Converting or adding an ESOP provision to a 401(k) plan to provide EE

[Guest Jim Jesikiewicz]

My client sponsors a 401(k) plan currently. He's interested in "adding" or "converting" the plan ... he's not sure ... to include an ESOP provision so that his employees can acquire stock and ultimately own the company. Thus, providing an "exit" strategy for his ultimate retirement.

Can someone help me accomplish this??

[RLL]

What kind of help do you need? Legal? Administrative? Consulting? Financial? Communications? Valuation?

Is there an intent to use 401(k) elective deferrals for the purchase of company stock? If so, there may be a requirement for registration under applicable federal and state securities laws.

You definitely should retain a lawyer with extensive experience in designing ESOPs, advising on ESOP administration and structuring ESOP transactions.

I recommend that you start by contacting The ESOP Association (www.esopassociation.org) and the National Center for Employee Ownership (www.nceo.org).