Kraft 2010 Annual Report Download - page 148

4.2 Performance-Based Bonus Deferrals
Each Plan Year, including the year of initial eligibility, an Eligible Individual may elect to defer receipt of no less than the minimum and no greater
than the maximum percentage or amount selected by the Employer in the Adoption Agreement with respect to Performance-Based Bonuses earned with
respect to the performance period for which the Performance-Based Bonus is earned. Except as otherwise provided in this subsection, a Participant's
Performance-Based Bonus Deferral Election under this subsection must be made not later than six months (or such earlier date as determined by the
Administrator) prior to the end of the performance period, provided such performance period is at least 12 months long, and provided that the Eligible
Individual performed services continuously from a date no later than the date upon which the performance criteria are established through a date no earlier
than the date upon which the Eligible Individual makes a Performance-Based Bonus Deferral Election; and further provided that in no event may an election
to defer Performance-Based Bonuses be made after such Performance-Based Bonuses have become readily ascertainable as determined pursuant to Treasury
Regulations §1.409A-2(a)(8).
An Employee or Other Service Provider who first becomes an Eligible Individual during a Plan Year (by virtue of a promotion, Compensation increase,
commencement of employment with the Employer, execution of an agreement to provide services to an Employer, or any other reason) shall be provided
enrollment documents (including Deferral Election forms) as soon as administratively feasible following such initial notification of eligibility. Such Eligible
Individual must make his Performance-Based Bonus Deferral Election within 30 days after first becoming an Eligible Individual; provided, however, that if
such Eligible Individual is participating in any other account balance plan maintained by the Employer or any member of the Employer's "controlled group"
(as defined in subsections 414(b) and (c) of the Code), such Eligible Individual must make his Performance-Based Bonus Deferral Election no later than six
months (or such earlier date as determined by the Administrator) prior to the end of the performance period, or he may not elect to make Performance-Based
Bonus Deferrals for such initial Plan Year. In the case of a Deferral Election in the first year of eligibility that is made after the beginning of the Performance-
Based Bonus performance period, the Deferral Election will apply to the portion of the Performance-Based Bonus equal to the total amount of the
Performance-Based Bonus for the performance period multiplied by the ratio of the number of days remaining in the performance period after the effective
date of the Deferral Election over the total number of days in the Performance Period. If an Eligible Individual does not elect to make a Performance-Based
Bonus Deferral during that initial 30-day period, he may not later elect to make a Performance-Based Bonus Deferral for that performance period under this
subsection. Rules relating to the timing of elections to make a Performance-Based Bonus Deferral with respect to an Employee or Other Service Provider who
becomes an Eligible Individual (due to rehire or other similar event) after having previously been an Eligible Individual shall be applied in the same manner
as the rules described applicable to rehired and other Re-Eligible Participants in subsection 4.1 above.
An election to make Performance-Based Bonus Deferrals under this subsection 4.2 shall remain in effect through the end of the performance period to
which the election applies (except as provided in subsection 4.4), and shall be irrevocable (provided, however, that a Participant making a Performance-Based
Bonus Deferral Election under this subsection may change his
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