Document:

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                                                                    Exhibit 10.4

                              EMPLOYMENT AGREEMENT
                  (amended and restated as of April 1, 2000)

      This Amended and Restated Employment Agreement by and among NABISCO
HOLDINGS CORP., a Delaware Corporation ("NHC"), NABISCO, INC., a New Jersey
Corporation ("NA", together with NHC, the "Company"), NABISCO GROUP HOLDINGS
CORP. ("NGH") and JAMES M. KILTS ("Executive"), is effective as of April 1,
2000.

                                    RECITALS

      WHEREAS, in order to induce Executive to continue to serve as President
and Chief Executive Officer of the Company and of NGH and as a member of the
Board of Directors of the Company and of NGH, the Company, NGH and Executive
agree that the Employment Agreement between the Company and Executive dated as
of November 20, 1997 (the "Prior Agreement") should be amended and restated.

      NOW, THEREFORE, in consideration of mutual incentives, it is hereby agreed
by and between the Company, NGH and Executive to amend and restate the Prior
Agreement, effective on the date first above written, as follows:

      1. EMPLOYMENT.

      1.1. Subject to the terms and conditions of this Agreement, the Company
agrees to employ Executive during the Term of Employment, as defined in Section
2 below. It is also the intention of the parties that Executive shall serve as
President and Chief Executive Officer of the Company and of NGH, and as a member
of the Boards of Directors of the Company and of NGH throughout the Term of
Employment (for purposes of this Agreement, the positions and titles associated
with "the Company" shall mean the same position and titles at each of NHC and
NA). Executive's principal office shall be at the principal executive offices of
the Company in East Hanover and Parsippany, New Jersey. Executive shall perform
his duties hereunder subject only to the direction and control of the Board of
Directors of the Company and NGH and the Chairman of each of the Boards of
Directors of the Company and NGH (the "Chairman").

      1.2. The Company shall, during the term of this Agreement, use its best
efforts to insure the election and retention of Executive as President and Chief
Executive Officer of the Company and of NGH and as a member of the Boards of
Directors of the Company and of NGH.

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      1.3. Subject to the terms and conditions of this Agreement, Executive
hereby (i) agrees to continue employment with the Company and agrees to continue
to serve as President and Chief Executive Officer of the Company and of NGH and
shall devote his full working time and efforts to the best of his ability,
experience and talent, to the performance of the services, duties and
responsibilities in connection therewith; and (ii) agrees to continue to serve
as a member of the Boards of Directors of the Company and of NGH. Executive's
authority and duties shall include the exclusive right to hire, discharge and
fix the terms and conditions of employment of all employees of the Company and
its subsidiaries, subject only to the approval of the Chairman with respect to
senior level management employees. Nothing in this Agreement shall preclude
Executive from engaging, consistent with his duties and responsibilities
hereunder, in charitable and community affairs, from managing his personal
investments, from continuing to serve on the boards of directors of any
Affiliate (as hereinafter defined) of the Company or NGH or from serving,
subject to approval of the Board of Directors of the Company, as a member of
boards of directors of other companies.

      1.4. For purposes of this Agreement, (a) "Affiliate" means, with respect
to the Company or NGH, any person or entity directly or indirectly controlling,
controlled by, or under common control with the Company or NGH, as the case may
be,

      (b) "Subsidiary" of the Company or NGH means any entity of which
securities or other ownership interests having ordinary voting power to elect a
majority of the board of directors or other persons performing similar functions
are at the time directly or indirectly owned by the Company or NGH, as the case
may be, and

      (c) the term "available to Senior Executive Officers" shall mean that
something is available to the senior executive officers of the Company or NGH or
generally available to all chief executive officers of the major operating
companies of the Company or NGH; PROVIDED, HOWEVER, such term shall not include
the Chairman of NGH or NHC.

      2. TERM OF EMPLOYMENT.

      Executive's term of employment under this Agreement shall continue in
accordance with the terms hereof until a termination of Executive's employment.

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           3.   COMPENSATION.

         3.1. SALARY. The Company shall pay Executive a base salary ("Base
Salary") at the rate of $1,000,000 per annum. Base Salary shall be payable in
accordance with the ordinary payroll practices of the Company. Executive's rate
of Base Salary shall be reviewed for increase by the Chairman at least annually
and by the Boards of Directors of the Company and Holdings, if necessary, and if
any increases are approved, such higher amount shall constitute Executive's Base
Salary.

         3.2.   ANNUAL BONUS.

         (a) In addition to his Base Salary, subject to Section 3.2(b) below,
Executive shall be entitled, while he remains employed hereunder, to receive an
annual bonus opportunity under NHC's Annual Incentive Award Plan or any
successor thereto (the "NHC AIAP"), in accordance with the terms thereof.
Executive's annual bonus will be determined in accordance with the NHC AIAP
available to Senior Executive Officers; the NHC AIAP, in any event, will provide
an annual target bonus opportunity to Executive no less favorable than one
hundred percent (100%) of his Base Salary, subject to the attainment of the
performance goals established from time to time under the NHC AIAP.

         (b) Executive may be granted Performance Units under NHC's 1994 Long
Term Incentive Plan or any successor thereto (the "NHC LTIP") in lieu of all or
a portion of a cash bonus opportunity under the NHC AIAP pursuant to Section
3.2(a), provided that with respect to any year the aggregate annual target bonus
opportunity under the NHC AIAP and the "Initial Grant Value" of all such
Performance Units granted in such year shall not be less than the annual target
bonus opportunity under Section 3.2(a) (the aggregate annual target bonus
opportunity under Section 3.2(a) and/or 3.2(b), as applicable, is hereinafter
referred to as the "Target Bonus Opportunity"). The term "Initial Grant Value"
shall have the meaning customarily given to it in Performance Unit Agreements
awarded to Senior Executive Officers of the Company under the NHC LTIP prior to
the date hereof.

         3.3. COMPENSATION PLANS AND PROGRAMS. Executive shall participate in
any compensation plan or program, whether annual or long term, maintained by the
Company or NGH on terms no less favorable than those available to Senior
Executive Officers eligible to participate therein.

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           4.   EMPLOYEE BENEFITS.

         4.1. EMPLOYEE BENEFIT PROGRAMS, PLANS AND PRACTICES. The Company shall
provide Executive during the term of his employment hereunder with coverage
under the employee benefit programs, plans and practices (commensurate with his
position in the Company and to the extent possible under any employee benefit
plan), if any, in accordance with the terms thereof, which the Company makes
available to Senior Executive Officers from time to time.

         4.2. VACATION AND FRINGE BENEFITS. Executive shall be entitled to the
number of vacation days customarily available to Senior Executive Officers. In
addition, Executive shall be entitled to the perquisites and fringe benefits
normally made available to Senior Executive Officers by the Company.

         4.3.   DIRECTORS AND OFFICERS LIABILITY COVERAGE, INDEMNIFICATION.

         (a) Executive shall be entitled to the same level of coverage (as
determined from time to time by the Board of Directors of the Company) under
such directors' and officers' liability insurance policies, if any, or other
arrangements as are available to Senior Executive Officers and directors of the
Company, to the fullest extent permitted by the existing By-laws of the Company.

