Document:

Convertible Promissory Note

 Exhibit 10.16 
 THIS CONVERTIBLE PROMISSORY NOTE AND THE SECURITIES THAT MAY BE ACQUIRED PURSUANT TO THIS CONVERTIBLE PROMISSORY NOTE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER THE
SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. THIS CONVERTIBLE PROMISSORY NOTE AND SUCH OTHER SECURITIES MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF A REGISTRATION STATEMENT AND LISTING
APPLICATION IN EFFECT WITH RESPECT TO THIS CONVERTIBLE PROMISSORY NOTE OR SUCH OTHER SECURITIES UNDER THE SECURITIES ACT AND ANY OTHER APPLICABLE SECURITIES LAW, OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION AND LISTING
ARE NOT REQUIRED PURSUANT TO A VALID EXEMPTION THEREFROM UNDER THE SECURITIES ACT AND THE APPLICABLE SECURITIES LAW OF ANY STATE OR OTHER JURISDICTION. 
 CONVERTIBLE PROMISSORY NOTE 
  

			
	US $100,000	 	Feb 23, 2004

 FOR VALUE RECEIVED, E-centives,
Inc., a Delaware corporation (the “Company”), having an address of 6901 Rockledge Drive, 6th Floor,
Bethseda, Maryland 20817, hereby promises to pay to the order of Bank Julius Baer & Co. (the “Holder”), at the offices of Holder at Bahnhofstrasse 36 8010 Zürich Switzerland, or such other place as may be
designated by Holder to the Company in writing, the aggregate principal amount of One Hundred Thousand U.S. Dollars ($100,000) together with Premium and accrued unpaid interest on the unpaid principal amount hereof, upon the terms and
conditions hereinafter set forth. 
 1.    Payment Terms. The Company promises to pay to Holder the balance of Principal, together
with Premium and accrued unpaid interest, on February 23, 2007, unless this Note is earlier prepaid as herein provided or earlier converted into Common Stock (as hereinafter defined) of the Company pursuant to Section 3
hereof. All payments hereunder shall be made in lawful money of the United States of America. Payment shall be credited first to the accrued interest then due and payable and the remainder to Principal. 
 2.    Interest. Interest on the outstanding portion of Principal of this Note shall accrue at a rate of eight percent (8%) per
annum. All computations of interest shall be made on the basis of a 365-day year for actual days elapsed. Such interest shall be paid in arrears on the last business day of each successive one year anniversary of the date of this Note.

 3.    Conversion of this Note. 
 (a) Automatic Conversion. This Note shall automatically be converted into shares of the Company’s common stock (“Common Stock”) at the Note Conversion Rate (hereinafter defined) as hereinafter
provided on the date when the average trading price on the SWX Swiss Exchange of the Common Stock for 30 consecutive trading days has been equal to or greater than CHF 2.75 (“Conversion Date”). The conversion price will be 2
CHF, (as converted to U. S. dollars pursuant to a then recent exchange rate, as calculated by the Company) (“Note Conversion Rate”). 
 (b) Note Conversion Rate; Conversion Price. The number of shares of Common Stock to which Holder shall be entitled upon such conversion specified in Section 3(a) above shall be equal to the 

  

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 product of: the Principal amount outstanding under this Note on the Conversion Date, divided by the average
trading price on the SWX Swiss Exchange of the Common Stock for the 5 previous trading days, but in no event higher than CHF 2, (as converted to U. S. dollars pursuant to a then recent exchange rate, as calculated by the Company) (“Note
Conversion Rate”). The conversion price payable by Holder upon any such conversion hereunder shall be zero (0). 
 (c) Mechanics of
Automatic Conversion. Upon the occurrence of the event specified in Section 3(a) above, this Note shall be converted into Common Stock automatically without any further action by Holder; provided, however, that the Company shall not
be obligated to issue a certificate or certificates evidencing the shares of Common Stock issuable upon such conversion of this Note (“Conversion Shares”) unless the original of this Note is delivered to the Company, or Holder notifies the
Company in writing that such original of this Note has been lost, stolen or destroyed, and Holder executes an agreement satisfactory to the Company to, among other things, indemnify the Company from any loss incurred by the Company in connection
with such original of this Note. Upon surrender by Holder to the Company of the original of this Note at the office of the Company, there shall be issued and delivered to Holder promptly at such office and in Holder’s name as shown on the
original of this Note, a certificate or certificates for the applicable number of Conversion Shares on the date on which such automatic conversion is deemed to have occurred. 
 (d) Conversion Calculations: No Fractional Shares. Conversion calculations pursuant to this Section 3 shall be rounded to the nearest
whole share of Common Stock, and no fractional shares shall be issuable by the Company upon conversion of this Note. Conversion of this Note shall be deemed payment in full of this Note and this Note shall thereupon be cancelled. 
 4.    Subordination. The indebtedness evidenced hereby is subordinate in right of payment to all existing and future bank indebtedness,
including lease and equipment finance obligations, as well as all other indebtedness designated as superior to that contemplated herein. The indebtedness represented hereby is senior in right of payment to all classes and series of the
Company’s capital stock. The indebtedness represented hereby is pari passu with any and all convertible debt securities issued by the Company. 
 5.    Redemption. This Note may be redeemed by the Company at any time by payment of the entire Principal and interest outstanding under this Note, plus the applicable Final Payment Amount (hereinafter
defined), in cash to Holder. The Company must provide notice to Holder not less than thirty (30) days prior to effecting such redemption. During the period from providing of such notice to Holder and the Company effecting the redemption, the
Company may cancel such redemption by providing notice of such cancellation to Holder. 
 (a) “Final Payment Amount” means an amount
equal to: (i) during the first full year of this Note, 10% of the unpaid Principal amount under this Note, (ii) during the second full year of this Note, 20% of the unpaid Principal amount under this Note or (iii) from
and after the first business day of the third full year of this Note, 30% of the unpaid Principal amount under this Note. 
 6.    Representations and Warranties of the Company. The Company represents and warrants to Holder as follows: 
 (a) The execution and delivery by the Company of this Note (i) are within the Company’s corporate power and authority, and (ii) have been duly authorized by all necessary corporate action. 
 (b) This Note is a legally binding obligation of the Company, enforceable against the Company in accordance with the terms hereof, except to the extent
that (i) such enforceability is limited 

