Kraft 2010 Annual Report Download - page 161

described in (i) above, the payment must be deferred either to a date in the first year in which the Employer or Administrator reasonably anticipates that a
payment of such amount would not result in a limitation of a deduction with respect to the payment of such amount under Section 162(m), or, if later, the
period which begins on the Participant's Termination Date and ends on the 15th day of the third month following the Termination Date. In the case of a
payment described in (ii) or (iii) above, payment will be made in the first calendar year in which the Employer or Administrator reasonably anticipates that the
violation would not result in material harm to an Employer, or the payment would not result in a violation of securities or other applicable laws. Payments
intended to pay employment taxes or payments made as a result of income inclusion of an amount in a Participant's Accounts as a result of a failure to satisfy
Section 409A of the Code shall be permitted at the Employer or Administrator's discretion at any time and to the extent provided in Treasury Regulations
under Section 409A of the Code and IRS Notice 2005-1, Q&A-15, and any applicable subsequent guidance. "Employment taxes" shall include Federal
Income Contributions Act (FICA) tax imposed under Sections 3101 and 3121(v)(2) of the Code on compensation deferred under the Plan (the "FICA
Amount"), the income tax imposed under Section 3401 of the Code on the FICA Amount, and to pay the additional income tax under Section 3401 of the
Code attributable to the pyramiding Section 3401 wages and taxes. A distribution may be accelerated as may be necessary to comply with certain federal,
state, local, or foreign conflict of interest rules. With respect to a subchapter S corporation, a distribution may be accelerated to avoid a nonallocation year
under Code Section 409(p) with respect to a subchapter S corporation in the discretion of the Employer or Administrator, provided that the amount distributed
does not exceed 125 percent of the minimum amount of distribution necessary to avoid the occurrence of a nonallocation year, in accordance with Treas. Reg.
§1.409A-3(j)(4)(x).
9.8 Distribution on Account of Unforeseeable Emergency
If elected by the Employer in the Adoption Agreement, if a Participant or Beneficiary incurs a severe financial hardship of the type described below, he
may request an unforeseeable emergency distribution, provided that the withdrawal is necessary to satisfy the emergency needs of the Participant or
Beneficiary. To the extent elected by the Employer in the Adoption Agreement, the ability to apply for an unforeseeable emergency distribution may be
restricted to Participants whose Termination Date has not yet occurred. Such a distribution shall not exceed the amount required (including anticipated taxes
on the distribution) to meet the emergency financial need and not reasonably available from other resources of the Participant (including reimbursement or
compensation by insurance, cessation of deferrals under this Plan for the remainder of the Plan Year, and liquidation of the Participant's assets, to the extent
liquidation itself would not cause severe financial hardship). Each such request for distribution due to an unforeseen emergency shall be made at such time
and in such manner as the Administrator shall determine, and shall be effective in accordance with such rules as the Administrator shall establish and publish
from time to time. An unforeseeable emergency is a severe financial hardship to the Participant resulting from:
(a) Medical expenses resulting from a sudden unexpected illness or accident incurred by the Participant, his Spouse, his Beneficiary, or
his dependents (as defined in Code Section 152(a) without regard to section 152(b)(1), (b)(2), and (d)(1)(B));
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