         (b) The Company agrees that if Executive is made a party, or is
threatened to be made a party, to any action, suit or proceeding, whether civil,
criminal, administrative or investigative (a "Proceeding"), by reason of the
fact that he is or was a director, officer or employee of the Company or NGH or
is or was serving at the request of the Company or NGH as a director, officer,
member, employee or agent of another corporation, partnership, joint venture,
trust or other enterprise, including service with respect to employee benefit
plans, Executive shall be indemnified and held harmless by the Company and NGH
to the fullest extent legally permitted or authorized by the Company's or NGH's
certificate of incorporation or bylaws or resolutions of the Company's or NGH's
Board of Directors, as the case may be, or, if greater, by the applicable state
laws, against all cost, expense, liability and loss (including, without
limitation, attorney's fees, judgments, fines, ERISA excise taxes or penalties
and amounts paid or to be paid in settlement) reasonably incurred or suffered by
the Executive in connection therewith, and such indemnification shall continue
as to Executive even if he has ceased to be a director, member, employee or
agent of the Company or NGH or other entity and shall inure to the benefit of
Executive's heirs, executors and administrators. The Company or NGH, as the case
may be, shall advance to Executive all reasonable costs and expenses incurred by
him in connection with a Proceeding within 20 days after receipt by the Company
or NGH, as the case may be, of a written request for such advance. Such request
shall include an

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undertaking by Executive to repay the amount of such advance if it shall
ultimately be determined that he is not entitled to be indemnified against such
costs and expenses.

         (c) The Company also agrees that if Executive is made a party, or is
threatened to be made a party, to any action, suit or proceeding by reason of
the termination of his employment with his prior employer or his accepting
employment with the Company, he shall be indemnified and held harmless by the
Company against all costs, expenses, liabilities and losses (including, without
limitation, attorney's fees) reasonably incurred or suffered by Executive in
connection therewith provided; however, that Executive provides full and
substantial cooperation in the defense of any such action.

         (d) The Company also agrees to indemnify Executive against any
liabilities, costs or expenses, including attorney's fees, if his prior employer
takes legal action against him in connection with his employment at the Company;
provided, however, that Executive provides full and substantial cooperation in
the defense of any such action. To the extent that Executive's prior employer
does not comply with its obligations to provide a SERP benefit of $300,000 per
year because of an assertion that Executive has violated a non-competition
covenant, the Company shall provide Executive with 90% of the equivalent
payments and benefits; provided, however, that Executive shall take any and all
necessary or appropriate action to recover such amounts and further provided
that Executive will fully cooperate with the Company in any action to recover
said amounts. This Section 4.3 shall survive the termination of the Agreement
for any reason.

         4.4. LIFE INSURANCE. In addition to any life insurance coverage which
Executive has under programs of the Company, except to the extent superseded by
the Travelers Agreement and the Hancock Agreement (each as defined in Section 19
hereof) the Company shall, at Company cost, provide Executive with term life
insurance coverage in the amount of $5,000,000 on the Executive's life, and term
life insurance coverage in the amount of $5,000,000 on the life of the
Executive's spouse. The policies shall be owned by the Kilts DYN Preservation
Trust dated December 21, 1999 (the "Trust") and Bessemer Trust Company (the
"Owner"). The Company shall hold Executive harmless from taxes, if any, incurred
as a result of premiums paid on such life insurance. As long as Executive (i) is
actively employed by the Company, (ii) retires pursuant to Section 5(d) hereof,
(iii) is terminated by the Company other than for Cause (as defined in Section
6.4(a) hereof) or (iv) terminates for Good Reason (as defined in Section 6.1(b)
hereof), the Company shall pay all premiums due for such insurance until the
executive attains age 65.

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         4.5. RETIREE MEDICAL. Upon retirement under Section 5 hereof on or
after age 55, Executive shall be eligible for retiree medical coverage based on
his actual number of years of service with a minimum of 10 years credited
service. The benefit provided hereunder shall be offset by any retiree medical
benefits provided to Executive by his prior employers.

           5.   SUPPLEMENTAL PENSION.

         (a) Executive shall participate in (i) the Retirement Plan for
Employees of Nabisco Holdings Corp. ("PEP"), (ii) the Nabisco Holdings Corp.
Supplemental Benefits Plan ("SBP") and (iii) the Nabisco Holdings Corp.
Additional Benefits Plan ("ABP") (collectively, the "Plans") in accordance with
the terms of the Plans.

         (b) Upon completion of five years of active service with the Company or
upon Executive's termination at any time other than (i) by the Company for Cause
or (ii) by Executive without Good Reason, Executive shall be entitled to a
minimum annual pension (the "Minimum Pension") equal to $200,000, (determined on
the basis of a single-life annuity beginning at age 60, determined using the
actuarial assumptions under the PEP). If and to the extent that the benefits
payable under the terms of the Plans are less than the Minimum Pension,
Executive, at the later of (i) Executive's Normal Retirement Age (as defined in
subsection (d) hereof) or (ii) termination of Executive's employment other than
for (A) by the Company for Cause or (B) by Executive without Good Reason, shall
receive a supplemental pension (the "Supplemental Pension") equal to the
difference between the Minimum Pension and the pension payable under the terms
of the Plans. The Supplemental Pension shall be paid from the general assets of
the Company (subject to Section 5(c) hereof) and shall be paid in the form of a
single life annuity. If Executive dies after completing five years of active
service with the Company, but prior to the commencement of his Supplemental
Pension payments, Executive's beneficiary (as defined in Section 6.3 hereof)
shall receive a benefit equal to the amount the beneficiary would have received
in respect of the Supplemental Pension had Executive retired and been entitled
to receive Supplemental Pension payments commencing immediately on the day prior
to his death and elected to receive the Supplemental Pension in the form of a
joint and 50% survivor annuity.

         (c) The Supplemental Benefit will be pre-funded only if similar
retirement benefits provided to any other executives of the Company are
pre-funded.

         (d) Executive's "Normal Retirement Age" shall be the first day of the
month next following Executive's 60th birthday, unless Executive is permitted to

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retire earlier with the consent of the Compensation Committee of the Board of
Directors of the Company; provided, however, Executive's Normal Retirement Age
shall in any event not occur until the end of any period of Compensation
Continuance. Notwithstanding the foregoing, if termination of Executive's
employment is other than for (i) by the Company for Cause or (ii) by Executive
without Good Reason and is following a Change of Control (as defined in Section
6.1(d) hereof), Executive's "Normal Retirement Age" shall be deemed to be the
date of such termination. Executive's voluntary termination of employment
without Good Reason on or after his Normal Retirement Age shall be a termination
of employment, but shall not be an "Involuntary Termination" (as defined in
Section 6.1 (a) hereof) entitling Executive to Compensation Continuance (as
defined in Section 6.1(a) hereof) under this Agreement.

