Supercuts 2007 Annual Report Download - page 136

(A) Each hour for which the Employee is directly or indirectly paid, or entitled to payment, for the performance of duties for the Employer or a
Related Employer, each such hour to be credited to the Employee for the computation period in which the duties were performed;
(B) Each hour for which the Employee is directly or indirectly paid, or entitled to payment, by the Employer or Related Employer (including
payments made or due from a trust fund or insurer to which the Employer contributes or pays premiums) on account of a period of time during
which no duties are performed (irrespective of whether the employ-ment relationship has terminated) due to vacation, holiday, illness,
incapacity, disability, layoff, jury duty, military duty, or leave of absence, each such hour to be credited to the Employee for the Eligibility
Computation Period in which such period of time occurs, subject to the following rules:
(i) No more than 501 Hours of Service shall be credited under this paragraph (B) on account of any single continuous period during which the
Employee performs no duties; (ii) Hours of Service shall not be credited under this paragraph (B) for a payment which solely reimburses the
Employee for medically-
related expenses, or which is made or due under a plan maintained solely for the purpose of complying with applicable
workmen’s compensation, unemployment compensation or disability insurance laws; and
(iii) If the period during which the Employee performs no duties falls within two or more computation periods and if the payment made on
account of such period is not calculated on the basis of units of time, the Hours of Service credited with respect to such period shall be
allocated between not more than the first two such computation periods on any reasonable basis consistently applied with respect to similarly
situated Employees; and
(C) Each hour not counted under paragraph (A) or (B) for which back pay, irrespective of mitigation of damages, has been either awarded or
agreed to be paid by the Employer or a Related Employer, each such hour to be credited to the Employee for the computation period to which
the award or agreement pertains rather than the computation period in which the award agreement or payment is made.
For purposes of determining Hours of Service, Employees of the Employer and of all Related Employers will be treated as employed by a
single employer. For purposes of paragraphs (B) and (C) above, Hours of Service will be calculated in accordance with the provisions of
Section 2530.200b-2(b) of the Department of Labor regulations, which are incorporated herein by reference.
Solely for purposes of determining whether a break in service for participation purposes has occurred in a computation period, an individual
who is absent from work for maternity or paternity reasons shall receive credit for the hours of service which would otherwise been credited to
such individual but for such absence, or in any case in which such hours cannot be determined, 8 hours of service per day of such absence. For
purposes of this paragraph, an absence from work for maternity reasons means an absence (1) by reason of the pregnancy of the individual, (2)
by reason of a birth of a child of the individual, (3) by reason of the placement of a child with the individual in connection with the adoption of
such child by such individual, or (4) for purposes of caring for such child for a period beginning immediately following such birth or
placement. The hours of service credited under this paragraph shall be credited (1) in the computation period in which the absence begins if the
crediting is necessary to prevent a break in service in that period, or (2) in all other cases, in the following computation period.
(17) “Key Employee” means a Participant who is key employee pursuant to Code Section 416(i), without regard to paragraph (5) thereof. A
Participant will not be considered a Key Employee unless the Employer is a corporation which has any of its stock publicly traded according to
Code Section 409A and regulations thereunder.
(18) “Normal Retirement Age” means the normal retirement age specified in Section 1.07(f) of the Adoption Agreement.
(19) “Owner-Employee” means, if the Employer is a sole proprietorship, the individual who is the sole proprietor, or, if the Employer is a
partnership, a partner who owns more than 10 percent of either the capital interest or the profits interest of the partnership.
(20) “Participant” means any Employee who participates in the Plan in accordance with Article 3 hereof.
(21) “Permissible Investment” means the investments specified by the Employer as available for investment of assets of the Trust and agreed
to by the Trustee. The Permissible Investments under the Plan shall be listed in the Service Agreement.
(22) “Plan” means the plan established by the Employer as set forth herein as a new plan or as an amendment to an existing plan, by executing
the Adoption Agreement, together with any and all amendments hereto.
(23) “Plan Year” means the 12-consecutive-month period designated by the Employer in Section 1.01(c).
(24) “Related Employer” means any employer other than the Employer named in Section 1.02(a), if the Employer and such other employer are
members of a controlled group of corporations (as defined in Section 414(b) of the Code) or an affiliated service group (as defined in Section
414(m)), or are trades or businesses (whether or not incorporated) which
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