Kraft Employee Stock Options

Parting paga para o ex-chefe da Kraft Roger Deromedi pode ter sido substituído sem cerimônia na Kraft Foods Inc. este verão, mas o ex-executivo-chefe saiu com milhões de dólares em seu bolso, mostram os documentos da Securities and Exchange Commission. Deromedi receberá quase 14 milhões, incluindo dois anos completos de pagamento e mais de 140.000 ações de ações restritas. Além disso, o ex-co-CEO de 52 anos poderá exercer outras 22 milhões de ações anteriormente outorgadas como se ele fosse um funcionário aposentado. A Kraft pagou pelo menos 12 milhões à Betsy Holden, que dividiu o cargo principal com a Deromedi entre 2001 e dezembro de 2003, após sua partida em junho de 2005. Deromedi foi o único executivo-chefe da empresa desde o final de 2003 até ser substituído em 26 de junho. Enquanto o negócio da Deromedis é grande, ele pales em comparação com alguns dos acordos recentemente atingidos por outros CEOs que partem, como Richard Notebaert, ex-presidente e CEO da Ameritech Corp. e Carly Fiorina, ex-presidente e CEO da Hewlett-Packard Co. Notebaert recebeu quase 32 milhões em dinheiro e ações da venda da Ameritech para SBC Communications Inc. agora conhecido como ATT Inc., enquanto Fiorina recebeu mais de 42 milhões quando ela foi demitida no ano passado. O pagamento de Notebaerts era invulgarmente grande quando foi feito em 1998. Alguns executivos que são expulsos recebem pouco ou nada. Michael Sears, que era diretor financeiro da Boeing Co. não recebeu nenhuma compensação financeira quando foi demitido em 2003 por violar a lei federal depois de oferecer um emprego a um funcionário do Pentágono enquanto ela ainda trabalhava para a Força Aérea. Paul Hodgson, pesquisador da Biblioteca Corporativa, disse que o pacote Deromedis de 14 milhões de dólares é menor do que a média nacional, que permaneceu em torno de 16 milhões em dinheiro e opções de ações nos últimos três anos. E Hodgson disse que é improvável que Deromedi permaneça desempregado durante os dois anos em que a Kraft concordou em lhe pagar o salário integral. Mas Ted White, consultor do Conselho de Investidores Institucionais, disse que os acionistas precisam perguntar sobre o raciocínio ea justificativa do pagamento de indenização e qual é o vínculo com o desempenho geral . Às vezes é apenas dinheiro de silêncio, e é usado para levar as pessoas a sair sem questionar, disse White. Deromedis partida em junho pegou a maioria dos especialistas de surpresa. Na semana anterior, ele estivera em Paris vendo a reviravolta do Kraft que estava engenheiro. No entanto, fontes disseram que em 23 de junho, quando Deromedi retornou de sua viagem pela Europa, Altria Group Inc. presidente e CEO Louis Camilleri disse que ele estava sendo substituído. A Altria detém 87% das ações da Krafts. Incluindo opções de ações no pacote de demissão empurra Deromedis pagamento total para 36 milhões - 9 milhões maiores do que os 27 milhões Irene Rosenfeld recebeu para se tornar CEO da Kraft. Ela deixou sua posição como presidente e CEO da Frito-Lay, a divisão de lanches da PepsiCo Inc. No depósito junto à SEC, a Kraft concordou em pagar à Deromedi dois anos de salário, ou cerca de 2,5 milhões, e metade do bônus de 2006 que ele faria Ter recebido se tivesse permanecido CEO. O bônus em 2005 totalizou 1,4 milhão. Além disso, a Kraft concordou em creditá-lo pelos 2 anos e meio que ele teria ganho com o plano de incentivo de executivos de longo prazo da empresa. No final do último ciclo de três anos em 2003, a Deromedi recebeu 3,7 milhões. A empresa também concedeu-lhe 141.697 ações de ações restritas no valor de 4,7 milhões baseado em quartas-feiras 33,50 preço de fechamento de ações Krafts, para baixo de 35 centavos na Bolsa de Valores de Nova York. Além disso, a Kraft disse que Deromedi se qualificará para uma pensão que poderia valer milhões de dólares a mais. No entanto, a empresa disse que não divulgaria o valor da pensão até que arquiva sua declaração de procuração de 2006 no próximo ano. Holden deve receber mais de 500.000 por ano quando atinge a idade de aposentadoria precoce de 55 anos. A Kraft ea Altria também concordaram em permitir que a Deromedi continue exercendo opções de ações e se tornem investidas como se ele fosse um funcionário aposentado. As opções valiam um total de 21,8 milhões em 31 de dezembro de 2005. Kraft Foods Group, Inc. Plano de Compra de Ações para Empregados de 2012 Em vigor a partir de 29 de outubro de 2012 Kraft Foods Group, Inc. 2012 PLANO DE COMPRA DE EMPREGADOS (Em vigor a partir de outubro 29, 2012) Constituem as provisões do Plano de Compra de Ações 2012 da Kraft Foods Group, Inc. 1. Objetivo. O objetivo do Plano é proporcionar aos empregados da Companhia e suas Subsidiárias Designadas a oportunidade de adquirir Ações Ordinárias da Companhia. É intenção da Companhia ter o Plano qualificado como um Plano de Compra de Ações para Empregados148 sob a Seção 423 do Código. Consequentemente, as disposições do Plano devem ser interpretadas de modo a alargar e limitar a participação de forma coerente com os requisitos dessa secção do Código. (A) 147 Conselho 148 significa o Conselho de Administração da Companhia. (B) 147 Código 148 significa o Internal Revenue Code of 1986, conforme alterado. (C) 147 Ações Ordinárias 148 significa as Ações Ordinárias da Companhia. (D) 147 Companhia 148 significa Kraft Foods Group, Inc. uma empresa da Virgínia. (E) 147 Remuneração 148 significa o salário e os salários pagos a um Funcionário Elegível pela Companhia ou uma Subsidiária Designada, incluindo quaisquer contribuições antes de impostos em qualquer plano de aposentadoria qualificado por impostos patrocinado pela Companhia. Além disso, na medida indicada pelo Comitê, a Remuneração 148 também pode incluir bônus ou outra compensação em dinheiro, horas extras, comissões e, na medida aplicável, valores de redução de salário contribuídos para qualquer plano de cafeteria, plano de benefício flexível ou qualificado Plano de transporte estabelecido pela Companhia ou qualquer Subsidiária Designada de acordo com a Seção 125 do Código e seções relacionadas do Código, mas não inclui a indenização, o custo de vida, o salário de moradia, o pagamento de relocação, outros benefícios fiscais e outras compensações extraordinárias, Tudo isso determinado pelo Comitê, a seu exclusivo critério. (F) 147 Comitê 148 significa o comitê do Conselho designado para administrar este Plano. (G) 147 Estado Contínuo como Funcionário 148 significa a ausência de qualquer interrupção ou cessação de serviço como Empregado. O Estatus Contínuo como Funcionário não será considerado interrompido no caso de (i) licença por doença (ii) licença militar (iii) qualquer outra licença aprovada pelo Comitê, desde que qualquer licença militar, doente ou outra É por um período não superior a 90 dias, a menos que o reempleio após o término de tal licença seja garantido por contrato ou estatuto ou (iv) no caso de transferências entre locais da Companhia ou entre a Companhia e suas Subsidiárias Designadas. (H) 147 Contribuições 148 significa todos os montantes creditados na conta de um participante de acordo com o Plano. (I) 147 Transação Societária 148 significa uma fusão, consolidação, aquisição de propriedade ou ação, separação, reorganização ou liquidação da Companhia e outros eventos corporativos descritos na Seção 424 do Código e os regulamentos do Tesouro promulgados sob o mesmo. (J) 147 Subsidiárias designadas 148 significa as Subsidiárias que foram designadas para participar listadas no Apêndice A e outras Subsidiárias que podem ser designadas pelo Comitê de tempos em tempos a seu exclusivo critério como elegíveis para participar do Plano. (K) 147 Empregado Qualificado 148 significa um Empregado qualificado para participar do Plano nos termos da Seção 3. (l) 147 Empregado 148 significa qualquer pessoa, que seja um funcionário ou funcionário da Companhia ou de suas Subsidiárias Designadas, mas em todos Exclui qualquer funcionário da Companhia ou de suas Subsidiárias Designadas que seja um empregado altamente remunerado na acepção da Seção 414 (q) do Código e que ocupe um cargo que tenha sido classificado como um cargo executivo pela Companhia. (M) 147 Lei de Câmbio 148 significa o Securities Exchange Act de 1934, conforme alterado. (N) 147 Data de Oferta 148 significa o primeiro dia útil de cada Período de Oferta do Plano. (O) 147 Período de Oferta 148 significa inicialmente um período de seis (6) meses com início em 1º de abril e 1º de outubro de cada ano, desde que o primeiro Período de Oferta no âmbito do Plano seja o período de seis meses findo em 30 de setembro de 2013 , Ou em datas posteriores designadas pelo Comitê e, ainda, que, nos termos da Cláusula 4, o Comitê poderá alterar a duração dos Períodos de Oferta futuros (sujeito a um Período de Oferta máximo de vinte e sete (27) meses) e / Ou as datas de início e de fim dos Períodos de Oferta futuros. Se o último dia de um Período de Oferta caísse de outra forma numa data em que o NASDAQ Global Select Market (ou se as ações ordinárias não forem negociadas no NASDAQ Global Select Market, a principal bolsa de valores ou qualquer outro sistema de mercado nacional ou Encerrado, o Período de Oferta terminará no último dia útil imediatamente anterior à data em que o Mercado Seleto Global da Nasdaq (ou outra bolsa, sistema de mercado nacional ou sistema automatizado de negociação Sistema de cotação, se aplicável) está aberto. (P) 147 Plano 148 significa o Plano de Compra de Ações para Empregados da Kraft Foods Group, Inc. 2012. (Q) 147 Data de Compra 148 significa o último dia de cada Período de Oferta do Plano. (R) 147 Preço de Compra 148 significa, em relação a um Período de Oferta, um valor igual a 85 (ou percentual maior, conforme designado pelo Comitê) do Valor de Mercado Justo (conforme definido na Seção 7 (b) Das Ações Ordinárias na Data de Compra, contudo, o Comitê poderá designar o Preço de Aquisição com relação a Períodos de Oferta futuros como um valor igual a 85 (ou percentual maior, conforme designado pelo Comitê) do Valor Justo de Mercado de um Das ações ordinárias na data da oferta ou na data da compra, o que for menor. (S) 147 Ação 148 significa uma ação ordinária, ajustada de acordo com a Seção 18 do Plano. (T) 147 Subsidiária 148 significa uma sociedade anônima, nacional ou estrangeira, da qual não menos de 50 dos votos combinados são detidos pela Companhia ou por uma Subsidiária, independentemente de essa sociedade existir ou ser posteriormente organizada ou adquirida pela Companhia Ou uma Subsidiária. Além disso, na extensão máxima permitida pela Seção 423 do Código, as entidades desconsideradas que pertençam a uma corporação que cumpra os requisitos da frase anterior devem ser ignoradas (e os Funcionários, se houver, das entidades desconsideradas serão considerados empregados por A corporação que possui essa entidade). Em todos os casos, a determinação de se uma entidade é uma Subsidiária deve ser feita de acordo com a Seção 424 (f) do Código. (A) Salvo decisão em contrário do Comitê (de forma consistente com a Seção 423 do Código), qualquer pessoa que seja um Funcionário desde o primeiro dia do período de inscrição designado pelo Comitê que precede imediatamente a Data da Oferta de um dado O Período de Oferta será elegível para participar desse Período de Oferta no âmbito do Plano, sujeito aos requisitos da Seção 5 (a) e às limitações impostas pela Seção 423 (b) do Código. (B) Não obstante qualquer disposição do Contrato, nenhum Empregado receberá uma opção ao abrigo do Plano (i) se, imediatamente após a concessão, tal Empregado (ou qualquer outra pessoa cujas ações seriam atribuídas a tal Funcionário de acordo com (424 (d) do Código) deviam possuir capital social da Companhia e / ou possuírem opções em circulação para adquirir ações que possuíssem cinco por cento (5) ou mais do total do poder de voto ou valor combinado de todas as classes de ações da Companhia ou De qualquer Subsidiária da Companhia, ou (ii) se essa opção permitiria que seus direitos de compra de ações em todos os planos de compra de ações de empregados (descritos na Seção 423 do Código) da Companhia e suas Subsidiárias sejam acumulados a uma taxa que Exceda Vinte e Cinco Mil Dólares (25.000) do Valor Justo de Mercado (conforme definido na Seção 7 (b) abaixo) de tais ações (determinado no momento em que a opção for concedida) para cada ano civil no qual tal opção esteja em circulação em qualquer Tempo. (C) Nas situações descritas na Seção 3 (a) e 3 (b), na medida necessária para cumprir, um participante146s Contribuições creditadas em sua conta poderá ser devolvido a ele e sua (s) opção (ões) Pode ser encerrado. 