ADOPTION AGREEMENT
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For Synergy Financial Group, Inc.
Employees' Savings & Profit Sharing Plan and Trust
Client No.
Pentegra
ADOPTION AGREEMENT
FOR
Synergy Financial Group, Inc.
EMPLOYEES' SAVINGS & PROFIT SHARING PLAN AND TRUST
Name of Employer: Synergy Financial Group, Inc.
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Address: ▇▇▇ ▇▇▇▇▇ ▇▇▇ ▇▇▇▇, ▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
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Telephone Number: ▇▇▇-▇▇▇-▇▇▇▇
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Contact Person: ▇▇. ▇▇▇▇▇▇ ▇▇▇▇,
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Name of Plan: Synergy Financial Group, Inc. Employees' Savings & Profit Sharing Plan and Trust
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THIS ADOPTION AGREEMENT, upon execution by the Employer and the Trustee, and
subsequent approval by a duly authorized representative of Pentegra Services,
Inc. (the "Sponsor"), together with the Sponsor's Employees' Savings & Profit
Sharing Plan and Trust Agreement (the "Agreement"), shall constitute the Synergy
Financial Group, Inc. Employees' Savings & Profit Sharing Plan and Trust (the
"Plan"). The terms and provisions of the Agreement are hereby incorporated
herein by this reference; provided, however, that if there is any conflict
between the Adoption Agreement and the Agreement, this Adoption Agreement shall
control.
The elections hereinafter made by the Employer in this Adoption Agreement may be
changed by the Employer from time to time by written instrument executed by a
duly authorized representative thereof; but if any other provision hereof or any
provision of the Agreement is changed by the Employer other than to satisfy the
requirements of Section 415 or 416 of the Internal Revenue Code of 1986, as
amended (the "Code"), because of the required aggregation of multiple plans, or
if as a result of any change by the Employer the Plan fails to obtain or retain
its tax-qualified status under Section 401(a) of the Code, the Employer shall be
deemed to have amended the Plan evidenced hereby and by the Agreement into an
individually designed plan, in which event the Sponsor shall thereafter have no
further responsibility for the tax-qualified status of the Plan. However, the
Sponsor may amend any term, provision or definition of this Adoption Agreement
or the Agreement in such manner as the Sponsor may deem necessary or advisable
from time to time and the Employer and the Trustee, by execution hereof,
acknowledge and consent thereto. Notwithstanding the foregoing, no amendment of
this Adoption Agreement or of the Agreement shall increase the duties or
responsibilities of the Trustee without the written consent thereof.
I. Effect of Execution of Adoption Agreement
The Employer, upon execution of this Adoption Agreement by a duly
authorized representative thereof, (choose 1 or 2):
1. Establishes as a new plan the Synergy Financial Group, Inc.
--- Employees' Savings & Profit Sharing Plan and Trust, effective
, (the "Effective Date").
------------ ----
2. X Amends its existing defined contribution plan and trust Synergy
--- -------
Federal Savings Bank 401(k) Savings Plan dated January 1, 1997, in
---------------------------------------- ---------------
its entirety into the Synergy Financial Group, Inc. Employees'
Savings & Profit Sharing Plan and Trust, effective July 1, 2002,
------------
except as otherwise provided herein or in the Agreement (the
"Effective Date").
II. Definitions
A. "Compliance Testing Method" means the prior year testing method
unless the Employer elects to use current year testing for
determining the actual deferral percentages and actual
contribution percentages by checking this line .
----
Note: Whichever testing method is selected (prior year testing
or current year testing), it must apply to both the actual
deferral percentage test and the actual contribution percentage
test.
B. Employer
1. "Employer," for purposes of the Plan, shall mean:
Synergy Financial Group, Inc.
--------------------------------------------------------
2. The Employer is (indicate whichever may apply):
(a) A member of a controlled group of corporations
--- under Section 414(b) of the Code.
(b) A member of a group of entities under common
--- control under Section 414(c) of the Code.
(c) A member of an affiliated service group under
--- Section 414(m) of the Code.
(d) X A corporation.
---
(e) A sole proprietorship or partnership.
---
(f) A Subchapter S corporation.
---
(g) Other .
--- -------------------------------------------
3. Employer's Taxable Year Ends on 12/31 .
----------------------------
4. Employer's Federal Taxpayer Identification Number is
▇▇-▇▇▇▇▇▇▇
----------
5. The Plan Number for the Plan is (enter 3-digit number) 001 .
-----
2
C. "Entry Date" means the first day of the (choose 1 or 2):
1. Calendar month coinciding with or next following the
--- date the Employee satisfies the Eligibility requirements
described in Section III.
2. x Calendar quarter (January 1, April 1, July 1, October 1)
--- coinciding with or next following the date the Employee
satisfies the Eligibility requirements described in
Section III.
