Supercuts 2007 Annual Report Download - page 141

is the account balance of the separate account at the relevant time; D is the amount of the distribution; and R is the ratio of the account balance
at the relevant time to the account balance after distribution. Following a forfeiture of any portion of such separate account under Section 7.05
below, any balance in the Participant’s separate account will remain fully vested and nonforfeitable.
7.05. Forfeitures .
If a Participant terminates his employment, any portion of his Account (including any amounts credited after his termination
of employment) not payable to him under Section 7.03 will be forfeited by him.
7.06. Adjustment for Investment Experience . If any distribution under this Article 7 is not made in a single payment, the amount remaining
in the Account after the distribution will be subject to adjustment until distributed to reflect the income and gain or loss on the investments in
which such amount is treated as invested and any expenses properly charged under the Plan to such amounts.
7.07. Unforeseeable Emergency Withdrawals . Subject to the provisions of Article 8, a Participant shall not be permitted to withdraw his
Account (and earnings thereon) prior to retirement or termination of employment, except that, to the extent permitted under Section 1.09, a
Participant may apply to the Administrator to withdraw some or all of his Account if such withdrawal is made on account of an unforeseeable
emergency as determined by the Administrator in accordance with the requirements of and subject to the limitations provided within Code
Section 409A and regulations thereunder.
7.08. Change in Control Distributions . If the Employer has elected to apply Section 1.06(c), then, upon a Change in Control,
notwithstanding any other provision of the Plan to the contrary, all Participants shall have a nonforfeitable right to receive the entire amount of
their account balances under the Plan. All distributions due to a Change in Control shall be paid out to Participants as soon as administratively
practicable, except that any such distribution to a Key Employee who has terminated employment pursuant to Section 7.03 shall not be earlier
than the 1st day of the seventh month following that Key Employee’s termination of employment.
Article 8. Distribution of Benefits .
8.01. Form of Distribution of Benefits to Participants and Beneficiaries . The Plan provides for distribution as a lump sum to be paid in
cash on the date specified by the Employer in Section 1.06 pursuant to the method provided in Section 8.02. If elected by the Employer in
Section 1.10 and specified in the Participant’s deferral election, the distribution will be paid through a systematic withdrawal plan
(installments) for a time period not exceeding 10 years beginning on the date specified by the Employer in Section 1.06.
8.02. Events Requiring Distribution of Benefits to Participants and Beneficiaries .
(a) If elected by the Employer in Section 1.06(a), the Participant will receive a distribution upon the earliest of the events specified by the
Employer in Section 1.06(a), subject to the provisions of Section 7.08, and at the time indicated in Section 1.06(a)(2). If the Participant dies
before any event in Section 1.06(a) occurs, the Participant shall be considered to have terminated employment and the Participant’
s benefit will
be paid to the Participant’s Beneficiary in the same form and at the same time as it would have been paid to the Participant pursuant to this
Article 8.
(b) If elected by the Employer in Section 1.06(b), the Participant will receive a distribution of all amounts not deferred pursuant to Section
1.06(b)(1)(B) (and earnings attributable to those amounts) upon termination of employment, subject to the delay applicable to Key
Employees described therein, as applicable. If elected by the Employer in Section 1.06(b)(1)(B), the Participant shall have the election to
receive distributions of amounts deferred pursuant to Section 4.01 (and earnings attributable to those amounts) after a date specified by the
Participant in his deferral election which is at least 12 months after the first day of the calendar year in which such amounts would be
earned. Amounts distributed to the Participant pursuant to Section 1.06(b) shall be distributed at the time indicated in Section 1.06(b)(2).
Subject to the provisions of Section 7.08, the Participant shall receive a distribution in the form provided in Section 8.01. If the Participant
dies before any event in Section 1.06(a) occurs, the Participant shall be considered to have terminated employment and the Participant’s
benefit will be paid to the Participant’s Beneficiary in the same form and at the same time as it would have been paid to the Participant
pursuant to this Article 8. However, if the Participant dies before the date specified by the Participant in an election pursuant to Section 1.06
(b)(1)(B), then the Participant’s benefit shall be paid to the Participant’s Beneficiary in the form provided in Section 8.01 as if the
Participant had elected to be paid at termination of employment.
8.03. Determination of Method of Distribution . The Participant will determine the method of distribution of benefits to himself and his
Beneficiary, subject to the provisions of Section 8.02. Such determination will be made at the time the Participant makes a deferral election. A
Participant’s election cannot be altered, except, if elected by the Employer in Section 1.10(b), if the Participant’s balance falls below the level
described in regulations under Code Section 409A, the Participant’s benefit payable due to termination of employment will be distributed in a
lump sum rather than installments.
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