Kraft 2010 Annual Report Download - page 129

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the LTI Plan shall commence on January 1, 2011 and end on December 31, 2013. Alternatively, the Committee may establish a Performance Cycle having a
duration that is different than the three-year period set forth above. In the case of an LTIP Award that is not intended to constitute Qualified Performance-
Based Compensation, the Committee, in its sole discretion, may adjust the duration of the Performance Cycle at any time before the term of the originally
established Performance Cycle has expired.
Section 1.22 – Performance Goal Attainment Factor. "Performance Goal Attainment Factor" means a percentage ranging from 0% to the
Maximum Goal Factor representing the rate at which the Performance Goals have been attained as determined by the Committee.
Section 1.23 – Performance Goals. "Performance Goals" have the meaning set forth in Section 2.2 hereof.
Section 1.24 – Qualified Performance-Based Compensation. "Qualified Performance-Based Compensation" means any compensation awarded to
a Covered Employee that is intended to qualify as "qualified performance-based compensation" as described in Section 162(m)(4)(C) of the Code.
ARTICLE II.
LTIP AWARDS
Section 2.1 – Participants; LTIP Awards. The Committee, in its sole discretion, may grant LTIP Awards with regard to any Performance Cycle
(and with respect to multiple Performance Cycles) to one or more Eligible Employees, as the Committee selects. At the time an LTIP Award is granted
pursuant to this Section 2.1, the Committee shall specify (a) whether the LTIP Award will be an LTIP Award Cash Payout or LTIP Award Share Payout, or a
combination thereof, (b) the Maximum Goal Factor that may be attained upon the achievement of the Performance Goals established in accordance
Section 2.2 hereof, and subject to Section 2.4 hereof, and (c) a performance incentive pool amount, if any.
Section 2.2 – Performance Goals. For each Performance Cycle in which one or more Eligible Employees is granted an LTIP Award, the
Committee shall establish in writing one or more objectively determinable Performance Goals based on Performance Criteria for such LTIP Award.
Performance Goals may be determined on an absolute basis or relative to internal goals or relative to levels attained in prior years or related to other
companies or indicies or as ratios expressing relationships between two or more Performance Goals. In addition, Performance Goals may be based upon the
attainment of specified levels of Company performance under one or more Performance Criteria relative to the performance of other corporations.
In addition, for LTIP Awards not intended to qualify as Qualified Performance-Based Compensation, the Committee may establish Performance
Goals based on Performance Criteria as it deems appropriate in its sole discretion. For LTIP Awards that are intended to constitute Qualified Performance-
Based Compensation, to the extent the Committee elects not to
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