D. "Limitation Year" means the twelve (12) consecutive month period
ending on 12/31 (month/day). Note: If no 12 month period is
--------
selected, the Limitation Year shall be the Plan Year.
E. "Member" means an Employee enrolled in the membership of the Plan.
F. "Normal Retirement Age" means (choose 1 or 2):
1. x Attainment of age 62 (select an age not less than 55
--- ----
and not greater than 65).
2. Later of: (i) attainment of age 65 or (ii) the fifth
--- anniversary of the date the Member commenced
participation in the Plan.
G. "Normal Retirement Date" means the first day of the first
calendar month coincident with or next following the date upon
which a Member attains his or her Normal Retirement Age.
H. "Plan Year" means the twelve (12) consecutive month period ending
on 12/31 (month/day).
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I. "Salary" for benefit purposes under the Plan means
(choose 1, 2 or 3):
1. Total taxable compensation as reported on Form W-2
--- (exclusive of any compensation deferred from a prior year).
2. x Basic Salary only.
---
3. Basic Salary plus one or more of the following (if 3 is
--- chosen, then choose (a) or (b), and/or (c) or (d),
whichever shall apply):
(a) Commissions not in excess of $
--- ---
(b) Commissions to the extent that Basic Salary plus
--- Commissions do not exceed $
-------------
(c) Overtime
---
(d) Overtime and bonuses
---
Note: Member pre-tax contributions to a Section 401(k) plan are
always included in Plan Salary.
III. Salary Adjustment
A. Cafeteria Plan (Section 125) Salary Adjustment.
Member pre-tax contributions to a Code Section 125 cafeteria plan
are to be included in Plan
4
Salary, unless the Employer elects to exclude such amounts by
checking this line .
-----
B. Transportation Fringe Benefit (Section 132(f)) Adjustment.
Member pre-tax contributions for qualified transportation fringe
benefits under Code Section 132(f) are to be included in Plan
Salary, unless the Employer elects to exclude such amounts by
checking this line .
-----
IV. Highly Compensated Employee Elections
A. Top Paid Group Election:
In determining who is a Highly Compensated Employee, the Employer
makes the Top Paid Group election by checking this line x . The effect
---
of this election is that an Employee (who is not a 5% owner at any
time during the determination year or the look-back year) with
compensation in excess of $80,000 (as adjusted) for the look-back year
is a Highly Compensated Employee only if the Employee was in the
top-paid group (i.e., the top 20% of Employees ranked on the basis of
compensation paid by the Employer) for the look-back year.
B. Calendar Year Data Election:
For determining which Employees are Highly Compensated Employees, the
look-back year will be the 12 month period immediately preceding the
determination year, except that, for non-calendar year plans, the
------------------------------
look-back year will be the calendar year ending within the Plan Year
by checking this line .
-----
V. Eligibility Requirements
A. All Employees shall be eligible to participate in the Plan in
accordance with the provisions of Article II of the Plan, except
the following Employees shall be excluded (choose whichever shall
apply):
1. Employees who have not attained age (Insert an age from
--- ---
18 to 21).
2. x Employees who have not completed 12 (1-11, 12 or 24)
--- consecutive months of service. ----
Note: Employers which permit Members to make pre-tax elective
deferrals to the Plan (see VII.A.3.) may not elect a 24
month eligibility period.
3. Employees included in a unit of Employees covered by a
--- collective bargaining agreement, if retirement benefits
were the subject of good faith bargaining between the
Employer and Employee representatives.
4. x Employees who are nonresident aliens and who receive no
--- earned income from the Employer which constitutes income
from sources within the United States.
5. Employees included in the following job classifications:
---
4
(a) Hourly Employees
---
(b) Salaried Employees
---
(c) Flex staff employees (i.e., any Employee who is
--- not a regular full-time or part-time Employee).
(d) Short-term Employees ( i.e.; employees who are
--- hired under a written agreement which precludes
membership in the Plan and provides for a
specific period of employment not in excess of
one year).
6. Employees of the following employers which are aggregated
--- under Section 414(b), 414(c) or 414(m) of the Code:
-----------------------------------------------------------
-----------------------------------------------------------
-----------------------------------------------------------
Note:If no entries are made above, all Employees shall be eligible to
participate in the Plan on the later of: (i) the Effective Date
or (ii) the first day of the calendar month or calendar quarter
(as designated by the Employer in Section II.C.) coinciding with
or immediately following the Employee's Date of Employment or, as
applicable, Date of Reemployment.
B. Such eligibility computation period established in Section V(A)
above shall be applicable to (choose 1 or 2):
1. x Both present and future Employees.
---
2. Future Employees only.
---
C. Such Eligibility requirements established above shall be (choose
1 or 2):
1. x Applied to the designated Employee group on and after
--- the Effective Date of the Plan.
