<00Jk>Explanation of Safe Harbor Notice<\00Jk>
TO THE PLAN ADMINISTRATOR
The following Administrative Forms have been included because they are either required under the Plan or by law, or they are necessary to properly administer the Plan. Below are instructions for the use of these forms.<R02>
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<N02>1<\N02>.<00IS>SAFE HARBOR <\00IS>NOTIFICATION TO ELIGIBLE EMPLOYEES<03TO<\03TO>
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The law requires the Plan Administrator to provide eligible Employees a timely written notice describing their rights and obligations under a safe harbor plan.
If the Employer elects to make a safe harbor 401(k) contribution, then the Plan Administrator, at least 30 days, but not more than 90 days, before the beginning of the Plan Year, must provide each eligible Employee with the <00IS>SAFE HARBOR <\00IS>NOTIFICATION TO ELIGIBLE EMPLOYEES form. This form will notify the Employee of his or her rights and obligations under the safe harbor 401(k) Plan. If the Employee becomes a Participant in the Plan after the 90th day before the beginning of the Plan Year, the <00IS>SAFE HARBOR <\00IS>NOTIFICATION TO ELIGIBLE EMPLOYEES form must be provided to the Employee within 90 days before the Employee becomes eligible to participate in the Plan.<03TN<\03TN>
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This notice must be used in conjunction with the separate Qualified Default Investment Alternative Notice. While these notices may legally be combined, they cannot be automatically combined due to the required modifications that must be made to the Qualified Default Investment Alternative Notice.
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<00Jk>Explanation of Safe Harbor Notice<\00Jk>
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<001Y>Academy Solutions Group 401(k) Profit Sharing Plan<\001Y<001Z<\001Z<001a<\001a<001b<\001b<001c<\001c>
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<00Id>SAFE HARBOR<\00Id> NOTIFICATION TO ELIGIBLE EMPLOYEES
<00Ie<\00Ie>
This is an annual notice and only applies to the Plan Year beginning on <00IT>January 1, 2010.
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This notice covers the following points:
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How much you can contribute to the Plan;
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What other amounts the Employer will contribute to the Plan for you; and
When your Plan account will be vested (that is, not lost when you leave your job), and when you can receive a distribution of your Plan account.
You can find out more information about the Plan in the Plan's Summary Plan Description (SPD). You can obtain a copy of the SPD from the Plan Administrator.
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<R01<N01>I<\N01>.Employee deferral contributions
You are allowed to defer a portion of your compensation to the Plan. These amounts are referred to as deferrals and are held in an account for you. When you are permitted to take a distribution from the Plan, you will be entitled to all of your deferrals, as adjusted for any gains or losses. The type of compensation that may be deferred under the Plan is explained in the section of the Summary Plan Description entitled "What compensation is used to determine my Plan benefits?" (this is in the Article entitled "COMPENSATION AND ACCOUNT BALANCE").
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<00If>You may elect to defer not less than 1% nor more than 100% of your compensation each year instead of receiving that amount in cash. In addition, you may separately elect to defer up to 100% of any bonuses paid to you during the year. However, your<\00If> total deferrals in any taxable year may not exceed a dollar limit which is set by law. The dollar limit may increase each year for costofliving adjustments. <003d>However, for highly compensated employees (generally more than 5% owners or individuals receiving wages in excess of certain amounts established by law), there is a limit on the percentage of compensation that may be deferred.<\003d<003e>The Administrator will notify you of the maximum percentage you may defer.<\003e<00Ig<\00Ig>
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If you are at least age 50 or will attain age 50 during a calendar year, then you may elect to defer additional amounts (called "catchup contributions") to the Plan. These are additional amounts that you may defer, up to an annual limit imposed by law, regardless of any other limits imposed by the Plan.
