Common use of Allocation of Contributions and Forfeitures Clause in Contracts

Allocation of Contributions and Forfeitures. 5.1 The Employer's Profit-Sharing Contribution for any Plan Year shall be allocated and credited by the Trustee among the Accounts of the Participants as of the last day of such Plan Year in the proportion that each Participant's Compensation bears to the total Compensation received by all the Participants during the Plan Year. 5.2 The Employee Elective Deferrals shall be allocated and credited by the Trustee to the Participant's Elective Contribution Account who made the deferral. 5.3 The Employer Qualified Non-Elective Contributions shall be allocated and credited by the Trustee among the Participant's Elective Accounts as of the last day of the Plan Year in proportion that each Participant's Compensation bears to the total Compensation received by all the Participants during the Plan Year; provided, however, the Employer, in its sole discretion, may direct that only Non-Highly Compensated Employees shall be eligible to receive an allocation or credit of Qualified Non-Elective Contributions. 5.4 The Employer Matching Contribution shall be allocated and credited by the Trustee to the Employee's Non-Elective Account in such manner as the Employer may designate in a nondiscriminatory manner in accordance with the Employer Matching Contribution formula. Qualified Matching Contributions shall be allocated to the Employee's Qualified Matching Contribution Account as the Employer designates and may, in the Employer's sole discretion, be allocated only to Non-Highly Compensated Employees. 5.5 Any forfeitures for a Plan Year shall be used first to pay the Plan's administration costs and expenses for the Plan Year and any remainder for the Plan Year to reduce the Employer's contribution, and shall not be allocated among the Participant's Accounts. 5.6 For any Top Heavy Plan Year, the total of the Employer's contribution and, if otherwise permitted herein, forfeitures allocated to the Participant's Account of each Non-Key Employee shall not be less than the lesser of (i) three (3%) percent of such Non-Key Employee's compensation (as defined below), or (ii) in the case where the Employer has no defined benefit plan which designates this Plan to satisfy Code Section 401(a) (4) or Code Section 410, the largest percentage of Employer contributions and forfeitures, as a percentage of the first $200,000 (or 5150,000, as adjusted by the Internal Revenue Service, for Plan Years beginning after 1993) of the Key Employee's Code Section 415 Compensation (including any amounts contributed as a result of a salary reduction agreement under a Code Section 401(k) plan), allocated on behalf of any Key Employee for that year. Neither Elective Deferrals nor Employer Matching Contributions shall be taken into account for purposes of satisfying the minimum Top Heavy Plan minimum allocation requirements: provided, however, that any Employer Matching Contributions not necessary to satisfy the non-discrimination requirements of Code Sections 401(k) and 401(m) may be taken into account for purposes of satisfying the Top Heavy Plan minimum allocation requirements. For any Plan Year when (i) the Plan is a Top Heavy Plan but not a Super Top Heavy Plan and (ii) a Key Employee is a Participant in both this Plan and a defined benefit plan included in a Required Aggregation Group which is top heavy, the extra minimum allocation (required by Code Section 416(h) to provide higher limitations) shall be provided for each Non-Key Employee who is a Participant only in this Plan by substituting four (4%) percent for three (3%) percent in the preceding sentence. For purposes of determining the minimum allocation, all Code Section 415 Compensation during the entire Limitation Year shall be taken into account for determining the required minimum allocation for such Non-Key Employee. The minimum allocation is determined without regard to any Employer Social Security contribution or the Non-Key Employee's level of Compensation. This Section shall not apply to any Participant to the extent the Participant is covered under any other plan or plans of the Employer and the Employer has provided that minimum allocation or benefit requirements applicable to a Top Heavy Plan will be met in the other plan or plans. The minimum allocation required (to the extent required to be non-forfeitable under Code Section 416(b)) may not be forfeited under Code Sections 411 Ca) (3) (B) or 411(a) (3) (D). The minimum allocation required shall be allocated to a Non-Key Employee's Account if the Non-Key Employee is a Participant even though he has not completed a Year of Service and declined to make mandatory contributions to the Plan, if required. Any Participant who is not employed on the last day of the Plan Year shall not receive the minimum Top Heavy Plan benefit allocation for such Plan Year. The minimum Top Heavy Plan benefit allocation shall not be provided to each Key Employee. If the Employer maintains another qualified plan and a Non-Key Employee participates in this Plan and the other plan, then such other plan shall first satisfy the minimum Top Heavy Plan benefits required herein. 