2. Waived for the consecutive month period (may not
--- -----
exceed 12) beginning on the Effective Date of the Plan.
D. Service Crediting Method for Eligibility (Choose 1, 2 or 3):
1. Not applicable. There is no service required for eligibility.
---
2. x Hour of service method (Choose a or b):
---
(a) x The actual number of Hours of Employment.
---
(b) 190 Hours of Employment for each month in which
--- the Employee completes at least one hour of
Employment.
3. Elapsed time method.
---
E. Requirements to Commence Allocation of Employer Contributions.
5
1. Employer Contributions shall be allocated to Members
Accounts in accordance with Article III of the Plan, except
that the following Members will not be entitled to Employer
contributions (choose (a) or (b) and/or (c)):
(a) x No additional requirements apply. (The
--- eligibility requirements under Section V above
apply to Employer Contributions); or
(b) Members who have not attained age
--- ---
(Insert an age from 18-21); and/or
(c) Member's who have not completed
--- ---
(1-12) consecutive months of service.
2. The requirement to commence allocation of Employer Contributions
established in this Section E shall apply to all Employer
Contributions provided under Section 3.4 of the Plan except:
(a) x Matching contributions
---
(b) Basic contributions
---
(c) Safe harbor CODA contributions
---
(d) Supplemental contributions
---
(e) Qualified non-elective contributions
---
(f) Profit sharing contributions
---
Note: If an Employer contribution type is selected in 2 above,
Members will receive Employer contributions based upon the
eligibility requirements under Section V above and the provisions
of the Plan document for such Employer contribution type.
VI. Prior Employment Credit
A. Prior Employment Credit:
x Employment with the following entity or entities shall be
--- included for eligibility and vesting purposes:
Synergy Federal Credit Union, Synergy Federal Savings Bank
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Synergy Financial Services Inc.
----------------------------------------------------------------
Note: If this Plan is a continuation of a Predecessor Plan,
service under the Predecessor Plan shall be counted under
this Plan.
VII. Contributions
Note: Annual Member pre-tax elective deferrals, Employer
matching contributions, Employer safe harbor CODA
contributions, Employer basic contributions, Employer
supplemental contributions, Employer profit sharing
contributions and Employer qualified non-elective
contributions, in the aggregate, may not exceed 15% of all
Members' Salary (excluding from Salary Member pre-tax
elective deferrals).
6
A. Employee Contributions (fill in 1 and/or 6 if applicable; choose 2 or
3; 4 or 5):
1. X The maximum amount of monthly contributions a Member may make
--- to the Plan (both pre-tax deferrals and after-tax contributions)
is 50 % (1-50%) of the Member's monthly Salary.
-----
2. x (Choose a and/or b):
---
(a) x A Member may make pre-tax elective deferrals to the Plan,
--- based on multiples of 1% of monthly Salary, or
(b) A Member may make pre-tax elective deferrals to the Plan
--- based on a specified dollar amount.
3. A Member may not make pre-tax elective deferrals to the Plan.
---
4. X A Member may make after-tax contributions to the Plan, based on
--- multiples of 1% of monthly Salary.
5. A Member may not make after-tax contributions to the Plan.
---
6. x An Employee may allocate a rollover contribution to the Plan
--- prior to satisfying the Eligibility requirements described
above.
B. A Member may change his or her contribution rate with respect to,
if made available, pre-tax deferrals and after-tax contributions
(choose 1, 2 or 3):
1. 1 time per pay period.
---
2. 1 time per calendar month.
---
3. X 1 time per calendar quarter.
---
C. Employer Matching Contributions (fill in 1 or 5 as applicable;
and if you select 1, then choose 2, 3 or 4):
1. The Employer matching contributions under 2, 3 or 4 below
shall be based on the Member's contributions (both pre-tax
deferrals and after-tax contributions) not in excess of
5 % (1-20 but not in excess of the percentage specified in
---
A.1. above) of the Member's Salary.
2. x The Employer shall allocate to each contributing Member's
--- Member's Account an amount equal to 100% (not to exceed
---
200%) of the Member's contributions (both pre-tax deferrals
and after-tax contributions) for that month (as otherwise
limited in accordance with C.1. above).
3. The Employer shall allocate to each contributing Member's
--- Member's Account an amount based on the Member's
contributions (as otherwise limited in accordance
with C.1. above) and determined in accordance with the
following schedule:
Years of Employment Matching %
------------------- ----------
Less than 3 50%
At least 3, but less than 5 75%
5 or more 100%
7
4. The Employer shall allocate to each contributing
--- Member's Account an amount based on the Member's
contributions (as otherwise limited in accordance
with C.1. above) and determined in accordance with
the following schedule:
Years of Employment Matching %
------------------- ----------
Less than 3 100%
At least 3, but less than 5 150%
5 or more 200%
5. No Employer matching contributions will be made to the
--- Plan.
