Help for item C.1a.

GENERAL:

If the Plan is a 401(k) plan (A.10 is "Yes" - Elective Deferrals are permitted) and this C.1 is not "No" the Plan is intended to be a safe-harbor 401(k) plan exempt from ADP and ACP testing. In addition to the Plan design issues discussed below, you must ensure that other provisions of the Plan comply with the safe harbor requirements (e.g., other pay may not be excluded from the definition of Compensation in item A.24).

If this C.1 is "No" the Plan is subject to the full range of ADP and ACP testing.

Yes - safe harbor match

If C.1 is "Yes - safe harbor match", you must ensure that: (i) Matching Contributions are permitted (A.12 is "Yes"), (ii) Matching Contributions are not eligible for distribution before age 59-1/2, and (iii) EGTRRA Vesting (D.12) is "100%".

In addition, the responses to C.21 through C.29 must meet the requirements of a safe harbor Matching Contribution. For instance, you must be sure that the eligibility requirements for Matching Contributions correspond to those for Elective Deferrals. However, if you are using the special rule for separate testing of Participants who have not met the greatest minimum age and service conditions permitted under Code section 410(a), you may use differing age and service requirements for Matching Contributions, provided that no more than one Year of Eligibility Service is required for Matching Contributions.

Yes - nonelective contribution

If C.1 is "Yes - nonelective contribution", a special Qualified Nonelective Contribution will be made pursuant to Section 4.04(a) of the Basic Plan Document.

If this option is selected, the general rule is that the special Qualified Nonelective Contribution will be allocated to all Employees who are eligible to make Elective Deferrals during the Plan Year. The responses to items C.3 and C.4 allow you to exclude: (i) certain Highly Compensated Employees, or (ii) Participants who have not met the greatest minimum age and service conditions permitted under Code section 410(a), from receiving an allocation of the special Qualified Nonelective Contribution.

Yes - to another plan

If C.1 is "Yes - to another plan", you must ensure that other plan meets the applicable requirements for safe harbor contributions.

BASIC PLAN DOCUMENT:

Section 4.04(a):

(a) Amount of Safe Harbor Qualified Nonelective Contributions. If the Adoption Agreement specifies that the Plan will satisfy the 401(k) safe harbor provisions by making a non-elective contribution to the Plan and if the Adoption Agreement provides that the Plan is not a standardized plan, the Company shall, subject to the limitations described in Article 5, make Qualified Nonelective Contributions to the Plan in an amount not less than three percent (3%) of Participants' Compensation on behalf of each Employee who is eligible to make Elective Deferrals during the Plan Year, and meets any additional requirements provided in the Adoption Agreement. In absence of an election in the Adoption Agreement such Qualified Nonelective Contributions shall be made on behalf of each Employee who is eligible to make Elective Deferrals during the Plan Year. Qualified Nonelective Contributions described in this Subsection (a) shall be allocated to the Qualified Nonelective Contribution Account of each Participant eligible to share in such allocations in the ratio that such Participant's Compensation bears to the Compensation of all eligible Participants.

The foregoing is only intended to be a brief overview of applicable plan provisions. You should carefully review the entire Adoption Agreement and the entire Basic Plan Document to ensure that your responses to the Adoption Agreement questions accurately reflect the intended design of the plan.

ADPACPSafe