4. Períodos de Oferta. O Plano será inicialmente implementado por uma série de Períodos de Oferta de seis (6) meses146, com novos Períodos de Oferta com início em ou cerca de 1 de abril e 1º de outubro de cada ano (ou em qualquer outro momento ou momentos que possam ser determinados pela Comité). Contudo, o primeiro Período de Oferta será o período de seis meses que termina em 30 de setembro de 2013 ou data posterior, conforme designado pelo Comitê. O Plano continuará até ser rescindido de acordo com a Seção 19 deste Estatuto Social. O Comitê terá o poder de alterar a duração e / ou a freqüência dos Períodos de Oferta (bem como as datas de início e de término dos Períodos de Oferta) com respeito a ofertas futuras sem a aprovação dos acionistas, B) do Código. (A) Um Funcionário Elegível pode se tornar um participante no Plano preenchendo os documentos exigidos (147 Documentos de Inscrição148), que podem ser eletrônicos, e submetê-los à corretora de ações ou outra empresa de serviços financeiros ou outro agente designado pela Companhia Conforme exigido antes da Data de Oferta aplicável, a menos que um momento posterior para a submissão dos Documentos de Inscrição seja estabelecido pelo Comitê para todos os Empregados Elegíveis com relação a um Período de Oferta dado contudo, que, não obstante qualquer disposição em contrário, Não será posterior ao início do Período de Oferta. Os Documentos de Inscrição e sua submissão podem ser eletrônicos, conforme orientação da Companhia. Os Documentos de Inscrição devem estabelecer o valor em dólares da Remuneração do participante (sujeito à Seção 6 (a) abaixo) a ser pago como Contribuições de acordo com o Plano. (B) As deduções de folha de pagamento devem começar na primeira folha de pagamento completa paga após a Data de Oferta e terminará na última folha de pagamento paga na ou antes da Data de Compra do Período de Oferta a que os Documentos de Inscrição são aplicáveis, sujeito à Seção 10. Método de Pagamento de Contribuições. (A) Sujeito às limitações estabelecidas na Seção 3 (b), um participante elegerá, no momento e forma prescritos pelo Corretor Designado, as deduções de folha de pagamento efetuadas em cada dia de pagamento durante o Período de Oferta em um valor que não exceda dez por cento 10) da Remuneração que recebe em cada dia de pagamento durante o Período de Oferta (ou percentual maior que o Comitê possa estabelecer de tempos em tempos antes de uma Data de Oferta), desde que uma vez feita essa eleição eo Período de Oferta , O participante somente poderá aumentar ou diminuir tal valor de eleição uma vez durante o Período de Oferta ou conforme detalhado na Seção 6 (b) ou em qualquer outro lugar deste Plano. Não obstante o acima mencionado, qualquer mudança em um valor de eleição deve ser efetuada preenchendo e arquivando com o Agente Designado os documentos necessários que autorizam tal mudança na taxa de dedução de folha de pagamento pelo menos cinco (5) dias antes da Data de Compra. Todas as deduções de folha de pagamento feitas por um participante serão creditadas em sua conta sob o Plano. Um participante não pode fazer pagamentos adicionais em tal conta. Finalmente, sujeito às limitações estabelecidas na Seção 3 (b), e ausente uma eleição afirmativa para ter a mesma contribuição de eleição e a dedução de folha de pagamento de acompanhante transferida para os Períodos de Oferta subsequentes, um participante deve optar por participar no Plano De acordo com esta Seção 6 (a) para cada Período de Oferta. (B) Um participante não poderá descontinuar sua participação no Plano, exceto conforme estabelecido na Seção 10, desde que, entretanto, um participante possa reduzir sua dedução de folha de pagamento para zero durante um Período de Oferta preenchendo e arquivando com a Broker os documentos necessários que autorizam tal mudança na taxa de dedução da folha de pagamento se os documentos são concluídos pelo menos cinco (5) dias antes da data de compra. Essa mudança para zero será aplicada para o restante do Período de Oferta e será irrevogável com relação ao Período de Oferta. As contribuições de um participante antes do processamento da mudança em sua taxa de dedução de folha de pagamento para zero serão pagas a esse participante e sua opção para o Período de Oferta atual será automaticamente encerrada e nenhuma Contribuição adicional para a compra de Ações Durante o Período de Oferta. (C) Não obstante o acima exposto, somente na medida necessária para cumprir com a Seção 423 (b) (8) de O Código e a Seção 3 (b) neste documento, as deduções de folha de pagamento de um participante podem ser reduzidas durante qualquer Período de Oferta programado para terminar durante o ano civil corrente a qualquer montante abaixo do valor de dólar eleito, incluindo uma redução para 0. As deduções de folha de pagamento deverão ser reiniciadas A taxa prevista nos referidos Documentos de Inscrição no início do primeiro Período de Oferta que esteja programado para terminar no ano civil seguinte, a menos que seja rescindido conforme estipulado na Seção 10. (a) Na Data de Oferta de cada Período de Oferta, cada Funcionário Elegível Participando desse Período de Oferta receberá uma opção para comprar em cada Data de Compra um número de Ações da Ação Ordinária da Companhia determinada pela divisão dessas Contribuições de Empregado Elegível 146 acumuladas antes dessa Data de Compra e mantidas na conta do participante na Data de Compra por O Preço de Compra aplicável desde que, no entanto, o número máximo de Acções que um Empregado Elegível possa adquirir durante cada Período de Oferta será de 2.500 Acções (sujeito a qualquer ajustamento nos termos da Cláusula 18 abaixo) e desde que tal compra esteja sujeita às limitações estabelecidas (B) O valor justo de mercado das Ações Ordinárias da Companhia em uma determinada data (o Valor de Mercado de Valor148) é o preço de fechamento das Ações Ordinárias no Mercado Seleto Global da Nasdaq ou se as ações Das ações ordinárias não são negociadas no mercado NASDAQ Global Select, na principal bolsa de valores ou em qualquer outro sistema de mercado nacional ou sistema de cotação automatizada no qual as ações ordinárias sejam cotadas, cotadas ou negociadas ou, se não houver venda de ações ordinárias O valor justo de mercado das Ações Ordinárias, conforme determinado pelo Comitê de boa fé, contudo, desde que o Comitê possa, a seu critério, designar (i) a média entre o preço de venda mais alto e O estoque informou no NASDAQ Global Select Market em uma determinada data como Valor Justo de Mercado a partir de tal data para qualquer finalidade sob o Plano e / ou (ii) o preço de venda real como Valor Justo de Mercado no caso de alienações de Plano. 8. Exercício da Opção. Sujeito à Seção 10, a opção de um participante para a compra de Ações será exercida automaticamente na Data de Compra de cada Período de Oferta eo maior número de Ações inteiras sujeitas à opção será adquirida ao Preço de Compra aplicável com as Contribuições acumuladas em Sua conta. Nenhuma fração de ações será emitida e qualquer excesso de Contribuições na conta de um participante que não possa comprar uma Ação total será devolvido a esse participante. As Acções adquiridas mediante o exercício de uma opção ao abrigo deste Contrato serão consideradas transferidas para o participante na Data de Compra. Durante a sua vida útil, a opção de um participante de comprar Acções nos termos do presente é exercível apenas por ele. 9. Prazo de detenção e entrega. O mais rapidamente possível após a Data de Compra, o número de Ações adquiridas por cada participante mediante o exercício de sua opção será depositado em uma conta estabelecida no nome do participante com o Agente Designado. As deduções de folha de pagamento acumuladas na conta de um participante que não sejam aplicadas na compra de Ações em uma Data de Compra devido a limitações impostas pelo Plano deverão ser devolvidas ao participante. O Comitê poderá exigir que as Ações sejam retidas com o Agente Designado por um período de tempo designado e / ou podem estabelecer outros procedimentos para permitir o rastreamento de disposições desqualificadoras de tais Ações. Sujeito ao período de detenção descrito na frase a seguir, um participante pode, a qualquer tempo, direcionar o Agente Designado para vender suas Ações e entregar ao participante o produto delas, menos as despesas aplicáveis. Não obstante qualquer outra disposição do Plano em contrário, todas as Acções adquiridas por um participante não podem ser vendidas ou transferidas pelo participante para outra pessoa até doze (12) meses após a Data de Compra fornecida, no entanto, que o Comité pode aumentar ou diminuir (Ou renunciar) a esse período de detenção com relação a Períodos de Oferta futuros. 10. Desistência Desligamento. (A) Após a rescisão do estatuto de Participante como um Empregado Elegível e / ou Contínuo como Empregado antes da Data de Compra de um Período de Oferta por qualquer motivo, voluntário ou involuntário, incluindo aposentadoria ou morte, as Contribuições creditadas a seu A sua conta será devolvida a ele ou, no caso de sua morte, à pessoa ou pessoas a ela devida nos termos da Seção 14, e sua opção será automaticamente encerrada. (B) Sujeito à Seção 10 (a), no caso de um Funcionário Elegível não permanecer em Status Contínuo como um Funcionário da Companhia durante o Período de Oferta em que o empregado é um participante, ele será considerado como tendo eleito Para se retirar do Plano e as Contribuições creditadas em sua conta serão devolvidas a ele e sua opção será rescindida. (C) A retirada de um Empregado Elegível146 de uma oferta (exceto sob a Seção 10 (a)) não terá qualquer efeito sobre sua elegibilidade para participar de uma oferta subseqüente ou em qualquer plano similar que possa futuramente ser adotado pela Companhia. 11. Interesse. Não haverá juros sobre as Contribuições de um participante no Plano. (A) Sob reserva do ajuste previsto na Cláusula 18, o número máximo de Ações que serão disponibilizadas para venda no âmbito do Plano será de 11.500.000 Ações. Se o Comitê determinar que, em determinada Data de Compra, o número de ações com respeito às opções a serem exercidas poderá exceder (1) o número de ações ordinárias disponíveis para venda no Plano na Data da Oferta O Período de Oferta aplicável, ou (2) o número de ações disponíveis para venda sob o Plano em tal Data de Compra, o Comitê poderá, a seu exclusivo critério, fornecer (x) que a Companhia deverá fazer uma alocação pro rata das Ações Ordinárias Disponíveis para compra em tal Data de Oferta ou Data de Compra, conforme aplicável, de forma uniforme de acordo com o que for praticável e como ela determinará, a seu exclusivo critério, ser equitativa entre todos os participantes exercendo opções de compra de Ações Ordinárias nessa Data de Compra; (Y) que a Companhia deverá fazer uma alocação pro rata das Ações disponíveis para compra em tal Data de Oferta ou Data de Compra, conforme aplicável, de forma tão uniforme quanto for praticável e conforme for Determinará, a seu exclusivo critério, ser equitativo entre todos os participantes que exercem opções de compra de Ações Ordinárias nessa Data de Compra e encerrar o Plano de acordo com a Seção 19 abaixo. A Sociedade pode fazer uma atribuição pro rata das Acções disponíveis na Data da Oferta de qualquer Período de Oferta aplicável nos termos da frase anterior, não obstante qualquer autorização de Acções adicionais para emissão nos termos do Plano pelos accionistas da Sociedade subsequentes a tal Data de Oferta. (B) O Participante não terá direito de participação ou direito de voto em Ações cobertas por sua opção até que tal opção tenha sido exercida. 13. Administração. O Comitê supervisionará e administrará o Plano e terá total poder para adotar, alterar e rescindir quaisquer regras julgadas desejáveis ​​e apropriadas para a administração do Plano e não inconsistentes com o Plano, para interpretar e interpretar o Plano e para fazer todas as outras Determinações necessárias ou recomendáveis ​​para a administração do Plano. O Comitê delega a administração diária rotineira do Plano (incluindo a seleção de um Agente Designado para o Plano) ao Vice-Presidente Sênior de Recursos Humanos (ou a qualquer outro funcionário da Companhia). 14. Designação do Beneficiário. (A) Um participante pode designar um beneficiário que receberá quaisquer Ações e dinheiro, se houver, da conta do participante no Plano, no caso de tal morte do participante subsequente ao final de um Período de Oferta, mas antes da entrega a ele ou De tais Acções e numerário. Além disso, um participante pode designar um beneficiário que receberá dinheiro da conta do participante no Plano em caso de morte desse participante antes da Data de Compra de um Período de Oferta. Se um participante é casado e o beneficiário designado não é o cônjuge, o consentimento do cônjuge será exigido para que tal designação seja eficaz. As designações de beneficiários sob esta Seção 14 (a) devem ser feitas na forma e maneira prescritas pelo Agente Designado. (B) Essa designação do beneficiário pode ser alterada pelo participante (e pelo seu cônjuge, se houver) a qualquer momento mediante a apresentação do aviso exigido, cujo aviso prévio pode ser eletrônico. Em caso de falecimento de um participante e na ausência de um beneficiário validamente designado sob o Plano que esteja vivendo no momento da morte do participante, a Companhia entregará tais Ações e / ou dinheiro ao executor ou administrador da propriedade Do participante, em nome dessa propriedade, ou se nenhum tal executor ou administrador tiver sido nomeado (ao conhecimento da Companhia), a Companhia, a seu critério, poderá entregar tais Ações e / ou dinheiro aos herdeiros aplicáveis ​​na lei . 15. Transferibilidade. Nem as contribuições creditadas na conta de um participante nem quaisquer direitos com respeito ao exercício de uma opção ou para receber Ações sob o Plano podem ser cedidas, transferidas, penhoradas ou de outra forma alienadas de qualquer forma (exceto por vontade, as leis de descendência e Distribuição, ou conforme previsto na Secção 14) pelo participante. Qualquer tentativa de cessão, transferência, penhor ou outra disposição ficará sem efeito, exceto que a Companhia pode tratar tal ato como uma eleição para retirar fundos de acordo com a Seção 10. 16. Uso de Fundos. Todas as Contribuições recebidas ou mantidas pela Companhia sob o Plano poderão ser utilizadas pela Companhia para qualquer propósito social, ea Companhia não será obrigada a segregar tais Contribuições. 17. Regras para não-U. S. Jurisdições. (A) O Comitê poderá adotar regras ou procedimentos relativos à operação e administração do Plano para acomodar os requisitos específicos das leis e procedimentos locais. Sem limitar a generalidade do acima exposto, o Comitê está especificamente autorizado a adotar regras e procedimentos relativos ao tratamento de deduções de folha de pagamento, pagamento de juros, conversão de moeda local, imposto de folha de pagamento, procedimentos de retenção e manipulação de certificados de ações que variam com as exigências locais. (B) O Comitê também pode adotar sub-planos aplicáveis ​​a determinadas Subsidiárias Designadas ou locais, cujos sub-planos podem ser projetados para estar fora do escopo da Seção 423 do Código. As regras de tais sub-planos podem ter precedência sobre outras disposições deste Plano, com exceção da Seção 12, mas, a menos que seja substituído de outra forma pelos termos desse sub-plano, as disposições deste Plano regerão o funcionamento de tais sub - plano. (C) As partes declaram que desejavam que o presente Plano e todos os documentos ou avisos relacionados com o presente documento fossem redigidos na língua inglesa. Kraft Foods Group, Inc. 2012 Plano de Compra de Ações para Empregados e todos os documentos e avisos de reajuste em língua inglesa. 