Kraft 2010 Annual Report Download - page 156

SECTION 9. DISTRIBUTION OF ACCOUNTS
9.1 Distribution of Accounts
With respect to any Participant who has a Termination Date that precedes his Retirement date, an amount equal to the Participant's vested
Account balances shall be distributed to the Participant (or, in the case of the Participant's death, to the Participant's Beneficiary), in the form of a single
lump sum payment. With respect to any Participant who has a Termination Date on or after his Retirement date, an amount equal to the Participant's
Employer Contribution Account shall be distributed to the Participant (or, in the case of the Participant's death, to the Participant's Beneficiary) in the
form of a single lump sum payment; in addition, an amount equal to such Participant's vested Accounts other than his Employer Contributions Account
shall be distributed to the Participant (or, in the case of the Participant's death, to the Participant's Beneficiary) in the form of a single lump sum
payment or in the form of installment payments as designated by the Employer in the Adoption Agreement and elected by the Participant in accordance
with subsection 9.2. Subject to subsection 9.3 hereof, distribution of a Participant's Accounts in a lump sum shall be made within the 90-day period
following the Participant's Termination Date (provided, however, that if calculation of the amount of the payment is not administratively practicable
due to events beyond the control of the Participant, the payment will be made as soon as administratively practicable for the Administrator to make such
payment). Notwithstanding any provision of the Plan to the contrary, for purposes of this subsection, a Participant's Accounts shall be valued as of a
Valuation Date as soon as administratively feasible preceding the date such distribution is made, in accordance with rules established by the
Administrator. A Participant's Accounts may be offset by any amounts owed by the Participant to the Employer, but such offset shall not occur in
excess of or prior to the date distribution of the amount would otherwise be made to the Participant and shall otherwise meet the offset requirements of
Treas. Reg. § 1.409A-3(j)(4)(xiii).
Notwithstanding the foregoing, to the extent designated by the Employer in the Adoption Agreement, a Participant may elect, in accordance with this
subsection, a distribution date for his Compensation Deferral Accounts that is prior to his Termination Date (an "In-Service Distribution"). A Participant's
election of an In-Service Distribution date must: (i) be made at the time of his Deferral Election for a Plan Year; and (ii) apply only to amounts deferred
pursuant to that election, and any earnings, gains, losses, appreciation, and depreciation credited thereto or debited therefrom with respect to such amounts. To
the extent permitted by the Employer, a Participant may elect an In-Service Distribution date with respect to Performance-Based Bonus Deferrals that is
separate from an In-Service Distribution date with respect to Compensation Deferrals other than Performance-Based Bonus Deferrals for the same year,
provided that the applicable In-Service Distribution date may not be earlier than the number of years designated by the Employer in the Adoption Agreement
following the year in which the applicable Compensation would have been paid absent the deferral, or as further determined or limited in accordance with
rules established by the Administrator. Payments made pursuant to an In-Service Distribution election shall be made in a lump sum or installments, to the
extent permitted by the Employer and elected by the Participant in accordance with the terms of the Plan. Each such payment shall be made as soon as
administratively feasible following January 1 of the calendar year in which the payment was elected to be made, but in no event later than the end of the
calendar year in which the payment was elected to be made (provided, however, that if
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