Exhibit 10.1 to General Mills, Inc. Form 10-Q for the period ended November 26, 2006







Exhibit 10.1  



GENERAL MILLS, INC. 



2005 STOCK
COMPENSATION PLAN 




	1. 	
PURPOSE OF THE PLAN 






	  	
The
purpose of the General Mills, Inc. 2005 Stock Compensation Plan (the “Plan”) is
to attract and retain able individuals by rewarding employees of General Mills, Inc., its
subsidiaries and affiliates (defined as entities in which General Mills, Inc. has a
significant equity or other interest) (collectively, the “Company”) and to align
the interests of employees with those of the stockholders of the Company. 








	2. 	
EFFECTIVE DATE AND DURATION OF PLAN  






	  	
This
Plan shall become effective as of September 26, 2005, subject to the approval of the
stockholders of the Company at the Annual Meeting on September 26, 2005. Awards may
be made under the Plan until December 31, 2007. 







	3. 	
ELIGIBLE PERSONS  







	  	
Only
persons who are employees of the Company shall be eligible to receive grants of Stock
Options, Restricted Stock or Restricted Stock Units (each defined below) and become
“Participants” under the Plan. The Compensation Committee of the Company’s
Board of Directors (the “Committee”) shall exercise the discretionary power to
determine from time to time the employees of the Company who are eligible to participate
in this Plan. 







	4. 	
AWARD TYPES  






          	  	(a) 	
               Stock Option Awards. Under this Plan, the Committee may award
               Participants options (“Stock Options”) to purchase common stock of the
               Company ($.10 par value) (“Common Stock”). The grant of a Stock Option
               entitles the Participant to purchase shares of Common Stock at an “Exercise
               Price” established by the Committee. 



               



          	  	(b) 	
               Stock Option Exercise Price. The Exercise Price for each share of Common
               Stock issuable under a Stock Option shall not be less than 100% of the Fair
               Market Value of the Common Stock on the date of grant, and may exceed the Fair
               Market Value on the grant date, at the Committee’s discretion. “Fair
               Market Value” shall equal the average of the intraday high and low price of
               the national market composite price of the Company’s Common Stock on the
               applicable date. 



               



          	  	(c) 	
               Restricted Stock Awards. The Committee may also grant Participants shares
               of Common Stock or the right to receive shares of Common Stock subject to
               certain restrictions (“Restricted Stock” or “Restricted Stock
               Units”) (Stock Options, Restricted Stock and Restricted Stock Units are
               sometimes referred to as “Awards”). 



               




	5.	
COMMON STOCK SUBJECT TO THE PLAN 







	  	(a)  	Maximum
Shares Available for Delivery. Subject to Section 5(c), the maximum number of shares of Common Stock available for issuance to
Participants under the Plan shall be 15,000,000. The Company will repurchase a number of shares of Common Stock at least equal to
the number of shares of Common Stock issued under this Plan. 







	  	
In
addition, any Common Stock covered by a Stock Option granted under the Plan which is
forfeited prior to the end of the vesting period shall be deemed not to be delivered for
purposes of determining the maximum number of shares of Common Stock available for grants
under the Plan. If (i) any Stock Option that is exercised through the delivery of Common
Stock in satisfaction of the exercise price, and (ii) withholding tax requirements arising
upon exercise of any Stock Option are satisfied through the withholding of Common Stock
otherwise deliverable in connection with such exercise, the full number of shares of
Common Stock underlying any such Stock Option that is exercised shall count against the
maximum number of shares available for grants under the Plan. 






	  	
Upon
forfeiture or termination of Restricted Stock or Restricted Stock Units prior to vesting,
the shares of Common Stock subject thereto shall again be available for Awards under the
Plan. 








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          	  	(b) 	
               Individual Share Limits. The number of shares of Common Stock subject to
               Stock Options or available for Restricted Stock or Restricted Stock Unit Awards
               granted under the Plan to any single Participant over the duration of the Plan
               shall not exceed 10% of the original number of shares available under the Plan. 



