Supercuts 2007 Annual Report Download - page 171

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2 Trust
(a)
Establishment
The Sponsor hereby establishes the Trust, with the Trustee. The Trust shall consist of an initial contribution of money or other property
acceptable to the Trustee in its sole discretion, made by the Sponsor or transferred from a previous trustee under the Plan, such additional sums
of money as shall from time to time be delivered to the Trustee under the Plan, all investments made therewith and proceeds thereof, and all
earnings and profits thereon, less the payments that are made by the Trustee as provided herein, without distinction between principal and
income. The Trustee hereby accepts the Trust on the terms and conditions set forth in this Agreement. In accepting this Trust, the Trustee shall
be accountable for the assets received by it, subject to the terms and conditions of this Agreement.
(b)
Grantor Trust
The Trust is intended to be a grantor trust, of which the Sponsor is the grantor, within the meaning of subpart E, part I, subchapter J, chapter 1,
subtitle A of the Code, as amended, and shall be construed accordingly.
(c)
Trust Assets
The principal of the Trust, and any earnings thereon shall be held separate and apart from other funds of the Sponsor and shall be used
exclusively for the uses and purposes of Participants and general creditors as herein set forth. Participants and their beneficiaries shall have no
preferred claim on, or any beneficial ownership interest in, any assets of the Trust. Any rights created under the Plan and this Trust Agreement
shall be mere unsecured contractual rights of Participants and their beneficiaries against the Sponsor. Any assets held by the Trust will be
subject to the claims of the Sponsor’s general creditors under federal and state law in the event of Insolvency, as defined in this Agreement.
(d)
Non-Assignment
Benefit payments to Participants and their beneficiaries funded under this Trust may not be anticipated, assigned (either at law or in equity),
alienated, pledged, encumbered, or subjected to attachment, garnishment, levy, execution, or other legal or equitable process.
3 Payments to Sponsor
Except as provided under this Agreement, the Sponsor shall have no right to retain or divert to others any of the Trust assets before all payment
of benefits have been made to the Participants and their beneficiaries pursuant to the terms of the Plan.
4 Disbursements
(a)
Directions from Administrator
(i)
If it is indicated in the Service Agreement that the Trustee will make distributions of Plan benefits directly to Participants and
beneficiaries, the Trustee shall disburse monies to Participants and their beneficiaries for benefit payments in the amounts that the
Administrator directs from time to time in writing. The Trustee shall have no responsibility to ascertain whether the Administrator’s direction
complies with
3