18. Ajustes por Mudanças nas Transações Societárias de Capitalização. (A) Ajuste. Sujeito a qualquer ação exigida pelos acionistas da Companhia, o número de Ações cobertas por cada opção no Plano que ainda não tenha sido exercida, o número de Ações que foram autorizadas para emissão no âmbito do Plano, mas ainda não foram colocadas sob a (Em conjunto, as 147 Reservas 148), o número máximo de Ações da Ação Ordinária que podem ser compradas por um participante em um Período de Oferta, o número de Ações da Ação Ordinária estabelecido na Seção 12 (a) acima eo preço Por Ação de Ações Ordinárias cobertas por cada opção do Plano que ainda não tenha sido exercida, será ajustada proporcionalmente para qualquer aumento ou diminuição no número de Ações emitidas resultante de uma cisão, desdobramento de ações, desdobramento de ações, dividendos em ações , Combinação ou reclassificação das ações ordinárias (incluindo qualquer mudança no número de ações ordinárias efetuadas em conexão com uma mudança de domicílio da Companhia) ou qualquer outro aumento ou diminuição do número de ações efetuadas sem recebimento de contraprestação Pela Companhia desde que a conversão de quaisquer valores mobiliários conversíveis da Companhia não seja considerada como tendo sido efetuada sem recebimento de contraprestação.148 Esse ajuste será efetuado pelo Comitê, cuja deliberação nesse sentido será final, vinculativa e conclusiva. Salvo disposição expressa neste documento, nenhuma emissão pela Companhia de ações de qualquer classe, ou valores mobiliários conversíveis em ações de qualquer classe, afetará e nenhum ajuste por causa disso será feito com relação ao número ou preço Das Acções sujeitas a uma opção. (B) Transações Societárias. Em caso de dissolução ou liquidação da Sociedade, qualquer Período de Oferta então em curso terminará imediatamente antes da consumação de tal ação, salvo disposição em contrário do Comitê. In the event of a Corporate Transaction, each option outstanding under the Plan shall be assumed or an equivalent option shall be substituted by the successor corporation or a parent or Subsidiary of such successor corporation. In the event that the successor corporation refuses to assume or substitute for outstanding options, each Offering Period then in progress shall be shortened and a new Purchase Date shall be set (the 147 New Purchase Date 148), as of which date any Offering Period then in progress will terminate. The New Purchase Date shall be on or before the date of consummation of the transaction and the Committee shall notify each participant in writing, at least five (5) days prior to the New Purchase Date, that the Purchase Date for his or her option has been changed to the New Purchase Date and that his or her option will be exercised automatically on the New Purchase Date, subject to Section 10. For purposes of this Section 18, an option granted under the Plan shall be deemed to be assumed or substituted, without limitation, if, at the time of issuance of the stock or other consideration upon a Corporate Transaction, each holder of an option under the Plan would be entitled to receive upon exercise of the option the same number and kind of shares of stock or the same amount of property, cash or securities as such holder would have been entitled to receive upon the occurrence of the transaction if the holder had been, immediately prior to the transaction, the holder of the number of Shares of Common Stock covered by the option at such time (after giving effect to any adjustments in the number of Shares covered by the option as provided for in this Section 18) provided however that if the consideration received in the transaction is not solely common stock of the successor corporation or its parent (as defined in Section 424(e) of the Code), the Committee may, with the consent of the successor corporation, provide for the consideration to be received upon exercise of the option to be solely common stock of the successor corporation or its parent equal in Fair Market Value to the per Share consideration received by holders of Common Stock in the transaction. The Committee may, if it so determines in the exercise of its sole discretion, also make provision for adjusting the Reserves, as well as the price per Share of Common Stock covered by each outstanding option, in the event that the Company effects one or more reorganizations, recapitalizations, rights offerings or other increases or reductions of Shares of its outstanding Common Stock, and in the event of the Company being consolidated with or merged into any other corporation. 19. Amendment or Termination . (a) The Board and/or the Committee may at any time and for any reason terminate or amend the Plan. Except as provided in Section 18, no such termination of the Plan may affect options previously granted. Except as provided in Section 18 and in this Section 19, no amendment to the Plan shall make any change in any option previously granted that adversely affects the rights of any participant. In addition, to the extent necessary to comply with Rule 16b-3 under the Exchange Act, or under Section 423 of the Code (or any successor rule or provision or any applicable law or regulation), the Company shall obtain shareholder approval in such a manner and to such a degree as so required. (b) Without shareholder consent and without regard to whether any participant rights may be considered to have been adversely affected, the Committee shall be entitled to change the Offering Periods (solely prior to the commencement of the affected Offering Periods), limit the frequency and/or number of changes in the amount withheld during an Offering Period (solely prior to the commencement of the affected Offering Periods), establish the exchange ratio applicable to amounts withheld in a currency other than U. S. dollars, permit payroll withholding in excess of the amount designated by a participant in order to adjust for delays or mistakes in the Company146s processing of properly completed withholding elections, establish reasonable waiting and adjustment periods and/or accounting and crediting procedures to ensure that amounts applied toward the purchase of Common Stock for each participant properly correspond with amounts withheld from the participant146s Compensation, and establish such other procedures as the Committee determines in its sole discretion advisable that are consistent with the Plan. 20. Notices . All notices or other communications by a participant to the Company under or in connection with the Plan shall be deemed to have been duly given when received in the form specified by the Company at the location, or by the person, designated by the Company for the receipt thereof. 21. Conditions Upon Issuance of Shares . Shares shall not be issued with respect to an option unless the exercise of such option and the issuance and delivery of such Shares pursuant thereto shall comply with all applicable provisions of law, domestic or foreign, including, without limitation, the Securities Act of 1933, as amended, the Exchange Act, the rules and regulations promulgated thereunder, applicable state securities laws and the requirements of any stock exchange upon which the Shares may then be listed, and shall be further subject to the approval of counsel for the Company with respect to such compliance. As a condition to the exercise of an option, the Company may require the person exercising such option to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required by any of the aforementioned applicable provisions of law. 22. Term of Plan Effective Date . The Plan shall become effective upon approval by the Company146s shareholders. It shall continue in effect for a term of ten (10) years unless sooner terminated under Section 19. 23. Additional Restrictions of Rule 16b-3 . The terms and conditions of options granted hereunder to, and the purchase of Shares by, persons subject to Section 16 of the Exchange Act shall comply with the applicable provisions of Rule 16b-3. This Plan shall be deemed to contain, and such options shall contain, and the Shares issued upon exercise thereof shall be subject to, such additional conditions and restrictions as may be required by Rule 16b-3 to qualify for the maximum exemption from Section 16 of the Exchange Act with respect to Plan transactions. 24. Not a Contract of Employment . The adoption and maintenance of the Plan shall not be deemed to be a contract between the Company or any Designated Subsidiaries and any person or to be consideration for the employment of any person. Participation in the Plan at any given time shall not be deemed to create the right to participate in the Plan, or any other arrangement permitting an employee of the Company or any Designated Subsidiaries to purchase Common Stock at a discount, in the future. The rights and obligations under any participant146s terms of employment with the Company or any of the Designated Subsidiaries shall not be affected by participation in the Plan. Nothing herein contained shall be deemed to give any person the right to be retained in the employ of the Company or any of the Designated Subsidiaries or to restrict the right of the Company or any of the Designated Subsidiaries to discharge any person at any time, nor shall the Plan be deemed to give the Company or any of the Designated Subsidiaries the right to require any person to remain in the employ of the Company or any of the Designated Subsidiaries or to restrict any person146s right to terminate his employment at any time. The Plan shall not afford any participant any additional right to compensation as a result of the termination of such participant146s employment for any reason whatsoever. 25. Equal Rights and Privileges . All Eligible Employees shall have equal rights and privileges with respect to the Plan so that the Plan qualifies as an 147employee stock purchase plan148 within the meaning of Section 423 of the Code and the related Treasury regulations. Any provision of the Plan which is inconsistent with Section 423 of the Code shall without further act or amendment by the Company or the Committee be reformed to comply with the requirements of Section 423. This Section shall take precedence over all other provisions of the Plan. APPENDIX A DESIGNATED SUBSIDIARIES034The Benefits of Working FOr Kraft Foods, NA.034 A great place to work, job security seems strong. The management seems to care for employees. Health benefits are the best in the area. The have great retirement plans and 401K plans. They also offer stock options as well as other important benefits for their employees. They also offer a great vacation plan. Management seems to care for the employees and seem to know everyone on a first name basis no matter how long they have been there, It039s like a second family. I don039t know of any, except for long summer hours, but That might not be a downfall. Advice to Management Just keep people informed about whats going on it the company, like they do already. Flag as Inappropriate Flag as Inappropriate Kraft Heinz Company Response Kraft Heinz Company 2008-11-22 19:07 PST Other Employee Reviews for Kraft Heinz Company Comp amp Benefits Current Employee - Scientist in Tarrytown, NY Current Employee - Scientist in Tarrytown, NY Approves of CEO Work life balance, low pressure and association with good brand. The facility has gym inside, very well located. People are generally nice and there are many events going on. There are many half days and social events. It is a low poressure job, very few layoffs and hence I would say it is high security compared to other jobs. Pay is decent. Very slow growth, high politics. 2 things - food industry is low paying in general and at the same time Kraft pays about 15-20 lower than pepsi. You will work harder at pepsi though. If you are not white male/female or Latino female. your growth is not good. Asians are discriminated and in general, asians are throught be a good fit for technical positions but not for management position at all. so you should keep that in mind when applying. Advice to Management Need to add talented people rather than promoting based on who like who. Unfair promotion process. Kraft Foods is a good company with a good reputation. It has a great benefit package. Kraft has a good management team at top level of organization. I enjoyed working there. The pay is below industry average, and it seems that they like it that way. Job pay is based on position in salary range, and everyone I have talked too is in the lower part of the range, while the industry average is the midpoint. Only employees with 20/30 years of service are past the midpoint. It is hard to get promoted in areas of distribution and operations in general. Advice to Management do more to support work/life balanceEMPLOYEE MATTERS AGREEMENT THIS EMPLOYEE MATTERS AGREEMENT . dated as of March 30, 2007 (as amended and supplemented pursuant to the terms hereof, this 147Agreement148), is entered into by and between Altria Group, Inc. a Virginia corporation (147Altria148), and Kraft Foods Inc. a Virginia corporation (147Kraft148). W I T N E S S E T H: WHEREAS . Altria and Kraft have entered into a Distribution Agreement, dated as of January 31, 2007 (the 147Distribution Agreement148), providing for, among other things, the distribution by Altria of its entire ownership interest in Kraft through a pro-rata distribution of all of the outstanding shares of Class A Common Stock of Kraft owned by Altria on the Distribution Date to the holders of Altria Common Stock pursuant to the terms and subject to the conditions of the Distribution Agreement (the 147Distribution148) and WHEREAS . Altria and Kraft wish to set forth their agreement as to certain matters regarding the treatment of, and the compensation and employee benefits provided to, employees of Altria and Kraft and their subsidiaries (as hereinafter defined). NOW, THEREFORE . in consideration of the premises and the mutual covenants herein contained and intending to be legally bound hereby, the parties hereto agree as follows: 1.1 General . As used in this Agreement, the following terms shall have the following meanings (such meanings to be equally applicable to both the singular and plural forms of the terms defined): Adjusted Altria Option . an Altria Option as adjusted pursuant to Section 4.1 hereof. Affiliate . with respect to any specified Person, a Person that directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, such specified Person provided, however, that for purposes of this Agreement, no member of either Group and no officer or director of any member of either Group shall be deemed to be an Affiliate of any member of the other Group. Altria . as defined in the preamble to this Agreement. Altria