D. Safe Harbor CODA Contributions (Actual Deferral Percentage Test
Safe Harbor Contributions) (Complete 1 or 2 below, if
applicable):
1. The Employer shall make a safe harbor Basic Matching
--- Contribution to the Plan on behalf of each Member.
2. In lieu of safe harbor Basic Matching Contributions, the
--- Employer will make the following contributions for the Plan
Year (complete (a) and/or (b)):
(a) Enhanced Matching Contributions:
---
The Employer shall make Matching Contributions to the
Account of each Member in an amount equal to the sum of:
(i) the Member's 401(k) Deferrals that do not
exceed percent of the Member's Salary plus
---
(ii) Percent of the Member's 401(k) Deferrals
---
that exceed percent of the Member's Salary
---
and that do not exceed percent of the
---
Member's Salary.
Note: In the blank in (i) and the second blank in
(ii), insert a number that is 3 or greater
but not greater than 6. The first and last
blanks in (ii) must be completed so that at
any rate of 401(k) Deferrals, the Matching
Contribution is at least equal to the
Matching Contribution receivable if the
Employer were making Basic Matching
Contributions, but the rate of match cannot
increase as deferrals increase. For
example, if "4" is inserted in the blank in
(i), (ii) need not be completed.
(b) Safe Harbor Nonelective Contributions:
---
The Employer will make a Safe Harbor Nonelective Contribution to
the Account of each Member in an amount equal to 3 percent of
the Member's Salary for the Plan Year, unless the Employer
inserts a greater percentage here .
-----
E. Employer Basic Contributions (choose 1 or 2):
1. The Employer shall allocate an amount equal to %
--- -----
(based on 1% increments not to exceed 15%) of Member's
Salary for the month to (choose (a) or (b)):
(a) The Accounts of all Members
---
8
(b) The Accounts of all Members who were employed with
--- the Employer on the last day of such month.
2. x No Employer basic contributions will be made to the Plan.
---
F. Employer Supplemental Contributions:
The Employer may make supplemental contributions for any Plan
Year in accordance with Section 3.7 of the Plan.
G. Employer Profit Sharing Contributions (Choose 1, 2, 3, 4, or 5):
1. X No Employer Profit Sharing Contributions will be made to
--- the Plan.
Non-Integrated Formula
----------------------
2. Profit sharing contributions shall be allocated to
--- each Member's Account in the same ratio as each eligible
Member's Salary during such Contribution Determination
Period bears to the total of such Salary of all eligible
Members.
3. Profit sharing contributions shall be allocated to each
--- eligible Member's Account in the same ratio as each
eligible Member's Salary for the portion of the
Contribution Determination Period during which the
Member satisfied the Employer's eligibility
requirement(s) bears to the total of such Salary of
all eligible Members.
Integrated Formula
------------------
4. Profit sharing contributions shall be allocated to each
--- eligible Member's Account in a uniform percentage
(specified by the Employer as %) of each Member's
----
Salary during the Contribution Determination Period
("Base Contribution Percentage") for the Plan Year that
includes such Contribution Determination Period, plus a
uniform percentage (specified by the Employer as %,
---
but not in excess of the lesser of (i) the Base
Contribution Percentage and (ii) the greater of (1) 5.7%
or (2) the percentage equal to the portion of the Code
Section 3111(a) tax imposed on employers under the
Federal Insurance Contributions Act (as in effect as of
the beginning of the Plan Year) which is attributable to
old-age insurance) of each Member's Salary for the
Contribution Determination Period in excess of the
Social Security Taxable Wage Base ("Excess Salary") for
the Plan Year that includes such Contribution
Determination Period, in accordance with Article III of
the Plan.
5. Profit sharing contributions shall be allocated to each
--- eligible Member's Account in a uniform percentage
(specified by the Employer as %) of each Member's
----
Salary for the portion of the Contribution Determination
Period during which the Member satisfied the Employer's
eligibility requirement(s), if any, plus a uniform
percentage (specified by the Employer as %, but not
----
in excess of the lesser of (i) the Base Contribution
Percentage and (ii) the greater of (1) 5.7% or (2) the
percentage equal to the portion of the Code Section
3111(a) tax imposed on employers under the Federal
Insurance Contributions Act (as in effect as of the
beginning of the Plan Year) which is attributable to
old-age insurance) of each Member's Excess Salary for the
portion of the Contribution Determination Period during
which the Member satisfied the
9
Employer's eligibility requirement(s) in accordance with
Article III of the Plan.
