SAMPLE

This specimen participant notice has been provided to assist you in complying with the annual notice requirements for the 401(k) plan safe harbor employer contribution provision. It is not intended as tax or legal advice. Modifications may be required to meet your plan’s particular needs. Please consult with your plan’s tax advisor and legal counsel.

You must provide A SAFE HARBOR notice to your participants each year, at least 30 days, but not more than 90 days before your plan year begins.

SPECIMEN 401(k) SAFEHARBORPARTICIPANT NOTICE

IMPORTANT: Carefully read and consider the following information before you decide whether to start making Employee 401(k) Contributions or decide to continue or change the amount of your Employee 401(k) Contributions. To the extent that there are conflicting provisions between your Summary Plan Description (SPD) and this Notice, this Notice will control. If you have any questions or need an additional copy of the SPD, please contact [insert name, address and telephone number of person or department to contact and if applicable, electronic addresses.]

PLAN INFORMATION

This notice applies to the [insert plan name], which has the IRS plan sequence number [insert number] and operates on a plan year that begins on [insert date] and ends on [insert date].

PLAN CONTRIBUTIONS

The contributions described below will be made to
 the Plan identified above

 [if contributions will be made to another plan, provide plan name]

The contribution will be determined based on the definition of Compensation described in the SPD we have provided to you. However, if the SPD indicates that there is a limit on the amount of Compensation which is taken into account under the Plan, and such limit is lower than the limit imposed by federal law for the coming year $245,000 for plan years beginning in 2009 and $245,000 for plan years beginning in 2010], the limit in the SPD will not apply for purposes of this notice.

Employee Elective Deferrals - By completing a Payroll Deduction Form, you agree to make employee 401(k) elective deferral contributions to this plan. Your compensation will be reduced each [insert frequency, e.g. pay period] by an amount equal to your elective deferral. If you would like to change your elective deferral contributions before the start of the (enter year) plan year, you have a minimum of 30 days from the date you receive this notice to do so. On an ongoing basis you may make or change your elective deferral amount [insert times permitted under your plan document, e.g., monthly]. Please refer to your SPD if you need additional information.

EmployerSafeHarbor Contributions - Employer contributions will be made to your participant account as described below.

Option 1 – Basic Matching Formula

A Matching Contribution in an amount equal to the sum of 100% of the portion of your Employee 401(k) Contributions which do not exceed 3% of Compensation plus 50% of the portion of your Employee 401(k) Contributions between 3% and 5% of Compensation.

* Option 2 - Enhanced Matching Formula

A Matching Contribution in an amount equal to the sum of [enter percentage] percent of the portion of your Employee 401(k) Contributions which do not exceed [enter percentage] percent of Compensation.

 Option 3 – Nonelective Contribution

A nonelective contribution in an amount equal to 3% of Compensation, for all Employees eligible to make Employee 401(k) Contributions

Other Plan Contributions - Refer to your SPD to determine if additional contributions can be made and, if so, whether you are entitled to make or receive a portion of such contributions.

VESTING

You are 100% vested in Safe Harbor Employer Contributions and your own elective deferral contributions at all times. [If applicable: Your vested percentage in additional Matching Contributions or other Employer contributions is in accordance with the following schedule (insert vesting schedule)]

DISTRIBUTIONS

Your 401(k) elective deferral contributions may be withdrawn under the following conditions [insert withdrawal conditions permitted under the plan, if any e.g., attainment of age 59 ½, hardship withdrawal for a)the purchase of a primary residence by the employee, b) expenses for certain medical care for the employee and his/her dependents, c) payments to prevent foreclosure on the employee’s mortgage or eviction from the employee’s home, d) post secondary education for the employee, certain family members or his/her dependents, e) burial/funeral expenses for certain family members or dependents and f) damage to the participant’s residence under certain circumstances].

The Employer Safe Harbor Contributions may not be distributed on account of hardship, but may only be withdrawn after attainment of age 59 ½, upon severance from employment, death or disability. [If applicable: Withdrawal of all other employee and employer contributions made to the plan are based on the following conditions[insert withdrawal conditions for any other employee or employee contributions under the plan, if applicable].