Benefit Liabilities . as defined in Section 2.1 hereof. Altria Common Stock . the common stock, par value 0.33 1 / 3 per share, of Altria. Altria Excess Severance Payment . as defined in Section 3.1(g)(ii) hereof. Altria Deferred Stock . a deferred stock obligation relating to Altria Common Stock granted by Altria before the Distribution Date under an Altria Performance Incentive Plan, but not including any deferred stock granted by Altria after January 1, 2007 that is held on the Distribution Date by an employee of the Altria Group. Altria Group . Altria and the Subsidiaries of Altria other than members of the Kraft Group. Altria Group Employee . any individual who (i), as of the close of business on the Distribution Date, is either employed by, or on a leave of absence (as defined by the personnel policies of the Altria Group) from, a member of the Altria Group (ii) is a Former Altria Group Employee or (iii) is or becomes an Altria Transferee. Altria Group Plans . the Altria Performance Incentive Plans. Altria-Kraft Option . an option to acquire Class A Common Stock, granted by Altria, as of June 12, 2001. Altria Option . an option to acquire Altria Common Stock granted by Altria under an Altria Performance Incentive Plan before the Distribution Date. Altria Pension Plans . any of the Retirement Plan for Salaried Employees, the Retirement Plan for Hourly Employees, the Benefit Equalization Plan, the Supplemental Management Employees146 Retirement Plan and any other qualified or non-qualified defined benefit plan or program that is identified by Altria before the Distribution Date as providing retirement income to Altria Group Employees, all as in effect as of the time relevant to the applicable provisions of this Agreement. Altria Performance Incentive Plans . any of the 1992 Incentive Compensation and Stock Option Plan, the 1997 Performance Incentive Plan, the 2000 Performance Incentive Plan or the 2005 Performance Incentive Plan, or any stock-based or other incentive plan for Altria Group Employees that is identified by Altria before the Distribution Date, all as in effect as of the time relevant to the applicable provisions of this Agreement. Altria Post-Adjustment Price . the difference between (i) the Altria Pre-Adjustment Price and (ii) the Kraft Price multiplied by the Distribution Ratio. Altria Pre-Adjustment Price . the closing price of Altria Common Stock on the NYSE on the Distribution Date (as traded on the 147regular way148 market). Altria Profit-Sharing Plan . any of the Deferred Profit-Sharing Plan for Salaried Employees, the Deferred Profit-Sharing Plan for Tobacco Workers, the Deferred Profit-Sharing Plan for Craft Employees, the Benefit Equalization Plan, the Supplemental Management Employees146 Retirement Plan and any other qualified or non-qualified defined contribution plan or program for Altria Group Employees that is identified by Altria before the Distribution Date, all as in effect as of the time relevant to the applicable provisions of this Agreement. Altria Restricted Stock . restricted Altria Common Stock granted by Altria before the Distribution Date under an Altria Performance Incentive Plan. Altria Stock Fund . as defined in Section 5.1(a) hereof. Altria Transferee . as defined in Section 3.2 hereof. Altria Welfare and Other Plans . any plan, fund or program that provides health, medical, surgical, hospital or dental care or other welfare benefits or benefits in the event of sickness, accident or disability, or death benefits to Altria Group Employees, all as in effect as of the time relevant to the applicable provisions of this Agreement. Arbitration Act . the United States Arbitration Act, 9 U. S.C. 167167 1-16, as the same may be amended from time to time. Assumed Altria Pension Plan Liability . as defined in Section 3.1(c) hereof. Assumed Kraft Pension Plan Liability . as defined in Section 3.2(c) hereof. Auditing Party . as defined in Section 7.3(a) hereof. Business Day . any day other than a Saturday, a Sunday or a day on which banking institutions located in the Commonwealth of Virginia or the State of New York are authorized or obligated by law or executive order to close. Class A Common Stock . the Class A common stock, no par value, of Kraft. Class B Common Stock . the Class B common stock, no par value, of Kraft. Code . the Internal Revenue Code of 1986, as amended. Distribution . as defined in the recitals to this Agreement. Distribution Date . the date on which the Distribution becomes effective. Distribution Ratio . the fraction determined under Section 2.04(b) of the Distribution Agreement. Equity Compensation . Altria Options, Adjusted Altria Options, Kraft Options, Altria-Kraft Options, Altria Restricted Stock, Kraft Restricted Stock, Altria Deferred Stock and Kraft Deferred Stock. ERISA . Employee Retirement Income Security Act of 1974, as amended. Existing Kraft Options . an option to acquire Class A Common Stock, granted by Kraft before the Distribution Date under a Kraft Performance Incentive Plan. Existing Kraft Deferred Stock . a deferred stock obligation relating to Class A Common Stock granted by Kraft before the Distribution Date under a Kraft Performance Incentive Plan. Existing Kraft Restricted Stock . restricted Class A Common Stock granted by Kraft before the Distribution Date under a Kraft Performance Incentive Plan. Fair Value . the anticipated value of the Kraft Options, Adjusted Altria Options, Altria-Kraft Options or Existing Kraft Options, as applicable, determined using the Modified Black-Scholes option pricing model used by Altria and Kraft in the preparation of their most recent respective annual or quarterly financial reporting prepared before the Distribution Date. Variables used in the pricing model will be determined as follows: Expected Life . the lesser of two and one-half years or one-half of the remaining contractual term for each option grant. Volatility . the annualized volatilities of Altria or Kraft stock, as applicable, utilizing daily closing stock prices for the period prior to January 31, 2007 that represents the Expected Life of each option grant. Adjusted Altria Dividend Yield . the percentage that results from dividing (i) the annualized quarterly dividend per share of Altria common stock as of the Distribution Date less the value per Altria share of annualized quarterly dividends on Kraft common stock as of the Distribution Date by (ii) the Altria Post-Adjustment Price. Risk-Free Interest Rate . the rate available on the day before the Distribution for zero-coupon U. S. government securities with terms that approximate the Expected Life of each option grant. Current Altria and Kraft Stock Prices . the Altria Post-Adjustment Price with respect to Altria Common Stock, and the Kraft Price with respect to Class A Common Stock. Former Altria Group Employee . any individual who: (i) before the Distribution Date has retired from or otherwise separated from service from a member of the Altria Group and (ii) still participates in, or otherwise receives, or is entitled to receive, benefits under, any Altria Group Plan provided . Contudo . that a 147Former Altria Group Employee148 shall not include a Kraft Transferee. Former Kraft Group Employee . any individual who: (i) before the Distribution Date has retired from or otherwise separated from service from a member of the Kraft Group and (ii) still participates in, or otherwise receives, or is entitled to receive, benefits under, any Kraft Group Plan provided . Contudo . that a 147Former Kraft Group Employee148 shall not include an Altria Transferee. Governmental Authority . any federal, state, local, foreign or international court, government, department, commission, board, bureau or agency, authority (including, but not limited to, any central bank or taxing authority) or instrumentality (including, but not limited to, any court, tribunal or grand jury) exercising executive, prosecutorial, legislative, judicial, regulatory or administrative functions of or pertaining to government or any other regulatory, administrative or governmental authority, including the NYSE. Group . the Altria Group or the Kraft Group, as the context requires. Information . all records, books, contracts, instruments, computer data and other data and information. Initial Altria Calculation Date . as defined in Section 3.1(c) hereof. Initial Kraft Calculation Date . as defined in Section 3.2(c) hereof. Intrinsic Value . with respect to the relevant options, the product of (i) the number of such options and (ii) the difference between the exercise price of such options and, for Altria Options, the Altria Pre-Adjustment Price, for Altria Adjusted Options, the Altria Post-Adjustment Price, and for Kraft Options, the Kraft Price, as applicable. Kraft . as defined in the preamble to this Agreement. Kraft Benefit Liabilities . as defined in Section 2.2 hereof. Kraft Common Stock . the Class A Common Stock and the Class B Common Stock. Kraft Deferred Stock . a deferred stock obligation relating to Class A Common Stock granted by Kraft as of the Distribution Date under a Kraft Performance Incentive Plan pursuant to Section 4.4(b) hereof. Kraft Group . Kraft and the Kraft Subsidiaries. Kraft Group Employee . any individual who (i), as of the close of business on the Distribution Date, is either employed by, or on leave of absence (as defined by the personnel policies of the Kraft Group) from, a member of the Kraft Group (ii) is a Former Kraft Group Employee or (iii) is or becomes a Kraft Transferee. Kraft Group Plans . the Kraft Performance Incentive Plans. Kraft Option . an option to acquire Class A Common Stock granted by Kraft under the Kraft Performance Incentive Plan in partial substitution for the Altria Options. Kraft Pension Plans . any of the Kraft Foods Global, Inc. Retirement Plan, the Kraft Foods Global, Inc. Hourly Retirement Plan, Kraft Foods Global, Inc. Supplemental Benefits Plan I, Kraft Foods Global, Inc. Supplemental Benefits Plan II, and any other qualified or non-qualified defined benefit plan or program that is identified by Kraft before the Distribution Date as providing retirement income to Kraft Group Employees, all as in effect as of the time relevant to the applicable provisions of this Agreement. Kraft Performance Incentive Plans . any of the Kraft Foods Inc. 2001 Performance Incentive Plan, the Kraft Foods Inc. 2005 Performance Incentive Plan and any stock-based or other incentive plan identified by Kraft before the Distribution Date, all as in effect as of the time relevant to the applicable provisions of this Agreement. Kraft Price . the closing price of Class A Common Stock on the NYSE on the Distribution Date. Kraft Restricted Stock . restricted Class A Common Stock distributed as of the Distribution Date and subject to terms and conditions pursuant to Section 4.3(a) hereof. Kraft Restricted Stock Forfeiture Value . the anticipated value of the Kraft Restricted Stock that may be forfeited by holders and returned to Kraft, determined using the Kraft Price and the forfeiture assumptions used for Statement of Financial Accounting Standards 123(R) purposes in Altria146s most recent quarterly or annual financial reporting prepared before the Distribution Date for Altria Group employees (with respect to Altria Restricted Stock held by Altria Group employees). Kraft Savings Plans . any of the Kraft Foods Global Inc. Thrift Plan, the Kraft Foods Global, Inc. Employee TIP Plan, Kraft Canada Inc. Employee Savings Plan and any other qualified or non-qualified defined contribution plan or program for Kraft Group Employees that is identified by Kraft before the Distribution Date, all as in effect as of the time relevant to the applicable provisions of this Agreement. Kraft Severance Payment . as defined in Section 3.1(g)(i) hereof. Kraft Stock Fund . as defined in Section 5.1(b) hereof. Kraft Subsidiaries . all of the Subsidiaries of Kraft. Kraft Transferee . as defined in Section 3.1 hereof. Kraft Welfare and Other Plans . any plan, fund or program that provides health, medical, surgical, hospital or dental care or other welfare benefits or benefits in the event of sickness, accident or disability, or death benefits to Kraft Group Employees, all as in effect as of the time relevant to the applicable provisions of this Agreement. Law . any federal, state or local statute, ordinance, regulation, code, license, permit, authorization, approval, consent, common law, legal doctrine, order, judgment, decree, injunction or requirement of any Governmental Authority or any order or award of any arbitrator, now or hereafter in effect. Liabilities . means any and all claims, debts, liabilities, assessments, guarantees, assurances, commitments, obligations, fines, penalties, damages (whether compensatory, punitive, consequential, multiple or other), losses, disgorgements and obligations, of any kind, character or description (whether absolute, contingent, matured, not matured, liquidated, unliquidated, accrued, known, unknown, direct, indirect, derivative or otherwise) whenever arising, including, but not limited to, those arising under or in connection with any Law, and those arising under any contract, guarantee, commitment or undertaking, whether sought to be imposed by any Governmental Authority or arbitrator, whether based in contract, tort, implied or express warranty, strict liability, criminal or civil statute, or otherwise, and including all costs, expenses and interest relating thereto (including, but not limited to, all expenses of investigation, all attorneys146 fees and all out-of-pocket expenses in connection with any Action or threatened Action). Losses . with respect to any Person, all losses, Liabilities, damages, claims, demands, judgments or settlements of any nature or kind, known or unknown, fixed, accrued, absolute or contingent, liquidated or unliquidated, including all costs and expenses (legal, accounting or otherwise as such costs are incurred) relating thereto, including punitive damages and criminal fines and penalties, but excluding damages in respect of actual or alleged lost profits, suffered by such Person, regardless of whether any such losses, Liabilities, damages, claims, demands, judgments, settlements, costs, expenses, fines and penalties relate to or arise out of such Person146s own alleged or actual negligent, grossly negligent, reckless or intentional misconduct or the capacity in which such Person was acting. Non-parties . as defined in Section 7.3(b) hereof. NYSE . the New York Stock Exchange, Inc. Option Conversion Ratio . the ratio of the pre-adjustment exercise price of the Altria Options being adjusted to the Altria Pre-Adjustment Price. Person . an individual, a committee, a partnership, a joint venture, a corporation, a trust, a limited liability company, an unincorporated organization, or a government or any department or agency thereof. Personal Data . as defined in Section 7.1 hereof. Record Date . the close of business on the date to be determined by Altria146s Board of Directors as the record date for determining the holders of Altria Common Stock entitled to receive shares of Class A Common Stock pursuant to the Distribution. Retained Altria Pension Plan Liability . as defined in Section 3.1(c) hereof. Retained Kraft Pension Plan Liability . as defined in Section 3.2(c) hereof. SABMiller Group . SABMiller PLC, a public limited company incorporated in England and Wales under the Companies Act (1985), and the Subsidiaries of SABMiller PLC. SEC . the United States Securities and Exchange Commission. Securities Act . the Securities Act of 1933, as amended, or any successor statute. Securities Exchange Act . the Securities Exchange Act of 1934, as amended, or any successor statute. Subsidiary . with respect to any specified Person, any corporation or other legal entity of which such Person or any of its Subsidiaries controls or owns, directly or indirectly, more than 50 of the stock or other equity interest entitled to vote on the election of members to the board of directors or similar governing body provided, however, that for purposes of this Agreement, (1) the Kraft Subsidiaries shall be deemed to be Subsidiaries of Kraft and (2) no member of the Kraft Group shall be deemed to be a Subsidiary of any member of the Altria Group. 