Mondelez 2012 Annual Report Download - page 448

3.2 If the Offset Amount at the Distribution Date, determined as provided in Section 3.1 above and as otherwise provided below for
purposes of this Section 3.2, is less than the After-Tax Benefit, the difference between the After-Tax Benefit and the Offset Amount shall be
converted to a pre-tax amount (the “Additional Pre-Tax Benefit”) based on the tax assumptions set forth in Exhibit B, and Mondelēz shall pay in
the form of a lump sum payment an amount equal to the Additional Pre-Tax Benefit to the Employee, the Employee’s Spouse or Plan
Beneficiary from the general assets of the relevant participating employer in satisfaction of any remaining obligations of Mondelēz under the
Mondelēz Supplemental Plans. If the Employee at any time enters into or has entered into a Cash Enrollment Agreement or Agreements with
Mondelēz or any other Grantor Trust Enrollment Agreement, pursuant to which amounts are to be applied to and offset against amounts due
under the Mondelēz Supplemental Plans, the Offset Amount for purposes of this Section 3.2 shall consist of the Offset Amount determined
under Section 3.1 of this Agreement without regard to any such other agreements and the aggregate amount determined as an offset amount
under the terms of each of such other agreements. The recipient will be responsible for taxes on any Additional Pre-Tax Benefit payable under
this Section 3.2.
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persons named as beneficiaries of “Residual Assets” of the Trust in the “Beneficiary Designation” executed by the Employee
in connection with his or her Employee Grantor Trust Agreement or, in the absence of effective designations, to the
Employee
’
s estate.
(i) If the Employee becomes disabled and, as a result, becomes entitled to long-term disability benefits that on the Employee’s
attaining a prescribed age are reduced by amounts paid as an annuity under the Mondelēz Supplemental Plans, then the
reduction in such long-term disability benefits shall be computed by taking into account the annuity value of the pre-tax
equivalent of the Offset Amount, as well as the annuity value of any remaining amounts payable under the Mondelēz
Supplemental Plans after reduction by the Offset Amount, using the actuarial assumptions employed at the attainment of such
prescribed age under the relevant Mondelēz Supplemental Plans to convert between single sum amounts and their annuity
value equivalents.
(j) If there is outstanding at the date of this Agreement any domestic relations or other court order requiring KFGI (or Mondelē
z)
to make payment of benefits under any Mondelēz Supplemental Plan to a former spouse or dependent of the Employee, the
payee of such benefits shall not be an Employee’s Spouse or Plan Beneficiary under this Agreement and such benefits shall
remain payable in the manner contemplated by such order. The Funding Payment contemplated by this Agreement shall be
computed by excluding any benefits payable under the Mondelēz Supplemental Plans to any person other than the Employee
pursuant to such an order, and no portion of the Offset Amount shall reduce or otherwise affect the payment of benefits
pursuant to such order.