               



          	  	(c) 	
               Adjustments for Corporate Transactions. The Committee may determine that
               a corporate transaction has occurred affecting the Common Stock such that an
               adjustment or adjustments to outstanding Awards is required to preserve (or
               prevent enlargement of) the benefits or potential benefits intended at the time
               of grant. For this purpose a corporate transaction includes, but is not limited
               to, any dividend or other distribution (whether in the form of cash, Common
               Stock, securities of a subsidiary of the Company, other securities or other
               property), recapitalization, stock split, reverse stock split, reorganization,
               merger, consolidation, split-up, spin-off, combination, repurchase or exchange
               of Common Stock or other securities of the Company, issuance of warrants or
               other rights to purchase Common Stock or other securities of the Company, or
               other similar corporate transaction. In the event of such a corporate
               transaction, the Committee may, in such manner as the Committee deems equitable,
               adjust (i) the number and kind of shares which may be awarded under the
               Plan both individually and in the aggregate; (ii) the number and kind of
               shares subject to outstanding Awards; and (iii) the exercise price of
               outstanding Stock Options. 



               



          	  	(d) 	
               Limits on Distribution. Distribution of shares of Common Stock or other
               amounts under the Plan shall be subject to the following: 



               



	(i)  	  	The
total number of shares of Common Stock that shall be available for           Restricted
Stock and Restricted Stock Unit Awards under the Plan shall be           limited to 25%
of the total shares authorized for Awards hereunder.  







	(ii)  	  	Notwithstanding
any other provision of the Plan, the Company shall have no           liability to deliver
any shares of Common Stock under the Plan or make any other           distribution of
benefits under the Plan unless such delivery or distribution           would comply with
all applicable laws (including, without limitation, the           requirements of the
Securities Act of 1933), and the applicable requirements of           any securities
exchange or similar entity.  







	(iii)  	  	To
the extent that the Plan provides for issuance of stock certificates to reflect the
issuance of shares of Common Stock or Restricted Stock, the issuance may be effected on a
non-certificated basis, to the extent not prohibited by applicable law or the applicable
rules of any stock exchange.  







          	  	(e) 	
               Stock Deposit Requirements and other Restrictions. The Committee, in its
               discretion, may require as a condition to the grant of Awards, the deposit of
               Common Stock owned by the Participant receiving such grant, and the forfeiture
               of such grants, if such deposit is not made or maintained during the required
               holding period. Such shares of deposited Common Stock may not be otherwise sold
               or disposed of during the applicable holding period or restricted period. The
               Committee may also determine whether any shares issued upon exercise of a Stock
               Option shall be restricted in any manner. 



               




	6.	
STOCK OPTION TERM AND TYPE 






          	  	(a) 	
               General. Stock Options granted under the Plan shall be Non-Qualified
               Stock Options governed by Section 83 of the Internal Revenue Code of 1986, as
               amended (the “Code”). The term of any Stock Option granted under the
               Plan shall be determined by the Committee, provided that the term of a Stock
               Option shall not exceed 10 years and one month. 



               



          	  	(b) 	
               No Reload Rights. Stock Options granted under this Plan shall not contain
               any provision entitling the optionee to the automatic grant of additional
               options in connection with any exercise of the original option. 



               



          	  	(c) 	
               No Repricing. Subject to Section 5(c), outstanding Stock Options granted
               under this Plan shall under no circumstances be repriced. 



               




	7.	
GRANT, EXERCISE AND VESTING OF STOCK OPTIONS 






          	  	(a) 	
               Grant. Subject to the limits otherwise imposed by the terms of this Plan,
               the Committee has discretionary authority to determine the size of a Stock
               Option grant, which may be tied to meeting performance-based requirements. 



               



          	  	(b) 	
               Exercise. Except as provided in Sections 11 and 12 (Change of Control and
               Termination of Employment), each Stock Option may be exercised only in
               accordance with the terms and conditions of the Stock Option grant and during
               the periods as may be established by the Committee. A Participant exercising a
               Stock Option shall give notice to the Company of such exercise and of the number
               of shares elected to be purchased prior to 4:30 P.M. CST/CDT on the day of
               exercise, which must be a business day at the executive offices of the Company. 



               






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          	  	(c) 	
               Vesting. Stock Options shall not be exercisable unless vested. Subject to
               Sections 11 and 12 Stock Options shall be fully vested only after four years of
               the Participant’s continued employment with the Company following the date
               of the Stock Option grant. 