5.7 The fact that an allocation shall be made and credited to the Non-Elective Account of a Participant shall not vest in such Participant any right, title, or interest in and to any assets of the Trust Fund, except at the time or times and upon such terms and conditions as are expressly set forth in this Plan 5.8 Any assets contributed by the Employer to the Trust Fund shall be allocated only as set forth herein and, until allocated in accordance with the provisions of this Plan, shall be held in suspense by the Trustee. 5.9 Notwithstanding any other provision of the Plan or the effect thereof, this Plan and Trust shall comply with the annual additions limitations contained in Code Section 415. The maximum annual additions that may be contributed or allocated by the Employer (including any Affiliated Employer) to a Participant's Account under the Plan for any Limitation Year shall not exceed the lesser of (a) the Defined Contribution Dollar Limitation, or (b) twenty-five (25%) percent of the Code Section 415 Compensation paid to the Participant by the Employer for the Limitation Year, or such other limits as may, from time to time, be prescribed by regulations promulgated by the Secretary of the Treasury. The compensation limitation in (b) above shall not apply to (i) any contribution for medical benefits (within the meaning of Section 419A(f) (2) of the Code) after separation from service which is otherwise treated as an annual addition, or (ii) any amount otherwise treated as an annual addition under Section 415(1) (1) of the Code. For purposes of this Section, the Defined Contribution Dollar Limitation means $30,000 or, if greater, one-fourth of the defined benefit dollar limitation set forth in Code Section 415(6) (i) (A) as in effect for the Limitation Year.

Allocation of Contributions and Forfeitures. 5.1 The Employer's Profit-Sharing Contribution for any Plan Year shall be allocated and credited by the Trustee Committee, or its designee, among the Accounts of the Participants as of the last day of such Plan Year in the proportion that each Participant's Compensation bears to the total Compensation received by all the Participants during the Plan Year. 5.2 The Employee Elective Deferrals shall be allocated and credited by the Trustee to the Participant's Elective Contribution Account who made the deferral. 5.3 The Employer Qualified Non-Elective Contributions shall be allocated and credited by the Trustee among the Participant's Elective Accounts as of the last day of the Plan Year in proportion that each Participant's Compensation bears to the total Compensation received by all the Participants during the Plan Year; provided, however, the Employer, in its sole discretion, may direct that only Non-Highly Compensated Employees shall be eligible to receive an allocation or credit of Qualified Non-Elective Contributions. 5.4 The Employer Matching Contribution shall be allocated and credited by the Trustee to the Employee's Non-Elective Matching Contribution Account in such manner as the Employer may designate in a nondiscriminatory manner in accordance with the Employer Matching Contribution formula. Qualified Matching Contributions shall be allocated to the Employee's Qualified Matching Contribution Account as the Employer designates and may, in the Employer's sole discretion, be allocated only to Non-Highly Compensated Employees. 5.5 Any forfeitures for a Plan Year shall be allocated or credited as follows: (a) Any forfeitures in the Non-Elective Accounts resulting from the Employer Profit-Sharing Contribution shall be allocated and credited by the Trustee in the same manner as the Employer Profit-Sharing Contribution is allocated and shall be subject to the same restrictions as are applicable to the allocation and crediting of Employer Profit-Sharing Contributions under Section 5.12. (b) Any forfeitures in the Non-Elective Accounts resulting from the Employer Matching Contribution shall be used first to pay the Plan's administration costs and expenses for the Plan Year and any remainder for the Plan Year to reduce the Employer's contribution, contribution and shall not be allocated among the Participant's Accounts. 