Supercuts 2007 Annual Report Download - page 139

shall not be entitled to make Deferral Contributions or receive an allocation of Matching or Employer Contributions during the period that he is
not an eligible Employee. Such Participant shall continue to receive credit for service completed during the period for purposes of determining
his vested interest in his Accounts. In the event that the individual subsequently again becomes an eligible Employee, the individual shall
resume full participation in accordance with Section 3.01.
Article 4. Contributions .
4.01. Deferral Contributions . Each Participant may elect to execute a salary reduction agreement with the Employer to reduce his
Compensation by a specified percentage, not exceeding the percentage set forth in Section 1.05(a) and equal to a whole number multiple of one
(1) percent, per payroll period, subject to any election regarding Bonuses, as set out in Subsection 1.05(a)(2). Such agreement shall become
effective on the first day of the period as set forth in the Participant’s election. The election will be effective to defer compensation relating to
all services performed in a calendar year subsequent to the filing of such an election, subject to any election regarding Bonuses, as set out in
Subsection 1.05(a)(2). An election once made will remain in effect until a new election is made; provided, however that such an election
choosing a distribution date pursuant to 1.06(b)(1)(B) will only be effective for the Plan Year indicated. A new election will be effective as of
the first day of the following calendar year and will apply only to Compensation payable with respect to services rendered after such date,
except that a separate election made pursuant to Section 1.05(a)(2) will be effective immediately if made no later than 6 months before the end
of the period during which the services on which the Bonus is based are performed. If the Employer has selected 1.05(a)(2), no amount will be
deducted from Bonuses unless the Participant has made a separate election. Amounts credited to a Participant’s account prior to the effective
date of any new election will not be affected and will be paid in accordance with that prior election. The Employer shall credit an amount to the
account maintained on behalf of the Participant corresponding to the amount of said reduction. Under no circumstances may a salary reduction
agreement be adopted retroactively. To the extent permitted in regulations under Code Section 409A, a Participant may revoke a salary
reduction agreement for a calendar year during that year, provided, however, that such revocation shall apply only to Compensation not yet
earned. In that event, the Participant shall be precluded from electing to defer future Compensation hereunder during the calendar year to which
the revocation applies. Notwithstanding the above, in the calendar year in which the Plan first becomes effective or in the year in which the
Participant first becomes eligible to participate, an election to defer compensation may be made within 30 days after the Participant is first
eligible or the Plan is first effective, which election shall be effective with respect to Compensation payable with respect to services rendered
after the date of the election.
4.02. Matching Contributions . If so provided by the Employer in Section 1.05(b), the Employer shall make a “Matching Contribution” to be
credited to the account maintained on behalf of each Participant who had “Deferral Contributions” pursuant to Section 4.01 made on his behalf
during the year and who meets the requirement, if any, of Section 1.05(b)(3). The amount of the “Matching Contribution” shall be determined
in accordance with Section 1.05(b).
4.03. Employer Contributions . If so provided by the Employer in Section 1.05(c)(1), the Employer shall make an “Employer Contribution”
to be credited to the account maintained on behalf of each Participant who meets the requirement, if any, of Section 1.05(c)(3) in the amount
required by Section 1.05(c)(1). If so provided by the Employer in Section 1.05(c)(2), the Employer may make an “Employer Contribution” to
be credited to the account maintained on behalf of any Participant in such an amount as the Employer, in its sole discretion, shall determine. In
making “Employer Contributions” pursuant to Section 1.05(c)(2), the Employer shall not be required to treat all Participants in the same
manner in determining such contributions and may determine the “Employer Contribution” of any Participant to be zero.
4.04. Time of Making Contributions . The Employer shall remit contributions deemed made hereunder to the Trust as soon as practicable
after such contributions are deemed made under the terms of the Plan.
Article 5. Participants’ Accounts .
5.01. Individual Accounts . The Administrator will establish and maintain an Account for each Participant, which will reflect Matching,
Employer and Deferral Contributions credited to the Account on behalf of the Participant and earnings, expenses, gains and losses credited
thereto, and deemed investments made with amounts in the Participant’s Account. The Administrator will establish and maintain such other
accounts and records as it decides in its discretion to be reasonably required or appropriate in order to discharge its duties under the Plan.
Participants will be furnished statements of their Account values at least once each Plan Year. The Administrator shall provide the Trustee with
information on the amount credited to the separate account of each Participant maintained by the Administrator in its records.
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