C. ELECTIVE DEFERRAL CONTRIBUTIONS.

The IBEW Local 6/SFECA Inside Wire and Storekeeper Agreements include provisions for 401(k) “elective deferral contributions” to your individual account in $1.00 per hour increments, up to a current maximum of $5.00 per hour. Alumni employees are also eligible to make elective deferral contributions, but should consult with a tax advisor for advice if they are also participating in another 401(k) plan sponsored by their Employer. Apprentices may not make elective deferral contributions to the Plan.

Elective deferral contributions are subject to FICA and Medicare (social security) payroll taxes, but not to federal or state income tax withholding.

1. Open Enrollment for Elective Deferrals. You may defer a portion of your wages to your individual account by executing a salary reduction agreement and returning it to the Plan Office during the annual open enrollment period set forth in the collective bargaining agreement. Salary reduction agreements must be postmarked or received by the Plan Office no later than December 10 during the annual open enrollment period in order to have the elective deferrals implemented or changed effective January 1st of the succeeding year. Your employer will be notified of any changes to your deferral classification on or before December 18th each year. If you are later dispatched to another signatory employer, your dispatch form will reflect your current elective deferral classification. Only one deferral classification may be implemented in any one year. Once you elect to defer a portion of your wages and the deferral classification is implemented, it will be honored by employers from year to year thereafter, unless on or before December 10 of any subsequent year, you execute a new salary reduction agreement form electing to change your deferral classification effective as of January 1 of the next year.

2. Contribution Limits. Congress has established limits on the annual contribution amounts that may be made to your individual account. As a practical matter, these rules, which are in Internal Revenue Code Section 415, should not affect you, but are contained in the Plan because of Internal Revenue Code requirements. For 2007, you may not make elective deferral contributions in excess of $15,500 and the combination of Employer contributions and your elective deferral contributions may not exceed the $45,000 cap. These limits may be adjusted each year for inflation. Near the end of each year, the IRS publishes the adjusted contribution limits for the upcoming year.

3. Excess Deferrals. The annual limit on elective deferrals (which is $15,500 for 2007) applies to all 401(k) and other elective deferral plans in which you may participate. Thus, it is possible that elective deferrals to your account, when combined with elective deferrals to an account which you may have in another plan in which you participate, will exceed the limit. If that should occur, you should notify the administrator for the other plan by March 1 after the close of the year and request that plan to issue you a refund of the excess deferrals (plus any earnings) by April 15 in order to avoid adverse tax consequences. Any excess deferrals returned to you must then be included in your gross taxable income for the year in which the excess deferrals accrued.