• DEFINITIONS
• LIMITATION IF THE PARTICIPANT DOES NOT PARTICIPATE IN ANOTHER QUALIFIED PLAN MAINTAINED BY THE EMPLOYER
• LIMITATION IF, IN ADDITION TO THIS PLAN, A PARTICIPANT IS COVERED UNDER ANOTHER QUALFIED DEFINED CONTRIBUTION PLAN MAINTAINED BY THE EMPLOYER
• LIMITATION IF THE EMPLOYER MAINTAINS, OR AT ANY TIME MAINTAINED, ANOTHER PLAN WHICH IS A QUALIFIED DEFINED BENEFIT PLAN
• DISPOSITION OF EXCESS AMOUNTS

 

ARTICLE 5. LIMITATION ON ALLOCATIONS

5.1 DEFINITIONS. For the purposes of this Article 5, the following terms will be defined as follows:

(a) ANNUAL ADDITIONS The sum of the following amounts allocated on behalf of a Participant for a Limitation Year under all qualified defined contribution plans of the Employer:

(i) All Employer Contributions (including amounts reapplied to reduce Employer Contributions under Article 5.5);

(ii) All of the Employee's contributions under other plan(s) of the Employer, if any; and

(iii) Amounts allocated, after March 31, 1984, to an individual medical account, as defined in Code Section 415(l)(2), which is part of a pension or annuity plan maintained by the Employer, are treated as Annual Additions to a defined contribution plan. Also, amounts derived from contributions paid or accrued after December 31, 1985, with respect to taxable years ending after such date, which are attributable to post retirement medical benefits, as defined in Code Section 419(A)(3), allocated to the separate account of a key employee, as defined in Code Section 416(i), under a welfare benefit fund, as defined in Code Section 419(e), maintained by the Employer, are treated as Annual Additions to a defined contribution plan.

The Annual Additions for any Limitation year beginning before January 1, 1987 will not be recomputed to treat all Employee contributions as Annual Additions, notwithstanding Article 5.1 (a)(iii).

(b) COMPENSATION ~'Compensation" for purposes of Internal Revenue Service Code Sections 415, 416, and 414 (q) shall mean taxable income as defined in Code Section 3401 (a) for purposes of Federal income tax withholding. Effective January 1, 1998, Compensation shall include pre tax deferral under Code Sections 125,401(k), 457, and effective January 1, 2001 Section 132(f).

(c) DEFINED BENEFIT FRACTION A fraction, the numerator of which is the sum of a Participant's Projected Annual Benefits under all the defined benefit plans (whether or not terminated) maintained, or ever maintained by the Employer, and the denominator of which is the lesser of 125 percent of the dollar limitation determined for the Limitation Year under Section 415(b) and 415(d) of the Code or 140 percent of the Highest Average Compensation including any adjustments under Code Section 415(b). For this purpose, the Highest Average Compensation is the Participant's average Compensation for the three consecutive years of service with the Employer that produces the highest average.

Notwithstanding the above, if the Participant was a participant as of the first day of the first Limitation Year beginning after December 31, 1986, in one or more defined benefit plans maintained by the Employer which were in existence on May 6, 1986 and which satisfied the applicable requirements of Code Section 415 as in effect for all Limitation Years beginning before January 1, 1987, the denominator of this fraction will not be less than 125 percent of the sum of the annual benefits under such plans which the Participant accrued as of the end of the last Limitation Year beginning before January 1, 1987, disregarding any changes in the terms and conditions of this Plan occurring after May 5, 1986. The preceding sentence applies only of the defined benefit plans individually and in the aggregate satisfied the requirements of Code Section 415 for all Limitation years beginning before January 1, 1987.

(d) DEFINED CONTRIBUTION FRACTION A fraction, the numerator of which is the sum of the Annual Additions to the Participant's accounts under this Plan and all other qualified defined contribution plans (whether or not terminated) maintained or ever maintained by the Employer for the current and all prior Limitation Years (including the Annual Additions attributable to the Participant's nondeductible Employee contributions under all qualified defined benefit plans and all other qualified defined contribution plans whether or not terminated, and the Annual Additions attributable to all welfare benefit funds, as defined in Code Section 419(e), and individual medical accounts, as defined in Code Section 415(l)(2), maintained by the Employer), and the denominator of which is the sum of the Maximum Aggregate Amounts for the current and all prior Limitation Years of service with the Employer (regardless of whether a defined contribution plan was maintained by the Employer). The Maximum Aggregate Amount in any Limitation Year is the lesser of 125 percent of the dollar limitation in effect under Section 415(c)(1)(A) of the Code or 35 percent of the Participant's Compensation for such Limitation Year.