  

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by bankruptcy, insolvency, reorganization, moratorium or other laws relating to or affecting generally the enforcement of creditors’ rights and
(ii) the availability of the remedy of specific performance or in injunctive or other equitable relief is subject to the discretion of the court before which any proceeding therefore may be brought. 
 7.    Representations, Warranties and Covenants of Holder. Holder represents and warrants to the Company, and agrees, as follows: 

(a) This Note and any Conversion Shares issuable upon conversion of this Note are being acquired by Holder for its own account for investment and not
with a view to, or for sale in connection with, any distribution thereof. 
 (b) Holder is an “accredited investor” within the
meaning of Rule 501 under the Securities Act. 
 (c) Holder has sufficient knowledge and experience in financial and business matters and is
capable of evaluating the risks and merits of Holder’s investment in the Company; Holder has been provided all necessary and appropriate information about the Company to make an informed investment decision with respect to this Note; has been
provided the opportunity to make all necessary and appropriate inquiries of the Company regarding Company’s business and associated risks, and Company has complied with all such requests; and Holder is able financially to bear the risk of
losing Holder’s full investment in this Note. 
 (d) Holder understands that this Note and any Conversion Shares have not been
registered under the Securities Act or registered or qualified under any the securities laws of any state or other jurisdiction, are “restricted securities,” and cannot be resold or otherwise transferred unless they are registered under
the Securities Act, and registered or qualified under any other applicable securities laws, or an exemption from such registration and qualification is available. Prior to any proposed transfer of this Note or any Conversion Shares, Holder shall,
among other things, give written notice to the Company of its intention to effect such transfer, identifying the transferee and describing the manner of the proposed transfer and, if requested by the Company, accompanied by (i) investment
representations by the transferee similar to those made by Holder in this Section 7 and (ii) an opinion of counsel satisfactory to the Company to the effect that the proposed transfer may be effected without registration under the
Securities Act and without registration or qualification under applicable state or other securities laws. Each certificate for any Conversion Shares shall bear a legend identical to that set forth on Page 1 of this Note. 
 8.    Use of Proceeds. The proceeds received by the Company from the sale of this Note shall be used by the Company for working capital or
other general corporate purposes. 
 9.    No Waiver in Certain Circumstances. No course of dealing of Holder nor any failure or
delay by Holder to exercise any right, power or privilege under this Note shall operate as a waiver hereunder and any single or partial exercise of any such right, power or privilege shall not preclude any later exercise thereof or any exercise of
any other right, power or privilege hereunder. 
 10.    Certain Waivers by the Company. Except as expressly provided otherwise in
this Note, the Company and every endorser or guarantor, if any, of this Note waive presentment, demand, notice, protest and all other demands and notices in connection with the delivery, acceptance, performance, default or enforcement of this Note,
and assent to any extension or postponement of the time of payment or any other indulgence, to any substitution, exchange or release of collateral available to Holder, if any, and to the addition or release of any other party or person primarily or
secondarily liable. 
  

