plans subject to the tax rules under the Internal Revenue Code and/or the provisions of ERISA.
• For each plan and policy we reflect if any Form 5500, Summary Annual Reports ("SARs"), SPD or other reporting and disclosure requirements must be satisfied.
• A review of the current status of all plan documents is conducted
• Comments are provided for most employment policies and procedures.
• Recommendations on plan design, liability, and other cost savings and planning opportunities are highlighted for consideration by the employer.

After preparation of an initial Draft Summary we will conduct a meeting and/or a conference call to review the Draft Summary. This process is typically a learning experience for all parties, and helps to ensure that no plans are overlooked and that all issues are adequately addressed.