5.6 For any Top Heavy Plan Year, the total of the Employer's contribution and, if otherwise permitted herein, forfeitures allocated to the Participant's Account of each Non-Key Employee shall not be less than the lesser of (i) three (3%) percent of such Non-Key Employee's compensation (as defined below), or (ii) in the case where the Employer has no defined benefit plan which designates this Plan to satisfy Code Section 401(a) (4401(a)(4) or Code Section 410, the largest percentage of Employer contributions and forfeitures, as a percentage of the first $200,000 (or 5150,000$150,000, as adjusted by the Internal Revenue Service, for Plan Years beginning after 1993) of the Key Employee's Code Section 415 Compensation (including any amounts contributed as a result of a salary reduction agreement under a Code Section 401(k) plan), allocated on behalf of any Key Employee for that year. Neither Elective Deferrals nor Employer Matching Contributions shall be taken into account for purposes of satisfying the minimum Top Heavy Plan minimum allocation requirements: ; provided, however, that any Employer Matching Contributions not necessary to satisfy the non-discrimination requirements of Code Sections 401(k) and 401(m) may be taken into account for purposes of satisfying the Top Heavy Plan minimum allocation requirements. For any Plan Year when (i) the Plan is a Top Heavy Plan but not a Super Top Heavy Plan and (ii) a Key Employee is a Participant in both this Plan and a defined benefit plan included in a Required Aggregation Group which is top heavy, the extra minimum allocation (required by Code Section 416(h) to provide higher limitations) shall be provided for each Non-Key Employee who is a Participant only in this Plan by substituting four (4%) percent for three (3%) percent in the preceding sentence. For purposes of determining the minimum allocation, all Code Section 415 Compensation during the entire Limitation Year shall be taken into account for determining the required minimum allocation for such Non-Key Employee. The minimum allocation is determined without regard to any Employer Social Security contribution or the Non-Key Employee's level of Compensation. This Section shall not apply to any Participant to the extent the Participant is covered under any other plan or plans of the Employer and the Employer has provided that minimum allocation or benefit requirements applicable to a Top Heavy Plan will be met in the other plan or plans. The minimum allocation required (to the extent required to be non-forfeitable under Code Section 416(b)) may not be forfeited under Code Sections 411 Ca) (3) (B411(a)(3)(B) or 411(a) (3) (D411(a)(3)(D). The minimum allocation required shall be allocated to a Non-Key Employee's Account if the Non-Key Employee is a Participant even though he has not completed a Year of Service and declined to make mandatory contributions to the Plan, if required. Any Participant who is not employed on the last day of the Plan Year shall not receive the minimum Top Heavy Plan benefit allocation for such Plan Year. The minimum Top Heavy Plan benefit allocation shall not be provided to each Key Employee. If the Employer maintains another qualified plan and a Non-Key Employee participates in this Plan and the other plan, then such other plan shall first satisfy the minimum Top Heavy Plan benefits required herein. 5.7 The fact that an allocation shall be made and credited to the Non-Elective Account of a Participant shall not vest in such Participant any right, title, or interest in and to any assets of the Trust Fund, except at the time or times and upon such terms and conditions as are expressly set forth in this Plan. 5.8 Any assets contributed by the Employer to the Trust Fund shall be allocated only as set forth herein and, until allocated in accordance with the provisions of this Plan, shall be held in suspense by the Trustee. 5.9 Notwithstanding any other provision of the Plan or the effect thereof, this Plan and Trust shall comply with the annual additions limitations contained in Code Section 415. The maximum annual additions that may be contributed or allocated by the Employer (including any Affiliated Employer) to a Participant's Account under the Plan for any Limitation Year shall not exceed the lesser of (a) the Defined Contribution Dollar Limitation, or (b) twenty-five (25%) percent of the Code Section 415 Compensation paid to the Participant by the Employer for the Limitation Year, or such other limits as may, from time to time, be prescribed by regulations promulgated by the Secretary of the Treasury. The compensation limitation in (b) above shall not apply to (i) any contribution for medical benefits (within the meaning of Section 419A(f) (2419A(f)(2) of the Code) after separation from service which is otherwise treated as an annual addition, or (ii) any amount otherwise treated as an annual addition under Section 415(1) (1415(l)(1) of the Code. For purposes of this Section, the Defined Contribution Dollar Limitation means $30,000 or30,000. For purposes of this Section, for any Limitation year "annual additions" shall mean for this Plan (which shall include an Affiliated Employer's plan), the sum of: (a) the Participant's share of the Employer contribution; (b) the Participant's