to the plan year for which a contribution is made, are employed by the Company on the last day of the plan year, have worked 1,000 hours in that year, and have elected a deferral
contribution. The employer discretionary contributions are allocated as an additional matching contribution.
The applicable dollar limits
on pre-tax contributions allow individuals who have reached age 50 by the end of the plan year, and who can no longer make additional pre-tax contributions because of
limitations imposed by the Code or the Plan, to make additional catch-up contributions for that year. Eligible individuals may make catch-up
contributions up to the lesser of (a) the individuals compensation for the year less any other deferrals, or (b) $6,000 for 2019 and 2018.
The net assets transferred in/out of the plan were $113,000,859 and $9,547,157 for 2019 and 2018, respectively. In 2019, this amount consisted
of $115,279,211 transferred into the Plan from retirement plans of Qualtrics, LLC and Callidus, Inc. offset by $2,278,352 transferred out of the Plan. In 2018, there were $10,046,716 transferred into the Plan from acquired companies merged into the
parent offset by $499,599 transferred out of the Plan.
All employer and employee contributions made to the Plan on behalf of a participant are credited to the account established in that
participants name. As of each valuation date, each participants account, after considering any contributions made on behalf of that participant and allocated to their account, is credited with earnings/losses attributable to the
participants chosen investments. The benefit to which a participant is entitled is the benefit that can be provided from the participants vested account. All amounts credited to the participants account are invested as directed by
the participant. All dividends, capital gain distributions, and other earnings received on investment options are specifically credited to a participants account and are immediately used to invest in additional shares of those investment
options. Participant recordkeeping and administrative expenses are deducted directly from participant investment accounts.
Participants are vested immediately in their contributions plus actual earnings/losses thereon. Vesting in the employer contribution to their
accounts is based on years of service as defined in the Plan. A participant is 50% vested after two years of service and 100% vested after three years of service.
Forfeitures are first applied to pay administrative expenses (in lieu of allocation to participant accounts) and then to offset required
employer contributions. For the years ended December 31, 2019 and 2018, forfeitures of $43,053 and $1,057,596, respectively, were used to pay administrative expenses (in lieu of allocation to participant accounts) and/or to offset required
employer contributions. At December 31, 2019 and 2018, forfeited non-vested accounts totaled $1,611,707 and $518,334, respectively.
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(g)
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Notes Receivable from Participants
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Participants may borrow up to a maximum of $50,000 or 50% of their vested account balance, whichever is less. The majority of the Plans
outstanding notes receivable from participants are secured by the vested balance in each participants account with original terms of up to 60 months; however, a longer term may be permitted in accordance with the Plan document. The notes
receivable from participants bear interest at rates, which are based upon the prevailing commercial lending rates charged by professional lenders for similarly secured personal loans. The rate currently set by the Plan Administrator is the prime
interest rate plus 1% and is adjusted for new loans weekly. During the term
6