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 11.    No Unlawful Interest. Notwithstanding anything herein to the contrary, payment of any
interest or other amount hereunder shall not be required if such payment would be unlawful. In any such event, this Note shall automatically be deemed amended so that interest charges and all other payments required hereunder, individually and in
the aggregate, shall be equal to but not greater than the maximum permitted by law. 
 12.    Security Interest. The
Company’s obligations under this Note are secured by a grant of a security interest to Holder in all tangible and intangible assets of Company for which Company retains sole title as of the date of this Note (the “Collateral”). The
Collateral includes all equipment, fixtures, intellectual property (including patents), cash and cash equivalents, software, personal property, and receivables. Notwithstanding anything to the contrary herein all (a) leases and other contracts,
(b) licenses (including to software and intellectual property), (c) the Company’s rights under such leases, other contracts and licenses and (d) any property that is the subject of such leases, other contracts and licenses, shall
not constitute Collateral pursuant to this Note. In the case Company fails to materially perform its repayment obligations under this Note, and such default is continuing (“Default”), the Holder may exercise, without further notice, all
rights and remedies under this Note or are otherwise available at law. In the case of such Default, the Holder will give the Company not less than 30 business days prior written notice of its intended disposition of the collateral, provided,
however, if Company cures such Default prior to expiration of such notice period, Default will be not deemed to have occurred and Holder shall have no rights to the Collateral. For the purpose of enforcing any and all rights and remedies under this
Agreement, the Holder may (i) require the Company to, upon Holder’s reasonable request, assemble all or any part of the Collateral as directed by the Holder and make it available at the Company’s headquarters, (ii) to the extent
permitted by applicable law, enter, without breach of the peace, any premise where any such Collateral is or may be located and, reasonably seize and remove such Collateral from such premises, (iii) direct the Company to reasonably provide
relevant information from the Company’s books and records relating to the Collateral, and (iv) prior to the disposition of any of the Collateral, store or transfer the Collateral, process, repair or recondition such Collateral or otherwise
prepare it for disposition in any manner and to the extent the Holder deems reasonably appropriate. Notwithstanding anything to the contrary herein, the Security Interest granted hereby is expressly limited the amount of any unpaid Principal,
Premium and accrued unpaid interest under this Note and Holder shall exercise the foregoing rights in such a fashion so as to minimize disruption to Company and its business operations and only to the extent necessary to recover such unpaid
Principal, Premium and accrued unpaid interest. The Holder and the Company shall work in good faith to effectuate the intent of the previous sentence. The security interest provided hereby shall expire upon the payment in full of all Principal,
Premium and accrued unpaid interest or the occurrence of the Conversion Date. Holder will execute any documents or instruments the Company may reasonably request to evidence such expiration. 
 13.    Miscellaneous. No modification, rescission, waiver, forbearance, release or amendment of any provision of this Note shall be made,
except by a written agreement duly executed by the Company and Holder. This Note may not be assigned by Holder without the prior written consent of the Company. The Company and Holder each hereby submits to personal jurisdiction in the State of
Maryland, consents to the jurisdiction of any competent state or federal district court sitting in the City or County of Montgomery County, Maryland, and waives any and all rights to raise lack of personal jurisdiction as a defense in any action,
suit or proceeding in connection with this Note or any related matter. Service of Process may be effectuated by Company by providing such Service to Holder by Certified Mail, and in the case such Service is undeliverable by providing such Service to
the Maryland Department of Assessments and Taxation. This Note shall be governed by, and construed and interpreted in accordance with, the laws of the State of Maryland, without reference to conflicts of law provisions of such state. 
 [Remainder of this page intentionally left blank] 
  

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 IN WITNESS WHEREOF, the undersigned have caused this Convertible Promissory Note to be executed and
delivered by a duly authorized officer as of the date first above written. 
  

			
	E-centives, Inc.
		
	By:	 	/s/ Kamran Amjadi
	 Name:
 Title:
	 	 Kamran Amjadi
 Chief Executive
Officer

  

			
	 ACCEPTED AND AGREED:
  
 Bank Julius Baer & Co.

		
	By:	 	Illegible signature
	 Name:
	 	Illegible signature

  

 5Transition Services Agreement

 Exhibit 10.1 
  
 TRANSITION SERVICES AGREEMENT 
 BY
AND BETWEEN 
 ALTRIA CORPORATE SERVICES, INC. 
 AND 
 KRAFT FOODS INC. 
 DATED AS OF MARCH 30, 2007 
  

 TABLE OF CONTENTS 
  

 

					
	 	  	Page
	 ARTICLE I
	 	 DEFINITIONS
	  	1
			
	 ARTICLE II
	 	 SERVICES TO BE PROVIDED
	  	4
		
	    2.1. Exhibits	  	4
	    2.2. Independent Contractors	  	4
	    2.3. Standard of Care	  	4
	    2.4. Records	  	4
			
	 ARTICLE III
	 	 FEES
	  	5
		
	    3.1. General	  	5
	    3.2. Payments	  	5
			
	ARTICLE IV	 	REPRESENTATIVES	  	5
		
	    4.1. Representatives	  	5
			
	ARTICLE V	 	THIRD PARTY AGREEMENTS	  	5
			
	ARTICLE VI	 	AUTHORITY; INFORMATION; COOPERATION; CONSENTS	  	6
		
	    6.1. Authority	  	6
	    6.2. Information Regarding Transition Services	  	6
	    6.3. Cooperation	  	6
	    6.4. Further Assurances	  	7
			
	ARTICLE VII	 	AUTHORITY AS AGENT	  	7
			
	ARTICLE VIII	 	CONFIDENTIAL INFORMATION	  	7
		
	    8.1. Definition	  	7
	    8.2. Nondisclosure	  	7
	    8.3. Permitted Disclosure	  	7
	    8.4. Ownership of Confidential Information	  	8
			
	 ARTICLE IX
	 	 TERM AND TERMINATION
	  	8
		
	    9.1. Term	  	8
	    9.2. Termination	  	8
	    9.3. Termination Assistance Services	  	8

  