1.2 References to Time . All references in this Agreement to times of the day shall be to Richmond, Virginia time, except as otherwise specifically provided herein. 2.1 Altria Group Employees . Except as specifically provided in this Agreement, to the exclusion of the Kraft Group, the appropriate member of the Altria Group shall continue to be responsible for and pay, perform and discharge each and every of the employment, compensation and employee benefits Liabilities relating to the Altria Group Employees that arise from employment with the Altria Group before, on or after the Distribution Date, including each and every Liability arising under an Altria Group Plan or assumed pursuant to the terms of this Agreement (collectively, the 147Altria Benefit Liabilities148). 2.2 Kraft Group Employees . Except as specifically provided in this Agreement, to the exclusion of the Altria Group, the appropriate member of the Kraft Group shall continue to be responsible for and pay, perform and discharge each and every of the employment, compensation and employee benefits Liabilities relating to Kraft Group Employees that arise from employment with the Kraft Group before, on or after the Distribution Date, including each and every Liability arising under a Kraft Group Plan or assumed pursuant to the terms of this Agreement (collectively, the 147Kraft Benefit Liabilities148). 3.1 Kraft Transferees . The following principles shall apply to any employee of a member of the Altria Group who has transferred or will transfer employment to a member of the Kraft Group on or prior to September 30, 2007 (each, a 147Kraft Transferee148). Except as specifically noted in this Agreement or as otherwise agreed in writing by the parties, each Kraft Transferee will become, or continue to be, eligible upon transfer for the rights and benefits of similarly situated Kraft Group Employees. (a) Credit . No later than as of the Distribution Date, each Kraft Group Plan shall provide that each Kraft Transferee shall be credited with eligibility and vesting service that is not less than the eligibility and vesting service that the Kraft Transferee had earned under the comparable or equivalent Altria Group Plan, including periods of service with the Altria Group prior to December 1, 1988 provided . Contudo . that in no event shall a member of the Kraft Group be required to provide any service credit to any Kraft Transferee to the extent that the provision of such credit would result in the payment of any duplicate benefits except as may arise by application of Section 3.1(c) hereof. (b) Amendments . No member of the Kraft Group shall cause any amendments to be made to the Kraft Group Plans or any policies regarding the Kraft Group Plans to be implemented that have the direct or indirect effect of treating the Kraft Transferees less favorably than the other Kraft Group Employees similarly situated in seniority and job responsibilities. (c) Pension Benefits . No transfer of assets between the Kraft Group Plans and Altria Group Plans shall be needed in order to effectuate the purpose of this Section 3.1(c) . Each Kraft Transferee shall remain entitled to all benefits under the appropriate Altria Pension Plan to which he or she is or would be entitled if he or she had separated from service with the Altria Group as of the later of (i) the date of his or her transfer to the Kraft Group or (ii) the Distribution Date (the later of which is referred to herein as the 147Initial Altria Calculation Date148), and the appropriate Altria Pension Plan shall retain all Liability for such benefits (each, a 147Retained Altria Pension Plan Liability148). For purposes of calculating benefits under this Section 3.1(c) . the Retained Altria Pension Plan Liability and the Assumed Altria Pension Plan Liability of any Kraft Transferee who has received target payments from Altria and accordingly did not participate in non-qualified Altria Pension Plans for periods after December 31, 2004, and before the Initial Altria Calculation Date shall be calculated as if he or she participated in such Plans with respect to such periods. A Kraft Transferee shall be considered as separated from the service of the Altria Group as of the Initial Altria Calculation Date and may elect to commence receiving his or her benefit in accordance with the terms of the applicable Altria Pension Plan and any individual agreements that alter such terms. The appropriate Kraft Pension Plan will also assume the Retained Altria Pension Plan Liability with respect to each Kraft Transferee (whether or not vested) to the Initial Altria Calculation Date (as to each Kraft Transferee an 147Assumed Altria Pension Plan Liability148) subject to the offset described later in this paragraph. As of such date, the Assumed Altria Pension Plan Liability should be equal to the Retained Altria Pension Plan Liability. The appropriate Kraft Pension Plan is not required to credit the Kraft Transferee with benefit service in determining the Assumed Altria Pension Plan Liability for periods of employment with the Kraft Group on and after the Initial Altria Calculation Date, but shall credit the Kraft Transferee with vesting and eligibility service on and after such date for purposes of determining whether the Kraft Transferee146s Assumed Altria Pension Plan Liability is vested and whether the Kraft Transferee has completed the requisite years of service in order to be eligible for an early retirement benefit and accompanying early retirement subsidies (which must be no less favorable than the eligibility requirements and other terms of the Altria Pension Plan in which the Kraft Transferee participated on his or her date of transfer) with respect to the Assumed Altria Pension Plan Liability. In computing the benefit determined pursuant to the Assumed Altria Pension Plan Liability (and determined in accordance with the applicable Altria Pension Plan) as of any date, the Kraft Pension Plan shall use the same methodology as the relevant Altria Pension Plan (as in effect on the Distribution Date) in determining the Kraft Transferee146s 147five-year average compensation148 and 147social security integration level148 (as such terms are defined in the Altria Pension Plan) as of the Kraft Transferee146s retirement or other separation from service of the Kraft Group, but taking into account compensation paid by the Kraft Group through the date of the Kraft Transferee146s retirement or other separation from service. The benefit determined pursuant to the Assumed Altria Pension Plan Liability, as adjusted pursuant to the provisions of the preceding two sentences and payable from the appropriate Kraft Pension Plan shall be offset by the benefit determined pursuant to the Retained Altria Pension Plan Liability (and determined in accordance with the applicable Altria Pension Plan) payable from the relevant Altria Pension Plan as of the age at which the offset is applied. The early or late retirement factors used to determine the amount of the Retained Altria Pension Plan Liability that will be used as an offset to the Assumed Altria Pension Plan Liability shall be based on the entitlement of the Kraft Transferee as of the Initial Altria Calculation Date to a vested, early, full or deferred retirement allowance, as applicable, under the appropriate Altria Pension Plan. Altria will calculate and notify Kraft in writing of the amount of the Retained Altria Pension Plan Liability for each Kraft Transferee as soon as practicable following the Distribution Date. These principles shall remain in effect so long as the Kraft Transferee continues to be employed by a member of the Kraft Group irrespective of whether or when the Kraft Transferee elects to begin receiving a benefit under an Altria Pension Plan. (d) Non-qualified Deferred Compensation . As soon as practicable following the Initial Altria Calculation Date, Altria will cause the appropriate member of the Altria Group to pay to each Kraft Transferee in cash the full amount of any non-qualified deferred compensation account or accounts under any Altria Pension Plan or Altria Profit-Sharing Plan held by such Kraft Transferee or as otherwise required by the terms of the applicable non-qualified deferred compensation plan or by individual agreements provided, however, that such payments may be deferred to the extent doing so is, in the judgment of Altria, appropriate to avoid potential violations of Code Section 409A. (e) Performance Incentive Compensation . (i) Long Term Incentive Compensation. Each Kraft Transferee who is a participant in the 2007-2009 long-term incentive performance cycle under an Altria Performance Incentive Plan will be eligible to participate in the most similar program under the appropriate Kraft Performance Incentive Plan, without proration for any period between January 1, 2007, and the date the individual becomes a Kraft Transferee. (ii) Annual Incentive Compensation. Each Kraft Transferee will receive an annual incentive target under the appropriate Kraft Performance Incentive Plan that is equivalent to his or her annual incentive target under an Altria Performance Incentive Plan at the time of transfer, without proration for any period between January 1, 2007, and the date the individual becomes a Kraft Transferee. (f) Savings Plan . As soon as administratively practicable following the date on which the Kraft Transferee transfers and in no event later than 30 days following the date of transfer, the Kraft Transferee shall be eligible to commence participation in the appropriate Kraft Savings Plan. Any service requirements contained in such Kraft Savings Plan with respect to eligibility to participate generally or eligibility to share in any employer contributions thereunder shall be waived for the Kraft Transferee. If a Kraft Transferee is transferred to the Kraft Group in the same calendar year as the Distribution Date and would otherwise be eligible for a company contribution (within the meaning of the Altria Profit-Sharing Plan) for that calendar year, the appropriate member of the Altria Group will contribute to each such Kraft Transferee146s account in the appropriate Altria Profit-Sharing Plan the pro-rated amount of any employer contribution to which the Kraft Transferee is entitled based on his compensation (as defined in the Altria Profit-Sharing Plan) received from a Participating Company (as defined in the Altria Profit-Sharing Plan) through the date of transfer and irrespective of whether such Kraft Transferee is employed by the Kraft Group on the last day of the calendar year in which he transferred. Any Kraft Transferee who has an outstanding loan from an Altria Profit-Sharing Plan as of the Initial Altria Calculation Date may continue to repay such loan in accordance with the terms of such Altria Profit-Sharing Plan. (g) Severance . Each Kraft Transferee who is involuntarily separated from a member of the Kraft Group within two years after his or her transfer date (each such two year period, a 147Protection Period148), shall be eligible to receive a payment equal to the sum of: the excess, if any, of: (A) any severance or other amounts that would have been payable by the member of the Altria Group from which the Kraft Transferee transferred if the Kraft Transferee had remained in the employ of such member of the Altria Group through the date of his or her involuntary separation (determined based on the Altria workforce reduction practices in effect on the date of the involuntary separation, which practices shall in no event be less favorable than the practices in effect on the date of transfer) over (B) the Kraft Severance Payment (each, an 147Altria Excess Severance Payment148) provided that a Kraft Transferee shall not be entitled to any benefit under this Section 3.1(g) if: (A) the Kraft Transferee is involuntarily separated because of misconduct or violation of any Kraft Group policy or procedure as determined by the appropriate member of the Kraft Group or (B) the Kraft Transferee voluntarily terminates his or her employment with a member of the Kraft Group. The member of the Kraft Group from which the Kraft Transferee is involuntarily separated shall be solely responsible for the payment of the Kraft Severance Payment. The member of the Altria Group from which the Kraft Transferee transferred shall be solely responsible for the payment of the Altria Excess Severance Payment. Kraft will calculate and notify Altria in writing of the amount of the Kraft Severance Payment and Altria will calculate