               



          	  	(d) 	
               Payment. The Exercise Price shall be paid to the Company at the time of
               such exercise, subject to any applicable rule or regulation adopted by the
               Committee: 



               



	(i)  	  	in
cash (including check, draft, money order or wire transfer made payable to           the
order of the Company);  







	(ii)  	  	through
the tender of shares of Common Stock owned by the Participant (by           either actual
delivery or attestation); or  







	(iii) 	  	by
a combination of (i) and (ii) above.  







	  	
For
determining the amount of the payment, Common Stock delivered pursuant to (ii) or
(iii) shall have a value equal to the Fair Market Value of the Common Stock on the
date of exercise. 






	8.	
RESTRICTED STOCK AND RESTRICTED STOCK UNITS 







	  	
Restricted
Stock and Restricted Stock Units may be awarded on either a discretionary or
performance-based method. 






          	  	(a) 	
               Discretionary Awards. With respect to discretionary Awards of Restricted
               Stock and Restricted Stock Units, the Committee shall 



               



	(i) 	  	Select
Participants to whom Awards will be made;  







	(ii)  	  	Determine
the number of shares of Restricted Stock or the number of Restricted           Stock
Units to be awarded to a Participant;  







	(iii)  	  	Determine
the length of the restricted period, which shall be no less than four           years;  







	(iv)  	  	Determine
the purchase price, if any, to be paid by the Participant for           Restricted Stock
or Restricted Stock Units; and  







	(v)  	  	Determine
any restrictions other than those set forth in this Section 8.  







          	  	(b) 	
               Performance-Based Awards. With respect to Awards of performance-based
               Restricted Stock and Restricted Stock Units, the intent is to grant such Awards
               so as to satisfy the requirements for “qualified performance-based
               compensation” under Internal Revenue Code section 162(m). Performance-based
               Awards are subject to the following: 



               



	(i)  	  	The
Committee has exclusive authority to determine which Participants may be
          awarded performance-based Restricted Stock and Restricted Stock Units.  







	(ii)  	  	In
order for any Participant to be awarded Restricted Stock or Restricted Stock
          Units for a Performance Period (defined below), the net earnings from
continuing           operations excluding items identified and disclosed by the Company
as           non-recurring or special costs and after taxes (“Net Earnings”) of
the           Company for such Performance Period must be greater than zero.  







	(iii)  	  	 At the end of the Performance Period, if the
Committee determines that the requirement of Section 8(b)(ii) has been met, each Participant eligible for a performance-based
Award shall be deemed to have earned an Award equal in value to the Maximum Amount, or such lesser amount as the Committee shall
determine in its discretion to be appropriate. The Committee may base this determination of grant size on performance-based
criteria. For purposes of computing the value of Awards, each Restricted Stock or Restricted Stock Unit shall be deemed to have a
value equivalent to the Fair Market Value of one share of Common Stock on the date the Award is granted. 









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	(iv)  	  	In
addition to the limitation on the number of shares of Common Stock available
          for Awards under section 5(b) hereof, in no event shall the total value of
          the performance-based Restricted Stock or Restricted Stock Unit Award granted
to           any Participant for any one Performance Period exceed 0.5% of the Company’s
          Net Earnings for that Performance Period (such amount is the “Maximum
          Amount”).  







	(v)  	  	The
Committee shall determine the length of the restricted period which,           subject to
Sections 11 and 12, shall be no less than four years.  







	(vi)  	  	“Performance
Period” means a fiscal year of the Company, or such           other period as the
Committee may from time to time establish.  







	  	
Subject
to the restrictions set forth in this Section 8, each Participant who receives Restricted
Stock shall have all rights as a stockholder with respect to such shares, including the
right to vote the shares and receive dividends and other distributions. 






	  	
Each
Participant who receives Restricted Stock Units shall be eligible to receive, at the
expiration of the applicable restricted period, one share of Common Stock for each
Restricted Stock Unit awarded, and the Company shall issue to each such Participant that
number of shares of Common Stock. Participants who receive Restricted Stock Units shall
have no rights as stockholders with respect to such Restricted Stock Units until such time
as share certificates for Common Stock are issued to the Participants; provided, however,
that quarterly during the applicable restricted period for all Restricted Stock Units
awarded hereunder, the Company shall pay to each such Participant an amount equal to the
sum of all dividends and other distributions paid by the Company during the prior quarter
on that equivalent number of shares of Common Stock. 






