This excerpt taken from the NKTR 10-K filed Feb 29, 2008.
Section 4. TIME OF PAYMENT AND FORM OF BENEFIT.
The Company reserves the right to determine whether severance benefits under the Plan, if any, shall be paid in a single sum, in installments, or in any other form and to choose the timing of such payments; provided, however, that to the extent the aggregate amount payable to any Eligible Employee does not exceed two times the lesser of (i) the Eligible Employees annualized compensation based on his or her annual rate of pay for the calendar year preceding the year in which the Eligible Employees Separation Date occurs, or (ii) the maximum amount that may be taken into account under a qualified plan pursuant to Section 401(a)(17) of the Code for the year in which the Eligible Employees Separation Date occurs, such severance benefits shall be paid no later than the last day of the second calendar year following the year in which the Eligible Employees Separation Date occurs. To the extent severance benefits payable to any Eligible Employee exceed the limitation in the preceding sentence (the 409A Exemption Limit), such severance benefits (409A Benefits) shall be paid pursuant to the schedule provided for 409A Benefits in Appendix A, as such Appendix A may be revised by the Company, in its sole discretion, from time to time; provided that such schedule shall comply with the payment
schedule and delay-in-payment requirements of Treasury Regulation Section 1.409A-3(i)(1) and (i)(2). All payments under the Plan will be subject to applicable withholding for federal, state and local taxes. If an Eligible Employee is indebted to the Company at his or her Separation Date, the Company reserves the right to offset any severance payments under the Plan by the amount of such indebtedness; provided that to the extent such severance benefits are 409A Benefits, such offset shall be limited to debt incurred in the ordinary course of the employment relationship not exceeding $5,000, and that would be otherwise due and collected at the same time and amount as the offset. In no event shall payment of any Plan benefit be made prior to the Eligible Employees Separation Date or prior to the effective date of the release described in Section 2(a)(3).