§ 3. Limitation on annual additions.

(a)

Effective for Plan Years beginning on and after January 1, 1995, to the extent required under Code Section 415(c), in no event shall the "annual addition" for a Participant for any calendar year, exceed the lesser of:

(1)

$30,000.00 as adjusted; or

(2)

25 percent of the "compensation," of such Participant received from an Adopting Employer during the Plan Year. For purposes of this Section, "compensation" means all of a Participant's wages as defined in Code Section 3401(a) for the purposes of income tax withholding at the source but determined without regard to any rules that limit the remuneration included in wages based on the nature or location of the employment or the services performed (such as the exception for agricultural labor in Code Section 3401(a)(2)); provided, however, for Plan Years beginning after December 31, 1997, compensation shall also include the amount of any elective deferrals, as defined in Code Section 402(g)(3), and any amount contributed or deferred by the Adopting Employer at election of the Employee and which is not includable in the gross income of the Employee by reason of Code Section 125, 132(f)(4), or 457.

(b)

For purposes of this Section, "annual addition" means the sum of the following amounts credited to a Participant's accounts for the limitation year under this Plan and any other plan maintained by an Employer: (i) employer contributions; (ii) employee contributions; (iii) forfeitures; and (iv) allocations under a simplified employee pension plan. Amounts allocated after March 31, 1984, to an individual medical account, as defined in Code Section 415(1)(2), which is part of a pension or annuity plan maintained by an Employer are treated as annual additions to a defined contribution plan. Also, amounts derived from contributions paid or accrued after December 31, 1985, in taxable years ending after such date, which are attributable to post-retirement medical benefits, allocated to the separate account of a key employee, as defined in Code Section 419A(d)(3), under a welfare benefit fund, as defined in Code Section 419(e), maintained by an Employer are treated as an annual additions to a defined contribution plan.

(c)

If the annual addition for a Participant under the Plan would be greater than the annual addition for such Participant as limited by paragraph (a), then the excess, if due to contributions based on estimated annual compensation, the allocation of forfeitures, or a reasonable error in determining the amount of elective deferrals under Code Section 402(g)(3), shall be reduced, to the extent necessary to satisfy such limitation by distributing to the Participant any excess employee contributions, as adjusted for any gains or losses thereto.