Dell 2008 Annual Report Download - page 131

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during a Plan Year of that portion of his Individual Account attributable to Grandfathered Benefits in order to cause the Participant to have
sufficient taxable Compensation to satisfy the annual additions requirements of Code Section 415 with respect to any qualified retirement plans
maintained by the Company during such Plan Year.
7.2 Rules Governing 409A Benefits.
(a) Unforeseeable Financial Emergency with Respect to 409A Benefits. In the event that the Committee, upon written petition of the Participant,
determines that the Participant has suffered an Unforeseeable Financial Emergency as such term is defined with respect to 409A Benefits, the
Participant shall be entitled to withdraw from the Compensation Deferrals portion of his Account attributable to 409A Benefits an amount that
may not exceed the amount necessary to satisfy such Emergency, plus amounts necessary to pay taxes reasonably anticipated as a result of the
distribution, after taking into account the extent to which such hardship is or may be relieved through reimbursement or compensation by
insurance, or otherwise or by liquidation of the Participant's assets (to the extent the liquidation of such assets would not itself cause severe
financial hardship). If the Participant's Account is deemed to be invested in more than one Investment Fund, such withdrawal shall be made pro
rata from each Investment Fund in which such Account is deemed to be invested. This Subsection shall not apply to a Participant following his
Separation From Service with an Employer, and in the event of such Separation, the amounts credited to the Participant's Account shall be
payable to him only in accordance with Article VIII.
(b) Scheduled In-Service Distributions with Respect to 409A Benefits.
(1) At the time a Participant makes his deferral election for a Plan Year, the Participant may also file an irrevocable election to have all or a
portion of his Vested Interest in amounts attributable to 409A Benefits that will be credited to his Individual Account for such Plan Year
paid directly to him:
(A) In a single lump sum cash payment on a designated date; or
(B) In annual cash payments extending over a period of two to five years, which the Participant shall specify in his election.
(2) The Participant's election shall specify whether the distribution is for a fixed dollar amount or the entire amount credited to the Participant's
Account for such Plan Year. This election shall be irrevocable as of the date the election is made.
(3) Distributions under this Subsection may not commence until at least one (1) full year has elapsed following the date that such election is
submitted to the Committee in writing. The amount of the payment pursuant to this irrevocable election shall be stated in the election and
shall be a fixed dollar -19-