           6.   TERMINATION OF EMPLOYMENT.

         6.1. TERMINATION NOT FOR CAUSE OR FOR GOOD REASON. (a) The Company may
terminate Executive's employment at any time for any reason, and as provided in
Section 6.4, Executive may terminate his employment at any time for any reason.
If Executive's employment is terminated by the Company other than for Cause or
if Executive terminates his employment for Good Reason (collectively, an
"Involuntary Termination"), in either case prior to, or after the second
anniversary of, a Change of Control (hereafter, the 24-month period beginning on
a Change of Control, a "Window Period"), Executive shall, subject to Section
6.1(e) hereof and the execution of a letter containing a waiver and release, in
form and substance reasonably acceptable to Executive and the Company, releasing
the Company and NGH from all claims and liabilities relating to such Termination
and the Company's employment of Executive, become entitled to receive
compensation ("Compensation Continuance") as provided in this Section 6.1 from
the date of such Termination until the third anniversary (the "Compensation
Period") of the date of such Involuntary Termination, and in lieu of any other
severance, in an amount in cash equal to two (2) year's Full Pay, calculated as
described below, payable in equal monthly installments over the Compensation
Period, each installment representing 1/18th of one year's Full Pay (as defined
below). One year's "Full Pay" is the sum of (i) plus (ii), where (i) is the
Executive's highest annual rate of Base Salary in effect during the twelve (12)
month period prior to the Executive's Involuntary Termination and (ii) is the
Target Bonus Opportunity for the calendar year in which the Executive's
employment terminated, or, if greater, the amount of the actual award for the
calendar year immediately preceding the year of such Termination; provided,
however, in the event that Executive's termination of employment with the
Company occurs before he has foregone the entire $3,030,000 amount contemplated
in Sections 1a. and 1b. of the Amended Agreement to Forego Compensation,
effective as of April 6, 2000 between Executive and NA, as

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subsequently amended from time to time (the "Relinquishment Agreement"), each
monthly installment payable under this Section 6.1(a) shall be reduced by 1/36th
of the difference between (x) $3,030,000 and (y) the amount actually foregone by
the Executive under Sections 1a. and 1b. of the Relinquishment Agreement prior
to his termination of employment with the Company.

         In addition, Executive shall be entitled to receive as Compensation
Continuance during the Compensation Period under this Section 6.1(a):

                  (iii) all unpaid amounts, as of the date of Executive's
         Involuntary Termination, in respect of any bonus, for any fiscal year
         ending before such termination which would have been payable had
         Executive remained in employment until the date such amount would
         otherwise have been paid, and an amount equal to the Vested Target
         Bonus Opportunity (as defined in Exhibit A);

                  (iv) any payment deferred by Executive, together with any
         applicable interest or other accruals thereon;

                  (v) full coverage under the Company's employee benefit
         programs, plans and practices, including continued crediting of service
         under the Company pension plans, described in Section 4.1 hereof (in
         the case of any plan meeting the requirements of Section 401 (a) of the
         Internal Revenue Code of 1986, as amended (the "Code"), only to the
         extent consistent with such requirements) for the Compensation Period,
         or the Company will provide for equivalent coverage (on an equivalent
         tax basis); PROVIDED, HOWEVER, that if, in connection with an
         Involuntary Termination outside a Window Period, Executive is provided
         with benefit plan or executive perquisite program coverage other than
         retirement plan coverage by an unaffiliated successor employer, any
         such coverage by the Company shall be reduced, with respect to amounts
         payable hereunder, by the benefits actually provided to Executive under
         any similar plan or coverage by any unaffiliated successor employer;

                  (vi) full vesting of any outstanding stock options granted
         pursuant to the Prior Agreement or otherwise outstanding under the NHC
         LTIP or NGH's Long-Term Incentive Plan or successor thereto (the "NGH
         LTIP", and together with the NHC LTIP, the "LTIPs"), with the continued
         right to exercise such stock options for the remainder of their
         respective terms;

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                  (vii) lapse of restrictions and deemed satisfaction of any
         performance objectives on or applicable to any outstanding restricted
         or contingent stock awards or units granted pursuant to the Prior
         Agreement or the LTIPs;

                  (viii) such rights to payments under applicable plans or
         programs as may be appropriate to the terms of such plans or programs;

                  (ix) for the first six (6) months after termination, the
         reasonable cost of one secretary and a fully functional office, such
         office location to be determined by Executive as long as the office is
         not to be located on the premises of the Company; and

                  (x) outplacement counseling services at Company expense;
         provided, however, this expense shall not exceed 18% of the amount of
         Compensation Continuance for any calendar year. This counseling shall
         include, but is not limited to, skill assessment, job market analysis,
         resume preparation, interviewing skills, job search techniques and
         negotiating.

         If, subsequent to an Involuntary Termination, Executive shall die or
suffer Permanent Disability (as defined in Section 6.2 hereof), such death or
Permanent Disability shall not diminish the rights of Executive, his
beneficiaries or successors to the payments and benefits under this Section
6.1(a) or Section 6.5(a) hereof, less any amounts paid under 6.2 (other than as
required under any applicable subsections of this Section 6.1(a)).

         (b) For purposes of this Agreement, "Good Reason" shall mean the
occurrence, without Executive's prior written consent, of one or more of the
following events:

                  (i) the aggregate amount of Executive's Base Salary from the
         Company and ordinary course of business annual award opportunities
         under the NHC AIAP or NGH's Annual Incentive Award Plan or any
         successor thereto (the "NGH AIAP", and together with the NHC AIAP, the
         "AIAPs") and/or either LTIP is at any time reduced without the
         Executive's consent; provided, however, nothing herein shall be
         construed to guarantee the Executive's targeted bonus or other awards
         if performance is below target;

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                  (ii) the termination or material reduction of any employee
         benefit or perquisite enjoyed by him (other than, outside a Window
         Period, as part of an across-the-board reduction applicable to all
         executive officers of the Company);

                  (iii) The failure to elect or reelect Executive to any of the
         positions described in Section 1 above or removal of him from any such
         position;

                  (iv) Subject to Section 6.1 (c) hereof, Executive's job
         responsibilities as President and Chief Executive Officer of the
         Company or NGH are substantially reduced in importance without the
         Executive's consent or he is assigned duties which are materially
         inconsistent with his duties or which materially impair his ability to
         function as the President and Chief Executive Officer of the Company or
         of NGH;

                  (v) The failure to continue Executive's participation in any
         incentive compensation plan unless a plan providing a substantially
         similar opportunity is substituted;

                  (vi) Executive, without his consent, is at any time required
         as a condition of continued employment with the Company to relocate a
         distance of more than 35 miles from the current headquarters;

                  (vii) Following a Change of Control or the divestiture of NHC
         or NA by NGH or NHC, as the case may be, the Chairman of NHC is anyone
         other than the Chairman of NGH (immediately prior to such Change of
         Control or divestiture);

                  (viii) The failure of the Company to obtain the assumption in
         writing or its obligation to perform this Agreement by any successor to
         all or substantially all of the assets of the Company within 45 days
         after a merger, consolidation, sale or similar transaction; or

                  (ix) Unilateral termination of the Agreement by the Company or
         any material breach by the Company of any provision of this Agreement
         or any agreements entered into pursuant thereto.

         Unless the Executive provides written notification of his non-consent
to the Company to any of the events described above within 180 days after his

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learning of the occurrence of such event, the Executive shall be deemed to have
consented to the occurrence of such event, or events, and no "Good Reason" shall
continue to exist. If the Executive provides written notice of his non-consent
to any of the events above within 180 days after the occurrence of such event,
or events, and if the Company does not cure such event, or events, within 30
days of such written notice, he may thereupon terminate his employment for Good
Reason ninety (90) days after receipt of written notice of such termination by
the Company.

