Common use of Deferral Percentage Clause in Contracts

Deferral Percentage. The Employee-Elected Company Contributions -------------------- and the Company Contributions (and a pro rata share of the investment earnings attributable to each) allocated to a Participant shall be reduced if necessary to comply with the deferred percentage limitations of Subsection 401(k)(3) of the Code (a copy of which is attached as Exhibit A). Whether such reduction is necessary shall be determined for each Year. Any such reduction shall be effected by reducing first, Employee-Elected Company Contributions, then (if necessary), the Company Contributions, allocated to Participants who are "highly compensated employees" of the Company (as defined in Section 414(q) of the Code) and whose "actual deferral percentage" (as defined in Section 401(k)(3)(B) of the Code) exceeds the permissible actual deferral percentage for highly compensated employees, commencing with those Participants whose actual deferral percentage is highest. The amount of any Participant's Employee-Elected Company Contributions reduced retroactively shall be paid to her in cash within two and one-half (2-1/2) months after the close of the Plan Year. Alternatively, to the extent provided in Treasury Regulations, UDLP may elect or permit the Participant to elect to treat all or a portion of the amount of excess Employee- Elected Company Contributions as an amount distributed to the Participant and then contributed by the Participant to the Plan.