contributions, if greaterany; (c) the Participant's share of forfeitures, one-fourth of the if any, added to his Account; (d) amounts allocated after March 31, 1984 to an individual medical account, as defined benefit dollar limitation set forth in Code Section 415(6415(l)(2), which is part of a pension or annuity plan maintained by the Employer; and (e) amounts derived from contributions paid or accrued after December 31, 1985, in Limitation Years ending after such date, which are attributable to the separate account of a Key Employee, as defined in Code Section 419A(d)(2). Solely for purposes of determining the annual additions under this Section, a Participant's contributions shall exclude any rollover amount or rollover contribution and any contributions to a simplified employee pension plan which are excludable from income under Code Section 408(k)(6). In the event the Employer has two or more defined contribution plans which allow aggregate contributions to exceed the limits of Code Section 415, as amended, as the result of allocation of forfeitures, a reasonable error in estimating a Participant's annual Compensation, or under other facts and circumstances which the Commissioner of Internal Revenue Service determines justifies the excess, then the defined contribution plan with the latest effective date shall sufficiently reduce contributions and allocations to prevent an excess annual addition. For purposes of this Section and the annual additions limitations, compensation used in this Section shall mean all Code Section 415 Compensation paid during the Limitation Year and Employer means the Employer and all Affiliated Employers. Further, this Section applies to all defined contribution plans (iwhether or not terminated) of the Employer in the aggregate. 5.10 In the event that it is determined that the annual additions to a Participant's Account for a Plan Year would be in excess of the limits contained herein as the result of allocation of forfeitures, a reasonable error in estimating a Participant's annual Compensation, a reasonable error in determining the amount of elective deferrals under Code Section 402(g), or under other facts and circumstances which the Commissioner of Internal Revenue Service determines justifies the excess, such annual additions shall be reduced to the extent necessary in the following order: (Aa) Any contributions (including Elective Contributions) made by the Participant during the Plan Year, including the earnings thereon, which are included in such annual additions shall be returned to such Participant to the extent necessary to reduce the annual additions to the limitations contained herein. (b) If the Participant has made no contributions, or if such participant's contributions are not sufficient to reduce the annual additions to the limitations contained herein, such Participant's allocable share first of forfeitures, and next of Employer contributions, for such Plan Year, shall be reduced, and the amount of such reduction shall be allocated among the remaining Participants in accordance with the method contained in this Plan for the allocation of Employer contributions and forfeitures, subject to the limitations with respect to annual additions to the Accounts of Participants. This subparagraph (b) shall not be applicable if this Plan provides that forfeitures are used to reduce Employer contributions. (c) If, after the allocations in accordance with (b) above of this Section, there are any amounts remaining which cannot be allocated to any Participant for the Limitation Year as a result of the limitations contained herein, such amounts shall be maintained unallocated in effect a suspended Account under the Trust Fund. If a suspended Account is in existence at any time during a particular Limitation Year, other than the Limitation Year described in the preceding sentence, all amounts in the suspended Account must be allocated and reallocated to participants' Accounts subject to Code Section 415 before any Employer contributions and any Employee contributions which would constitute annual additions may be made to the Plan for that Limitation Year. If forfeitures are used to reduce Employer contributions, then such suspended amounts shall be used to reduce contributions prior to any contributions by the Employer. (d) Upon termination of this Plan, any amounts held in a suspended Account because such amounts cannot be allocated to the Participants as a result of the limitations contained herein shall revert to the Employer. For purposes of the annual additions limitations used in this Section, compensation used in this Section shall mean all Code Section 415 paid during the Limitation Year. 5.11 For purposes of allocating Employer contributions and forfeitures, if otherwise permitted herein, only Compensation paid after an Employee has satisfied the initial eligibility requirements of the