Atari 401K Plan

(1 / 2)

Date: January 13, 1987 15:56

From: KIM::MARGOLIN

To: ERNIE::TOLONEN,MARGOLIN

I have a question about Atari's 401K Plan as described in the recent handout 
entitled "WELLS FARGO BANK RETIREMENT ADVANTAGE PLANS SUMMARY PLAN DESCRIPTION 
FOR THE RETIREMENT ADVANTAGE PLAN OF ATARI GAMES CORPORATION." 

In Section 16 (HOW AND WHEN ARE BENEFITS PAID?) under the heading "Benefits
Earned Under This Plan" it states:

	"Following your termination of employment, your vested account balances
will be distributed to you in a lump sum, in periodic payments over a specified
term, or in a combination of both methods."

My question involves the next sentence:

	"Plan assets allocable to your accounts will be valued as of the 
Valuation Date (see Question 8) coinciding with or immediately preceeding
the distribution."
  
Question 8 says that the Valuation Date is the last day of the sixth and twelfth
months of the Plan year. I assume this means June 30 and December 31. (Please 
correct me if I am wrong.)

Therefore, according to the Plan, if I contribute $5,000 to the Plan in the 
next five months and leave before June 30, my Plan assets allocable to my
account will be valued as of December 31, 1986.

	What happens to my $5,000?

	What happens to the company contribution?

	(Who is the Plan Administrator?)	

		Jed

401(K) PLAN

(2 / 2)

Date: January 13, 1987 17:13

From: ERNIE::TOLONEN

To: KIM::MARGOLIN

DEAR JED,

I THINK YOU ARE THE ONLY PERSON IN THE COMPANY WHO READ THAT DOCUMENT!!

I WILL ANSWER YOUR QUESTIONS IN REVERSE ORDER.

THE PLAN ADMINISTRATORS ARE DENNIS, JOHN KLEIN AND HIDE.

YOU WOULD NOT LOSE ANY MONEY YOU PUT INTO YOUR PLAN, BUT I WILL HAVE TO GET
MORE INFORMATION FOR FOR YOU ABOUT THAT WORDING IN THE PLAN.  I UNDERSTAND
THE QUESTION.  LET ME GET BACK TO YOU TOMORROW WITH A COMPLETE ANSWER.

THANKS,

JUDY