Automatic Company Contribution Credits. For purposes of Automatic Company Contributions under [Section 5.2], for any given Year, participation shall be limited to an Employee who: # is in Level or above, or its current equivalent under the Company’s position grading system, # has Total Compensation that exceeds the Annual Compensation Limit, and # is participating in the 401(k) Retirement Plan.
“Contribution Credits” means Participant Deferrals, Automatic Company Contribution Credits, Employer Matching Contribution Credits, and Discretionary Employer Contribution Credits.
“Automatic Company Contribution Credit Subaccount” means the bookkeeping subaccount established to reflect the allocation of Automatic Company Contribution Credits hereunder.
Company Credits. The Company may, but shall not be required to, make credits to the Plan for one or more eligible Participants. The amount of such Company Credits and any formula for determining such credits (as well as other features such as vesting conditions) shall be determined and set forth at the time the Company makes the credits. The Company need not treat all Participants equally in determining whether to make a Company Credit.
For each Year the Company shall make an Automatic Company Contribution Credit for each eligible Participant, pursuant to [Section 3.1], in an amount equal to 3% of such Participant’s Total Compensation in excess of the Annual Compensation Limit for such Year. Automatic Company Contribution Credits for any Year shall be made after the end of such Year, provided, however, that in the Year of a Participant’s Separation from Service, such Contribution Credits shall be made as soon as administratively practicable after the Participant’s Separation from Service.
Employer Matching Contribution Credits. For purposes of Employer Matching Contribution Credits under [Section 5.1], participation shall be limited to an Employee who:
Discretionary Employer Contribution Credits. For purposes of employer allocations under [Section 5.3], participation for any given Year shall be limited to those Employees of the Company or any Subsidiary eligible for such a contribution at the time the credit is declared.
ANNUAL COMPANY CREDITS. Effective for purposes of clarifying the making of Company credits, [Section 4.5(b)] of the Plan Statement shall be amended to read in full as follows:
The Company shall establish and maintain bookkeeping account(s) for each Participant, to be credited as of the date each contribution is deemed to be made. The Company shall establish separate subaccounts for each Participant to reflect allocations of Participant Deferrals, Employer Matching Contribution Credits, Automatic Company Contribution Credits, and Discretionary Employer Contribution Credits, if any, made for the Participant’s benefit together with any adjustments for income, gain or loss, expenses attributable thereto, and any distributions made. In the event that there are class-year deferrals, a Participant’s subaccounts shall further be divided into accounts for each Year’s Deferral Agreement. Such accounts and subaccounts shall be used solely for the purpose of tracking such credits, and any income adjustments thereto.
A Participant shall at all times be vested in his or her Participant Deferral Subaccount, Employer Matching Contribution Credit Subaccount, and Automatic Company Contribution Subaccount. A Participant will attain a fully vested interest in the portion of his or her Discretionary Employer Contribution Subaccount attributable to Discretionary Employer Contribution Credits after the Participant has earned five years of vesting service with the Company or a Subsidiary subsequent to the date he or she first becomes a Participant in the Plan.
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