Mondelez 2012 Annual Report Download - page 444

II. Payments to Trust
2.1 The Employee and the Employee’s Spouse understand that from time to time Mondelēz may determine in its discretion that it is
appropriate to make available to the Employee additional funding payments. Unless the Employee terminates this Agreement pursuant to
Section 7.2 prior to the time such additional funding payments are to be paid into the Trust, the Employee directs Mondelē
z (a) to deduct federal,
state, local and other applicable income taxes (but excluding any applicable federal employment taxes) from the funding payment, using the tax
assumptions set forth on Exhibit B, and remit such taxes to the appropriate authorities; and (b) to pay the remainder of the funding payment into
the Trust in cash. If the Employee is an expatriate subject to United States taxation, the deduction for income taxes will be computed in
accordance with the tax assumptions specifically applicable to expatriates set forth in Exhibit B.
III. Distributions from Trust, Benefit Payments
3.1 The Employee and the Employee’s Spouse, if any, agree that any amounts made available from the Trust, adjusted as provided below
to account for time elapsed between the date assets are made available from the Trust and the date benefits are payable from the Mondelēz
Supplemental Plans and adjusted for amounts distributed to pay taxes on Trust earnings or administrative expenses of the Trust, shall offset the
benefits otherwise payable to either of them or to any Plan Beneficiary under the Mondelēz Supplemental Plans. To effect the implementation of
this provision, the Employee and the Employee’s Spouse, if any, agree specifically as follows:
3
(a)
Notwithstanding any provision of the Mondel
ēz Supplemental Plans, or of any agreement with Altria, KFGI, or Mondelēz
made prior to the date of this Agreement, allowing or requiring payment of benefits in another form, and except as otherwise
provided in Section 3.1(j), all benefits payable to the Employee or the Employee’s Spouse or Plan Beneficiary under each of
the Mondelēz Supplemental Plans shall be paid only in the form of a single lump sum payment (calculated using the actuarial
assumptions employed under the relevant Mondelēz Supplemental Plan), and such payment shall be made at the time benefits
otherwise become payable to the Employee, the Employee’s Spouse or Plan Beneficiary under the provisions of the Mondelē
z
Supplemental Plans (the “Distribution Date”). If the Employee, the Employee’s Spouse or Plan Beneficiary becomes entitled
to a benefit under the Mondelēz Supplemental Plans that is not payable in the form of a lump sum under the relevant
provisions of such plans, before amendment by the Original Enrollment Agreement, such benefit shall be converted to and
shall be payable as a lump sum, notwithstanding any contrary provisions of such plans, based on the actuarial equivalence
conversion factors set forth in Sections 8.5 and Appendix B, III, of the Mondel
ē
z Global LLC Retirement Plan Part A.