         (c) In the event of Executive's promotion with his consent, no "Good
Reason" under Section 6.1(b) shall be deemed to have occurred, and the parties
to this Agreement agree to amend and restate the Agreement to reflect the change
in status resulting from the promotion. If, however, Executive refuses a
promotion, the provisions of Section 6.1 (b) shall continue to be applicable.

         (d) As used herein, a "Change of Control" shall occur on the date upon
which one of the following events occurs (except as otherwise provided in
paragraph (iii) below):

                  (i) Any individual, corporation, partnership, group, associate
         or other entity or "person" as such term is defined in Section 14(d) of
         the Securities Exchange Act of 1934 (the "Exchange Act"), other than
         NHC, NGH or any of their Subsidiaries, or any employee benefit plan(s)
         sponsored by NHC, NGH or any of their Subsidiaries, is or becomes the
         "beneficial owner" (as defined in Rule 13D-3 under the Exchange Act),
         directly or indirectly, of 30% or more of the combined voting power of
         NHC or NGH outstanding securities ordinarily having the right to vote
         at elections of directors;

                  (ii) Individuals who constitute the Board of either NHC or NGH
         on January 1, 2000 (each such Board the "Incumbent Board") cease for
         any reason to constitute at least a majority of the Board of NHC or
         NGH, as the case may be, provided that any person becoming a director
         subsequent to such date hereof whose election, or nomination for
         election by NHC or NGH shareholders, as the case may be, was approved
         by a vote of at least three-quarters of the directors comprising that
         Incumbent Board (either by a specific vote or by approval of the proxy
         statement of NHC or NGH, as the case may be, in which such person is
         named a nominee of NHC or NGH, as the case may be, but excluding for
         this purpose any such individual whose initial assumption of office
         occurs as a result of either an actual or threatened election contest

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         (as such terms are used in Rule 14a-11 of Regulation 14A promulgated
         under the Exchange Act) or other actual or threatened solicitation of
         proxies or consents by or on behalf of an individual, corporation,
         partnership, group, associate or other entity or "person" other than
         the NHC or NGH Board, as the case may be, shall be, for purposes of
         this paragraph (ii), considered as though such person were a member of
         the Incumbent Board.

                  (iii) The approval by the shareholders of NHC or NGH, as the
         case may be, of a plan or agreement providing (A) for a merger or
         consolidation of NHC or NGH, as the case may be, other than with a
         wholly-owned subsidiary or with NGH, NHC or any of their subsidiaries,
         and other than a merger or consolidation that would result in the
         voting securities of NHC or NGH, as the case may be, outstanding
         immediately prior thereto continuing to represent (either by remaining
         outstanding or by being converted into voting securities of the
         surviving entity) more than 50% of the combined voting power of the
         voting securities of NHC or NGH, as the case may be, of such surviving
         entity outstanding immediately after such merger or consolidation or
         (B) for a sale, exchange or other disposition of all or substantially
         all of the assets of NHC or NGH. If any of the events enumerated in
         this paragraph (iii) occurs, the NHC Board shall determine the
         effective date of the Change of Control resulting therefrom.

         (e)(i) During any Compensation Period beginning outside a Window
Period, the Executive shall provide consulting services to the Company on a
reasonable basis, subject to appropriate notice and reimbursement of all travel
and other expenses. During the first six (6) months of the Compensation Period
the Executive may be required by the Company to provide up to fifteen (15) days
of consultation during normal business hours and business days, subject to his
other reasonable business and personal commitments. When and if the Executive
becomes employed on a full-time basis, either with another company or on a
self-employed basis, his obligation to provide consulting services shall be
limited by the requirements of such employment, subject to his other reasonable
business and personal commitments, and under appropriate circumstances, may be
restricted to telephone conference. Continuing failure to provide such
consulting services shall result in the termination of Compensation Continuance.

         (ii) If the Executive's Compensation Continuance is terminated pursuant
to this Section 6.1(e), he may, within fifteen (15) days after mailing of notice
thereof to him, submit to the Chairman a written objection to such termination.
In such event, the Compensation Committee of the Board of

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Directors of the Company at or before its next regularly scheduled meeting must
determine by majority vote that termination of Compensation Continuance was
appropriate or, failing that, Compensation Continuance must be reinstated with
full retroactive effect.

         6.2. PERMANENT DISABILITY. The event of the Executive becoming eligible
for benefits under the Company's Long Term Disability Plan is not a termination
under Section 6.1(a) or Section 6.5(a) hereof entitling Executive to
Compensation Continuance under this Agreement. If, however, Executive becomes
eligible for benefits under the Company's Long Term Disability Plan during his
Compensation Period, the amount of Compensation Continuance shall be reduced
during the Compensation Period by the amount of disability benefits payable to
the Executive. All other provisions of this Agreement shall remain in effect
notwithstanding the Executive's disability.

         6.3. DEATH. In the event of Executive's death while actively employed,
the Company's obligations under this Agreement shall cease except for the
obligations under any program of the Company providing for a death benefit. In
the event of Executive's death subsequent to commencement of his Compensation
Period hereunder, the balance of Compensation Continuance will be paid to his
beneficiary in a lump sum. "Beneficiary" shall mean the Executive's designated
beneficiary under his Executive Program life insurance.

         6.4. VOLUNTARY RESIGNATION; DISCHARGE FOR CAUSE; NOTICE AND DATE OF
TERMINATION. (a) If Executive resigns voluntarily, other than for Good Reason or
Permanent Disability, or the Company terminates the employment of Executive at
any time for Cause, the Company's obligations under this Agreement to make any
further payments to Executive, including, but not limited to, the benefits under
Section 3 or Section 6.1(a), shall thereupon cease and terminate except with
respect to any previously deferred amounts, or accrued but unpaid salary.
"Cause" shall mean: (a) Executive is convicted of a felony involving moral
turpitude; or (b) Executive is guilty of willful gross neglect or willful gross
misconduct in carrying out his duties under this Agreement, which results, or
reasonably likely may result, in either case, in material economic harm to the
Company, unless Executive believed in good faith that such act or nonact was in
the best interests of the Company.

         (b) For purposes of this Agreement, a "Notice of Termination for Cause"
shall mean delivery to Executive of a copy of a resolution duly adopted by the
affirmative vote of not less than three-quarters of the membership of the NHC
Board (or a committee thereof) (which, for these purposes, will be hereinafter
referred to as the "NHC Board") at a meeting thereof called and held for the
purpose (after reasonable notice to the Executive, "Preliminary Notice", and

                                       13
<PAGE>

reasonable opportunity for Executive, together with the Executive's counsel, to
be heard before the Board prior to such vote), finding that in the good faith
opinion of the Board, Executive was guilty of conduct set forth in the second
sentence of this Section 6.4(a) and specifying the particulars thereof in
detail. Upon the receipt of the Preliminary Notice, Executive shall have 14 days
in which to appear with counsel or take such action as he desires on his behalf,
and such 14-day period is hereby agreed to by the parties as a reasonable
opportunity for Executive to be heard. The Board shall no later than 30 days
after the receipt of the Preliminary Notice by Executive communicate its
findings to Executive. A failure by the Board to make its finding of Cause or to
communicate its conclusions within such 30-day period (the "Determination
Period") shall be deemed to be a finding that Executive was not guilty of the
conduct described in the second sentence of this Section 6.4(b). Any termination
of Executive's employment by Executive outside a Window Period (other than by
death or Permanent Disability) within 30 days after the date that the
Preliminary Notice has been given to Executive shall be deemed to be a
termination for Cause for purposes of the Agreement.

