Common use of ADP Test Safe Harbor Clause in Contracts

ADP Test Safe Harbor. (a) The Employer may elect in the Adoption Agreement to make Basic Safe Harbor Matching Contributions, Enhanced Safe Harbor Matching Contributions or Safe Harbor Non-Elective Contributions. (b) Notwithstanding the requirement in (a) above that the Employer make the ADP Test Safe Harbor Contributions to the Defined Contribution Plan indicated in the Adoption Agreement, such contributions will not be made to this Plan unless the requirements of paragraph 11.17 are met. ACP TEST SAFE HARBOR The Employer maintaining a 401(k) Plan may elect in the Adoption Agreement to make additional Matching Contributions in addition to the Safe Harbor Matching Contributions made to the Plan. These additional Matching Contributions may be subject to the ACP Test Safe Harbor requirements instead of testing the contributions under paragraph 11.2. If the Employer elects using the current year testing method to test the additional Matching Contributions for nondiscrimination as set forth in paragraph 11.2, the ACP Test Safe Harbor will be satisfied if the following conditions are met: (a) no Matching Contribution may be made with respect to a Participant's Elective Deferrals and/or Voluntary After-tax Contributions which exceed 6% of Compensation; (b) the amount of any discretionary Matching Contribution made after the 1999 Plan Year may not exceed 4% of the Participant's Compensation; (c) the rate of Matching Contributions made to the Plan may not increase as the rate of Elective Deferrals increase; (d) no Highly Compensated Employee may receive a greater rate of match than a Non-Highly Compensated Employee; and (e) the Employer must elect in the Adoption Agreement the vesting schedule distribution restrictions and eligibility to receive an allocation of these additional Matching Contributions. a) SAFE HARBOR STATUS The Employer may amend a profit-sharing or 401(k) plan during a Plan Year to comply with the Safe Harbor provisions of this Article for the Plan Year. In order to comply with these provisions, the Employer must: (a) use the current year testing method; 83 (b) amend the Plan to add the Safe Harbor provisions no later than thirty (30) days prior to the end of the Plan Year and apply the Safe Harbor provisions for the entire Plan Year; (c) satisfy the Safe Harbor contribution requirements using the Safe Harbor Non-Elective Contribution; (d) provide the Safe Harbor notice to Participants prior to the beginning of the Plan Year for which the Plan amendment applies which indicates the Employer will provide Basic or Enhanced Matching Contributions or indicates that the Employer may later amend the Plan to comply with the Safe Harbor provisions by use of the Safe Harbor Non-Elective Contribution; (e) provide an additional notice to Participants at least thirty (30) days prior to the end of the Plan Year only in the case of Safe Harbor Non-Elective Contribution advising Participants of the amendment; and (f) actually provide the notice described in (e) above, should the Employer amend the Plan to comply with the Safe Harbor requirements. A Safe Harbor 401(k) Plan may be amended during a Plan Year to reduce or entirely eliminate on a prospective basis any safe harbor contribution which is either a Basic or Enhanced Matching Contribution conditioned on the Employer providing a notice to the Participants which explains the effect of the amendment and specifies the following: (g) informs the Participants they will have the opportunity to amend their Salary Deferral Agreements; (h) the effective date of the amendment is specified; (i) Participants are given the opportunity prior to the effective date of the amendment to amend their Salary Deferral Agreement; and (j) the amendment to the Plan does not take effect until the later of thirty (30) days after the notice of the amendment is provided to the Participant or the date the Employer adopts the amendment. An Employer who amends a Safe Harbor Plan to either reduce or eliminate the Safe Harbor Matching Contribution under this paragraph or terminates the Plan during the Plan Year, must continue to comply with all of the Safe Harbor requirements of this paragraph until the amendment or Plan termination becomes effective. The Plan must continue to use the current year testing method for the entire Plan Year and satisfy the nondiscrimination test under paragraph 11.2, and if applicable the nondiscrimination tests under paragraph 11.6.