H. Allocation of Employer Profit Sharing Contributions:
In accordance with Section VII, G above, a Member shall be
eligible to share in Employer Profit Sharing Contributions, if
any, as follows (choose 1 or 2):
1. A Member shall be eligible for an allocation of Employer
--- Profit Sharing Contributions for a Contribution
Determination Period if he or she is eligible to
participate in the Plan for the Contribution Determination
Period to which the Profit Sharing Contributions relate.
2. A Member shall be eligible for an allocation of Employer
--- Profit Sharing Contributions for a Contribution
Determination Period only if he or she (choose (a), (b)
or (c) whichever shall apply):
(a) is employed on the last day of the Contribution
--- Determination Period, or retired, died or became
totally and permanently disabled prior to the last
day of the Contribution Determination Period.
(b) completed 1,000 Hours of Employment if the
--- Contribution Determination Period is a period of
12 months (250 Hours of Employment if the
Contribution Determination Period is a period of
3 months), or retired, died or became totally and
permanently disabled prior to the last day of the
Contribution Determination Period.
(c) is employed on the last day of the Contribution
--- Contribution Determination Period and, if such
period is 12 months, completed 1,000 Hours of
Employment (250 Hours of Employment if the
Contribution Determination Period is a period of 3
months), or retired, died or became totally and
permanently disabled prior to the last day of the
Contribution Determination Period.
I. "Contribution Determination Period" for purposes of determining
and allocating Employer profit sharing contributions means
(choose 1,2, 3 or 4):
1. The Plan Year.
---
2. The Employer's Fiscal Year (defined as the Plan's
--- "limitation year") being the twelve (12) consecutive month
period commencing (month/day) and ending
------------------
(month/day).
------------------
3. The three (3) consecutive month periods that comprise each
--- of the Plan Year quarters.
4. The three (3) consecutive month periods that comprise each
--- of the Employer's Fiscal Year quarters. (Employer's Fiscal
Year is the twelve (12) consecutive month period
commencing (month/day) and ending
------------------
(month/day).)
------------------
J. Employer Qualified Nonelective Contributions:
The Employer may make qualified nonelective contributions for any
Plan Year in accordance with Section 3.9 of the Plan.
10
K. Top Heavy Contributions:
If the Plan is determined to be Top Heavy and if Top Heavy
Contributions will be made to the Plan, Top Heavy Contributions
will be allocated to: (choose 1 or 2 below):
1. Only Members who are Non-Key Employees.
---
2. All Members.
---
VIII. Investments
The Employer hereby appoints Barclays Global Investors, N.A. to serve
as Investment Manager under the Plan. The Employer hereby selects the
following Investments to be made available under the Plan (choose
whichever shall apply) and consents to the lending of securities by
such funds to brokers and other borrowers. The Employer agrees and
acknowledges that the selection of Investments made in this Section
VIII is solely its responsibility, and no other person, including the
Sponsor or Investment Manager, has any discretionary authority or
control with respect to such selection process. The Employer hereby
holds the Investment Manager harmless from, and indemnifies it
against, any liability Investment Manager may incur with respect to
such Investments so long as Investment Manager is not negligent and
has not breached its fiduciary duties.
1. X Money Market Fund
---
2. X Stable Value Fund
---
3. X Government Bond Fund
---
4. X S&P 500 Stock Fund
---
5. X S&P 500/Value Stock Fund
---
6. X S&P 500/Growth Stock Fund
---
7. X S&P MidCap Stock Fund
---
8. X ▇▇▇▇▇▇▇ 2000 Stock Fund
---
9. X International Stock Fund
---
10. X Asset Allocation Funds (3)
---
X Income Plus
---
X Growth & Income
---
X Growth
---
11. X Synergy Financial Group, Inc. Stock Fund (the "Employer
--- Stock Fund")
12. Name of Employer Certificate of Deposit Fund
---
13. X NASDAQ 100 Index Fund
---
14. Self-directed Brokerage Account
---
IX. Employer Securities
A. If the Employer makes available an Employer Stock Fund pursuant
to Section VIII of this Adoption
11
Agreement, then voting and tender offer rights with respect to
Employer Stock shall be delegated and exercised as follows
(choose 1 or 2):
1. X Each Member shall be entitled to direct the Plan
--- Administrator as to the voting and tender or exchange
offer rights involving Employer Stock held in such
Member's Account, and the Plan Administrator shall
follow or cause the Trustee to follow such directions.
If a Member fails to provide the Plan Administrator with
directions as to voting or tender or exchange offer
rights, the Plan Administrator shall exercise those
rights as it determines in its discretion and shall
direct the Trustee accordingly.
2. The Plan Administrator shall direct the Trustee as to
--- the voting of all Employer Stock and as to all rights
in the event of a tender or exchange offer involving
such Employer Stock.