         (c) Except as provided in Section 6.4(b) above, (i) Any purported
termination of the Executive's employment by the Company or by the Executive
shall be communicated by written Notice of Termination to the other party hereto
in accordance with Section 10 hereof. For purposes of this Agreement, (A) during
a Window Period a "Notice of Termination" by the Company shall mean, and (B)
outside a Window Period a "Notice of Termination" by the Executive shall mean, a
notice which shall indicate the specific termination provision in this Agreement
relied upon and shall set forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of Executive's employment under the
provision so indicated.

                  (ii) "Date of Termination" shall mean (i) if the Executive's
         employment is terminated for Disability, thirty (30) days after Notice
         of Termination is given (provided that the Executive shall not have
         returned to the full-time performance of the Executive's duties during
         such thirty (30) day period), (ii) if the Executive's employment is
         terminated by reason of the Executive's death, the date of the
         Executive's death, (iii) if the Executive's employment is terminated by
         reason of the Executive's Retirement, for Cause, Involuntary
         Termination or for any other reason (other than Disability or death),
         the date specified in the Notice of Termination or Notice of
         Termination for Cause, as the case may be, (which (A) in the case of a
         Notice of Termination for Cause during a Window Period shall not be
         less than thirty (30) nor more than sixty (60) days from the date, if
         any, in the Determination Period that the Board notifies the Executive
         of its finding of Cause and (B) in the case of the

                                       14
<PAGE>

         Executive's voluntary termination (other than Executive's termination
         of employment for Good Reason) shall not be less than three (3) months
         after the date such Notice of Termination is given).

         6.5. TERMINATION FOLLOWING A CHANGE OF CONTROL. (a) Upon the
Executive's Involuntary Termination during a Window Period, in lieu of the
benefits provided by Section 6.1(a)(i) and (ii) hereof Executive shall be
entitled to a lump sum payment within fifteen (15) business days following the
date of such Termination equal to three hundred percent (300%) of the sum of
(i), (ii) and (iii), where (i) is the greater of the Executive's annual rate of
Base Salary as in effect immediately prior to such termination or immediately
prior to the Change of Control to which such Window Period relates, (ii) is the
greater of (1) the Executive's annual Target Bonus Opportunity immediately prior
to such termination or immediately prior to such Change of Control or (2) the
greater of the aggregate amount of such actual award for the calendar year
immediately preceding the year of such termination or immediately preceding the
year of such Change of Control and (iii) is the greater of the annual perquisite
allowance applicable to the Executive under the Nabisco Flexible Perquisites
Program as in effect immediately prior to such termination or immediately prior
to such Change of Control (such greater amount, the "Allowance"); provided,
however, in the event that Executive's termination of employment with the
Company occurs before he has foregone the entire $3,030,000 amount contemplated
in Sections 1a. and 1b. of the Relinquishment Agreement, the amount payable
under this Section 6.5(a) shall be reduced by the difference between (x)
$3,030,000 and (y) the amount actually foregone by the Executive under Sections
1a. and 1b. of the Relinquishment Agreement prior to his termination of
employment with the Company.

         (b) In addition to the benefits provided by Section 6.5(a) above, upon
the Executive's Involuntary Termination during a Window Period, the Executive
shall be entitled to receive Compensation Continuance as set forth in Section
6.1(a)(iii)-(x) hereof until the third anniversary of such Involuntary
Termination.

         (c) (i) Anything herein to the contrary notwithstanding, in the event
that it is determined that any payment or distribution by the Company to or for
the Executive's benefit, whether paid or payable or distributed or distributable
pursuant to the terms hereof, including but not limited to Section 7, or
otherwise, other than any payment pursuant to this Section 6.5(c), (a
"Payment"), would be subject to the excise tax imposed by Section 4999 of the
Code or any interest or penalties with respect to such excise tax (such excise
tax, together with any such interest and penalties, are hereinafter collectively
referred to as the "Excise Tax"), then the Executive shall be entitled to
receive, within fifteen (15) business days following the determination described
in Section 6.5(c)(ii) below, an additional

                                       15
<PAGE>

payment ("Excise Tax Adjustment Payment") in an amount such that after payment
by the Executive of all applicable Federal, state and local taxes (computed at
the maximum marginal rates and including any interest or penalties imposed with
respect to such taxes), including any Excise Tax, imposed upon the Excise Tax
Adjustment Payment, the Executive shall retain an amount of the Excise Tax
Adjustment Payment equal to the Excise Tax imposed upon the Payments.

         (ii) All determinations required to be made under this Section 6.5(b),
including whether Excise Tax Adjustment Payment is required and the amount of
such Excise Tax Adjustment Payment, shall be made by DELOITTE & TOUCHE LLP, or
such other accounting firm as the Company may designate prior to a Change of
Control, which shall provide to the Company and the Executive detailed
supporting calculations within fifteen (15) business days of the date of the
Executive's termination of employment. Except as hereinafter provided, any
determination by DELOITTE & TOUCHE LLP, or such other accounting firm as the
Company may designate prior to a Change of Control, shall be binding upon the
Company and the Executive. As a result of the uncertainty in the application of
Section 4999 of the Code at the time of the initial determination hereunder, it
is possible that (A) Excise Tax Adjustment Payments which should have been made
will not have been made by the Company ("Underpayment"), or (B) certain Payments
will have been made which should not have been made ("Overpayment"), consistent
with the calculations required to be made hereunder. In the event of an
Underpayment, the Company shall promptly determine the amount of the
Underpayment that has occurred and any such Underpayment shall be promptly paid
by the Company to or for the Executive's benefit. In the event that the
Executive discovers that an Overpayment shall have occurred, the amount thereof
shall be promptly repaid to the Company.

         6.6. NO MITIGATION; NO OFFSET. In the event of any termination of
employment under this Section 6, Executive shall be under no obligation to seek
other employment and, except to the extent provided in Section 14(c) hereof,
there shall be no offset against amounts due Executive under this Agreement on
account of any remuneration attributable to any subsequent employment that he
may obtain.

           7. CERTAIN AIAP PROVISIONS. In the event of a Change of Control, the
Executive will be paid within fifteen (15) business days following the date of
such Change of Control a lump sum cash payment equal to the Executive's Vested
Target Bonus Opportunity.

           8. EXPENSES. Upon submission of proper vouchers therefor, the Company
will pay or reimburse Executive for all transportation, hotel and living

                                       16
<PAGE>

expenses incurred by Executive on business trips outside New Jersey, and for all
other business and entertainment expenses reasonably incurred by him in
connection with the business of the Company and its Affiliates during the term
of his employment hereunder, at a standard commensurate with chief executive
officers of the Company and its significant subsidiaries.

           9. LEGAL FEES AND EXPENSES. (a) The Company shall reimburse Executive
for reasonable legal fees incurred in connection with executing this Agreement
and shall pay all reasonable legal fees and expenses which Executive may incur
outside a Window Period in respect of obtaining any compensation or other
benefits to which he is entitled under this Agreement.