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	 ARTICLE X
	 	LIMITATION OF LIABILITY; INDEMNIFICATION	  	9
		
	     10.1. Limitation of Liability
	  	9
	     10.2. Indemnification
	  	9
			
	 ARTICLE XI
	 	DISPUTE RESOLUTION	  	9
			
	 ARTICLE XII
	 	MISCELLANEOUS	  	10
		
	     12.1. Original Services Agreement
	  	10
	     12.2. Incorporation of Distribution Agreement Provisions
	  	10
	     12.3. Governing Law
	  	10
	     12.4. References
	  	10
	     12.5. Notices
	  	10

  

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 TRANSITION SERVICES AGREEMENT 
 THIS TRANSITION SERVICES AGREEMENT, dated as of March 30, 2007 (as amended and supplemented pursuant to the terms hereof,
this “Agreement”), is entered into by and between Altria Corporate Services, Inc., a New York corporation (“ALCS”), and Kraft Foods Inc., a Virginia corporation (“Kraft”). 
 WITNESSETH: 
 WHEREAS, ALCS currently provides certain services to Kraft and its wholly-owned subsidiaries pursuant to a Services Agreement, dated as of January 1, 2001, as amended (the “Original Services Agreement”); and

 WHEREAS, Altria Group Inc., a Virginia corporation (“Altria”), and Kraft, have entered into a
Distribution Agreement, dated as of January 31, 2007 (the “Distribution Agreement”), 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 “Distribution”);
and 
 WHEREAS, ALCS and Kraft desire to enter into this Agreement to supercede the Original Service Agreement and to
set forth the roles and responsibilities with regard to services to be provided by ALCS to Kraft for certain transition periods not to exceed twelve months following the Distribution. 
 NOW, THEREFORE, the parties agree as follows: 
 ARTICLE I 
 DEFINITIONS 
 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. 
 ALCS: as defined in the preamble to this Agreement. 
 Altria: as defined in the recitals to this Agreement. 
 Altria Common Stock: the common stock, par value $0.33 1/3 per share, of Altria. 
 Altria Group:
Altria and the Subsidiaries of Altria other than members of the Kraft Group. 

 Arbitration Act: the United States Arbitration Act, 9 U.S.C.
§§ 1-16, as the same may be amended from time to time. 
 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. 
 Confidential Information: as defined in Section 8.1 hereof. 
 Distribution: as defined in
the recitals to this Agreement. 
 Distribution Agreement: as defined in the recitals to this Agreement. 

Distribution Date: the date on which the Distribution becomes effective. 
 Employee Costs: for each employee of ALCS performing the Transition Services, the salaries, fringe benefits, executive
compensation benefits (if applicable) and depreciation/amortization of office equipment and software (if applicable) attributable to the employee, based on the ratio of ALCS’s estimate of the time spent by the employee on behalf of Kraft
divided by the total time spent by the employee. 
 Employee Matters Agreement: as defined in Section 3.1
hereof. 
 Exhibits: as defined in Section 2.1 hereof. 
 Fees: as defined in Section 3.1 hereof. 
 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. 
 Kraft: as defined in the preamble to this Agreement. 

Kraft Group: Kraft and the Kraft Subsidiaries. 
 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. 
  

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 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 attorneys’ 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 Person’s own alleged or actual negligent, grossly negligent, reckless or intentional misconduct. 
 Original Services Agreement: as defined in the preamble to this Agreement. 
 Parties: ALCS and Kraft (Party means either ALCS or Kraft). 
 Person: an individual, 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. 
 Records: as defined in Section 2.4 hereof. 
 Representatives: as
defined in Section 4.1 hereof. 
 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. 
 Transition Services (or “Services”): as defined in Section 2.1 hereof.

 Transition Period: as defined for each Service in the appropriate Exhibit. 
  

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 ARTICLE II 
 SERVICES TO BE PROVIDED 
 2.1.    Exhibits.

  (a)        Exhibits 1 through 6 (collectively, the
“Exhibits”) attached to and made a part of this Agreement describe the services to be provided by ALCS to Kraft and one or more members of the Kraft Group, as designated from time to time by Kraft (the “Transition Services” or
“Services”). The Parties have made a good faith effort as of the date hereof to identify each Transition Service and to complete the content of the Exhibits accurately. It is anticipated that the Parties will modify the Transition Services
from time to time. In that case or to the extent that any Exhibit is incomplete, the Parties will use good faith efforts to modify the Exhibits. There are certain terms that are specifically addressed in the Exhibits attached hereto that may differ
from the terms provided hereunder. In those cases, the specific terms described in the Exhibits shall govern that Transition Service. 
  (b)        The Parties may also identify additional Services that they wish to incorporate into this Agreement. The Parties will create additional Exhibits setting forth
the description of such Services, the Fees for such Services and any other applicable terms. 
 2.2.    Independent Contractors. 
 ALCS will provide the Transition Services
either through its own resources, through the resources of its subsidiaries or Affiliates, or by contracting with independent contractors as agreed hereunder. To the extent that ALCS decides to provide a Transition Service through an independent
contractor in the future, ALCS shall consult with and obtain the prior approval of Kraft, which approval shall not be unreasonably withheld. 
 2.3.    Standard of Care. 
 In providing the Transition
Services hereunder, ALCS will exercise the same degree of care as it has historically exercised in providing such Transition Services to its Affiliates prior to the date hereof, including at least the same level of quality, responsiveness and
timeliness as has been exercised by ALCS with respect to such Transition Services. 
 2.4.    Records. 
 ALCS shall keep full and detailed records dealing with all
aspects of the Transition Services performed by it hereunder (the “Records”) and: 
  (a)        shall provide access to the Records to Kraft at all reasonable times; and 
  (b)        shall maintain the Records in accordance with good record management practices and with at least the same degree of completeness and care as it maintains for
its other similar business interests. 
  

