Employees' Savings & Profit Sharing Plan (Basic Plan Document) (2003)Full Document 

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                             PENTEGRA SERVICES, INC.




                    EMPLOYEES' SAVINGS & PROFIT SHARING PLAN
                               BASIC PLAN DOCUMENT


1/1/2001


                                TABLE OF CONTENTS

ARTICLE I            PURPOSE AND DEFINITIONS...................................1

ARTICLE II           PARTICIPATION AND MEMBERSHIP.............................10
     Section 1       Eligibility Requirements.................................10
     Section 2       Exclusion of Certain Employees...........................11
     Section 3       Waiver of Eligibility Requirements.......................11
     Section 4       Exclusion of Non-Salaried Employees......................11
     Section 5       Commencement of Participation............................12
     Section 6       Termination of Participation.............................12

ARTICLE III          CONTRIBUTIONS............................................13
     Section 1       Contributions by Members.................................13
     Section 2       Elective Deferrals by Members............................13
     Section 3       Transfer of Funds and Rollover Contributions by Members..14
     Section 4       Employer Contributions - General.........................15
     Section 5       Employer Matching Contributions..........................15
     Section 6       Employer Basic Contributions.............................16
     Section 7       Supplemental Contributions by Employer...................16
     Section 8       The Profit Sharing Feature...............................17
     Section 9       The 401(k) Feature.......................................19
     Section 10      Determining the Actual Deferral Percentages..............21
     Section 11      Determining the Actual Contribution Percentages..........23
     Section 12      The Aggregate Limit Test.................................26
     Section 13      Remittance of Contributions..............................27
     Section 14      Safe Harbor CODA.........................................28

ARTICLE IV           INVESTMENT OF CONTRIBUTIONS..............................30
     Section 1       Investment by Trustee or Custodian.......................30
     Section 2       Member Directed Investments..............................30
     Section 3       Employer Securities......................................31

ARTICLE V            MEMBERS' ACCOUNTS, UNITS AND VALUATION...................32

ARTICLE VI           VESTING OF ACCOUNTS......................................33
     Section 1       Vesting of Member Contributions, 401(k) Deferrals,
                     Qualified Nonelective Contributions and Rollover
                     Contributions............................................33
     Section 2       Vesting of Employer Contributions........................33
     Section 3       Forfeitures..............................................36

ARTICLE VII          WITHDRAWALS AND DISTRIBUTIONS............................38
     Section 1       General Provisions.......................................38
     Section 2       Withdrawals While Employed...............................39
     Section 3       Distributions Upon Termination of Employment.............41
     Section 4       Distributions Due to Disability..........................46
     Section 5       Distributions Due to Death...............................46
     Section 6       Minimum Required Distributions...........................47



ARTICLE VIII         LOAN PROGRAM.............................................49
     Section 1       General Provisions.......................................49
     Section 2       Loan Application.........................................49
     Section 3       Permitted Loan Amount....................................51
     Section 4       Source of Funds for Loan.................................51
     Section 5       Conditions of Loan.......................................52
     Section 6       Crediting of Repayment...................................52
     Section 7       Cessation of Payments on Loan............................53
     Section 8       Loans to Former Members..................................53

ARTICLE IX           ADMINISTRATION OF PLAN AND ALLOCATION
                     OF RESPONSIBILITIES......................................54
     Section 1       Fiduciaries..............................................54
     Section 2       Allocation of Responsibilities Among the Fiduciaries.....54
     Section 3       No Joint Fiduciary Responsibilities......................57
     Section 4       Investment Manager.......................................57
     Section 5       Advisor to Fiduciary.....................................58
     Section 6       Service in Multiple Capacities...........................58
     Section 7       Appointment of Plan Administrator........................58
     Section 8       Powers of the Plan Administrator.........................58
     Section 9       Duties of the Plan Administrator.........................59
     Section 10      Action by the Plan Administrator.........................59
     Section 11      Discretionary Action.....................................59
     Section 12      Compensation and Expenses of Plan Administrator..........59
     Section 13      Reliance on Others.......................................60
     Section 14      Self Interest............................................60
     Section 15      Personal Liability - Indemnification.....................60
     Section 16      Insurance................................................61
     Section 17      Claims Procedures........................................61
     Section 18      Claims Review Procedures.................................62

ARTICLE X            MISCELLANEOUS PROVISIONS.................................63
     Section 1       General Limitations......................................63
     Section 2       Top Heavy Provisions.....................................65
     Section 3       Information and Communications...........................68
     Section 4       Small Account Balances...................................68
     Section 5       Amounts Payable to Incompetents, Minors or Estates.......68
     Section 6       Non-Alienation of Amounts Payable........................68
     Section 7       Unclaimed Amounts Payable................................69
     Section 8       Leaves of Absence........................................69
     Section 9       Return of Contributions to Employer......................71
     Section 10      Controlling Law..........................................71