         (b) The Company shall pay to the Executive as incurred all legal and
accounting fees and expenses incurred by the Executive as a result of the
Executive's Involuntary Termination on the date of a Change of Control or during
the resulting Window Period (including all such fees and expenses, if any, in
seeking to obtain or enforce any right or benefit provided by this Agreement or
any other compensation-related plan, agreement or arrangement of the Company)
unless the Executive's claim is found by an arbitral tribunal of competent
jurisdiction to have been frivolous.

         (c) The Company shall pay to the Executive as incurred all legal and
accounting fees and expenses incurred by the Executive during a Window Period as
a result of both (i) the Executive's Involuntary Termination prior to the Change
of Control to which such Window Period relates and (ii) the Company's refusal
after such Change of Control to provide any right or benefit provided by this
Agreement or any other compensation-related plan, agreement or arrangement of
the Company in respect of such Termination, including all such fees and
expenses, if any, in seeking to obtain or enforce any such right or benefit
unless the Executive's claim is found by an arbitral tribunal or court of
competent jurisdiction to have been frivolous.

          10. NOTICES. All notices or communications hereunder shall be in
writing, addressed as follows:

         To the Company:

                  Steven F. Goldstone
                  Chairman
                  Nabisco, Inc.
                  7 Campus Drive
                  Parsippany, NJ 07054

                                       17
<PAGE>

         with a copy to:

                  Chief Legal Officer
                  Nabisco, Inc.
                  7 Campus Drive
                  Parsippany, NJ 07054

Any such notice or communication shall be sent certified or registered mail,
return receipt requested, postage prepaid, addressed as above (or to such other
address as such party may designate in a notice duly delivered as described
above), and three days after the actual date of mailing shall be deemed the time
at which notice was given.

         11. LIMITED WAIVER/SEPARABILITY. The waiver by any party of a violation
by Executive of any of the provisions of this Agreement, whether expressed or
implied, shall not operate or be construed as a waiver of any subsequent
violation of any such provision. In the event that any provision or portion of
this Agreement shall be determined to be invalid or unenforceable for any
reason, the remaining provisions of this Agreement shall remain in full force
and effect to the fullest extent permitted by law.

          12. ASSIGNABILITY; BINDING NATURE. This Agreement shall be binding
upon and inure to the benefit of the Parties and their respective successors,
heirs (in the case of the Executive) and assigns. No rights or obligations of
the Company or NGH under this Agreement may be assigned or transferred by the
Company or NGH, as the case may be, except that such rights or obligations may
be assigned or transferred pursuant to a merger or consolidation in which the
Company or NGH, as the case may be, is not the continuing entity, or the sale or
liquidation of all or substantially all of the assets of the Company or NGH, as
the case may be, provided that the assignee or transferee is the successor to
all or substantially all of the assets of the Company or NGH, as the case may
be, and such assignee or transferee assumes the liabilities, obligations and
duties of the Company or NGH, as the case may be, , as contained in this
Agreement, either contractually or as a matter of law. The Company or NGH, as
the case may be, further agree that, in the event of a sale of assets or
liquidation as described in the preceding sentence, they shall take whatever
action it legally can in order to cause such assignee or transferee to expressly
assume the liabilities, obligations and duties of the Company hereunder.

          13. AMENDMENT. The Agreement may be amended at any time only by mutual
written agreement of the parties hereto.

                                       18
<PAGE>

          14. NONDISCLOSURE OF CONFIDENTIAL INFORMATION; COOPERATION DURING THE
COMPENSATION PERIOD; NONCOMPETITION. (a) Executive shall not, without the prior
consent of the Company and/or NGH, divulge, disclose or make accessible to any
other person, firm, partnership or corporation or other entity any Confidential
Information pertaining to the business of the Company or NGH except (1) while
employed by the Company in the business of and for the benefit of the Company or
NGH or (2) while employed by the Company when required to do so by a court of
competent jurisdiction, by any governmental agency having supervisory authority
over the business of NGH or the Company, or by any administrative body or
legislative body (including a committee thereof) with jurisdiction to order
Executive to divulge, disclose or make accessible such information or (3) while
on Compensation Continuance when required to do so as provided in Section 14(b)
hereof. For purposes of this Section 14(a), "Confidential Information" shall
mean non-public information concerning the Company's or NGH's financial data,
strategic business plans, product development (or other proprietary product
data), customer lists, marketing plans and other proprietary information, except
for specific items which have become publicly available information (other than
such items which Executive knows have become publicly available through a breach
of fiduciary duty or any confidentiality agreement). During active employment or
during Compensation Continuance, in accordance with normal ethical and
professional standards, Executive will refrain from taking actions or making
statements, written or oral, which defame or denigrate the goodwill or
reputation of the Company and/or NGH, their properties, products, directors,
officers, executives and employees or which constitute willful conduct under
circumstances where it is reasonable for Executive to anticipate or to expect
that the natural consequences of such conduct by Executive will be to affect
adversely the morale of other employees.

         (b) During the Compensation Period, Executive agrees that (1) subject
to reasonable scheduling requirements, he will personally provide reasonable
assistance and cooperation to the Company and/or NGH in activities related to
the prosecution or defense of any pending or future lawsuits or claims involving
the Company and/or NGH, (2) he will promptly notify the Company and/or NGH if he
receives any requests from anyone other than an employee or agent of the Company
and/or NGH for information regarding the Company and/or NGH or if he becomes
aware of any potential claim or proposed litigation against the Company and/or
NGH, (3) he will refrain from providing any information related to any claim or
potential litigation against the Company and/or NGH to any non-Company or
non-NGH representatives without either the Company's or NGHs' written permission
or being required to provide information pursuant to legal process, (4) if
required by law to provide sworn testimony regarding any Company or NGH-related
matter, he will consult with and have Company or NGH-designated legal counsel
present for such testimony, (5) the Company and/or NGH

                                       19
<PAGE>

will be responsible for the costs of such designated counsel and he will bear no
cost for same, (6) he will confine his testimony to items about which he has
knowledge rather than speculation, unless otherwise directed by legal process
and (7) he will cooperate with the Company's and/or NGHs' attorneys to assist
their efforts, especially on matters he has been privy to, holding all
privileged attorney-client matters in strictest confidence. Nothing in the
foregoing clauses 2-7 is intended to apply to governmental or judicial
investigations; provided, however, the Company and/or NGH will reimburse
Executive for legal expenses if he is compelled to appear in a governmental or
judicial investigation.

         (c) Any Compensation Period resulting from an Involuntary Termination
outside a Window Period shall be terminated if the Executive, without the
Company's written approval, accepts a substantially similar or higher executive
position, paying a substantially comparable or greater level of cash
compensation, with any other company conducting a business which is
substantially competitive with a business conducted by the Company or an
Affiliate. Alternatively, the Company may, in its discretion, appropriately
reduce the Executive's cash compensation and employee benefits coverage for the
balance of the Compensation Period.

