APPENDIX I - RULES RELATING TO EMPLOYER WITHDRAWAL LIABILITY

Section 1. Preamble

This Appendix I to the Southern California IBEW-NECA Pension Plan sets forth rules applicable to the determination of Employer Withdrawal Liability as established under the Multiemployer Pension Plan Amendments Act of 1980 (the Act). These rules shall apply to complete or partial withdrawals, as defined in the Act, occurring after April 28, 1980. The relevant provisions of the Act shall apply to any matter affecting an Employer's withdrawal liability to the extent that such matter is not addressed in this Appendix I.

Section 2. In determining the fractions for allocating:

1. The Employer's proportional share of the unamortized amount of the change in unfunded vested benefits, as described in Section 4211(b)(2)(E) of ERISA;
2. The Employer proportional share of the unamortized amount of the Plan's unfunded vested benefits for the Plan year ended June 30, 1979, as described in Section 4211(b)(3)(B) of ERISA;
3. The Employer's proportional share of the unamortized amount of the reallocated unfunded vested benefits, as described in Section 4211(b)(4)(D) of ERISA;

The following rules described in Sections 3 and 4 will apply in determining the denominator of such fractions.

Section 3. In calculating the denominator for the fractions described in Section 2, only contributions of significant withdrawn Employers will be excluded.

Section 4.

1. For purposes of Section 3, a significant withdrawn Employer means:
   1. an Employer to whom the Plan has sent a notice of withdrawal liability under Section 4219 of ERISA, or
   2. a withdrawn Employer that, in any Plan Year used to determine the denominator of a fraction, contributed at least $250,000.00, or if less, 1.0% of all contributions made by Employers for that year.
2. If a group of Employers withdraws in a concerted withdrawal, they will be considered a single employer for purposes of determining whether they are a significant withdrawn Employer under subsection (a) above. A concerted withdrawal means the discontinuance of contributions to the Plan during a single Plan Year,
   1. by an Employer Association, or
   2. by all or substantially all of the Employers covered by a single collective bargaining agreement, or
   3. by all or substantially all of the Employers covered by Contribution Agreements with a single labor organization.

Section 5. The Board of Trustees has determined that the Plan primarily covers employees in the building and construction industry.