	  	
The
Committee may in its discretion permit a Participant to defer receipt of any Common Stock
issuable upon the lapse of any restriction of Restricted Stock or Restricted Stock Units,
subject to such rules and procedures as it may establish. In particular, the Committee
shall establish rules relating to such deferrals intended to comply with the requirements
of Internal Revenue Code §409A, including without limitation, the time when a
deferral election can be made, the period of the deferral, and the events that would
result in payment of the deferred amount. 







	9.	
TRANSFERABILITY OF AWARDS 







	  	
Except
as otherwise provided by rules of the Committee, no Stock Options shall be transferable by
a Participant otherwise than (i) by the Participant’s last will and testament or
(ii) by the applicable laws of descent and distribution, and such Stock Options shall
be exercised during the Participant’s lifetime only by the Participant or his or her
guardian or legal representative. Except as otherwise provided in Section 8, no shares of
Restricted Stock and no Restricted Stock Units shall be sold, exchanged, transferred,
pledged or otherwise disposed of during the restricted period. 







	10.	
 TAXES  






	  	
Whenever
the Company issues Common Stock under the Plan, the Company may require the recipient to
remit to the Company an amount sufficient to satisfy any Federal, state or local tax
withholding requirements prior to the delivery of such Common Stock, or the Company may in
its discretion withhold from the shares to be delivered shares sufficient to satisfy all
or a portion of such tax withholding requirements. 






	11.	
CHANGE OF CONTROL 






	  	
Each
outstanding Stock Option shall become immediately and fully exercisable for a period of
one (1) year following the date of the following occurrences, each constituting a
“Change of Control”: 






          	  	(a) 	
               The acquisition by any individual, entity or group (within the meaning of
               Section 13(d)(3) or 14(d)(2) of the 1934 Act), (a “Person”) of
               beneficial ownership (within the meaning of Rule 13d-3 promulgated under the
               1934 Act) of voting securities of the Company where such acquisition causes such
               Person to own 20% or more of the combined voting power of the then outstanding
               voting securities of the Company entitled to vote generally in the election of
               directors (the “Outstanding Voting Securities”); provided, however,
               that for purposes of this subsection (a), the following acquisitions shall not
               be deemed to result in a Change of Control: (i) any acquisition directly
               from the Company, (ii) any acquisition by the Company, (iii) any
               acquisition by any employee benefit plan (or related trust) sponsored or
               maintained by the Company or any corporation controlled by the Company or
               (iv) any acquisition by any corporation pursuant to a transaction that
               complies with clauses (i), (ii) and (iii) of subsection
               (c) below; and provided, further, that if any Person’s beneficial
               ownership of the Outstanding Voting Securities reaches or exceeds 20% as a
               result of a transaction described in clause (i) or (ii) above, and
               such Person subsequently acquires beneficial ownership of additional voting
               securities of the Company, such subsequent acquisition shall be treated as an
               acquisition that causes such Person to own 20% or more of the Outstanding Voting
               Securities; or 



               






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          	  	(b) 	
               Individuals who, as of the date hereof, constitute the Board of Directors (the
               “Incumbent Board”) cease for any reason to constitute at least a
               majority of the Board; provided, however, that any individual becoming a
               director subsequent to the date hereof whose election, or nomination for
               election by the Company’s shareholders, was approved by a vote of at least
               a majority of the directors then comprising the Incumbent Board shall be
               considered as though such individual was a member of the Incumbent Board, but
               excluding, for this purpose, any such individual whose initial assumption of
               office occurs as a result of an actual or threatened election contest with
               respect to the election or removal of directors or other actual or threatened
               solicitation of proxies or consents by or on behalf of a Person other than the
               Board; or 



               