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 ARTICLE III 
 FEES 
 3.1.    General. 
 Kraft will pay to ALCS a fixed fee for each Transition Service as set forth in the attached Exhibits (collectively, the
“Fees”). The Fees constitute full compensation to ALCS for all charges, costs and expenses incurred by ALCS on behalf of Kraft in providing the Services, unless otherwise specifically provided in the Exhibits. Notwithstanding the terms of
any of the Exhibits, the Fees for each Transition Service shall be reduced by any amounts Kraft is required to pay pursuant to Section 3.1(e) of the Employee Matters Agreement (the “Employee Matters Agreement”), dated as of
even date herewith, between Kraft and Altria, with respect to any person who provides Services under this Agreement and thereafter becomes a Kraft Transferee (as defined in the Employee Matters Agreement). Except as specifically provided herein or
in the Exhibits, or as subsequently agreed by Kraft and ALCS, Kraft will not be responsible to ALCS or any independent contractor retained by ALCS, for any additional fees, charges, costs or expenses relating to the Services, unless such additional
fees, charges, costs or expenses are a direct result of Kraft’s unilateral deviation from the scope of the services defined in the Exhibits. 
 3.2.    Payments. 
 ALCS will deliver to Kraft, no later
than five days following the last day of each month, an invoice for the aggregate Fees incurred for that month. Kraft will pay to ALCS monthly no later than the third Wednesday of the following month, the aggregate Fees incurred during the previous
month. 
 ARTICLE IV 
 REPRESENTATIVES 
 4.1.    Representatives. 
  (a)        The Controller of Altria and the Controller of Kraft will serve as
administrative representatives (“Representative(s)”) of ALCS and Kraft, respectively, to facilitate day-to-day communications and performance under this Agreement. Each Party may treat an act of a Representative of the other Party as being
authorized by such other Party. Each Party may replace its Representative by giving written notice of the replacement to the other Party. 
  (b)        No additional Exhibits, modifications to existing Exhibits, or amendments to this Agreement shall be effective unless and until executed by the Representatives
of each of ALCS and Kraft. 
 ARTICLE V 
 THIRD PARTY AGREEMENTS 
 To the extent that it is not practicable to have Kraft as
the contracting Party for a third party obligation, ALCS, with respect to all Services supplied by ALCS or contracted for by ALCS on behalf of Kraft, shall use commercially reasonable efforts to cause all such third party 

  

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contracts to extend to and be enforceable by Kraft, or to assign such contracts to Kraft. In the event that such contracts are not extendable or assignable,
ALCS shall act as agent for Kraft in the pursuit of any claims, issues, demands or actions against such third party provider at Kraft’s expense. Kraft will indemnify ALCS for any liability under third party contracts arising directly out of the
acts or omissions of Kraft. 
 ARTICLE VI 
 AUTHORITY; INFORMATION; COOPERATION; CONSENTS 
 6.1.    Authority. 
 Each Party represents to the other Party that: 

 (a)        it has the requisite corporate authority to enter into and perform this
Agreement; 
  (b)        its execution, delivery and performance of this
Agreement have been duly authorized by all requisite corporate action on its behalf; 
  (c)        this Agreement is enforceable against it; and 
  (d)        it has obtained all consents or approvals of Governmental Authorities and other Persons that are conditions to its entering into this Agreement. 
 6.2.    Information Regarding Transition Services. 
 Each Party shall make available to the other Party any information required or reasonably requested by that other Party regarding the
performance of any Service and shall be responsible for timely providing that information and for ensuring the accuracy and completeness of that information; provided, however, that a Party shall not be liable for not providing any
information that is subject to a confidentiality obligation owed by it to a Person other than an Affiliate of it or the other Party. ALCS shall not be liable for any impairment of any Service caused by ALCS not receiving information from Kraft,
either timely or at all, or by its receiving inaccurate or incomplete information from Kraft, in each case that is required or reasonably requested regarding that Service. 
 6.3.    Cooperation. 
 The Parties
will use good faith efforts to cooperate with each other in all matters relating to the provision and receipt of Services. Such good faith cooperation will include providing electronic access to systems used in connection with Services and using
commercially reasonable efforts to obtain all consents, licenses, sublicenses or approvals necessary to permit each Party to perform its obligations. The Parties will cooperate with each other in making such information available as needed in the
event of any and all internal or external audits, whether in the United States or any other country. If this Agreement is terminated in whole or in part, the Parties will cooperate with each other in all reasonable respects in order to effect an
efficient transition and to minimize the disruption to the business of both Parties, including the assignment or transfer of the rights and obligations under any contracts. 
  