X. Investment Direction
A. Members shall be entitled to designate what percentage of
employee contributions and employer contributions made on their
behalf will be invested in the various Investment funds offered
by the Employer as specified in Section VIII of this Adoption
Agreement except:1.The following portions of a Member's Account
will be invested at the employer's direction (choose whichever
shall apply):
(a) Employer Profit Sharing Contributions
--- Shall be invested in:
Employer Stock Fund.
---
Employer Certificate of Deposit Fund.
---
Any Investment Fund or Funds offered by the Employer.
---
(b) x Employer Matching Contributions
---
Shall be Invested in:
---
Employer Stock Fund.
---
Employer Certificate of Deposit Fund.
---
x Any Investment Fund or Funds offered by the Employer.
---
(c) Employer Basic Contribution
---
Shall be invested in:
---
Employer Stock Fund
---
Employer Certificate of Deposit Fund
---
Any Investment Fund or Funds offered by the Employer
---
(d) Employer Supplemental Contributions
---
Shall be invested in:
12
Employer Stock Fund
---
Employer Certificate of Deposit Fund
---
Any Investment Fund or Funds offered by the Employer
---
(e) Employer Qualified Nonelective Contributions
---
Shall be invested in:
Employer Stock Fund
---
Employer Certificate of Deposit Fund
---
Any Investment Fund or Funds offered by the Employer
---
(f) Employer Safe Harbor CODA Contributions under Section
--- 3.14 of the Plan
Shall be invested in:
Employer Stock Fund
---
Employer Certificate of Deposit Fund
---
Any Investment Fund or Funds offered by the Employer
---
2. Amounts invested at the Employer's direction may not be
--- transferred by the Member to any other Investment Fund.
3. Notwithstanding this election in 2, a Member may transfer
--- such amounts to any other Investment Fund upon (choose
whichever may apply):
(a) the attainment of age (insert 45 or greater)
--- ----
(b) the completion of (insert 10 or greater) Years
--- of Employment ----
(c) the attainment of age plus Years of Employment
--- equal to (insert 55 or greater)
----
B. A Member may change his or her investment direction (choose 1,2,
or 3):
1. x 1 time per business day.
---
2. 1 time per calendar month.
---
3. 1 time per calendar quarter.
---
C. If a Member or Beneficiary (or the Employer, if applicable)
fails to make an effective investment direction, the Member's
contributions and Employer contributions made on the Member's
behalf shall be invested in Money Market Fund (insert one of the
-----------------
Investment Funds selected in Section VIII of this Adoption
Agreement).
13
XI. Vesting Schedules
A. (Choose 1, 2, 3, 4, 5, 6 or 7)
Schedule Years of Employment Vested %
-------- ------------------- --------
1. Immediate Upon Enrollment 100%
---
2. 2-6 Year Graded Less than 2 0%
--- 2 but less than 3 20%
3 but less than 4 40%
4 but less than 5 60%
5 but less than 6 80%
6 or more 100%
3. 5-Year Cliff Less than 5 0%
--- 5 or more 100%
4. 3-Year Cliff Less than 3 0%
--- 3 or more 100%
5. 4-Year Graded Less than 1 0%
--- 1 but less than 2 25%
2 but less than 3 50%
3 but less than 4 75%
4 or more 100%
6. 3-7 Year Graded Less than 3 0%
--- 3 but less than 4 20%
4 but less than 5 40%
5 but less than 6 60%
6 but less than 7 80%
7 or more 100%
7. X Other Less than 1 0%
--- 1 but less than 2 20%
2 but less than 3 40%
3 but less than 4 60%
4 but less than 5 80%
5 or more 100%
B. With respect to the schedules listed above, the Employer elects
(choose 1, 2, 3, 4 and/or 5):
1. Schedule solely with respect to Employer matching
---
contributions.
2. Schedule solely with respect to Employer basic
---
contributions.
3. Schedule solely with respect to Employer supplemental
---
contributions.
4. Schedule solely with respect to Employer profit sharing
---
contributions.
5. Schedule X with respect to all Employer contributions.
---
14
NOTE: Notwithstanding any election by the Employer to the
contrary, each Member shall acquire a 100% vested interest in
his Account attributable to all Employer contributions made to
the Plan upon the earlier of (i) attainment of Normal Retirement
Age, (ii) approval for disability or (iii) death. In addition, a
Member shall at all times have a 100% vested interest in the
Employer Qualified Non-Elective Contributions, if any; Safe
Harbor CODA contributions, if any; and in the pre-tax elective
deferrals and nondeductible after-tax Member Contributions.
Also, if a Plan is determined to be Top Heavy, a different
vesting schedule, other than the schedule elected above, may
apply.