          	  	(c) 	
               The approval by the shareholders of the Company of a reorganization, merger or
               consolidation or sale or other disposition of all or substantially all of the
               assets of the Company (“Business Combination”) or, if consummation of
               such Business Combination is subject, at the time of such approval by
               stockholders, to the consent of any government or governmental agency, the
               obtaining of such consent (either explicitly or implicitly by consummation);
               excluding, however, such a Business Combination pursuant to which (i) all
               or substantially all of the individuals and entities who were the beneficial
               owners of the Outstanding Voting Securities immediately prior to such Business
               Combination beneficially own, directly or indirectly, more than 60% of,
               respectively, the then outstanding shares of common stock and the combined
               voting power of the then outstanding voting securities entitled to vote
               generally in the election of directors, as the case may be, of the corporation
               resulting from such Business Combination (including, without limitation, a
               corporation that as a result of such transaction owns the Company or all or
               substantially all of the Company’s assets either directly or through one or
               more subsidiaries) in substantially the same proportions as their ownership,
               immediately prior to such Business Combination of the Outstanding Voting
               Securities, (ii) no Person (excluding any employee benefit plan (or related
               trust) of the Company or such corporation resulting from such Business
               Combination) beneficially owns, directly or indirectly, 20% or more of,
               respectively, the then outstanding shares of common stock of the corporation
               resulting from such Business Combination or the combined voting power of the
               then outstanding voting securities of such corporation except to the extent that
               such ownership existed prior to the Business Combination and (iii) at least
               a majority of the members of the board of directors of the corporation resulting
               from such Business Combination were members of the Incumbent Board at the time
               of the execution of the initial agreement, or of the action of the Board,
               providing for such Business Combination; or 



               



          	  	(d) 	
               Approval by the stockholders of the Company of a complete liquidation or
               dissolution of the Company. 



               



	  	
After
such one (1) year period the normal Stock Option exercise provisions of the Plan shall
govern. Notwithstanding any other provision of the Plan, but subject to Section 6, in the
event a Participant’s employment with the Company is terminated within two (2) years
of any of the events specified in (a), (b), (c) or (d), all outstanding Stock Options
of such Participant at that date of termination shall be exercisable for a period of six
(6) months beginning on the date of termination. 






	  	
With
respect to Stock Option grants outstanding as of the date of any such Change of Control
which require the deposit of owned Common Stock as a condition to obtaining rights, the
deposit requirement shall be terminated as of the date of the Change of Control. 






	  	
In
the event of a Change of Control, a Participant shall vest in all shares of Restricted
Stock and Restricted Stock Units, effective as of the date of such Change of Control. 







	12.	
TERMINATION OF EMPLOYMENT 







          	  	(a) 	
               Resignation or Termination for Cause. If the Participant’s
               employment by the Company is terminated by either 



               



	(i) 	  	the
voluntary resignation of the Participant, or  







	(ii)  	  	a
Company discharge due to Participant’s illegal activities, poor work
          performance, misconduct or violation of the Company’s Code of Conduct,
          policies or practices,  









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then
Participant’s Stock Options shall terminate three months after such termination (but
in no event beyond the original full term of the Stock Options) and no Stock Options shall
become exercisable after such termination, and all shares of Restricted Stock and
Restricted Stock Units which are subject to restriction on the date of termination shall
be forfeited. 






          	  	(b) 	
               Other Termination. If the Participant’s employment by the Company
               terminates for any reason other than specified in Sections 11, 12 (a), (c), (d)
               or (e), the following rules shall apply: 



               



	(i)  	  	In the event that, at the time of such termination,
the sum of the Participant’s age and service with the Company equals or exceeds 70, the Participant’s outstanding Stock
Options shall continue to become exercisable according to the schedule established at the time of grant unless otherwise provided
in the applicable Award agreement, and all shares of Restricted Stock and Restricted Stock Units shall vest. Stock Options shall
remain exercisable for the remaining full term of such Stock Options. 