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 6.4.    Further Assurances. 
 Each Party shall take such actions, upon request of the other Party and in addition to the actions specified in this Agreement, as may be
necessary or reasonably appropriate to implement or give effect to this Agreement. 
 ARTICLE VII 
 AUTHORITY AS AGENT 
 ALCS is hereby authorized to act as agent for Kraft for the purpose of performing Services hereunder and as is necessary or desirable to perform such Services. Kraft will execute and deliver or cause the appropriate member of the Kraft
Group to execute and deliver to ALCS any document or other evidence which may be reasonably required by ALCS to demonstrate to third parties the authority of ALCS described in this Article VII. 
 ARTICLE VIII 
 CONFIDENTIAL
INFORMATION 
 8.1.    Definition. 
 For the purposes of this Agreement, “Confidential Information” means non-public information about the disclosing Party’s
or any of its Affiliates’ business or activities that is proprietary and confidential, which shall include, without limitation, all business, financial, technical and other information, including software (source and object code) and
programming code, of a Party or its Affiliates marked or designated “confidential” or “proprietary” or by its nature or the circumstances surrounding its disclosure should reasonably be regarded as confidential. Confidential
Information includes not only written or other tangible information, but also information transferred orally, visually or electronically or by any other means. Confidential Information will not include information that (i) is in or enters the
public domain without breach of this Agreement, or (ii) the receiving Party lawfully receives from a third party without restriction on disclosure and, to the receiving Party’s knowledge without breach of a nondisclosure obligation.

 8.2.    Nondisclosure. 
 Each of ALCS and Kraft agree that (i) it will not disclose to any third party or use any Confidential Information disclosed to it by
the other except as expressly permitted in this Agreement, and (ii) it will take all reasonable measures to maintain the confidentiality of all Confidential Information of the other Party in its possession or control, which will in no event be
less than the measures it uses to maintain the confidentiality of its own information of similar type and importance. 
 8.3.    Permitted Disclosure. 
 Notwithstanding the foregoing, each Party may
disclose Confidential Information (i) to the extent required by a court of competent jurisdiction or other Governmental Authority or otherwise as required by Law, including without limitation disclosure obligations imposed under the federal
securities laws, provided that such Party has given the other Party prior notice of such 

  

 7 

 
requirement when legally permissible to permit the other Party to take such legal action to prevent the disclosure as it deems reasonable, appropriate or
necessary, or (ii) on a “need-to-know” basis under an obligation of confidentiality to its consultants, legal counsel, Affiliates, accountants, banks and other financing sources and their advisors. 
 8.4.    Ownership of Confidential Information. 
 All Confidential Information supplied or developed by either Party shall be and remain the sole and exclusive property of the Party who
supplied or developed it. 
 ARTICLE IX 
 TERM AND TERMINATION 
 9.1.    Term. 
 This Agreement shall remain in effect until such time as it has been terminated as to all Transition Services in accordance with
Section 9.2 hereof. 
 9.2.    Termination. 
 Either Party may terminate this Agreement without cause with respect to one or more Services under this Agreement by providing three
months’ written notice to the other Party or as otherwise agreed between the Parties hereto; provided that the Services set forth in Exhibit 5 hereto shall not terminate before December 31, 2007. 
 9.3.    Termination Assistance Services. 
 ALCS agrees that, upon termination of this Agreement or any of the Services set forth in the Exhibits, ALCS will cooperate in good faith
with Kraft to provide Kraft (or its designee) with reasonable assistance to make an orderly transition from ALCS to another supplier of the Services. Transition assistance services shall include the following: 
  (a)        developing a transition plan with assistance from Kraft or its designee;

  (b)        providing training to Kraft personnel or its designee’s
personnel to perform Services; and 
  (c)        organizing and delivering to
Kraft records and documents necessary to allow continuation of the Services, including delivering such materials in electronic forms and versions as requested by Kraft. 
  

