course or other Education involving sports, games, or hobbies, unless
such Education involves the business of the Employer or is required as
part of a degree program. In the case of payments made before January
1, 2026, “Educational Assistance” also means the payment by the
Employer, whether paid to an Eligible Employee or to a lender, of principal
or interest on any Qualified Education Loan incurred by the Eligible
Employee for the Education of the Eligible Employee. The types of
Educational Assistance covered by this Plan are specified in Section II.B.
of this Plan.
D. “Educational Institution” means a school maintaining a regular faculty and
established curriculum, and having an organized body of students in
attendance as defined in Treasury Regulation § 1.151-3. It includes
primary and secondary schools, colleges, universities, normal schools,
technical schools, mechanical schools, and similar institutions (including
some vocational schools and postsecondary educational institutions), but
does not include noneducational institutions, on-the-job training,
correspondence schools, and night schools.
E. “Eligible Educational Institution” means any college, university, vocational
school, or other postsecondary educational institution as defined in
sections 221(d)(2) and 25A(f)(2) of the Code that is (1) described in
section 481 of the Higher Education Act of 1965 (20 U.S.C. 1088) as in
effect on August 5, 1997, (generally all accredited public, nonprofit, and
proprietary postsecondary institutions); and (2) participating in a federal
financial aid program under title IV of the Higher Education Act of 1965 or
is certified by the Department of Education as eligible to participate in
such a program but chooses not to participate.
F. “Eligible Employee” means an employee who is currently employed by the
Employer and may also include an employee as defined in Treasury
Regulation § 1.127-2(h)(1) (a retired, disabled, or laid-off employee; a
current employee who is on leave, as for example, in the Armed Forces of
the United States; or an individual who is self-employed within the
meaning of section 401(c)(1) of the Code). Eligible Employees covered
under this Plan are specified in Section III of this Plan.
G. “Employer” means [Employer Name].
H. “Limitation Class” means the limitation class as defined in Treasury
Regulation § 1.127-2(f)(2), which consists of:
i. Shareholders. Individuals who, on any day of the Program Year,
own more than 5% of the total number of shares of outstanding
stock of the Employer;
2