Foam Holdings 401(k) match, vesting and fees

Participants are immediately vested in their contributions, and employer safe harbor contributions plus actual earnings thereon. Vesting in the Employer’s prior discretionary contribution portion of their accounts plus actual earnings thereon is based on years of continuous service. A participant is 100% vested in prior matching contributions after five years of credited service. Any forfeiture may be used to reduce future employer contributions or pay plan expenses.

The Plan includes an automatic enrollment provision whereby all newly eligible employees are automatically enrolled by the Plan unless they affirmatively elect not to participate in the Plan. Automatically enrolled participants have their deferral rate set at 3% of eligible compensation and their contributions are invested in a designated balanced fund until changed by the participant.

Employee Roth contributions are also allowed by the Plan.

Participants may borrow from their fund account a minimum of $1,000 up to a maximum equal to the lesser of $50,000 or 50% of their vested account balance. The loans are secured by the balance in the participant’s account and bear interest at the Prime Rate plus 1%. Principal and interest is paid ratably through payroll deductions. The loan must be repaid over a period of up to 5 years from the date of the loan unless the proceeds of the loan are used to acquire a primary residence, at which point the Plan may permit a longer repayment period. Partial prepayments of loans are permitted. Loan refinancing is not permitted.