 8 

 ARTICLE X 
 LIMITATION OF LIABILITY; INDEMNIFICATION 
 10.1.    Limitation of Liability. 
 Except as may be provided in
Section 10.2 below and Article V above, ALCS and its Affiliates (each, an “ALCS Party”) shall not be liable to any member of the Kraft Group and its respective Affiliates (each, a “Kraft Party”) and each Kraft
Party shall not be liable to any ALCS Party, in each case, for any Losses of a Kraft Party or an ALCS Party arising in connection with this Agreement and the Services provided hereunder. 
 10.2.    Indemnification. 
  (a)        ALCS shall indemnify, defend and hold harmless each of the Kraft Parties from and against all Losses, of any kind or nature,
(i) incurred by a Kraft Party or (ii) of third parties unrelated to any Kraft Party, in each case caused by or arising in connection with the gross negligence or willful misconduct of any employee of ALCS in connection with the performance
of the Services, except to the extent that the Losses were caused directly or indirectly by acts or omissions of any Kraft Party. Notwithstanding the foregoing, ALCS shall not be liable for any special, indirect, incidental, or consequential damages
relating to such claims. Any Liability incurred by ALCS pursuant to this Agreement on or after the Distribution Date shall be deemed to be an Altria Group Liability for purposes of Article III of the Distribution Agreement. 
  (b)        Kraft shall indemnify, defend and hold harmless each of the ALCS Parties from
and against all Losses of any kind or nature, (i) incurred by an ALCS Party or (ii) of third parties unrelated to any ALCS Party, in each case caused by or arising in connection with the gross negligence or willful misconduct of any
employee of Kraft in connection with Kraft’s performance under this Agreement, except to the extent that Losses were caused directly or indirectly by acts or omissions of any ALCS Party. Notwithstanding the foregoing, Kraft shall not be liable
for any special, indirect, incidental, or consequential damages relating to such claims. Any Liability incurred by Kraft pursuant to this Agreement on or after the Distribution Date shall be deemed to be a Kraft Group Liability for purposes of
Article III of the Distribution Agreement. 
 ARTICLE XI 
 DISPUTE RESOLUTION 
 The Parties, or if the Parties are unable to resolve any service
or performance issues or if there is a material breach of this Agreement that has not been corrected within thirty (30) days of receipt of notice of such breach, the Controller and CFO of Kraft, on behalf of Kraft, and the Treasurer and
Controller of Altria, on behalf of ALCS, will meet promptly to review and resolve those issues in good faith. 
  

 9 

 ARTICLE XII 
 MISCELLANEOUS 
 12.1.    Original Services
Agreement. 
 This Agreement terminates and supersedes the Original Services Agreement, which shall have no further
force and effect following the effectiveness of this Agreement. 
 12.2.    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 12.2 to an “Article” or “Section” shall mean Articles and
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); and Article IX (relating to Miscellaneous). 
 12.3.    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, however, that the Arbitration Act shall govern the matters described in Article X. 
 12.4.    References. 
 Except as provided in Section 12.2 hereof all references to Sections, Articles or Exhibits contained herein mean Sections, Articles or Exhibits of or to this Agreement, as the case
may be, unless otherwise stated. 
 12.5.    Notices. 
 All communications, notices and disclosures required or permitted by this Agreement shall be in writing and shall be deemed to have been
given one day after being delivered personally or by messenger or being received via telecopy, telex or other electronic transmission, or two days after being sent by overnight delivery service, in all cases addressed to the person for whom it is
intended at the addresses as follows: 
 If to ALCS: 
 Controller, Altria Group, Inc. 
 120 Park Avenue 
 New York, NY 10017 
  

 10 

 If to Kraft: 
 Controller, Kraft Foods Inc. 
 Three Lakes Drive 
 Northfield, IL 60093 
 or to such other
address as a Party shall have designated by notice in writing to the other Party in the manner provided by this Section 12.5. 
  

 11 

 IN WITNESS WHEREOF, the Parties have signed this Agreement on the date first set
forth above. 
  

			
	ALTRIA CORPORATE SERVICES, INC.
		
	By:	 	/S/ MICHAEL A.
WRIGHT                
		
		 	Name: Michael A. Wright
		
		 	Title: President
	  
  
  
 KRAFT FOODS INC.

		
	By:	 	/S/ IRENE B.
ROSENFELD                  
		
		 	Name: Irene B. Rosenfeld
		
		 	Title: Chief Executive Officer

  

 12 

 EXHIBIT 1 
 CORPORATE AFFAIRS SERVICES 
  
  

	I	 SPECIFIC TRANSITION SERVICES 

  

	 	A.	 GOVERNMENT AFFAIRS 

  

	 	•	 Lease of office space for Government Affairs in the Washington DC location for no more than twelve months from March 30, 2007. 

 

	II	 SERVICE FEES 

  

	 	•	 The Fee payable for corporate affairs transition services shall include the monthly rent of $69,610.00, based upon the ratio of the number of Kraft employees
utilizing the leased space divided by total occupants of the leased space times the monthly rent and expenses. 

  

 1.1 

 EXHIBIT 2 
 TREASURY SERVICES 
  
  

	I	 SPECIFIC TRANSITION SERVICES 

  

	 	A.	 RISK MANAGEMENT 

  

	 	•	 Consultation, as requested by Kraft, on insurance renewals through November 1, 2007. 

  

	 	•	 Maintenance of and access to insurance claims data in connection with the agreement between CS STARS LLC and ALCS, originally executed October 1, 2001. The
estimated completion date for such services is no later than October 1, 2007. 

  

	 	B.	 BENEFIT INVESTMENTS 

  

	 	•	 Consultation, as requested by Kraft, on administration of benefit trusts for a period of up to six months after spin-off date. 

  

	II	 SERVICE FEES 

 The Fee payable for
the treasury transition services for 2007 is based on the following: 
 Risk Management & Benefits Investments. The Fee will
include: (i) the relevant Employee Costs associated with consultation time when requested; (ii) a management fee equal to 5% of the aggregate amount calculated pursuant to (i); and (iii) third-party expenses, including travel and
entertainment and consulting fees incurred on behalf of Kraft by ALCS. 
  

