Mondelez 2012 Annual Report Download - page 435

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objectively made, then for any remaining period the assets of the Employee’s Assumed Grantor Trust shall be credited
with interest at the average annual interest rate provided by Code section 417(e)(3) for the month of December
preceding the first year in which such determination cannot be made and for each successive December during the
period for which the calculation is being performed.
(2) It shall be further assumed that federal, state and local income taxes on the resulting deemed investment income of the
Assumed Grantor Trust (calculated using the tax assumptions set forth in Exhibit A) have been paid from the assets of
such Assumed Grantor Trust, except to the extent that Mondelēz has made payments with respect to such taxes under
Section 3.1; and
(3) Such Assumed Grantor Trust shall be deemed to continue until the Distribution Date under the Mondelēz Supplemental
Plans.
(4) The amount so determined as the deemed fair market value of the assets of the Assumed Grantor Trust as of the
Distribution Date, using the assumptions in this subsection (b), shall be the Offset Amount, which shall be offset against
the benefits otherwise payable under the Mondelēz Supplemental Plans on the Distribution Date, in the manner
provided in subsection (c).
(c) As of the Distribution Date, the benefits otherwise payable under a Mondelēz Supplemental Plan to the Employee, the
Employee’s Spouse or Plan Beneficiary will be converted to an after-tax amount (the “After-Tax Benefit”) using the tax
assumptions set forth in Exhibit A; and the Offset Amount, as determined above, shall offset the amount of the After-Tax
Benefit and shall discharge Mondelēz’s liability to the Employee, the Employee’s Spouse or Plan Beneficiary to the extent of
the corresponding pre
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tax benefit otherwise payable under the Mondel
ē
z Supplemental Plans.
(d) If lump sum benefit payments become due under the provisions of the Mondelēz Supplemental Plans and this Agreement on
Distribution Dates occurring at different times, the Offset Amount calculated for the Assumed Grantor Trust at each relevant
Distribution Date shall be fully applied, to the extent available, to offset the benefit payments that would otherwise be due in
the order determined by Mondel
ē
z.