Common use of Defined Contribution Plan Fraction Clause in Contracts

Defined Contribution Plan Fraction. A fraction the numerator of which is the sum of the Annual Additions to the Participant's account(s) under all qualified defined contribution plans of Company including voluntary contribution accounts as of the close of the Limitation Year, and the denominator of which is the sum of the lesser of the following amounts determined for such year and for each prior Year of Service with the Company: (1) Such amount as is determined by multiplying 1.25 by the dollar limitation in effect for the defined contribution plans under Internal Revenue Code Subsection 415(c)(1)(A) for such year (determined without regard to Section 415(c)(6) of the Code), or (2) 35 percent of the Participant's compensation for such year. Notwithstanding the foregoing, for any Top-Heavy Plan Year, 1.0 shall be substituted for 1.25 above if any Non-Key Employee Participant eligible for any accrual of benefits does not have either an allocation of Company contributions and forfeitures of at least 7.5 percent of Compensation for such year or an accrued benefit in a defined benefit plan in which he participates of not less than the 3% minimum benefit as provided in Code Section 416(h)(2)(A)(ii)(I)(but not both). However, for any Plan Year in which this Plan is a Super Top-Heavy Plan, 1.0 shall be substituted for 1.25 in any event.