 2.1 

 EXHIBIT 3 
 FINANCIAL CONSOLIDATIONS & REPORTING 
  
  

	I	 SPECIFIC TRANSITION SERVICES 

  

	 	A.	 FINANCIAL CONSOLIDATIONS AND REPORTING 

  

	 	•	 Review, as requested by Kraft prior to filing, any Kraft SEC filings in progress at the Distribution Date. 

  

	II	 SERVICE FEES 

 The Fee payable for
the financial consolidations and reporting transition services for 2007 shall include: (i) the relevant Employee Costs associated with consultation time when requested; (ii) a management fee equal to 5% of the aggregate amount calculated
pursuant to (i); and (iii) third-party expenses, including travel and entertainment, consulting fees and printing costs incurred on behalf of Kraft by ALCS. 
  

 3.1 

 EXHIBIT 4 
 INTERNAL AUDIT SERVICES 
  
  

	I	 SPECIFIC TRANSITION SERVICES 

  

	 	•	 Lease of office space in the United Kingdom (5 Thameside Centre, Kew Bridge Road, London, TW8 0HF) until the completion of Kraft’s move to Zurich,
Switzerland, estimated by June 30, 2007. 

  

	II	 SERVICE FEES 

 The Fee payable for
the internal audit transition services for 2007 shall include: (i) the pro rata amount of annual rent of $504,700 (GBP 272,800), based upon the number of months Kraft employees occupy the London office space; (ii) the pro rata amount of
building services costs of $263,700 (GBP 142,500), based upon the number of months Kraft employees occupy the London office space; and (iii) lease breakage fee, if any. 
  

 4.1 

 EXHIBIT 5 
 INFORMATION TECHNOLOGY SERVICES 
  
  

	I	 SPECIFIC TRANSITION SERVICES 

  

	 	A.	 Global applications required by Kraft for business continuity (i.e. Global Treasury and Global Network Services) will continue normal operations and provide
current services until the completion of Kraft’s migration to EDS. The estimated completion date for all services is no later than December 31, 2007. 

  

	 	B.	 Separation of global applications, as identified in the current Business Restructure of Systems and Services (“Project BRASS”) that have been agreed by
ALCS and Kraft, will incur costs until the full completion of Project BRASS, which will be refined by ALCS and Kraft to ensure that the appropriate priorities are established to achieve a completion date by December 31, 2007.

  

	 	C.	 ALCS Contracts Consulting services related to negotiation of separate enterprise contracts between Kraft and major information technology vendors, including but
not limited to AT&T, IBM, Oracle, Microsoft and SAP, including the following actions: 

  

	 	–	 Continue to communicate to suppliers Altria’s intent to separate global contracts and subsequently receive written consents from the suppliers.

  

	 	–	 Track progress and inform Kraft management of any potential service issues, cost impact or major contractual challenges. 

  

	 	–	 Ensure written closure, including contractual sign-off with suppliers. 

 In the event that Altria and Kraft do not complete all required negotiations by December 31, 2007 and Kraft is still operating certain software
under an ALCS licensee, any third party fee incurred by Altria for this continuation of service will be passed on to Kraft for appropriate settlement. 
  

 5.1 

	II	 SERVICE FEES 

 The Fee payable for
the information technology transition services for 2007 shall be based on the following: 
 Global Applications & Network
Services. The Fee will include: (i) the relevant Employee Costs; (ii) a management fee equal to 5% of the aggregate amount calculated pursuant to (i); and (iii) third-party expenses, including travel and entertainment and printing
costs, incurred on behalf of Kraft by ALCS. Direct pass through on any direct charge, i.e.; circuit charges, routers or monitoring that is currently provided by ALCS or its contracted third party. This would also include any maintenance and licensee
fee required to maintain Kraft operations until appropriate separation can be achieved. 
 Information Technology Contracts Consulting.
The Fee shall include: (i) Kraft’s charges under each information technology contract (primarily AT&T, IBM, Oracle, Microsoft and SAP contracts), (collectively, the “IT Contracts”), allocated by usage under the IT
Contracts as provided by the service provider; (ii) the relevant Employee Costs; (iii) a management fee of 5% of the aggregate amount calculated pursuant to (ii); and (iv) third-party expenses, including travel and entertainment and
printing costs, incurred on behalf of Kraft by ALCS. 
  

 5.2 

 EXHIBIT 6 
 MISCELLANEOUS SERVICES 
  

	I.	 SPECIFIC TRANSITION SERVICES 

  

	 	•	 COMPLIANCE 

  

	 	–	 Continued operations under outstanding ALCS agreements with helpline service vendors until no later than May 15, 2007. 

  

	 	–	 ALCS Contracts Consulting services, if requested by Kraft, related to negotiation of separate contracts between Kraft and helpline service vendors.

  

	II.	 SERVICE FEES 

  

	 	•	 	 The Fee payable for compliance transition services for 2007 shall include: (i) Kraft’s charge under each helpline services contract (if paid by ALCS);
(ii) the relevant Employee Costs, if any; (iii) a management fee of 5% of the aggregate amount calculated pursuant to (ii); and (iv) any third-party expenses, incurred on behalf of Kraft by ALCS. 

  

 6.1

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