         (d) In the event that the Executive unreasonably refuses to provide
consulting services in accordance with Section 6.1(e) or materially violates the
terms and conditions of Sections 14(a) or 14(b) above, the Company may, at its
election upon ten (10) days notice, terminate the Compensation Period,
discontinue cash compensation payments and employee benefits coverage and cancel
any outstanding stock options or other LTIP awards. The Company may also
initiate any form of legal action it may deem appropriate seeking damages or
injunctive relief with respect to any material violations of Sections 14(a),
14(b) or 14(c) above.

          15. BENEFICIARIES/REFERENCES. Executive shall be entitled to select
(and change, to the extent permitted under any applicable law) a beneficiary or
beneficiaries to receive any compensation or benefit payable hereunder following
Executive's death, and may change such election, in either case by giving the
Company written notice thereof. In the event of Executive's death or a judicial
determination of his incompetence, reference in this Agreement to Executive
shall be deemed, where appropriate, to refer to his beneficiary, estate or other
legal representative. Any reference to the masculine gender in this Agreement
shall include, where appropriate, the feminine.

          16. SURVIVORSHIP. The respective rights and obligations of the parties
hereunder shall survive any termination of this Agreement to the extent
necessary to the intended preservation of such rights and obligations. The
provisions of this

                                       20
<PAGE>

Section are in addition to the survivorship provisions of any other section of
this Agreement.

          17. GOVERNING LAW. This Agreement shall be construed, interpreted, and
governed in accordance with the laws of New Jersey, without reference to rules
relating to conflicts of law.

          18. WITHHOLDING & TAXES. The Company shall be entitled to withhold
from payment any amount of withholding required by law.

          19.   ENTIRE AGREEMENT.

         (a) (i) Except as set forth in Subsection (ii) of this Section 19(a),
this Agreement sets forth the entire agreement and understanding of the parties
hereto with respect to the matters covered hereby and supersedes and replaces
any prior agreement with respect to employment, compensation continuation and
the matters contained in this Agreement which Executive may have had with the
Company or an Affiliate.

                  (ii) This Agreement does not supersede or replace the
Relinquishment Agreement, that certain Travelers Life Insurance Agreement
effective as of January 1, 2000 between NA, Executive, The Trust, the Owner and
all agreements, assignments and other documentation related thereto
(collectively, the "Travelers Agreements") or that certain John Hancock Life
Insurance Agreement between NA, Executive, the Trust and the Owner, effective as
of January 1, 2000 and all agreements, assignments and other documentation
related thereto (collectively, the "Hancock Agreements"), which Relinquishment
Agreement, Travelers Agreements and Hancock Agreements remain in full force and
effect according to their terms.

         (b) This Agreement shall be binding upon and inure to the benefit of
Executive, the Company or Affiliates, and any successor organization or
organizations which shall succeed to substantially all of the business and
property of the Company, whether by means of merger, consolidation, acquisition
of substantially all of the assets of the Company or otherwise, including by
operation of law.

         (c) Unless otherwise stated herein, no benefit or promise hereunder
shall be secured by any specific assets of the Company. Unless otherwise stated
herein, Executive shall have only the rights of an unsecured general creditor of
the Company in seeking satisfaction of such benefits or promises.

                                       21
<PAGE>

          20. LATE PAYMENTS. To the extent that any payments required to be made
hereunder following a Change of Control in connection with any Involuntary
Termination occurring prior to the second anniversary of such Change of Control
are not made within the period specified therefor, the Company shall be liable
for interest on such delayed payments at the rate of 150% of the prime rate
compounded monthly, as posted by the Morgan Guaranty Trust Company of New York,
from time to time.

          21. ACTUARIAL CALCULATIONS. All required actuarial calculations of
payments to be made hereunder shall be made by WATSON WYATT WORLDWIDE, NEW
YORK, NEW YORK, or such other actuarial firm as the Company may designate prior
to a Change of Control.

          22. COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which will be deemed an original.

          23.   PARAGRAPH HEADINGS. Paragraph headings are inserted for
convenience only and do not constitute a part and shall not affect the
interpretation of this Agreement.

                                       22
<PAGE>

      IN WITNESS WHEREOF. the parties have executed this Agreement as
of                    , 2000.

                                  NABISCO HOLDINGS CORP.

/s/ James M. Kilts                By: /s/ James A. Kirkman III
-----------------------------         --------------------------------------
James M. Kilts                        James A. Kirkman III
                                      Executive Vice President,
                                      General Counsel & Secretary

                                  NABISCO INC.

                                  By: /s/ James A. Kirkman III
                                      --------------------------------------
                                      James A. Kirkman III
                                      Executive Vice President,
                                      General Counsel & Secretary

                                  NABISCO GROUP HOLDINGS CORP.

                                  By: /s/ James A. Kirkman III
                                      --------------------------------------
                                      James A. Kirkman III
                                      Executive Vice President,
                                      General Counsel & Secretary

                                       23
<PAGE>

                                    EXHIBIT A

                                   DEFINITIONS

      VESTED TARGET BONUS OPPORTUNITY means, as of a Change of Control or as of
a Termination Date, as the case may be, an amount equal to the value of the
Executive's target award or Target Bonus Opportunity, as the case may be, under
the relevant AIAP or LTIP, as the case may be, for the relevant performance
period in which the Change of Control or Involuntary Termination occurs, as the
case may be, multiplied by a fraction, the numerator of which is the number of
days in the period beginning on the first day of the relevant performance period
and ending on the Change of Control or such Termination Date, as the case may
be, and the denominator of which is 365; provided that in the event of an
Involuntary Termination following a Change of Control in the year in which a
Change of Control occurs, for purposes of computing the Vested Target Bonus
Opportunity as of the date of such Termination, the performance period shall be
deemed to begin on the first day following the Change of Control and the target
award or Target Bonus Opportunity, as the case may be, shall be that in effect
immediately preceding such Change of Control.<PAGE>

                                                                    Exhibit 10.5

                              EMPLOYMENT AGREEMENT

      AMENDMENT AND RESTATEMENT, made effective as of this 17th day of March,
2000, of the EMPLOYMENT AGREEMENT dated October 1, 1997, as amended, by and
between NABISCO, INC., a New Jersey corporation (the "Company"), and James E.
Healey ("the Executive").

                                    RECITALS

      WHEREAS, the Executive and RJR Nabisco, Inc., a Delaware corporation
("RJRN"), entered into the Employment Agreement dated October 1, 1997; and

      WHEREAS, the Executive, RJRN and the Company executed an Amendment to the
Employment Agreement as of May 1, 1999; and

      WHEREAS, the Company and the Executive agree that the Employment Agreement
should be further amended and restated, in order to more effectively provide the
Executive continued incentives to remain in the service of the Company or its
subsidiaries or affiliates;

      NOW, THEREFORE, in consideration of mutual incentives, it is hereby agreed
by and between the Company, Nabisco Holdings Corp. ("NHC") and Nabisco Group
Holdings Corp. ("NGH") and the Executive to amend and restate the Employment
Agreement, effective on the date first above written, as follows:

      1. Employment. The Executive agrees to devote the Executive's working time
exclusively to the performance of such services for the Company or NHC or any of
their Subsidiaries or Affiliates (each, as defined below) as may be assigned to
the Executive from time to time and to perform such services faithfully and to
the best of the Executive's ability except as the provisions of subsections
4(b)(i) or 4(b)(ii) shall apply.

