Supercuts 2007 Annual Report Download - page 134

PREAMBLE
It is the intention of the Employer to establish herein an unfunded plan maintained solely for the purpose of providing deferred
compensation for a select group of management or highly compensated employees as provided in ERISA.
Article 1. Adoption Agreement .
Article 2. Definitions .
2.01. Definitions .
(a) Wherever used herein, the following terms have the meanings set forth below, unless a different meaning is clearly required by the context:
(1) “Account” means an account established on the books of the Employer for the purpose of recording amounts credited on behalf of a
Participant and any income, expenses, gains or losses included thereon.
(2) “Administrator” means the Employer adopting this Plan, or other person designated by the Employer in Section 1.01(b).
(3) “Adoption Agreement” means Article 1, under which the Employer establishes and adopts or amends the Plan and designates the optional
provisions selected by the Employer. The provisions of the Adoption Agreement shall be an integral part of the Plan.
(4) “Beneficiary” means the person or persons entitled under Section 7.02 to receive benefits under the Plan upon the death of a Participant.
(5) “Bonus” means any performance-based Compensation based on services performed for the Employer over a period of at least 12 months.
(6) “Change of Control” means a change in the ownership or effective control of the Employer, or a substantial portion of the Employer’s
assets as defined in the regulations under Code Section 409A.
(7) “Code” means the Internal Revenue Code of 1986, as amended from time to time.
(8) “Compensation”
means for purposes of Article 4 (Contributions) wages as defined in Section 3401(a) of the Code and all other payments of
compensation to an employee by the Employer (in the course of the Employer’s trade or business) for which the Employer is required to
furnish the employee a written statement under Section 6041(d) and 6051(a)(3) of the Code, excluding any items elected by the Employer in
Section 1.04, reimbursements or other expense allowances, fringe benefits (cash and non-cash), moving expenses, deferred compensation and
welfare benefits, but including amounts that are not includable in the gross income of the Participant under a salary reduction agreement by
reason of the application of Sections 125, 132(f)(4), 402(e)(3), 402(h) or 403(b) of the Code. Compensation shall be determined without regard
to any rules under Section 3401(a) of the Code that limit the remuneration included in wages based on the nature or location of the employment
or the services performed (such as the exception for agricultural labor in Section 3401(a)(2) of the Code). Compensation shall also include
amounts deferred pursuant to an election under Section 4.01. In the case of any Self-Employed Individual or an Owner-Employee,
Compensation means the Self-Employed Individual’s Earned Income.
(9) “Earned Income” means the net earnings of a Self-Employed Individual derived from the trade or business with respect to which the Plan is
established and for which the personal services of such individual are a material income-providing factor, excluding any items not included in
gross income and the deductions allocated to such items, except that for taxable years beginning after December 31, 1989 net earnings shall be
determined with regard to the deduction allowed under Section 164(f) of the Code, to the extent applicable to the Employer. Net earnings shall
be reduced by contributions of the Employer to any qualified plan, to the extent a deduction is allowed to the Employer for such contributions
under Section 404 of the Code.
(10) “Employee” means any employee of the Employer, Self-Employed Individual or Owner-Employee.
(11) “Employer” means the employer named in Section 1.02(a) and any Related Employers designated in Section 1.02(b).
(12) “Employment Commencement Date” means the date on which the Employee first performs an Hour of Service.
(13) “Entry Date” means the date(s) designated in Section 1.03(b).
(14) “ERISA” means the Employee Retirement Income Security Act of 1974, as from time to time amended.
(15) “Fund Share” means the share, unit, or other evidence of ownership in a Permissible Investment.
(16) “Hour of Service” means, with respect to any Employee,
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