ARTICLE XI           AMENDMENT & TERMINATION..................................72
     Section 1       General..................................................72
     Section 2       Termination of Plan and Trust............................72
     Section 3       Liquidation of Trust Assets in the Event of Termination..72
     Section 4       Partial Termination......................................73
     Section 5       Power to Amend...........................................73



     Section 6       Solely for Benefit of Members, Terminated
                        Members and their Beneficiaries.......................74
     Section 7       Successor to Business of the Employer....................74
     Section 8       Merger, Consolidation and Transfer.......................74
     Section 9       Revocability.............................................75

TRUSTS ESTABLISHED UNDER THE PLAN.............................................76





                                    ARTICLE I
                             PURPOSE AND DEFINITIONS

Section 1.1

This Plan and Trust, as evidenced hereby, and the applicable  Adoption Agreement
and Trust  Agreement(s),  are  designed  and  intended  to  qualify in form as a
qualified  profit sharing plan and trust under the applicable  provisions of the
Internal  Revenue Code of 1986,  as now in effect or hereafter  amended,  or any
other applicable provisions of law including,  without limitation,  the Employee
Retirement  Income Security Act of 1974, as amended.  Effective January 1, 2001,
except as  otherwise  provided,  the Plan is hereby  amended and restated in its
entirety to provide as follows:

Section 1.2

The  following  words and phrases as used in this Plan shall have the  following
meanings:

     (A)  "Account" means the Plan account established and maintained in respect
          of each  Member  pursuant  to  Article  V, to which  Account  shall be
          allocated,  as  applicable,  the Member's  after-tax  amounts,  401(k)
          amounts,  Employer  matching  amounts,  basic  amounts,   supplemental
          amounts, profit sharing amounts,  qualified non-elective  contribution
          amounts, rollover amounts, and funds directly transferred to the Plan.

     (B)  "Actual  Deferral  Percentage  Test  Safe  Harbor"  means  the  method
          described in Section 3.14 (A) of Article III for satisfying the actual
          deferral percentage test of ss.401(k)(3) of the Code.

     (C)  "Actual  Deferral  Percentage  Test Safe Harbor  Contributions"  means
          Employer  matching   contributions   and  non-elective   contributions
          described in section 3.14 (A) (1) of Article III.

     (D)  "Adoption Agreement" means the separate document by which the Employer
          has adopted the Plan and specified certain of the terms and provisions
          hereof. If any term, provision or definition contained in the Adoption
          Agreement  is  inconsistent  with any term,  provision  or  definition
          contained  herein,  the one set forth in the Adoption  Agreement shall
          govern. The

                                       1


          Adoption  Agreement  shall be  incorporated  into and form an integral
          part of the Plan.

     (E)  "Beneficiary"  means the person or persons  designated  to receive any
          amount  payable  under  the Plan  upon the  death  of a  Member.  Such
          designation  may be  made or  changed  only  by the  Member  on a form
          provided by, and filed with,  the Third Party  Administrator  prior to
          his  death.  If the  Member  is not  survived  by a  Spouse  and if no
          Beneficiary   is  designated,   or  if  the   designated   Beneficiary
          predeceases the Member,  then any such amount payable shall be paid to
          such Member's estate upon his death.

     (F)  "Board"  means the Board of  Directors  of the  Employer  adopting the
          Plan.

     (G)  "Break in Service" means:

          1.   Where an Employer has elected, in its Adoption Agreement,  to use
               the hours of service method for  eligibility  and/or  vesting,  a
               Plan Year during which an individual  has not completed more than
               500 Hours of Employment,  as determined by the Plan Administrator
               in accordance  with the IRS  Regulations.  Solely for purposes of
               determining   whether  a  Break  in  Service  has  occurred,   an
               individual  shall be credited with the Hours of Employment  which
               such  individual  would have  completed  but for a  maternity  or
               paternity  absence,  as determined by the Plan  Administrator  in
               accordance  with  this  Paragraph,  the Code  and the  applicable
               regulations  issued  by the DOL and the IRS;  provided,  however,
               that the total Hours of Employment  so credited  shall not exceed
               501 and the  individual  timely  provides the Plan  Administrator
               with such  information  as it may  require.  Hours of  Employment
               credited for a maternity or paternity  absence  shall be credited
               entirely (i) in the Plan Year in which the absence  began if such
               Hours of  Employment  are necessary to prevent a Break in Service
               in such year, or (ii) in the following Plan Year. For purposes of
               this  Paragraph,  maternity  or paternity  absence  shall mean an
               absence from work by reason of the  individual's  pregnancy,  the
               birth of the individual's  child or the placement of a child with
               the  individual in  connection  with the adoption of the child by
               such  individual,  or for  purposes of caring for a child for the

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