C. Years of Employment Excluded for Vesting Purposes
The following Years of Employment shall be disregarded for
vesting purposes (choose whichever shall apply):
1. Years of Employment during any period in which neither the
--- Plan nor any predecessor plan was maintained by the
Employer.
2. Years of Employment of a Member prior to attaining age 18.
---
D. Service Crediting Method for Vesting (Choose 1, 2, or 3):
1. Not Applicable. Plan provides 100% vesting for all
--- contributions.
2. x Hour of service method (if elected, Years of Service will
--- be substituted for Years of Employment for purposes of
this Section XI) (Choose a or b):
(a) x The actual number of Hours of Employment.
---
(b) 190 Hours of Employment for each month in which
--- the Employee completes at least one Hour of
Employment.
3. Elapsed time method.
---
XII. Withdrawal Provisions
A. The following portions of a Member's Account will be eligible
for in-service withdrawals, subject to the provisions of Article
VII of the Plan (choose whichever shall apply):
1. x Employee after-tax contributions and the earnings thereon.
---
In-service withdrawals permitted only in the event of
(choose whichever shall apply):
(a) Hardship.
---
(b) Attainment of age 59 1/2.
---
15
2. x Employee pre-tax elective deferrals and the earnings
--- thereon.
Note: In-service withdrawals of all employee pre-tax
elective deferrals and earnings thereon as of
December 31, 1988 are permitted only in the event
of hardship or attainment of age 59 1/2.
In-service withdrawals of earnings after December
31, 1988 are permitted only in the event of
attainment of age 59 1/2.
3. x Employee rollover contributions and the earnings thereon.
---
In-service withdrawals permitted only in the event of
(choose whichever shall apply):
(a) x Hardship.
---
(b) Attainment of age 59 1/2.
---
4. x Employer matching contributions and the earnings thereon.
---
In-service withdrawals permitted only in the event of
(choose whichever shall apply):
(a) Hardship.
---
(b) Attainment of age 59 1/2.
---
5. Employer basic contributions and the earnings thereon.
---
In-service withdrawals permitted only in the event of
(choose whichever shall apply):
(a) Hardship.
---
(b) Attainment of age 59 1/2.
---
6. Employer supplemental contributions and the earnings
--- thereon.
In-service withdrawals permitted only in the event of
(choose whichever shall apply):
(a) Hardship.
---
(b) Attainment of age 59 1/2.
---
7. Employer profit sharing contributions and the earnings
--- thereon.
In-service withdrawals permitted only in the event of
(choose whichever shall apply):
(a) Hardship.
---
(b) Attainment of age 59 1/2.
---
8. Employer qualified nonelective contributions and earnings
--- thereon.
Note: In-service withdrawals of all employer qualified
nonelective contributions and earnings thereon are
permitted only in the event of attainment of age
59 1/2.
9. Employer safe harbor CODA contributions and earnings
--- thereon.
16
Note: In-service withdrawals of employer safe harbor
CODA contributions and earnings thereon are
permitted only in the event of attainment of age
59 1/2.
10. No in-service withdrawals shall be allowed.
---
B. Notwithstanding any elections made in Subsection A of this
Section XII above, the following portions of a Member's Account
shall be excluded from eligibility for in-service withdrawals
(choose whichever shall apply):
1. Employer contributions, and the earnings thereon,
--- credited to the Employer Stock Fund.
2. Employer contributions, and the earnings thereon,
--- credited to the Employer Certificate of Deposit Fund.
3. All contributions and deferrals, and the earnings
--- thereon, credited to the Employer Stock Fund.
4. All contributions and deferrals, and the earnings
--- thereon, credited to the Employer Certificate of
Deposit Fund.
5. Other:
--- -------------------------------------------------
Note: A Member's Account will be available for in-service
withdrawals upon attaining age 70 1/2 notwithstanding any
provisions of this Section XII to the contrary.
XIII. Distribution Option (choose whichever shall apply)
1. X Lump Sum and partial lump sum payments only.
---
2. Lump Sum and partial lump sum payments plus one or more of
--- the following (choose (a) and/or (b)):
(a) Installment payments.
---
(b) Annuity payments.
---
3. X Distributions in kind of Employer Stock.
---
XIV. Loan Program (choose 1, 2, 3 or 4, if applicable)
1. No loans will be permitted from the Plan.
---
2. x Loans will be permitted from the Member's Account.
---
3. Loans will be permitted from the Member's Account,
--- excluding (choose whichever shall apply):
(1) Employer Profit sharing contributions and the earnings
--- thereon.
(2) Employer matching contributions and the earnings
--- thereon.
(3) Employer basic contributions and the earnings thereon.
---
17
(4) Employer supplemental contributions and the earnings
--- thereon.
(5) Employee after-tax contributions and the earnings
--- thereon.
(6) Employee pre-tax elective deferrals and the earnings
--- thereon.