ADP Test Safe Harbor. (aA. ADP Test Safe Harbor Contributions - If elected by the Company in Item IV-B(A) The Employer may elect in of the Adoption Agreement Agreement, the Company shall make one of the following Safe Harbor Contributions to make Basic the Plan for the Plan Year(s) indicated in Item IV-B(A) of the Adoption Agreement: i. Enhanced Matching Contributions to the Plan; ii. A Safe Harbor Matching Contribution to the Plan on behalf of each Eligible Employee equal to (1) 100 percent of the amount of the Eligible Employee's Elective Contributions that do not exceed three percent (3%) of the Employee's Compensation for the Plan Year, plus (2) fifty percent (50%) of the amount of the Employee's Elective Contributions that exceed three percent (3%) of the Employee's Compensation but that do not exceed five percent (5%) of the Employee's Compensation ("Basic Matching Contributions, Enhanced "); iii. Safe Harbor Matching Nonelective Contributions or Safe Harbor Non-Elective Contributions. to the Plan on behalf of each Eligible Employee of at least three percent (b3%) of the Eligible Employee's Compensation. Notwithstanding the requirement in (a) i., ii. and iii. above that the Employer Company make the ADP Test Safe Harbor Contributions to this Plan, if the Defined Contribution Plan indicated Company so provides in Item IV-B(A)(v) of the Adoption Agreement, the ADP Test Safe Harbor Contributions will be made to the defined contribution plan indicated in Item IV-B(A)(v) of the Adoption Agreement. However, such contributions will not be made to this Plan unless (1) each Employee eligible under this Plan is also eligible under the requirements of paragraph 11.17 are met. ACP TEST SAFE HARBOR The Employer maintaining a 401(kother plan, and (2) the other plan has the same Plan may elect in the Adoption Agreement to make additional Matching Contributions in addition to the Safe Harbor Matching Contributions made to the Year as this Plan. These additional Matching Contributions may be subject to the ACP The Participant's accrued benefit derived from ADP Test Safe Harbor requirements instead of testing the contributions under paragraph 11.2. If the Employer elects using the current year testing method to test the additional Matching Contributions for nondiscrimination as set forth in paragraph 11.2, the ACP Test Safe Harbor will be satisfied if the following conditions are met: (a) no Matching Contribution may be made with respect to a Participant's Elective Deferrals and/or Voluntary After-tax Contributions which exceed 6% of Compensation; (b) the amount of any discretionary Matching Contribution made after the 1999 Plan Year is nonforfeitable and may not exceed 4% of the Participant's Compensation; (c) the rate of Matching Contributions made to the Plan may not increase as the rate of Elective Deferrals increase; (d) no Highly Compensated Employee may receive a greater rate of match be distributed earlier than a Non-Highly Compensated Employee; and (e) the Employer must elect separation from service, death, disability, an event described in Code Section 401(k)(10), or, in the Adoption Agreement the vesting schedule distribution restrictions and eligibility to receive an allocation case of these additional Matching Contributions. a) SAFE HARBOR STATUS The Employer may amend a profit-sharing or 401(k) plan during a Plan Year to comply with plan, the attainment of age 59 1/2 (if such distributions are otherwise permitted under the Plan). In addition, such contributions must satisfy the ADP Test Safe Harbor provisions of this Article for the Plan Year. In order without regard to comply with these provisions, the Employer must: (a) use the current year testing method; 83 (b) amend the Plan to add the Safe Harbor provisions no later than thirty (30) days prior to the end of the Plan Year and apply the Safe Harbor provisions for the entire Plan Year; (c) satisfy the Safe Harbor contribution requirements using the Safe Harbor Non-Elective Contribution; (d) provide the Safe Harbor notice to Participants prior to the beginning of the Plan Year for which the Plan amendment applies which indicates the Employer will provide Basic or Enhanced Matching Contributions or indicates that the Employer may later amend the Plan to comply with the Safe Harbor provisions by use of the Safe Harbor Non-Elective Contribution; (e) provide an additional notice to Participants at least thirty (30) days prior to the end of the Plan Year only in the case of Safe Harbor Non-Elective Contribution advising Participants of the amendment; and (f) actually provide the notice described in (e) above, should the Employer amend the Plan to comply with the Safe Harbor requirements. A Safe Harbor 401(k) Plan may be amended during a Plan Year to reduce or entirely eliminate on a prospective basis any safe harbor contribution which is either a Basic or Enhanced Matching Contribution conditioned on the Employer providing a notice to the Participants which explains the effect of the amendment and specifies the following: (g) informs the Participants they will have the opportunity to amend their Salary Deferral Agreements; (h) the effective date of the amendment is specified; (i) Participants are given the opportunity prior to the effective date of the amendment to amend their Salary Deferral Agreement; and (j) the amendment to the Plan does not take effect until the later of thirty (30) days after the notice of the amendment is provided to the Participant or the date the Employer adopts the amendment. An Employer who amends a Safe Harbor Plan to either reduce or eliminate the Safe Harbor Matching Contribution permitted disparity under this paragraph or terminates the Plan during the Plan Year, must continue to comply with all of the Safe Harbor requirements of this paragraph until the amendment or Plan termination becomes effective. The Plan must continue to use the current year testing method for the entire Plan Year and satisfy the nondiscrimination test under paragraph 11.2, and if applicable the nondiscrimination tests under paragraph 11.6Code Section 401(l).