and notify Kraft in writing of the amount of the Altria Excess Severance Payment as soon as practicable following such Kraft Transferee146s involuntary termination. In order to receive the payment of his or her Altria Excess Severance Payment the Kraft Transferee must execute a general release agreement provided by Altria. (h) Retiree Medical Benefits . Any salaried Kraft Transferee who has an aggregate of five years of service with a member of the Altria Group and the Kraft Group and becomes eligible for a severance payment pursuant to subsection (g) of this Section 3.1 and attains his or her fiftieth birthday before the end of the period of time for which he or she is entitled to receive severance payments, shall also be eligible to receive retiree medical benefits under the Kraft Foods Salaried Retiree Medical Plan upon retirement or other separation from service from the Kraft Group. (i) Welfare and Other Plans . Kraft Transferees will be entitled to participate immediately upon transfer in the Kraft Welfare and Other Plans in accordance with the Altria-Kraft practices in effect as of the Distribution Date. 3.2 Altria Transferees . The following principles shall apply to any employee of a member of the Kraft Group who has transferred or will transfer employment to a member of the Altria Group on or prior to September 30, 2007 (each, an 147Altria Transferee148). Except as specifically noted in this Agreement as otherwise agreed in writing by the parties, each Altria Transferee will become, or continue to be, eligible upon transfer for the rights and benefits of similarly situated Altria Group Employees. (a) Credit . No later than as of the Distribution Date, each Altria Group Plan shall provide that each Altria Transferee shall be credited with eligibility and vesting service that is not less than the eligibility and vesting service that the Altria Transferee had earned under the comparable or equivalent Kraft Group Plan, including periods of service with the Kraft Group prior to December 1, 1988, but subject to the terms and limitations on the crediting of such service of the Altria Pension Plan in effect on the date of the execution of this Agreement provided . Contudo . that in no event shall a member of the Altria Group be required to provide any service credit to any Altria Transferee to the extent that the provision of such credit would result in the payment of any duplicate benefits except as expressly set forth in Section 3.2(c) hereof. (b) Amendments . No member of the Altria Group shall cause any amendments to be made to the Altria Group Plans or any policies regarding the Altria Group Plans to be implemented that have the direct or indirect effect of treating the Altria Transferees less favorably than the other Altria Group Employees similarly situated in seniority and job responsibilities. (c) Pension Benefits . No transfer of assets between the Altria Group Plans and Kraft Group Plans shall be needed in order to effectuate the purpose of this Section 3.2(c) Each Altria Transferee shall remain entitled to all benefits under the appropriate Kraft Pension Plan to which he or she is or would be entitled if he or she had separated from service with the Kraft Group as of the later of (i) the date of his or her transfer to the Altria Group or (ii) the Distribution Date (the later of which is referred to herein as the 147Initial Kraft Calculation Date148), and the appropriate Kraft Pension Plan shall retain all Liability for such benefits (each, a 147Retained Kraft Pension Plan Liability148). An Altria Transferee shall be considered as separated from the service of the Kraft Group as of the Initial Kraft Calculation Date and may elect to commence receiving his or her benefit in accordance with the terms of the applicable Kraft Pension Plan and any individual agreements that alter such terms. The appropriate Altria Pension Plan will also assume the Retained Kraft Pension Plan Liability with respect to each Altria Transferee (whether or not vested) to the Initial Kraft Calculation Date, (as to each Altria Transferee an 147Assumed Kraft Pension Plan Liability148), subject to the offset described later in this paragraph. As of such date, the Assumed Kraft Pension Plan Liability should be equal to the Retained Kraft Pension Plan Liability. The appropriate Altria Pension Plan is not required to credit the Altria Transferee with benefit service in determining the Assumed Kraft Pension Plan Liability for periods of employment with the Altria Group on and after the Initial Kraft Calculation Date, but shall credit the Altria Transferee with vesting and eligibility service on and after such date for purposes of determining whether the Altria Transferee146s Assumed Kraft Pension Plan Liability is vested and whether the Altria Transferee has completed the requisite years of service in order to be eligible for an early retirement benefit and accompanying early retirement subsidies (which must be no less favorable than the eligibility requirements and other terms of the Kraft Pension Plan in which the Altria Transferee participated on his or her date of transfer) with respect to the Assumed Kraft Pension Plan Liability. In computing the benefit determined pursuant to the Assumed Kraft Pension Plan Liability (as determined in accordance with the applicable Kraft Pension Plan) as of any date, the Altria Pension Plan shall use the same methodology as the relevant Kraft Pension Plan (as in effect on the Distribution Date) in determining the Altria Transferee146s 147final average pay148 and 147social security integration level/covered compensation148 (as such terms are defined in the Kraft Pension Plan) as of the Kraft Transferee146s retirement or other separation from service from the Altria Group, but taking into account compensation paid by the Altria Group through the date of the Altria Transferee146s retirement or other separation from service. The benefit determined pursuant to the Assumed Kraft Pension Plan Liability, as adjusted pursuant to the provisions of the preceding two sentences and payable from the appropriate Altria Pension Plan shall be offset by the benefit determined pursuant to the Retained Kraft Pension Plan Liability (as determined in accordance with the applicable Kraft Pension Plan) payable from the relevant Kraft Pension Plan as of the age at which the offset is applied. The early or late retirement factors used to determine the amount of the Retained Kraft Pension Plan Liability that will be used as an offset to the Assumed Kraft Pension Plan Liability shall be based on the entitlement of the Altria Transferee as of the Initial Kraft Calculation Date to a vested, early, full or deferred retirement benefit, as applicable, under the appropriate Kraft Pension Plan. Kraft will calculate and notify Altria in writing of the amount of the Retained Kraft Pension Plan Liability for each Altria Transferee as soon as practicable following the Distribution Date. These principles shall remain in effect so long as the Altria Transferee continues to be employed by a member of the Altria Group irrespective of whether or when the Altria Transferee elects to begin receiving a benefit under a Kraft Pension Plan. (d) General Foods Management Performance Awards Plan . As soon as practicable following each Altria Transferee146s Initial Kraft Calculation Date, Kraft will cause the appropriate member of the Kraft Group to pay to such Altria Transferee in cash the full amount of any non-qualified deferred compensation account or accounts under the terms of the General Foods Management Performance Awards Plan held by such Altria Transferee. (e) Performance Incentive Compensation . (i) Long Term Incentive Compensation. Each Altria Transferee who is a participant in the 2007-2009 long-term incentive performance cycle under a Kraft Performance Incentive Plan will be eligible to participate in the most similar program under the appropriate Altria Performance Incentive Plan without proration for any period between January 1, 2007, and the date the individual becomes an Altria Transferee. (ii) Annual Incentive Compensation. Each Altria Transferee will receive an annual incentive target under the appropriate Altria Performance Incentive Plan that is equivalent to his or her annual incentive target under a Kraft Performance Incentive Plan at the time of transfer without proration for any period between January 1, 2007, and the date the individual becomes an Altria Transferee. (f) Profit-Sharing Plan . As soon as administratively practicable following the date on which the Altria Transferee transfers, the Altria Transferee shall be eligible to commence participation in the appropriate Altria Profit-Sharing Plan. Any service requirements contained in such Altria Profit-Sharing Plan with respect to eligibility to participate generally or eligibility to share in any employer contributions thereunder shall be waived for the Altria Transferee. Any Altria Transferee who has an outstanding loan from a Kraft Savings Plan as of the Initial Kraft Calculation Date may continue to repay such loan in accordance with the terms of such Kraft Savings Plan. (g) Severance . Each Altria Transferee who is involuntarily separated from a member of the Altria Group shall be eligible to receive a payment equal to any severance or other amounts payable by such member of the Altria Group to such Altria Transferee, which severance or other amount shall be no less than that paid to any employee of that member similarly situated in age, seniority or job responsibility. The member of the Altria Group from which the Altria Transferee is involuntarily separated shall be solely responsible for the payment of such amounts. (h) Welfare and Other Plans . Altria Transferees will be entitled to participate immediately upon transfer in the Altria Welfare and Other Plans in accordance with Altria-Kraft practices in effect as of the Distribution Date. (a) Adjustment Methodology . Each Altria Option shall be adjusted in the manner described below, effective as of the time of the Distribution, so that each Altria Option holder shall hold Adjusted Altria Options and Kraft Options in lieu of the Altria Options previously held. The following procedure shall be applied to each grant of Altria Options with the same grant date and exercise price held by each Altria Option holder. For the avoidance of doubt, the term 147exercise price148 refers to the amount payable by an option holder in order to acquire shares pursuant to a stock option award. (i) The Adjusted Altria Options shall have an exercise price equal to the Altria Post-Adjustment Price multiplied by the Option Conversion Ratio. The number of Adjusted Altria Options shall equal the number of Altria Options. (ii) The Kraft Options shall have an exercise price equal to the Kraft Price multiplied by the Option Conversion Ratio. The number of Kraft Options shall equal the number of Altria Options multiplied by the Distribution Ratio, rounded down to the nearest whole option. If the resulting aggregate Intrinsic Value of the Adjusted Altria Options and Kraft Options is less than the Intrinsic Value of the Altria Options, then the difference shall be paid to the option holder in cash as soon as practicable following the Distribution Date. If the resulting aggregate Intrinsic Value of the Adjusted Altria Options and Kraft Options is greater than the Intrinsic Value of the Altria Options, then the number of Kraft Options shall be reduced until the aggregate Intrinsic Value of the Adjusted Altria Options and Kraft Options is less than or equal to the Intrinsic Value of the Altria Options, and any difference shall be paid to the option holder in cash as soon as practicable following the Distribution Date. Notwithstanding the foregoing, if the Intrinsic Value of the Altria Options is negative, only the first two sentences of this Section 4.1(a)(ii) shall be applied. The cash payment described above shall be made by Altria to individuals who are Altria Group employees on the Distribution Date (or individuals no longer performing services for the Altria Group or the Kraft Group but whose last employment was with the Altria Group), and by Kraft to individuals who are Kraft Group employees on the Distribution Date (or individuals no longer performing services for the Altria Group or the Kraft Group but whose last employment was with the Kraft Group). (iii) The calculation described in the preceding sentence shall be applied using the rounding conventions determined by Altria to carry out the purpose of this Section 4.1 . (b) Issuing Entity and Settlement . Altria will adjust the exercise price of the Altria Options to become Adjusted Altria Options pursuant to the Altria Performance Incentive Plan. After the Distribution Date, Adjusted Altria Options, regardless of by whom held, shall be settled by Altria pursuant to the Altria Performance Incentive Plan. Kraft will issue the Kraft Options pursuant to the Kraft Performance Incentive Plan. After the Distribution Date, Kraft Options, regardless of by whom held, shall be settled by Kraft pursuant to the Kraft Performance Incentive Plan. (c) Option Agreement Terms . The Adjusted Altria Options and the Kraft Options shall have terms that are substantially identical to the terms of the Altria Options, provided, however, that (i) the options shall not permit further Executive Ownership Stock Options to be granted on or after the Distribution Date, (ii) the options shall provide that individuals who are employees of the Kraft Group shall continue while employed by the Kraft Group to be treated as employees of an Altria affiliate solely for purposes of determining the exercise period under the option agreements, provided, however, that this treatment shall apply only to individuals who are employees of the Kraft Group on the Distribution Date or who are Kraft Transferees, and (iii) the Kraft Options shall refer to both Kraft and Altria as appropriate to effectuate the intent of this Section 4.1 including references to the Altria disability and retirement plans. Furthermore, individuals who are employees of the SABMiller Group shall be treated as employees of an Altria affiliate for purposes of determining the exercise period under the Adjusted Altria Options and Kraft Options. (d) Consideration . As soon as practicable following the Distribution Date, Altria shall pay to Kraft the Fair Value of the Kraft Options held by individuals who are Altria Group employees on the Distribution Date (or individuals no longer performing services for the Altria Group or the Kraft Group but whose last employment was with the Altria Group) and Kraft shall pay to Altria the Fair Value of the Adjusted Altria Options held by individuals who are Kraft Group employees on the Distribution Date (or individuals no longer performing services for the Altria Group or the Kraft Group but whose last employment was with the Kraft Group). The parties shall settle the obligations of the preceding sentence in cash on a net basis such that the party required to pay the greater amount to the other shall pay the difference between the two amounts to the other. 