For each plan year, the Employer may contribute to the Plan such amount as the Benefits Committee of the company determines reasonable and appropriate. Profit sharing contributions are discretionary and it is possible that the Employer may decide not to make a profit sharing contribution for a particular year.

If you have one year of service and are actively employed on the last day of the plan year (or if you terminate employment on account of retirement, disability or death during the plan year regardless of hours of service), you will receive a portion of any profit sharing contribution made for that plan year. The amount is determined by multiplying the profit sharing contribution percentage by your compensation for the plan year.

For profit sharing contributions, the term "compensation" is defined the same as it is for your elective deferral contributions to the 401(k), but excludes pre-tax amounts deducted from your paycheck to pay for benefits. Further, the term generally means total compensation earned during the plan year without regard to the date you enter the Plan.

In order to earn a year of service under the Plan for purposes of qualifying for any discretionary profit sharing contributions (or other Employer non-elective contributions or forfeiture allocations), you must earn 1,000 hours of service within the plan year. In tracking hours of service, however, the Plan employs an equivalency method crediting participants with 45 hours of service for each week in which the participant receives credit for at least one hour of service. (You generally receive credit for an hour of service for any hour for which you are paid or are entitled to be paid.)

For purposes of calculating all vesting credit under the Plan, including vesting in any profit sharing contributions, the Plan employs an "elapsed time method" whereby you earn a year of service for each year worked as of your employment anniversary date. (Note: The methods used for crediting vesting service under the legacy 401(k) Plans has changed throughout the years. If you have questions regarding the calculation of historic vesting credit under the legacy 401(k) Plans, please contact the Plan Administrator for additional information.)