401(K) Plan (2005)Full Document 

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PENNSYLVANIA CAPITAL BANK

 

401(k) PLAN

 


 

TABLE OF CONTENTS

 

Subject


   Article

   Page

EFFECTIVE DATE

   1    1

DESIGNATION OF TRUST

   2    3

DEFINITIONS

   3    4

ELIGIBILITY AND PARTICIPATION

   4    15

CONTRIBUTIONS

   5    17

ALLOCATIONS

   6    19

LIMITATION ON ANNUAL ADDITIONS

   7    25

VESTED INTEREST

   8    37

RETIREMENT BENEFITS

   9    39

DEATH BENEFITS

   10    41

PAYMENT OF BENEFITS

   11    42

ADMINISTRATION OF PLAN

   12    53

TRUST PROVISIONS

   13    57

AMENDMENT AND TERMINATION

   14    62

MISCELLANEOUS PROVISIONS

   15    65

TOP-HEAVY PROVISIONS

   16    68

TRUSTEE ACCEPTANCE

   17    76

EXECUTION

   —      77

 


 

ARTICLE ONE

 

EFFECTIVE DATE

 

1.01 Effective Date: The provisions of this Plan and Integrated Trust were effective as of January 1, 1990; and are amended and restated effective as of January 1, 1997, except for the following provisions:

 

  (a) Effective for the 1997 Plan Year only, “bonus payments” is listed in paragraph (ii) of Subsection 3.05(a) as an item excluded from Compensation.

 

  (b) In Subsection 5.01(a), “fifteen (15%) percent” replaced “nineteen (19%) percent” prior to the first day of the Plan Year beginning in 1998.

 

  (c) Section 6.10 and the last sentence of Subsection 11.07(c) were effective as of December 12, 1994.

 

  (d) Subsection 7.02(a) became effective as of the first day of the first Plan Year beginning in 1995.

 

  (e) The phrase “(and any attributable Gain)” in Subsection 7.05 (a) became effective as of the first day of the first Plan Year beginning after 1995.

 

  (f) For Plan Years beginning before 1996, Compensation for purposes of Sections 7.02, 7.03, and 16.04 did not include salary reductions made (or employer contributions made available on a taxable basis) under a plan which complies with IRC §125 or §401(k).

 

  (g) Subsections 7.07(d) and 7.08(e) are not effective prior to the first Plan Year beginning in 1999.

 

  (h) In Sections 11.04(b), 11.04(c), and 11.04(f), “five thousand ($5,000) dollars” was replaced by “three thousand five hundred ($3,500) dollars for Plan Years beginning before August 6, 1997.

 

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  (i) Section 11.06 is not effective prior to the first Plan Year beginning in 1999.

 

  (j) Prior to the first Plan Year beginning in 1999, paragraph (ii) of Subsection 11.07(d) limited loans to fifty (50%) of the Participant’s Vested Interest.

 

  (k) The reference in Section 15.02 to IRC §401(a)(13)(c) applies to judgments, orders, and degrees issued and settlement agreements entered into, on or after August 5, 1997.

 

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ARTICLE TWO

 

DESIGNATION OF TRUST

 

2.01 Profit-Sharing Trust: The Plan and integrated Trust Agreement established hereunder shall be known as the Pennsylvania Capital Bank 401(k) Plan (hereinafter called the “Plan”) and shall be for the exclusive benefit of the Employees. The terms of the Plan are intended to comply with the Internal Revenue Code of 1986, as amended, and Treasury regulation issued in connection therewith, in order that the Trust may qualify as a tax-exempt trust. This Plan is a profit-sharing plan.

 

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ARTICLE THREE

 

DEFINITIONS

 

When used herein, the following words shall have the following meanings unless the context clearly indicates otherwise:

 

3.01 “Accrual Computation Period shall mean the Plan Year.

 

3.02 “Account Balance shall mean the balance of a Participant Account held under the Plan.

 

3.03 “Alternate Payee shall mean any spouse, former spouse, child, or other dependent of a Participant who is recognized by a Domestic Relations Order as having a right to receive all, or a portion of, the benefits payable under a plan with respect to such Participant.

 

3.04 “Anniversary Date shall mean December 31 of each year.

 

3.05 “Compensation shall mean:

 

  (a) Basic Definition: Except as otherwise provided, the total amount of compensation which is subject to federal income tax withholding which is paid (or otherwise becomes taxable) to an Employee by the Corporation for services rendered and shall:

 

  (i) include the amount of any Tax Reduction Contributions made pursuant to Subsections 5.01(a) or any salary reductions made pursuant to any cafeteria plan or 401(k) plan which meets the requirements of IRC §125 or IRC §401(k), and

 

  (ii) exclude any reimbursements or other expense allowances, fringe benefits (cash and noncash), moving expenses, deferred compensation, and welfare benefits, and

 

  (iii) exclude any compensation which is paid (or otherwise becomes taxable) to an Employee for services rendered while he was not a Participant in the Plan.

 

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  (b) IRC §404 Limit: For purposes of Section 5.02, the total of all wages, salary and other amounts which is paid (or otherwise becomes taxable) to a Participant for personal services actually rendered, but Compensation shall not include deferred compensation, stock options, salary reduction contributions under a 401(k) or cafeteria plan, or other remunerations which receive special tax benefit. Nonqualified deferred compensation which is paid (or otherwise becomes taxable) to a Participant while he is still employed by the Corporation shall be “Compensation” when it is paid (or otherwise becomes taxable).

 

  (c) Highly Compensated Employees, IRC §415 Limit and Top-Heavy Rules: For purposes of Section 3.18, 7.02 and 7.03, and Article Sixteen, the amount of Compensation as determined under subsection (b) except that salary reductions made (or employer contributions made available or a taxable basis) under a plan which complies with IRC §125 or §401(k) shall be included.

 

  (d) §401 (a) (17) Limit: Notwithstanding the other subsections of this section, the Compensation of a Participant for purposes other than Sections 7.02 and 7.03 shall not include compensation in excess of one hundred sixty thousand ($160,000) dollars. This one hundred sixty thousand ($160,000) dollar limit applies for the Plan Year beginning in 1998 and is indexed in accordance with IRC §401(a) (17). See Section 15.10. If a Plan Year contains fewer than twelve (12) calendar months, then the dollar limit on Compensation for that Plan Year shall be the limit under IRC §401(a) (17) multiplied by the number of full months in the Plan Year and divided by twelve (12) months.

 

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3.06 “Corporation shall mean the Pennsylvania Capital Bank, a Pennsylvania corporation, and any Related Organization or successor corporation which adopts this Plan. Each employer shall be considered separately for purposes of determining who is a Five (5%) Percent Owner, a One (1%) Percent Owner or an Officer. For purposes of Article Sixteen the term Corporation shall include all Related Organizations, including those which do not adopt this Plan.

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