Plan and has entered the Plan shall be taken into account. Notwithstanding the preceding sentence, all compensation as defined in Code Section 415 during the entire Limitation Year shall be taken into account for determining the required minimum allocation for a Non-Key Employee if the Plan is a Top Heavy Plan. 5.12 Unless otherwise required in a Top Heavy Plan, except in the event of death, Disability or attainment of Normal Retirement Date during the Plan Year, a Participant shall not receive an allocation or credit of the Employer's Profit-Sharing Contribution unless the Participant is employed with the Employer as of the last day of the Plan Year and is credited with 1,000 Hours of Service during such Plan Year. A Participant who terminates employment during a Plan Year for reasons of death, Disability or after attainment of Normal Retirement Date shall share in an allocation or credit of the Employer's Profit-Sharing Contribution for that Plan Year if he is credited with one (1) Hour of Service for such Plan Year. 5.13 A Participant who terminates employment before the next Valuation Date shall not be ineligible to receive an allocation or credit of the Employer Matching Contribution solely because of the Participant's termination of employment prior to such Valuation Date or such Participant failed to have a Year of Service for accrual of benefits. 5.14 Notwithstanding anything in this Plan and Trust to the contrary, if the Plan and Trust would violate either or both the participation test under Code Section 401(a)(26) or the coverage test under Code Section 410(b) for a particular Plan Year, then the following shall apply in the order designated to the extent necessary to satisfy both the aforesaid participation test and coverage test for such Plan Year: (a) First, each Participant who is employed with the Employer on the last day of the Plan Year that did not receive any accrual of benefits for such Plan Year shall nevertheless receive an accrual of benefits. If after complying with this subparagraph (a) the Plan and Trust continues to violate either or both the participation test and coverage test, then subparagraph (b) shall apply for such Plan Year. (b) Second, each Participant who is not employed on the last day of the Plan Year and did not receive an accrual of benefits for such Plan Year but was credited with 501 or more Hours of Service during such Plan Year shall receive an accrual of benefits. In accruing benefits under subparagraphs (a) or (b) above, if the Plan is a Top Heavy Plan for such Plan Year, then the Participant shall only receive the minimum Top Heavy Plan benefit for such Plan Year if the minimum Top Heavy Plan benefit is all that is required for the Plan and Trust to satisfy Code Sections 401(a)(26) and 410(b), otherwise the Participant shall receive a full benefit accrual.

Allocation of Contributions and Forfeitures. 5.1 The Employer's Profit-Sharing Contribution for any Plan Year shall be allocated and credited by the Trustee among the Accounts of the Participants as of the last day of such Plan Year in the proportion that each Participant's Compensation bears to the total Compensation received by all the Participants during the Plan Year. 5.2 The Employee Elective Deferrals shall be allocated and credited by the Trustee to the Participant's Elective Contribution Account who made the deferral. 5.3 The Employer Qualified Non-Elective Contributions shall be allocated and credited by the Trustee among the Participant's Elective Accounts as of the last day of the Plan Year in proportion that each Participant's Compensation bears to the total Compensation received by all the Participants during the Plan Year; provided, however, the Employer, in its sole discretion, may direct that only Non-Highly Compensated Employees shall be eligible to receive an allocation or credit of Qualified Non-Elective Contributions. 5.4 The Employer Matching Contribution shall be allocated and credited by the Trustee to the Employee's Non-Elective Account in such manner as the Employer may designate in a nondiscriminatory manner in accordance with the Employer Matching Contribution formula. Qualified Matching Contributions shall be allocated to the Employee's Qualified Matching Contribution Account as the Employer designates and may, in the Employer's sole discretion, be allocated only to Non-Highly Compensated Employees. 5.5 Any forfeitures for a Plan Year shall be used first to pay the Plan's administration costs and expenses for the Plan Year and any remainder for the Plan Year to reduce the Employer's contribution, and shall not be allocated among the Participant's Accounts. 