(7) Employee rollover contributions and the earnings
--- thereon.
(8) Employer qualified nonelective contributions and the
--- earnings thereon.
(9) Employer safe harbor CODA contributions and the
--- earnings thereon.
(10) Any amounts to the extent invested in the Employer
--- Stock Fund.
(11) Any amounts to the extent invested in the Employer
--- Certificate of Deposit Fund.
4. Loans will only be permitted from the Member's Account
--- in the case of hardship or financial necessity as defined
under Section 8.1 of the Plan.
XV. Additional Information
If additional space is needed to select or describe an elective feature of
the Plan, the Employer should attach additional pages and use the following
format:
The following is hereby made a part of Section --- of the Adoption
Agreement and is thus incorporated into and made a part of the Synergy
Financial Group, Inc. Employees' Savings & Profit Sharing Plan and Trust
Signature of Employer's Authorized Representative
-------------------------
Signature of Trustee
------------------------------------------------------
Supplementary Page of
------ ------
XVI. Plan Administrator
The Named Plan Administrator under the Plan shall be the (choose 1, 2, 3 or
4):
Note: Pentegra Services, Inc. may not be appointed Plan Administrator.
1. X Employer
---
2. Employer's Board of Directors
---
3. Plan's Administrative Committee
---
18
4. Other (if chosen, then provide the following information)
---
Name:
-----------------------------------------------------------
Address:
-----------------------------------------------------------
Tel No:
-----------------------------------------------------------
Contact:
-----------------------------------------------------------
Note:If no Named Plan Administrator is designated above, the Employer shall
be deemed the Named Plan Administrator.
XVII. Trustee
The Employer hereby appoints The Bank of New York to serve as Trustee for
all Investment Funds under the Plan except the Employer Stock Fund.
The Employer hereby appoints the following person(s) or entity to serve as
Trustee under the Plan for the Employer Stock Fund.*
Name: Bank of New York
-------------------------------------------------------------------
Address: ▇ ▇▇▇▇ ▇▇, ▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
-------------------------------------------------------------------
Telephone No: Contact:
--------------------- -------------------------------
-------------------------------------------------------------
Signature of Trustee
(Required only if the Employer is serving as its own Trustee)
* Subject to approval by The Bank of New York, if The Bank of New York is
appointed as Trustee for the Employer Stock Fund.
The Employer hereby appoints The Bank of New York to serve as Custodian under
the Plan for the Employer Stock Fund in the event The Bank of New York does not
serve as Trustee for such Fund.
19
EXECUTION OF ADOPTION AGREEMENT
By execution of this Adoption Agreement by a duly authorized representative of
the Employer, the Employer acknowledges that it has established or, as the case
may be, amended a tax-qualified retirement plan into the Name of Employer
Employees' Savings & Profit Sharing Plan and Trust (the "Plan"). The Employer
hereby represents and agrees that it will assume full fiduciary responsibility
for the operation of the Plan and for complying with all duties and requirements
imposed under applicable law, including, but not limited to, the Employee
Retirement Income Security Act of 1974, as amended, and the Internal Revenue
Code of 1986, as amended. In addition, the Employer represents and agrees that
it will accept full responsibility for complying with any applicable
requirements of federal or state securities law as such laws may apply to the
Plan and to any investments thereunder. The Employer further acknowledges that
any opinion letter issued with respect to the Adoption Agreement and the
Employees' Savings and Profit Sharing Plan - Basic Plan Document by the Internal
Revenue Service ("IRS") to Pentegra Services, Inc., as sponsor of the Employees'
Savings & Profit Sharing Plan, does not constitute a ruling or a determination
with respect to the tax-qualified status of the Plan as adopted by the Employer.
Further, the adopting Employer may not rely on an opinion letter issued by the
National Office of the IRS as evidence that the Plan is qualified under Section
401 of the Internal Revenue Code. In order to obtain reliance with respect to
plan qualification, the Employer must apply to Employee Plans Determinations of
the Internal Revenue Service Key District Office for a determination letter.
The failure to properly complete the Adoption Agreement may result in
disqualification of the Plan and Trust evidenced thereby.
The Sponsor will inform the Employer of any amendments to the Plan or of the
discontinuance or abandonment of the Plan by the Sponsor.
Any inquiries regarding the adoption of the Plan should be directed to the
Sponsor as follows:
Pentegra Services, Inc.
▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
(▇▇▇) ▇▇▇-▇▇▇▇
IN WITNESS WHEREOF, the Employer has caused this Adoption Agreement to be
executed by its duly authorized officer this 23rd day of May, 2002.
---- --- ----
Synergy Financial Group, Inc.
-----------------------------
By: /s/▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
---------------------------------
Name: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
---------------------------------
Title: Senior Vice President
---------------------------------
1/1/01
20