If the Participant was a participant as of the first day of the first Limitation year beginning after December 31, 1986, in one or more defined contribution plans maintained by the Employer which were in existence on May 6, 1986 and which satisfied the applicable requirements of Code Section 415 as in effect for all Limitation Years beginning before January 1, 1987, the numerator of this fraction will be adjusted if the sum of this fraction and the Defined Benefit Fraction would otherwise exceed 1.0 under the terms of this Plan. Under the adjustment, an amount equal to the product of (1) the excess of the sum of the fractions over 1.0 times (2) the denominator of this fraction, will be permanently subtracted from the numerator of this fraction. The adjustment is calculated using the fractions as they would be computed as of the end of the last Limitation Year beginning before January 1, 1987 and disregarding any changes in the terms and conditions of this Plan occurring after May 5, 1986, but using the limitations of Code Section 415 applicable to the first Limitation year beginning on or after January 1, 1987.

(e) EMPLOYER The Contributing Employer described in Article 1.8, and all members of a controlled group of corporations [within the meaning of Section 414(b) of the Code as modified by Section 415(h)], all commonly controlled trades or businesses [within the meaning of Section 414(c) of the Code as modified by Section 415(h)], or affiliated service groups [as defined in Section 414(m) of the Code], of which the Contributing Employer is a member, and any other entity required to be aggregated with the Contributing employer pursuant to Code Section 414(o) and regulations thereunder.

(f) EXCESS AMOUNT The excess of a Participant's Annual Additions over the Maximum Permissible Amount, less loading and other administrative charges allocable to such excess.

(g) LIMITATION YEAR June 1 through May 31. All qualified plans maintained by the Employer must use the same Limitation Year. If the Limitation Year is amended to a different 12 consecutive month period, the new Limitation Year must begin on a date within the Limitation Year in which the Amendment is made.

(h) MAXIMUM PERMISSIBLE AMOUNT The lesser of (1) or (2), as follows:

(1) $30,000 [or, if greater, one fourth (1/4th) of the defined benefit dollar limitation under Code Section 415(b)(1) as in effect for the Limitation Year]. If a short Limitation Year is a different 12 consecutive month period, the dollar limitation under this subarticle (h) (1) for the short Limitation Year will be multiplied by a fraction, the numerator of which is the number of calendar months (including any fractional parts of a calendar month) in the
short Limitation Year, and the denominator of which is 12.

(2) Twenty five percent (25%) of the Participant's Compensation for the limitation Year.

The Compensation limitation referred to above will not apply to any contribution for medical benefits within the meaning of Code Section 401 (h) or 419A(f)(2) which is otherwise treated as an Annual Addition under Code Section 415(l)(1) or 419(A)(d)(2).

(i) PROJECTED ANNUAL BENEFIT The annual retirement benefit (adjusted to an actuarially equivalent straight life annuity if such benefit is expressed in a form other than a straight life annuity or a qualified joint and survivor annuity) to which the Participant would be entitled under the terms of all defined benefits plans of the Employer assuming:

(1) the Participant will continue employment until normal retirement age under such plan(s) (or current age, if later) and

(2) the Participant's Compensation for the current Limitation Year and all other relevant factors used to determine benefits under such plans will remain constant for all future Limitation years.

5.2. LIMITATION IF THE PARTICIPANT DOES NOT PARTICIPATE IN ANOTHER QUALIFIED PLAN MAINTAINED BY THE EMPLOYER.
If the Participant does not participate in and has never participated in another qualified plan [or a welfare benefit fumd, as defined in Section 419(e) of the Code or an individual medical account, as defined in Section 415(l)(2) of the Code, which provides an Annual Addition maintained by the Employer during any Limitation year, the amount of Annual Additions which may be credited to the Participant for any Limitation Year will not exceed the lesser of the Maximum Permissible Amount or any other limitation contained in this Plan. If the Employer contribution that would otherwise be contributed or allocated to the Participant's account(s) would cause the Annual Additions for the Limitation Year to exceed the maximum Permissible Amount, the amount contributed or allocated will be reduced so that the Annual Additions for the Limitation Year will equal the maximum Permissible Amount.

Prior to determining the Participant's actual Compensation for the Limitation year, the Employer may determine the Maximum Permissible Amount for the Participant on the basis of a reasonable estimation of the Participant's Compensation for the Limitation Year, uniformly determined for all Participants similarly situated.

As soon as administratively feasible after the end of the Limitation Year, the Maximum Permissible Amount will be determined on the basis of the Participant's actual Compensation for such Limitation Year. If, after such determination of the Maximum Permissible Amount for the Participant, there is an Excess Amount with respect to such Participant for the Limitation Year, such Excess Amount will be disposed of in the manner provided by Article 5.5

5.3. LIMITATION IF, IN ADDITION TO THIS PLAN, A PARTICIPANT IS COVERED UNDER ANOTHER QUALFIED DEFINED CONTRIBUTION PLAN MAINTAINED BY THE EMPLOYER.