4.2 Kraft Options Issued by Altria . Kraft has agreed to purchase from Altria, at a time mutually agreed between the parties but no later than three Business Days before the Record Date, the Class A Common Stock held by Altria in connection with the Altria-Kraft Options. Altria has sold and Kraft has purchased such shares at a per-share price equal to the average of the high and low trading price of Class A Common Stock on the NYSE on the day before day of the purchase. Effective as of the date of such purchase, holders of the Altria-Kraft Options became entitled to receive from Altria upon exercise of such options cash in the amount equal to the difference between the exercise price of such options and the then-current fair market value of Class A Common Stock determined pursuant to the terms of such options. As soon as practicable following the Distribution Date, Kraft shall pay to Altria the Fair Value of the Altria-Kraft Options held by individuals who are Kraft Group employees on the Distribution Date (or individuals no longer performing services for the Altria Group or the Kraft Group but whose last employment was with the Kraft Group). 4.3 Restricted Stock . (a) Adjustment . Pursuant to the Distribution, each holder of Altria Restricted Stock will receive from Altria as of the time of the Distribution shares of Class A Common Stock in the same manner and based on the same ratio as other shareholders of Altria Common Stock. Such Class A Common Stock shall be subject to the same vesting requirements and dates and other terms and conditions as the Altria Restricted Stock to which it relates (including the right to receive all dividends or other distributions paid on Class A Common Stock) provided that any fractional shares of Kraft Restricted Stock shall be paid to the holder by Altria in cash as soon as practicable following the Distribution Date in accordance with the Distribution Agreement. (b) Restricted Stock Agreement Terms . The Kraft Restricted Stock shall have terms that are substantially identical to the terms of the Altria Restricted Stock, provided, however, that (i) the Altria Restricted Stock and the Kraft Restricted Stock shall provide that individuals who are employees of the Kraft Group shall continue to be treated as employees of an Altria affiliate for purposes of continued vesting in the restricted stock, provided, however, that this treatment shall apply only to individuals who are employees of the Kraft Group on the Distribution Date or who are Kraft Transferees and (ii) the Kraft Restricted Stock shall refer to both Kraft and Altria as appropriate to effectuate the intent of this Section 4.3 . (c) Forfeiture of Kraft Stock and Consideration . If a holder of Kraft Restricted Stock forfeits such stock under the terms of the Kraft Restricted Stock, the forfeited stock shall be returned to Kraft, not Altria. In consideration of the anticipated receipt of such forfeitures, Kraft shall pay in cash to Altria as soon as practicable following the Distribution Date the Kraft Restricted Stock Forfeiture Value attributable to Kraft Restricted Stock held by individuals who are Altria Group employees on the Distribution Date. In addition, Kraft shall pay in cash to Altria as soon as practicable following the Distribution Date the value of the Altria Restricted Stock held by the Kraft Group employees on the Distribution Date. The value of the Altria Restricted Stock shall be equal to the Altria Pre-Adjustment Price of the underlying Altria shares, reduced by assumed forfeitures based on the assumptions used for Statement of Financial Accounting Standards 123(R) purposes in Altria146s most recent quarterly or annual financial reporting prepared before the Distribution Date for forfeitures by Kraft Group employees (with respect to Kraft restricted stock held by Kraft Group employees). (a) Adjustment . Effective at the time of the Distribution, each holder of Altria Deferred Stock shall receive a number of Kraft Deferred Stock shares equal to the number of Altria Deferred Stock shares held by such individual multiplied by the Distribution Ratio. Any fractional shares of Kraft Deferred Stock shall be paid to such individual in cash as soon as practicable following the Distribution Date provided . Contudo . that with respect to any individual (i) who is subject to U. S. federal income tax on the deferred stock and (ii) who has attained normal retirement age (within the meaning of the Altria Deferred Stock agreement) or who will attain normal retirement age before the Altria and Kraft Deferred Stock becomes payable (and any other individual who holds Deferred Stock that is subject to Code Section 409A), any fractional shares of Kraft Deferred Stock shall instead be rounded up to a whole share of Kraft Deferred Stock. The cash payment described above shall be made by Altria to individuals who are Altria Group employees on the Distribution Date, and by Kraft to individuals who are Kraft Group employees on the Distribution Date. (b) Issuing Entity and Settlement . After the Distribution Date, Altria shall be responsible for any cash payments in lieu of dividends required pursuant to the terms of the Altria Deferred Stock, and such Altria Deferred Stock, regardless of by whom held, shall be settled by Altria pursuant to the Altria Performance Incentive Plan. Kraft will issue Kraft Deferred Stock pursuant to the Kraft Performance Incentive Plan. After the Distribution Date, Kraft shall be responsible for any cash payments in lieu of dividends required pursuant to the terms of the Kraft Deferred Stock, and such deferred stock, regardless of by whom held, shall be settled by Kraft pursuant to the Kraft Performance Incentive Plan. (c) Deferred Stock Agreement Terms . The Kraft Deferred Stock shall have terms that are substantially identical to the terms of the Altria Deferred Stock, provided, however, that (i) the Altria Deferred Stock and the Kraft Deferred Stock shall provide that individuals who are employees of the Kraft Group shall continue to be treated as employees of an Altria affiliate for purposes of continued vesting in the deferred stock, provided, however, that this treatment shall apply only to individuals who are employees of the Kraft Group on the Distribution Date or who are Kraft Transferees, and (ii) the Kraft Deferred Stock shall refer to both Kraft and Altria as appropriate to effectuate the intent of this Section 4.4 . (d) Consideration . As soon as practicable following the Distribution Date, Altria shall pay to Kraft the value of the Kraft Deferred Stock held by individuals who are Altria Group employees on the Distribution Date and Kraft shall pay to Altria the value of the Altria Deferred Stock held by Kraft Group employees. The parties shall settle the obligations of the preceding sentence in cash on a net basis such that the party required to pay the greater amount to the other shall pay the difference between the two amounts to the other. For purposes of this Section 4.4(d) . the value of the Altria Deferred Stock or Kraft Deferred Stock shall be equal to the closing price on the NYSE of the underlying Altria or Kraft shares on the Distribution Date, reduced by assumed forfeitures based on the assumptions used for Statement of Financial Accounting Standards 123(R) purposes in Altria146s most recent quarterly or annual financial reporting prepared before the Distribution Date for forfeitures by Altria Group employees (with respect to Kraft Deferred Stock held by Altria Group employees) and by Kraft Group employees (with respect to Altria Deferred Stock held by Kraft Group employees). (e) Taxes . Altria shall reimburse any Altria Group employee, and Kraft shall reimburse any Kraft Group employee, who becomes liable for income taxes earlier or in an amount greater than would have been the case absent the implementation of Section 4.4(a) in an amount equal to the excess of (i) any income taxes to which such employee becomes liable over (ii) the present value of such income taxes had such income taxes been paid at such time as the Altria or Kraft Deferred Stock would otherwise have been subject to income taxes, assuming, for purposes of determining present value, the same value for Deferred Stock used for purposes of clause (i) of this sentence and a discount rate equal to the weighted average discount rate used for Altria146s domestic pension plans at December 31, 2006, which was 5.9. Any such reimbursement shall be further adjusted to hold the employee harmless from all additional taxes on the reimbursement payment itself. The amounts payable pursuant to this Section 4.4(e) shall be calculated using reasonable assumptions (in addition to those specified above) as may be determined by the third-party accounting firm or firms selected by the party responsible for the reimbursement. 4.5 Existing Kraft Equity Compensation . (a) Consideration . As soon as practicable following the Distribution Date, Altria shall pay to Kraft the Fair Value of the Existing Kraft Options held by individuals who transferred employment from the Kraft Group to the Altria Group before the Distribution Date. As soon as practicable following the Distribution Date, Altria shall also pay to Kraft the value of the Existing Kraft Restricted Stock and Existing Kraft Deferred Stock held by individuals who transferred employment from the Kraft Group to the Altria Group before the Distribution Date. The value of the Existing Kraft Restricted Stock and Existing Kraft Deferred Stock shall be equal to the closing price on the NYSE of the underlying Kraft shares on the Distribution Date, reduced by assumed forfeitures based on the assumptions used for Statement of Financial Accounting Standards 123(R) purposes in Altria146s most recent quarterly or annual financial reporting prepared before the Distribution Date for Altria Group employees (with respect to the relevant Altria equity compensation held by Altria Group employees). (b) Employment Treatment . Equity compensation issued by Kraft before the Distribution Date shall provide that individuals who are Altria Transferees shall continue while employed by Altria to be treated as employees of a member of the Kraft Group for purposes of determining the exercise period of Kraft options and continued vesting in Kraft restricted stock and deferred stock. (a) Administration and Withholding . Altria and Kraft agree that UBS Financial Services Inc. shall be the administrator and recordkeeper for the Adjusted Altria Options, Kraft Options, Altria-Kraft Options, Altria Restricted Stock, Kraft Restricted Stock, Altria Deferred Stock, and Kraft Deferred Stock for the life of the options, restricted stock and deferred stock, unless the parties mutually agree otherwise. Altria will be responsible for all payroll taxes, withholding, and reporting with respect to Equity Compensation of Altria Group employees (or individuals no longer performing services for the Altria Group or the Kraft Group but whose last employment was with the Altria Group). Kraft will be responsible for all payroll taxes, withholding, and reporting with respect to Equity Compensation of Kraft Group employees (or individuals no longer performing services for the Altria Group or the Kraft Group but whose last employment was with the Kraft Group). Altria and Kraft agree to designate the other party as an agent for withholding pursuant to IRS Revenue Procedure 70-6 and to accept such designation to effectuate the intent of this Section 4.6(a) . Upon the exercise of an Adjusted Altria Option, Kraft Option, or Altria-Kraft Option, the exercise price shall be remitted by the option administrator to the issuer of the option (Altria or Kraft, as applicable) and the applicable withholding shall be remitted by the option administrator to the entity (Altria or Kraft, as applicable) responsible for payroll taxes, withholding, and reporting with respect to the option. Upon vesting or payment, as applicable, of Altria and Kraft Restricted Stock and Altria and Kraft Deferred Stock, the applicable withholding shall be remitted by the administrator to the entity (Altria or Kraft, as applicable) responsible for payroll taxes, withholding, and reporting with respect to the Restricted or Deferred Stock. With respect to dividends on Kraft Restricted Stock or dividend equivalents on Kraft Deferred Stock payable by Kraft to an Altria Group employee (or to an individual no longer performing services for the Altria Group or Kraft Group but whose last employment was with the Altria Group), Kraft shall make such payments to Altria, and Altria, as an agent for Kraft, shall make such payments to its employees and former employees and shall be responsible for payroll taxes, withholding, and reporting in accordance with this Section 4.6(a) . With respect to dividends on Altria Restricted Stock or dividend equivalents on Altria Deferred Stock payable by Altria to a Kraft Group employee (or to an individual no longer performing services for the Altria Group or Kraft Group but whose last employment was with the Kraft Group), Altria shall make such payments to Kraft, and Kraft, as an agent for Altria, shall make such payments to its employees and former employees and shall be responsible for payroll taxes, withholding, and reporting in accordance with this Section 4.6(a) . With respect to fractional shares of Kraft Restricted Stock payable by Altria to a Kraft Group employee (or to an individual no longer performing services for the Altria Group or Kraft Group but whose last employment was with the Kraft Group), Altria shall make such payments to Kraft, and Kraft, as an agent for Altria, shall make such payments to its employees and former