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You may make either Regular 401(k) deferrals (pretax) or Roth 401(k) deferrals (aftertax). Your election regarding the amount and type of deferrals is irrevocable with respect to any deferrals already withheld from your compensation. If you make Regular 401(k) deferrals, your deferrals are not subject to income tax until distributed from the Plan. If you make Roth 401(k) deferrals, your deferrals are subject to income tax at the time of deferral. The Roth 401(k) deferrals, however, are not taxed when you receive a distribution from the Plan. In addition, if you satisfy certain distribution requirements (see the Section below entitled "Distribution provisions"), then the earnings on the deferrals will not be subject to income tax when distributed from the Plan. Both types of deferrals are subject to Social Security taxes at the time of deferral. Your Employer will deduct the Social Security taxes, and in the case of Roth 401(k) deferrals will deduct income taxes, from your remaining compensation.
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<N01>II<\N01>.Employer Safe Harbor Contribution Election
To help you make an informed decision on the level of your own salary deferral contributions, if any, your Employer must inform you about the contributions it will make to the Plan. Your Employer has elected to make the following contribution:
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Safe Harbor Nonelective Contribution. In order to maintain "safe harbor" status, your Employer will make a contribution equal to <004X>3<\004X>% of your compensation. This contribution is 100% vested.
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<N01>III<\N01>.Other Employer Contributions
In addition to the above, other contributions may be made to the Plan. You should review the Article of the SPD entitled "EMPLOYER CONTRIBUTIONS" for details regarding these other contributions.
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<N01>IV<\N01>.Vesting
The following is a general explanation of the vesting provisions of the Plan. More details can be found in the Article of the SPD entitled "VESTING."
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100% vested contributions. You are always 100% vested (which means that you are entitled to all of the amounts) in your accounts attributable to the following contributions:
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salary deferrals <00Bs>including Roth 401(k) deferrals and catch-up contributions<\00Bs>
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rollover contributions
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safe harbor contributions<00It<\00It>
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Vesting schedules. Your "vested percentage" for certain Employer contributions is based on vesting <00Ff>Periods<\00Ff> of Service. This means at the time you stop working, your account balance attributable to contributions subject to a vesting schedule is multiplied by your vested percentage. The result, when added to the amounts that are always 100% vested as shown above,is your vested interest in the Plan, which is what you will actually receive from the Plan. You will always, however, be 100% vested if you are employed on or after your<007h<\007h> Normal Retirement Age <00ES>or if you die or become disabled<\00ES>.
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<007l>Your "vested percentage" in your account attributable to profit sharing contributions<\007l> is determined under the following schedule.
Vesting Schedule
Profit Sharing Contributions
<00Ff>Periods<\00Ff> of ServicePercentage
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125%
250%
375%
4100%
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<007m>Your "vested percentage" in your account attributable to matching contributions<\007m> is determined under the following schedule.
Vesting Schedule
Matching Contributions
<00Ff>Periods<\00Ff> of ServicePercentage
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125%
250%
375%
4100%
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<N01>V<\N01>.Distribution provisions
The Plan and law impose restrictions on when you may receive a distribution from the Plan. Below is general information on when distributions may be made under the Plan. See the SPD for more details.
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If you make Roth 401(k) deferrals, you may take a qualified distribution of your Roth 401(k) deferrals only if you satisfy two requirements. First, the distribution must be on account of attainment of age 59 1/2, death or disability. Second, the distribution must not occur prior to the end of the 5year participation period that begins with the first taxable year for which you made a Roth 401(k) deferral to the Plan, or if earlier, the first taxable year for which you made a Roth 401(k) deferral to another Roth 401(k) plan or Roth 403(b) plan that you rolled over to this Plan. If you take a qualified distribution of your Roth 401(k) deferrals, you will receive taxfree the earnings on the Roth 401(k) deferrals, in addition to the Roth 401(k) deferrals. If you take a distribution of your Roth 401(k) deferrals that is not a qualified distribution, the earnings on the Roth 401(k) deferrals will be taxable to you.