If, in addition to this Plan, the Participant is covered under another qualified defined contribution plan or a welfare benefit fund defined in Section 419(e) of the Code, or an individual medical account, as defined in Section 415(l)(2) of the Code, which provides an Annual Addition maintained by the Employer during any Limitation Year, the Annual Additions which may be credited to a Participant under this Plan and all such other plan(s) and fund(s) in the aggregate for any such Limitation Year will not exceed the Maximum Permissible Amount. If the sum of the Annual Additions already allocated with respect to the Participant under such other plan(s) and welfare benefit fiind(s) is less than the Maximum Permissible Amount, then the amount which can be contributed or allocated under this Plan will not exceed the Maximum Permissible Amount reduced by the aggregate Annual Additions under such other plan(s) and fund(s).

If the sum of the Annual Additions already allocated with respect to a Participant under such other plan(s) and fund(s) in the aggregate is equal to or greater than the maximum Permissible Amount, no amount will be contributed or allocated to the Participant under this Plan for the Limitation Year.

Prior to determining the Participant's actual Compensation for the Limitation Year, the Employer may determine the Maximum Permissible Amount for the Participant on the basis of a reasonable estimation of the Participant's Compensation for the Limitation Year, uniformly determined for all Participants similarly situated.

As soon as administratively feasible after the end of the Limitation Year, the Maximum Permissible Amount will be determined on the basis of the Participant's actual Compensation for such Limitation Year. If a Participant's Annual Additions under this Plan and all such other plans result in an excess Amount for the Limitation Year, such Excess Amount will be deemed to consist of the amounts last allocated, except that Annual Additions attributable to a welfare benefit fund will be deemed to have been allocated first regardless of the actual allocation date.

If an Excess Amount was allocated to a Participant under this Plan on any allocation date which coincides with an allocation date or another plan, the excess Amount attributable to this Plan will be the product of

(a) The total Excess Amount allocated as of such date; times

(b) The ratio of (i) the Annual Additions allocated to the Participant for the Limitation Year as of such date under this Plan, to (ii) the total Annual Additions allocated to the Participant for the Limitation Years as of such date under this and all other qualified defined contribution plans of the Employer.

Any Excess Amount attributable to this Plan will be disposed of in the manner provided by Article 5.5 of this Plan.

5.4 LIMITATION IF THE EMPLOYER MAINTAINS, OR AT ANY TIME MAINTAINED, ANOTHER PLAN WHICH IS A QUALIFIED DEFINED BENEFIT PLAN.

If the Employer maintains, or at any time maintained, a qualified defined benefit plan covering any Participant in this Plan, the sum of the Participant's Defined Benefit Fraction and Defined Contribution Fraction will not, except as provided in Article 5.1 (d), exceed 1.0 in any Limitation Year. If a reduction is necessary, the Participant's benefits under the defined benefit plan will be reduced first, and, to the extent necessary, his Annual Additions under this Plan so that the 1.0 limitation is satisfied.

The combined limits as described in Sec 5.4 under Section 4.15(e) of the Code are hereby repealed effective for the 2000 Limitation Year.

5.5 DISPOSITION OF EXCESS AMOUNTS.
In the event the Annual Additions exceed the Maximum Permissible Amount pursuant to Article 5.2, 5.3 or 5.4 as a result of the allocation of forfeitures, a reasonable error in estimating a Participant's Compensation or other limited facts and circumstances, which the Commissioner of Internal Revenue finds justify the provisions outlined below, then the Excess Amount will be disposed of as follows:

(a) First, any Employee contributions, to the extent that they would reduce the excess Amount, will be returned to the Participant.

(b) After the application of the provisions of subarticle (a) above, any remaining Excess Amount, which is attributable to Employer Contributions, will be disposed of as follows:

(i) Excess Amounts attributable to Employer Contributions will be allocated and reallocated to other Participants in the Plan to the extent of the Maximum Permissible Amount for each such Participant. If there are Excess Amounts remaining after satisfaction of the Maximum Permissible Amount for all Participants for a Limitation Year, such Excess Amounts will be held unallocated in a suspense account.

(iii) If a suspense account is in existence at any time during a particular Limitation Year other than the Limitation Year described in (i), above, then all amounts in the suspense account will be allocated and reallocated to other Participants in the Plan subject to the Maximum Permissible Amount for each Participant for the particular Limitation Year, before any Employer Contributions which would otherwise constitute Annual Additions, may be made to the Plan for such particular Limitation Year.