Section 1. Rules of Application

1.1 If the Employer has elected the EACA option in the adoption agreement, the provisions of this Article shall apply for the Plan Year and, to the extent that any other provision of the Plan is inconsistent with the provisions of this Article, the provisions of this Article shall govern.

1.2 Default Elective Deferrals will be made on behalf of Covered Employees who do not have an affirmative election in effect regarding Elective Deferrals. If the Employer has so elected in the Adoption Agreement, a Covered Employee’s Default Percentage will be adjusted by t he percentage increase entered in the adoption agreement for each Plan Year, beginning with the second Plan Year that begins after the Default Percentage first applies to the Covered Employee. The amount of Default Elective Deferrals made for a Covered Employee each pay period is

117 | Cash or Deferred Arrangement (CODA) LRM Package 01-2024

equal to the Default Percentage specified in the adoption agreement multiplied by the Covered Employee’s compensation for that pay period. If the Employer has so elected in the adoption agreement, a Covered Employee’s Default Percentage will increase by one percentage point each Plan Year, beginning with the second Plan Year that begins after the Default Percentage first applies to the Covered Employee. The increase will be effective beginning with the first pay period that begins in such Plan Year or, if elected by the Employer in the adoption agreement, the first pay period in such Plan Year that begins on or after the date specified in the adoption agreement.

1.3 A Covered Employee will have a reasonable opportunity after receipt of the notice described in Section 4 of this Article to make an affirmative election regarding Elective Deferrals (either to have no Elective Deferrals made or to have a different amount of Elective Deferrals made) before Default Elective Deferrals are made on the Covered Employee’s behalf. Default Elective Deferrals being made on behalf of a Covered Employee will cease as soon as administratively feasible after the Covered Employee makes an affirmative election to have no Elective Deferrals made or to have a different amount of Elective Deferrals made. .