5.6 For any Top Heavy Plan Year, the total of the Employer's contribution and, if otherwise permitted herein, forfeitures allocated to the Participant's Account of each Non-Key Employee shall not be less than the lesser of (i) three (3%) percent of such Non-Key Employee's compensation (as defined below), or (ii) in the case where the Employer has no defined benefit plan which designates this Plan to satisfy Code Section 401(a) (4) or Code Section 410, the largest percentage of Employer contributions and forfeitures, as a percentage of the first $200,000 (or 5150,000$150,000, as adjusted by the Internal Revenue Service, for Plan Years beginning after 1993) of the Key Employee's Code Section 415 Compensation (including any amounts contributed as a result of a salary reduction agreement under a Code Section 401(k401 (k) plan), allocated on behalf of any Key Employee for that year. Neither Elective Deferrals nor Employer Matching Contributions shall be taken into account for purposes of satisfying the minimum Top Heavy Plan minimum allocation requirements: ; provided, however, that any Employer Matching Contributions not necessary to satisfy the non-discrimination requirements of Code Sections 401(k) and 401(m) may be taken into account for purposes of satisfying the Top Heavy Plan minimum allocation requirements. For any Plan Year when (i) the Plan is a Top Heavy Plan but not a Super Top Heavy Plan and (ii) a Key Employee is a Participant in both this Plan and a defined benefit plan included in a Required Aggregation Group which is top heavy, the extra minimum allocation (required by Code Section 416(h) to provide higher limitations) shall be provided for each Non-Key Employee who is a Participant only in this Plan by substituting four (4%) percent for three (3%) percent in the preceding sentence. For purposes of determining the minimum allocation, all Code Section 415 Compensation during the entire Limitation Year shall be taken into account for determining the required minimum allocation for such Non-Key Employee. The minimum allocation is determined without regard to any Employer Social Security contribution or the Non-Key Employee's level of Compensation. This Section shall not apply to any Participant to the extent the Participant is covered under any other plan or plans of the Employer and the Employer has provided that minimum allocation or benefit requirements applicable to a Top Heavy Plan will be met in the other plan or plans. The minimum allocation required (to the extent required to be non-forfeitable under Code Section 416(b)) may not be forfeited under Code Sections 411 Ca(a) (3) (B) or 411(a) (3) (D). The minimum allocation required shall be allocated to a Non-Key Employee's Account if the Non-Key Employee is a Participant even though he has not completed a Year of Service and declined to make mandatory contributions to the Plan, if required. Any Participant who is not employed on the last day of the Plan Year shall not receive the minimum Top Heavy Plan benefit allocation for such Plan Year. The minimum Top Heavy Plan benefit allocation shall not be provided to each Key Employee. If the Employer maintains another qualified plan and a Non-Key Employee participates in this Plan and the other plan, then such other plan shall first satisfy the minimum Top Heavy Plan benefits required herein. 5.7 The fact that an allocation shall be made and credited to the Non-Elective Account of a Participant shall not vest in such Participant any right, title, or interest in and to any assets of the Trust Fund, except at the time or times and upon such terms and conditions as are expressly set forth in this Plan 5.8 Any assets contributed by the Employer to the Trust Fund shall be allocated only as set forth herein and, until allocated in accordance with the provisions of this Plan, shall be held in suspense by the Trustee. 5.9 Notwithstanding any other provision of the Plan or the effect thereof, this Plan and Trust shall comply with the annual additions limitations contained in Code Section 415. The maximum annual additions that may be contributed or allocated by the Employer (including any Affiliated Employer) to a Participant's Account under the Plan for any Limitation Year shall not exceed the lesser of (a) the Defined Contribution Dollar Limitation, or (b) twenty-five (25%) percent of the Code Section 415 Compensation paid to the Participant by the Employer for the Limitation Year, or such other limits as may, from time to time, be prescribed by regulations promulgated by the Secretary of the Treasury. The compensation limitation in (b) above shall not apply to (i) any contribution for medical benefits (within the meaning of Section 419A(f) (2) of the Code) after separation from service which is otherwise treated as an annual addition, or (ii) any amount otherwise treated as an annual addition under Section 415(1) (1) of the Code. For purposes of this Section, the Defined Contribution Dollar Limitation means $30,000 or, if greater, one-fourth of the defined benefit dollar limitation set forth in Code Section 415(6415(b) (i) (A) as in effect for the Limitation Year.