d. Contract approval
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d. Contract approval
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4.5 CASH BENEFIT <br /> <br /> If a Participant does not elect any Salary Redirections, such Participant shall be <br />deemed to have chosen the Cash Benefit as his sole Benefit Option. However, if a Participant <br />fails to make any election of Benefit Option, then the Employer Contribution will be deemed to <br />be waived. <br /> <br />4.6 NONDISCRIMINATION REQUIREMENTS <br /> <br /> (a) It is the intent of this Plan to provide benefits to a classification of <br />employees which the Secretary of the Treasury finds not to be discriminatory in <br />favor of the group in whose favor discrimination may not occur under Code <br />Section 125. <br /> <br /> (b) It is the intent of this Plan not to provide qualified benefits as <br />defined under Code Section 125 to Key Employees in amounts that exceed 25% <br />of the aggregate of such Benefits provided for all Eligible Employees under the <br />Plan. For purposes of the preceding sentence, qualified benefits shall not include <br />benefits which (without regard to this paragraph) are includible in gross income. <br /> <br /> (c) If the Administrator deems it necessary to avoid discrimination or <br />possible taxation to Key Employees or a group of employees in whose favor <br />discrimination may not occur in violation of Code Section 125, it may, but shall <br />not be required to, reject any election or reduce contributions or non-taxable <br />Benefits in order to assure compliance with this Section. Any act taken by the <br />Administrator under this Section shall be carried out in a uniform and <br />nondiscriminatory manner. If the Administrator decides to reject any election or <br />reduce contributions or non-taxable Benefits, it shall be done in the following <br />manner. First, the non-taxable Benefits of the affected Participant (either an <br />employee who is highly compensated or a Key Employee, whichever is <br />applicable) who has the highest amount of non-taxable Benefits for the Plan Year <br />shall have his non-taxable benefits reduced until the discrimination tests set forth <br />in this Section are satisfied or until the amount of his non-taxable Benefits equals <br />the non-taxable Benefits of the affected Participant who has the second highest <br />amount of non-taxable Benefits. This process shall continue until the <br />nondiscrimination tests set forth in this Section are satisfied. With respect to any <br />affected Participant who has had Benefits reduced pursuant to this Section, the <br />reduction shall be made proportionately among Health Care Reimbursement <br />Plan Benefits and Dependent Care Assistance Program Benefits, and once all <br />these Benefits are expended, proportionately among self-funded Benefits. <br />Contributions which are not utilized to provide Benefits to any Participant by <br />virtue of any administrative act under this paragraph shall be forfeited and <br />deposited into the benefit plan surplus. <br /> <br /> ARTICLE V <br />PARTICI PANT ELECTIONS <br /> <br />5.1 INITIAL ELECTIONS <br /> <br /> An Employee who meets the eligibility requirements of Section 2.1 on the first <br />day of, or during, a Plan Year may elect to participate in this Plan for all or the remainder of <br />such Plan Year, provided he elects to do so before his effective date of participation pursuant to <br />Section 2.2. However, if such Employee does not complete an application to participate and <br />benefit election form and deliver it to the Administrator before such date, his Election Period <br /> <br /> <br />
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