Dell 2003 Annual Report Download - page 83

cancels his deferral election may resume deferrals, effective as of the first day of any subsequent pay period by communicating his new deferral
election to his Employer in the manner and within the time period prescribed by the Committee.
For the 2003 Plan Year, a Participant may cancel his Bonus deferral election effective as of the next following Bonus payment date by
communicating such cancellation to his Employer in the manner and within the time period prescribed by the Committee. A Participant who so
cancels his Bonus deferral election may resume deferrals effective as of the next following Bonus payment date by communicating his new deferral
election to his Employer in the manner and within the time period prescribed by the Committee.
(f) In restriction of the Participants' elections, the Salary Reduction Contributions and the elective deferrals (within the meaning of Code Section 402(g)
(3)) under all other plans, contracts, and arrangements of the Employer on behalf of any Participant for any calendar year shall not exceed $12,000
(with such amount to be adjusted automatically to reflect any cost-of-living adjustments authorized by Code Section 402(g)(5)).
(g) In further restriction of the Participants' elections, it is specifically provided that one of the "actual deferral percentage" tests set forth in Code
Section 401(k)(3) and the Treasury regulations thereunder must be met in each Plan Year with respect to which the Plan does not satisfy the
alternative method of satisfying the nondiscrimination requirements as set forth in Code Section 401(k)(12). Such testing shall utilize the prior year
testing method as such term is defined in Internal Revenue Service Notice 98-1. If multiple use of the alternative limitation (within the meaning of
Code Section 401(m)(9) and Treasury regulation § 1.401(m)-2(b)) occurs during a Plan Year, such multiple use shall be corrected in accordance
with the provisions of Treasury regulation § 1.401(m)-2(c); provided, however, that if such multiple use is not eliminated by making Employer Fail
Safe Contributions, then the "actual contribution percentages" of all Highly Compensated Employees participating in the Plan shall be reduced, and
the excess contributions distributed, in accordance with the provisions of Subsection 3.6(c) and applicable Treasury regulations, so that there is no
such multiple use.
(h) If the Committee determines that a reduction of the Considered Compensation (or, for the 2003 Plan Year, Bonus) deferral elections made pursuant
to Subsection 3.1(a), 3.1(c), or 3.1(d) is necessary to ensure that the restrictions set forth in Subsection 3.1(e) or 3.1(f) are met for any Plan Year, the
deferral elections made pursuant to Subsections 3.1(a), 3.1(c), and 3.1(d) of affected Participants may be reduced by the Committee on a temporary
and prospective basis in such manner as the Committee shall determine.
(i) As soon as administratively feasible following the end of each pay period (or, with regard to Bonus deferrals, the next Bonus payment date), but no
later than the time required by applicable law, the Employer shall contribute to the Trust, as
-15-