VMware 2013 Annual Report Download - page 126

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1.409A-2(a)(6), the deferral agreement may be made not later than the end of the Employer’s taxable year
immediately preceding the first taxable year of the Employer in which any services are performed for which such
Compensation is payable.
Except as otherwise provided below, an employee who is classified or designated as an Eligible Employee
during a Plan Year or a Director who is designated as eligible to participate during a Plan Year may elect to
defer Compensation otherwise payable during the remainder of such Plan Year in accordance with the rules of
this Section 4.3 by executing a deferral agreement within the thirty (30) day period beginning on the date the
employee is classified or designated as an Eligible Employee or the date the Director is designated as eligible,
whichever is applicable, if permitted by Section 4.01(b)(ii) of the Adoption Agreement. If Compensation is based
on a specified performance period that begins before the Eligible Employee or Director executes his deferral
agreement, the election will be deemed to apply to the portion of such Compensation equal to the total amount
of Compensation for the performance period multiplied by the ratio of the number of days remaining in the
performance period after the election becomes irrevocable and effective over the total number of days in the
performance period. The rules of this paragraph shall not apply unless the Eligible Employee or Director can be
treated as initially eligible in accordance with Reg. Sec. 1.409A-2(a)(7).
All elections of a payment schedule and a form of payment will be made in accordance with rules and
procedures established by the Administrator and the provisions of this Section 4.4.
(a)
If the Plan Sponsor has elected to permit annual distribution elections in accordance with Section 6.01(h)
of the Adoption Agreement the following rules apply. At the time an Eligible Employee or Director completes a
deferral agreement, the Eligible Employee or Director must elect a distribution event (which includes a specified
time) and a form of payment for the Compensation subject to the deferral agreement from among the options the
Plan Sponsor has made available for this purpose and which are specified in 6.01(b) of the Adoption Agreement.
Prior to the time required by Reg. Sec. 1.409A-2, the Eligible Employee or Director shall elect a distribution
event (which includes a specified time) and a form of payment for any Employer contributions that may be
credited to the Participant’s Account during the Plan Year. If an Eligible Employee or Director fails to elect a
distribution event, he shall be deemed to have elected Separation from Service as the distribution event. If he
fails to
412
4.4
Election of Payment Schedule and Form of Payment.