employees and shall be responsible for payroll taxes, withholding, and reporting in accordance with this Section 4.6(a) . (b) Tax Deductions . With respect to the Equity Compensation held by individuals who are employees of the Altria Group at the time the Equity Compensation becomes taxable and individuals who are not employees of the Altria Group or Kraft Group at such time but were last employees of the Altria Group, Altria shall claim any federal, state, and/or local tax deductions after the Distribution Date, and Kraft shall not claim such deductions. With respect to the Equity Compensation held by individuals who are employees of the Kraft Group at the time the Equity Compensation becomes taxable and individuals who are not employees of the Altria Group or Kraft Group at such time but were last employees of the Kraft Group, Kraft shall claim any federal, state, and/or local tax deductions after the Distribution Date, and Altria shall not claim such deductions. If either Altria or Kraft determines in its reasonable judgment that there is a substantial likelihood that a tax deduction that was assigned to Altria or Kraft pursuant to this Section 4.6(b) will instead be available only to the other party (whether as a result of a determination by the Internal Revenue Service, a change in the Code or the regulations or guidance thereunder, or otherwise), it will notify the other party and both parties will negotiate in good faith to resolve the issue in accordance with the following principle: the party entitled to the deduction shall pay to the other party an amount that puts the other party in a financial position equivalent to the financial position the party would have been in had the party received the deduction as intended under this Section 4.6(b) . Such amount shall be paid within 90 days of filing the last tax return necessary to make the determination described in the preceding sentence. (c) Intended Results Tax Benefit . If Altria determines in its reasonable judgment that any action required under this Article IV will not achieve the intended tax, accounting and legal results, including, without limitation, the intended results under Code Section 409A and Statement of Financial Accounting Standards 123(R), then at the request of Altria, Kraft and Altria shall mutually cooperate in taking such actions as are necessary or appropriate to achieve such results, or most nearly achieve such results if the originally-intended results are not fully attainable. (d) Registration . Kraft shall register the Class A Common Stock relating to the Kraft Options and Kraft Deferred Stock and make any necessary filings with the appropriate governmental authorities as required under U. S. and foreign securities Laws. 5.1 Maintenance of Stock Funds . (a) Kraft . The Kraft Savings Plans will be amended as of the Distribution Date to provide that no new amounts may be contributed to any fund in such Plans whose value is based on the value of Altria Common Stock (each, an 147Altria Stock Fund148) whether through employee contribution, employer contribution, dividend payment or intra-plan transfers. Kraft further will cause the Altria Stock Fund in each of the Kraft Savings Plans to be maintained until the fiduciary for the Plan, in exercise of its obligations under applicable Law, determines that the maintenance of such Altria Stock Fund is no longer consistent with ERISA. (b) Altria . Each of the Altria Profit-Sharing Plans will be amended as of the Distribution Date: (A) to create a new fund whose value is based on the value of Class A Common Stock (each, a 147Kraft Stock Fund148) (B) to enable the Kraft Stock Fund to receive shares of Class A Common Stock to be distributed in the Distribution on behalf of Plan participants and (C) to provide that, following the Distribution, no new amounts may be contributed to a Kraft Stock Fund whether through employee contribution, employer contribution, dividend payment or intra-plan transfer. Altria further will cause the Kraft Stock Fund in each of the Altria Profit-Sharing Plans to be maintained until the fiduciary for the Plan, in exercise of its obligations under applicable Law, determines that the maintenance of such Kraft Stock Fund is no longer consistent with ERISA. ALTRIA STOCK PURCHASE PLAN 6.1 Termination of Participation . As of the Distribution Date, the Kraft Group Employees shall cease to be eligible to participate in the Altria Stock Purchase Plan, in accordance with the terms of such Plan. GENERAL AND ADMINISTRATIVE 7.1 Sharing of Participant Information . Altria and Kraft shall share, Altria shall cause each applicable member of the Altria Group to share, and Kraft shall cause each applicable member of the Kraft Group to share, with each other and their respective agents and vendors (without obtaining releases), all participant information necessary for the efficient and accurate administration of each of the Altria Plans and the Kraft Plans, as well as the performance of their respective obligations under this Agreement. Altria and Kraft and their respective authorized agents shall, subject to applicable Laws on confidentiality, data protection and labor, be given reasonable and timely access to, and may make copies of, all information relating to the subjects of this Agreement in the custody of the other party, to the extent necessary for such administration. All participant information shall be provided in a manner and medium that is compatible with the data processing systems of Altria as in effect as of the Distribution Date, unless otherwise agreed to by Altria and Kraft. Altria and Kraft shall ensure that they each have in place appropriate technical and organizational security measures to protect the personal data of the transferring participants (147Personal Data148). Each of Altria and Kraft shall comply fully with its obligations under applicable Laws as controller of any Personal Data and shall do all such things as may be necessary to discharge such obligations. 7.2 No Third-Party Beneficiaries . No provision of this Agreement or the Distribution Agreement shall be construed to create any right, or accelerate entitlement, to any compensation or benefit whatsoever on the part of any Kraft Transferee, any Altria Transferee or other future, present, or former employee of Altria, a member of the Altria Group, Kraft or a member of the Kraft Group under any Altria Group Plan or Kraft Group Plan or otherwise. Without limiting the generality of the foregoing: (i) except as expressly provided in this Agreement, nothing in this Agreement shall preclude Kraft or any member of the Kraft Group, at any time after the Distribution Date, from amending, merging, modifying, terminating, eliminating, reducing, or otherwise altering in any respect any Kraft Group Plan, any benefit under any Plan or any trust, insurance policy or funding vehicle related to any Kraft Group Plan and (ii) except as expressly provided in this Agreement, nothing in this Agreement shall preclude Altria or any member of the Altria Group, at any time after the Distribution modifying, terminating, eliminating, reducing, or otherwise altering in any respect any Altria Group Plan, any benefit under any Plan or any trust, insurance policy or funding vehicle related to any Altria Plan. In no event shall any provision of this Agreement be deemed to amend any Altria Group Plan or Kraft Group Plan. 7.3 Audit Rights with Respect to Information Provided . (a) Each of Altria and Kraft, and their duly authorized representatives, shall have the right to conduct audits with respect to all information provided to it by the other party. The party conducting the audit (the 147Auditing Party148) shall have the sole discretion to determine the procedures and guidelines for conducting audits and the selection of audit representatives under this Section 7.3(a) . The Auditing Party shall have the right to make copies of any records at its expense, subject to the confidentiality provisions set forth in the Distribution Agreement, which are incorporated by reference herein. The party being audited shall provide the Auditing Party146s representatives with reasonable access during normal business hours to its operations, computer systems and paper and electronic files, and provide workspace to its representatives. After any audit is completed, the party being audited shall have the right to review a draft of the audit findings and to comment on those findings in writing within five business days after receiving such draft. (b) The Auditing Party146s audit rights under this Section 7.3(b) shall include the right to audit, or participate in an audit facilitated by the party being audited, of any Subsidiaries and Affiliates of the party being audited and of any benefit providers and third parties with whom the party being audited has a relationship, or agents of such party, to the extent any such persons are affected by or addressed in this Agreement (collectively, the 147Non-parties148). The party being audited shall, upon written request from the Auditing Party, provide an individual (at the Auditing Party146s expense) to supervise any audit of a Non-party. The Auditing Party shall be responsible for supplying, at the Auditing Party146s expense, additional personnel sufficient to complete the audit in a reasonably timely manner. The responsibility of the party being audited shall be limited to providing, at the Auditing Party146s expense, a single individual at each audited site for purposes of facilitating the audit. 7.4 Fiduciary Matters . Altria and Kraft each acknowledge that actions required to be taken pursuant to this Agreement may be subject to fiduciary duties or standards of conduct under ERISA or other applicable law, and no party shall be deemed to be in violation of this Agreement if it fails to comply with any provisions hereof based upon its good faith determination that to do so would violate such a fiduciary duty or standard. Each party shall be responsible for taking such actions as are deemed necessary and appropriate to comply with its own fiduciary responsibilities. 7.5 Collective Bargaining . To the extent any provision of this Agreement is contrary to the provisions of any collective bargaining agreement to which Altria or Kraft or their respective Affiliates is a party, the terms of such collective bargaining agreement shall prevail. Should any provisions of this Agreement be deemed to relate to a topic determined by an appropriate authority to be a mandatory subject of collective bargaining, Altria or Kraft may be obligated to bargain with the union representing affected employees concerning those subjects. 7.6 Consent of Third Parties . If any provision of this Agreement is dependent on the consent of any third party (such as a vendor or a union) and such consent is withheld, Altria and Kraft shall use their reasonable best efforts to implement the applicable provisions of this Agreement to the full extent practicable. If any provision of this Agreement cannot be implemented due to the failure of such third party to consent, Altria and Kraft shall negotiate in good faith to implement the provision in a mutually satisfactory manner. The phrase 147reasonable best efforts148 as used herein shall not be construed to require the incurrence of any non-routine or unreasonable expense or Liability or the waiver of any right. 8.1 Indemnification . All Liabilities retained or assumed by or allocated to Altria or the Altria Group pursuant to this Agreement shall be deemed to be Altria Group Liabilities for purposes of Article III of the Distribution Agreement, and all Liabilities retained or assumed by or allocated to Kraft or the Kraft Group pursuant to this Agreement shall be deemed to be Kraft Group Liabilities for the purposes of Article III of the Distribution Agreement. 9.1 Relationship of Parties . Nothing in this Agreement shall be deemed or construed by the parties or any third party as creating the relationship of principal and agent, partnership or joint venture between or among the parties, it being understood and agreed that no provision contained herein, and no act of the parties, shall be deemed to create any relationship between the parties other than the relationship set forth herein. 9.2 Affiliates . Each of Altria and Kraft shall cause to be performed, and hereby guarantees the performance of, all actions, agreements and obligations set forth in this Agreement to be performed by a member of the Altria Group or a member of the Kraft Group. 9.3 Employee Communications . Kraft will coordinate with Altria all written and electronic communications to the Kraft Group employees regarding the terms of this Employee Matters Agreement to assure that all such communications are uniform, consistent and accurate. 9.4 Incorporation of Distribution Agreement Provisions . The following provisions of the Distribution Agreement are hereby incorporated herein by reference, and unless otherwise expressly specified herein, such provisions shall apply as if fully set forth herein (references in this Section 9.4 to an 147Article148 or 147Section148 shall mean Articles or Sections of the Distribution Agreement, and, except as expressly set forth below, references in the material incorporated herein by reference shall be references to the Distribution Agreement): Article III (relating to Mutual Releases and Indemnification) Article IV (relating to certain Additional Covenants) Article V (relating to Access to Information) Article VI (relating to Dispute Resolution) and Article IX (relating to Miscellaneous). 9.5 Governing Law . To the extent not preempted by applicable federal law, this Agreement shall be governed by, construed and interpreted in accordance with the laws of the Commonwealth of Virginia (other than the laws regarding the choice of laws and conflict of laws as to all matters), including matters of validity, construction, effect, performance and remedies provided . Contudo . that the Arbitration Act shall govern the matter described in Article VIII. 9.6 References . Except as provided in Section 9.4 hereof, all references to Sections, Articles or Schedules contained herein mean Sections, Articles or Schedules of or to this Agreement, as the case may be, unless otherwise stated. IN WITNESS WHEREOF . the parties have caused this Employee Matters Agreement to be duly executed as of the day and year first above written.