Best Buy 2003 Annual Report Download - page 111

2.3 Eligibility; Commencement of Participation. Provided an Employee or Director selected to participate in the Plan has met
all enrollment requirements set forth in this Plan and
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required by the Committee, including returning all required documents to the Committee within the specified time period, that
Employee or Director shall commence participation in the Plan on the first day of the pay period commencing in the Plan Year
following the date on which the Employee or Director completes all enrollment requirements. If an Employee or a Director fails to
meet all such requirements within the period required, in accordance with Section 2.2, that Employee or Director shall not be eligible to participate in the
Plan until the first day of the pay period commencing in the Plan Year following the delivery to and acceptance by the Committee of the required documents.
2.4 Termination of Participation and/or Deferrals. If the Committee determines in good faith that a Participant no longer
qualifies as a member of a select group of management or highly compensated employees, as membership in such group is determined
in accordance with Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA, the Committee shall have the right, in its sole discretion, to (i)
terminate any deferral election the Participant has made for the remainder of the Plan Year in which the Participant’s membership
status changes, (ii) prevent the Participant from making future deferral elections and/or (iii) immediately distribute the Participant’s
then Account Balance as a Termination Benefit subject to Article 7 and terminate the Participant’s participation in the Plan.
ARTICLE 3
Deferral Commitments/Company Matching/Crediting/Taxes
3.1 Minimum Deferral. There is no minimum amount for deferral of Base Annual Salary, Bonus or Director’s Fees under the
Plan. If no election is made, the amount deferred shall be zero.
3.2 Maximum Deferral.
(a) Base Annual Salary, Bonus and Directors Fees. For each Plan Year, a Participant may elect to defer, as his or her Annual
Deferral Amount, Base Annual Salary, Bonus and/or Directors Fees up to the following maximum percentages for each deferral
elected:
Deferral Maximum Amount
Base Annual Salary 75%
Bonus 100%
Directors Fees 100%
(b) Notwithstanding the foregoing, if a Participant first becomes a Participant after the first day of a Plan Year, the maximum
Annual Deferral Amount, with respect to Base Annual Salary, Bonus and Directors Fees shall be limited to the amount of
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compensation not yet earned by the Participant as of the date the Participant submits an Election Form and Plan Agreement to the
Committee for acceptance.
3.3 Election to Defer; Effect of Election Form and Plan Agreement.
(a) Elections. For each Plan Year, the Participant shall make an irrevocable deferral election for that Plan Year, and such other
elections as the Committee deems necessary or desirable under the Plan. For these elections to be valid, the Election Form and Plan
Agreement must be completed and submitted by the Participant, timely delivered to the Committee, in accordance with its rules and
procedures, before the end of the Plan Year preceding the Plan Year for which the election is made. If no such Election Form and
Plan Agreement is timely delivered for a Plan Year, the Annual Deferral Amount shall be zero for that Plan Year.
(b) Effect of Termination on Pending Election. Upon the occurrence of a Termination of Employment, any pending election
shall be automatically terminated.
3.4 Withholding of Annual Deferral Amounts. For each Plan Year, the Base Annual Salary portion of the Annual Deferral
Amount shall be withheld from each regularly scheduled Base Annual Salary payroll in equal amounts, as may be adjusted from time
to time for increases and decreases in Base Annual Salary. The Bonus and/or Directors Fees portion of the Annual Deferral Amount
shall be withheld at the time the Bonus or Directors Fees are or otherwise would be paid to the Participant, whether or not this occurs
during the Plan Year itself.