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You may withdraw any additional contributions provided for in "Other Employer Contributions" upon your death, disability, or retirement.
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<009P>You<\009P> may elect to have your vested account balance distributed to you as soon as administratively feasible <009Q>following your termination of employment<\009Q<009S<\009S>.
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You may also withdraw money from the Plan <00Iv>if you have reached age 59 1/2<\00Iv>. However, there are various rules and requirements that you must meet before any withdrawal is permitted. See the Article in the SPD entitled "DISTRIBUTIONS PRIOR TO TERMINATION" for more details.
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<N01>VI<\N01>.Administrative procedures <03aG>for affirmative elections<\03aG>
The amount you elect to defer will be deducted from your pay in accordance with a procedure established by the Administrator. <00Iy>The procedure will require that you enter into a written salary deferral agreement after you satisfy the Plan's eligibility requirements.<\00Iy> You may elect to defer your salary as of your entry date <003X>or on the first day of each month<\003X>. Such election will become effective as soon as administratively feasible. Your election will remain in effect until you modify or terminate it.
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You are permitted to revoke your salary deferral election any time during the Plan Year. You may make any other modification <003Z>on the first day of any payroll period<\003Z> or in accordance with any other procedure that your Employer provides. Any modification will become effective as soon as administratively feasible after received by the Administrator.
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In addition to any other election periods provided above, you may make or modify a salary deferral election during the 30day period immediately preceding the Plan Year for which this notice is being provided.
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If you decide to<0301<\0301> start or change your salary deferral, you must complete the salary deferral agreement and return it to the Plan Administrator.
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<N01>VII<\N01>.Investments
Right to direct investment/default investment. You have the right to direct the investment of your "directed accounts" in any of the investment choices explained in the investment information materials provided to you.
We encourage you to make an investment election to ensure that amounts in the Plan are invested in accordance with your long-term investment and retirement plans.However, if you do not make an investment election, then the amounts that you could have elected to invest will be invested in a default investment that the Plan officials have selected.
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Name of default investment.<00IZ>The<\00IZ> default investment is <03WY>Vanguard Target Retirement Funds<\03WY>.
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Right to alternative investment. Even if the Plan invests some or all of your directed accounts in the default investment, you have the continuing right to direct the investment of your directed accounts in one or more of the other investment choices available to you as explained above. You may change your investments <00Ib>at any time<\00Ib>. If you elect to invest in any of the alternative choices within the 90-day period beginning on the date of your first elective deferral, neither the Plan nor the investment vendor will impose any transfer fees or expenses. If you elect to transfer to an alternative investment after the 90-day period beginning on the date of your first elective deferral, then restrictions and fees may apply. These will be described in the separate investment material provided to you.
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<N01>VIII<\N01>.Employer's right to terminate Plan
Pursuant to the terms of the Plan, your Employer has the right, at any time, to terminate the Plan. Termination of the Plan will result in the discontinuance of all contributions to the Plan (including the safe harbor 401(k) contribution) with respect to any compensation you receive after the effective date of the termination. Termination of the Plan will not affect your right to receive any contributions you have accrued as of the effective date of the termination.
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<N01>IX<\N01>.Additional information
This notice is not a substitute for the Summary Plan Description. The provisions of the Plan are very complex and you should always look at the Summary Plan Description if you have any questions about the Plan. If, after reading the Summary Plan Description, you still have questions, contact the Plan Administrator.
You may contact the Plan Administrator at:
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Contact:<00kU>Academy Solutions Group<\00kU<00kV<\00kV>
Address:<00kW>5639 Broadwater Lane<\00kW>
<00kX>Clarksville<\00kX>, <00kY>Maryland<\00kY<00kZ>21029<\00kZ>
Telephone:<00ka>410-531-1125<\00ka>
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Fax (if applicable):
Email address (if applicable):
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Where to go for further investment information. You can obtain further investment information about the Plan's investment alternatives by contacting the Plan Administrator as listed above.
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