	(ii)  	  	In
the event that, at the time of such termination, the sum of           Participant’s
age and service with the Company is less than 70,           Participant’s
outstanding unexercisable Stock Options and unvested           Restricted Stock and
Restricted Stock Units shall become exercisable or vest, as           the case may be, as
of the date of termination, in a pro-rata amount based on           the full months of
employment completed during the full vesting period from the           date of grant to
the date of termination with such newly-vested Stock Options           and Stock Options
exercisable on the date of termination remaining exercisable           for the lesser of
one year from the date of termination and the original full           term of the Stock
Option. All other Stock Options, shares of Restricted Stock           and Restricted
Stock Units shall be forfeited as of the date of termination.           Provided,
however, that if the Participant is an executive officer of the           Company, the
Participant’s outstanding Stock Options which, as of the date           of
termination are not yet exercisable, shall become exercisable effective as of
          the date of such termination and, with all outstanding Stock Options already
          exercisable on the date of termination, shall remain exercisable for the lesser
          of one year following the date of termination and the original full term of the
          Stock Option, and all shares of Restricted Stock and Restricted Stock Units
          shall vest as of the date of termination.  







          	  	(c) 	
               Death. If a Participant dies while employed by the Company, any Stock
               Option previously granted under this Plan shall fully vest and become
               exercisable upon death and may be exercised by the person designated in such
               Participant’s last will and testament or, in the absence of such
               designation, by the Participant’s estate. 



               



	  	
With
respect to Stock Options which require the deposit of owned Common Stock as a condition to
obtaining exercise rights, in the event a Participant dies while employed by the Company,
such Stock Options may be exercised as provided in the first paragraph of this Section
12(c) and any deposit requirement shall be terminated. 






	  	
A
Participant who dies while employed by the Company during any applicable restricted
period, shall fully vest in such shares of Restricted Stock or Restricted Stock Units,
effective as of the date of death. 






          	  	(d) 	
               Retirement. The Committee shall determine, at the time of grant, the
               treatment of the Stock Options, Restricted Stock and Restricted Stock Units upon
               the retirement of the Participant. Unless other terms are specified in the
               original Grant, if the termination of employment is due to a Participant’s
               retirement on or after age 55, the Participant may exercise a Stock Option,
               subject to the original terms and conditions of the Stock Option and shall fully
               vest in all shares of Restricted Stock or Restricted Stock Units effective as of
               the date of retirement (unless any such Award specifically provides otherwise). 



               



          	  	(e) 	
               Spin-offs. If the termination of employment is due to the cessation,
               transfer, or spin-off of a complete line of business of the Company, the
               Committee, in its sole discretion, shall determine the treatment of all
               outstanding Awards under the Plan. 



               



	13.	
ADMINISTRATION OF THE PLAN 






          	  	(a) 	
               Administration. The authority to control and manage the operations and
               administration of the Plan shall be vested in the Committee in accordance with
               this Section 13. 



               






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          	  	(b) 	
               Selection of Committee. The Committee shall be selected by the Board, and
               shall consist of two or more members of the Board. 



               



          	  	(c) 	
               Powers of Committee. The authority to manage and control the operations
               and administration of the Plan shall be vested in the Committee, subject to the
               following: 



               



	(i)  	  	Subject
to the provisions of the Plan, the Committee will have the authority           and
discretion to select from among the eligible Company employees those persons
          who shall receive Awards, to determine the time or times of receipt, to
          determine the types of Awards and the number of shares covered by the Awards,
to           establish the terms, conditions, performance criteria, restrictions, and
other           provisions of such Awards, and (subject to the restrictions imposed by
Section           14) to cancel or suspend Awards. In making such determinations, the
Committee           may take into account the nature of services rendered by the
individual, the           individual’s present and potential contribution to the
Company’s           success and such other factors as the Committee deems relevant.  







	(ii)  	  	The
Committee will have the authority and discretion to establish terms and
          conditions of Awards as the Committee determines to be necessary or appropriate
          to conform to applicable requirements or practices of jurisdictions outside of
          the United States.  







	(iii)  	  	                   The
Committee will have the authority and discretion to interpret the Plan, to
                    establish, amend, and rescind any rules and regulations relating to
the Plan, to                     determine the terms and provisions of any agreements
made pursuant to the Plan,                     and to make all other determinations that
may be necessary or advisable for the                     administration of the Plan.  







	(iv)  	  	Any
interpretation of the Plan by the Committee and any decision made by it           under
the Plan is final and binding.  







	(v)  	  	The
Plan shall at all times be managed and operated in accordance with           applicable
laws.  







