Employees of Southern and its affiliates who are active participants in Southern's Savings Plan (the "Savings Plan") and whose base salary exceeds $125,000 are eligible to participate in the Deferred Plan. The Deferred Plan is unfunded and benefits under the Deferred Plan are paid from the general assets of the Company. Participants whose salary deferrals to the Savings Plan are limited by Internal Revenue Code limitations may elect to credit to the Deferred Plan the excess, if any, of: (i) the amount of salary deferrals that would have been credited pursuant to the Savings Plan on their behalf for the plan year had the statutory limitations not been applicable over (ii) the amount of salary deferrals actually credited for the year by the participant to the Savings Plan. Salary reduction credits under the Deferred Plan are in the same percentage as most recently elected under the Savings Plan. For each payroll period for which the Company credits salary to the Deferred Plan on behalf of the participant, matching credits are also credited to the Deferred Plan on behalf of the participant. The matching credits for each payroll period are equal to an amount not greater than 100 percent of that portion of the salary reduction credits that do not exceed 6 percent of the participant's salary for the payroll period. Eligible Deferred Plan participants may defer all or a portion of their awards under the Management Incentive Bonus Plan into the Deferred Plan, in 10 percent increments. There are no employer matching contributions on awards earned under the Management Incentive Bonus Plan that are deferred in the Deferred Plan. The balance of a participant's benefit under the Deferred Plan will be distributed upon the participant's termination of employment or death (to the participant's beneficiary) in a lump sum, unless the participant elects to have the benefit paid in annual installments over a period of not more than ten years. Participants may invest their Deferred Plan account balance in any of the funds available under the Savings Plan and earnings are credited based on the performance of such funds.