          	  	(d) 	
               Delegation by Committee. Except to the extent prohibited by applicable
               law or the applicable rules of a stock exchange, the Committee may allocate all
               or any portion of its responsibilities and powers to any one or more of its
               members and may delegate all or any part of its responsibilities and powers to
               any person or persons selected by it. Any such allocation or delegation may be
               revoked by the Committee at any time. 



               




	14.	
AMENDMENTS OF THE PLAN 







	  	
The
Committee may from time to time prescribe, amend and rescind rules and regulations
relating to the Plan. Subject to the approval of the Board of Directors, where required,
the Committee may at any time terminate, amend, or suspend the operation of the Plan,
provided that no action shall be taken by the Board of Directors or the Committee without
the approval of the stockholders which would 






          	  	(a) 	
               except as provided in Section 5(c), materially increase the number of shares
               which may be issued under the Plan; 



               



          	  	(b) 	
               permit granting of Stock Options at less than Fair Market Value; 



               



          	  	(c) 	
               except as provided in Section 5(c), permit the repricing of outstanding Stock
               Options; or 



               



          	  	(d) 	
               amend the maximum shares set forth in Section 5(b) which may be granted to
               any single Participant. 



               



	  	
No
termination, modification, suspension, or amendment of the Plan shall alter or impair the
rights of any Participant pursuant to an outstanding Award without the consent of the
Participant. There is no obligation for uniformity of treatment of Participants under the
Plan. 






	15.	
FOREIGN JURISDICTIONS 







	  	
The
Committee may adopt, amend, and terminate such arrangements, not inconsistent with the
intent of the Plan, as it may deem necessary or desirable to make available tax or other
benefits of the laws of any foreign jurisdiction, to employees of the Company who are
subject to such laws and who receive Awards under the Plan. 









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	16.	
NON-ALIENATION OF RIGHTS AND BENEFITS 







	  	
Subject
to Section 9, no right or benefit under the Plan shall be subject to alienation, sale,
assignment, pledge, or encumbrance and any attempt to do so shall be void. No right or
benefit under the Plan shall be subject to the debts, contacts, liabilities or torts of
the person entitled to such rights or benefits. 







	17.	
LIMITATION OF LIABILITY OR OBLIGATION OF THE COMPANY 







	  	
Nothing in the Plan shall be construed  






          	  	(a) 	
               to give any employee of the Company any right to be granted any Award other than
               at the sole discretion of the Committee; 



               



          	  	(b) 	
               to give any Participant any rights whatsoever with respect to shares of Common
               Stock except as specifically provided in the Plan; 



               



          	  	(c) 	
               to limit in any way the right of the Company or any Subsidiary to terminate,
               change or modify, with or without cause, the employment of any Participant at
               any time; or 



               



          	  	(d) 	
               to be evidence of any agreement or understanding, express or implied, that the
               Company or any Subsidiary will employ any Participant in any particular position
               at any particular rate of compensation or for any particular period of time. 



               



	  	
Payments
and other benefits received by a Participant under an Award shall not be deemed part of a
Participant’s regular, recurring compensation for purposes of any termination,
indemnity or severance pay laws and shall not be included in, nor have any effect on, the
determination of benefits under any other employee benefit plan, contract or similar
arrangement provided by the Company or any Subsidiary, unless expressly so provided by
such other plan, contract or arrangement. 







	18.	
NO LOANS 







	  	
The
Company shall not lend money to any Participant to finance a transaction under this Plan.  







	19.	
NOTICES 







	  	
All
notices to the Company regarding the Plan shall be in writing, effective as of actual
receipt by the Company, and shall be sent to: 






	  	
Attention:
Corporate Compensation
General Mills, Inc.
Number One General Mills Boulevard
Minneapolis,
MN 55426  






	20.	
RECOGNITION AWARDS 






	  	
Up to 10,000 shares of Common Stock may be awarded as Recognition Awards in any calendar year during the duration of the Plan. A
Company officer may identify employees of the Company who have made special contributions to the business and/or performance of
the Company and request that the Corporate Secretary deliver Recognition Awards to such Participants in recognition of such
contributions. Each year, the Committee shall review the grants of Recognition Awards made in the prior year. Recognition Award
shares may be fully vested upon grant or subject to such vesting conditions as the Committee may authorize.

















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