      For purposes of this Agreement, (i) "Affiliate" means, with respect to the
Company, NHC or NGH, any person or entity directly or indirectly controlling,
controlled by, or under common control with the Company, NHC or NGH, as the case
may be, and (ii) "Subsidiary" of the Company, NHC or NGH means any entity of
which securities or other ownership interests having ordinary voting power to
elect a majority of the board of directors or other persons performing similar
functions are at the time directly or indirectly owned by the Company, NHC or
NGH, as the case may be.
<PAGE>

      2. Term of Agreement. Subject to Section 7(e) hereof, this Agreement shall
commence on the date hereof and shall remain in effect so long as the Executive
remains employed by the Company or NHC or any of their subsidiaries or any
successor organizations.

      3. Termination of Employment Without Compensation Continuance.

            (a) Termination for Cause. This Agreement shall immediately be
      terminated and neither party shall have any obligation hereunder if the
      Executive's employment is terminated for Cause (as defined below).

                  (i) At any time before a Change of Control (as defined below)
            or following the second anniversary of such Change of Control,
            termination for "Cause" shall mean termination by the Company of the
            Executive's employment resulting from the Executive's: (A) criminal
            dishonesty; (B) deliberate and continual refusal to perform
            employment duties on substantially a full-time basis; (C) deliberate
            and continual refusal to act in accordance with any specific lawful
            instructions of a majority of the Board of Directors of NHC (the
            "NHC Board"); or (D) deliberate misconduct which could be materially
            damaging to the Company without reasonable good faith belief by the
            Executive that such conduct was in the best interests of the
            Company.

                  (ii) Any purported termination for Cause under Section 3(a)(i)
            shall not be applicable unless (A) the Executive is advised in
            writing that the Executive is being terminated for Cause and, (B) if
            within fifteen (15) days thereafter the Executive submits to the
            Chief Executive Officer of the Company a written objection to such a
            determination, the Compensation Committee of the NHC Board at or
            before its next regularly scheduled meeting determines by majority
            vote that the Executive has been terminated for Cause.

                  (iii) During the two (2) year period beginning on a Change of
            Control, termination for "Cause" shall mean termination by the
            Company of the Executive's employment resulting from the
            Executive's: (A) willful and continued failure substantially to
            perform employment duties with the Company or any Subsidiary or
            Affiliate (other than as a result of total or partial incapacity due
            to physical or mental illness or as a result of a termination by the
            Executive for Good Reason (as defined below)) after a written demand
            for substantial performance is delivered to the Executive by the NHC
            Board, which demand specifically identifies the manner in which the
            NHC Board believes that the Executive has not substantially
            performed the Executive's duties; (B) the willful engaging by the
            Executive in conduct which is demonstrably and materially injurious
            to NHC, NGH or the Company, monetarily or otherwise; or (C) the
            Executive's conviction of a

                                       2
<PAGE>

            felony under the laws of the United States, any state or any other
            country or political sub-division thereof involving moral turpitude.
            For purposes of this paragraph (iii), no act or failure to act on
            the Executive's part shall be deemed "willful" unless done or
            omitted to be done by the Executive not in good faith and without
            reasonable belief that the Executive's action or omission was in the
            best interest of the Company. Notwithstanding the foregoing, the
            Executive shall not be deemed to have been terminated for Cause
            under this paragraph (iii) unless and until there shall have been
            delivered to the Executive documentation of the affirmative vote
            (which cannot be delegated) of not less than three-quarters (3/4) of
            the entire membership of the NHC Board of Directors at a meeting of
            the NHC Board called and held for such purpose (after reasonable
            notice to the Executive and an opportunity for the Executive,
            together with the Executive's counsel, to be heard before the NHC
            Board), finding that in the good faith opinion of the NHC Board the
            Executive was guilty of conduct set forth above in subclauses (A),
            (B) or (C) above, specifying the particulars thereof in detail.

            (b) Voluntary Termination of Employment by the Executive. The
      Executive reserves the right to terminate voluntarily the Executive's
      employment at any time for any reason. Upon such a termination other than
      a termination pursuant to Section 4(b), all obligations of the Company
      hereunder shall be cancelled automatically, and the Executive shall not be
      entitled to any form of Compensation Continuance under this Agreement,
      including that described in Section 5 below.

            (c) Disability. The event of physical or mental disability of a
      nature that entitles the Executive to benefits under the Company's
      Long-Term Disability Plan is not a termination of employment under any
      section of this Agreement. As such, disability shall not qualify the
      Executive for the Compensation Continuance described herein unless the
      Executive is terminated under Section 4(a) or Section 4(b)(i).

            (d) Death. In the event of the Executive's death prior to
      Involuntary Termination, this Agreement will be null and void.

      4. Termination With Compensation Continuance.

            (a) Involuntary Termination Without Cause by the Company.

                  (i) The Company reserves the right to terminate the employment
            of the Executive at any time for any reason subject to providing the
            compensation and benefits described herein. Except as provided in
            Section 6, the Company will provide the Executive with the
            Compensation Continuance described in Section 5 hereof if the
            Executive is involuntarily separated from active employment without
            Cause by the Company ("Involuntary Termination").

                                       3
<PAGE>

                  (ii) The divestiture of the operating company employing the
            Executive, and the assignment of the obligations of the Company
            under this Agreement to such operating company, or its successor or
            acquiror, in connection with the divestiture of either all, or
            substantially all, the shares or assets of such operating company
            shall not automatically be an Involuntary Termination unless such
            divestiture and assignment would result in an Involuntary
            Termination under Section 4(b) hereof.

                  (iii) The transfer of the Executive's employment to any
            company that owns at least 50% of the voting power of the Company,
            or any subsidiary of such company (an "Affiliated Company"), shall
            not automatically be deemed an Involuntary Termination unless such
            transfer would result in an Involuntary Termination under Section
            4(b) hereof.

            (b) Deemed Involuntary Termination Without Cause by the Company.

                  (i) At any time before a Change of Control or following the
            second anniversary of a Change of Control, Involuntary Termination
            shall be deemed to occur if the Executive voluntarily terminates
            employment after: (A) the total amount of the Executive's base
            salary, annual bonus and long term incentive opportunity under the
            Annual Incentive Award Plans (or other annual incentive plans) of
            NGH or NHC, as the case may be, (collectively, as in effect from
            time to time, the "AIAPs") and Long Term Incentive Plans (or other
            long term incentive plans) of NGH or NHC, as the case may be
            (collectively, as in effect from time to time, the "LTIPs") is at
            any time reduced by more than 20% without the Executive's consent,
            provided, however, nothing herein shall be construed to guarantee
            the Executive's target award if performance is below target; (B) the
            Executive's job responsibilities are substantially reduced in
            importance without the Executive's consent or the Company fails to
            guarantee the obligations hereunder as required by Section 7(d); or
            (C) the Executive, without the Executive's consent, is at any time
            required as a condition of continued employment to relocate more
            than thirty-five (35) miles from the Executive's then current place
            of employment. Unless the Executive provides written notification of
            the Executive's non-consent to an event in (A), (B) or (C) above
            within ninety (90) days after the occurrence of such event, the
            Executive shall be deemed to have consented to the occurrence of
            such event and no deemed Involuntary Termination shall occur. If the
            Executive provides written notice of the Executive's non-consent to
            any of the events in (A), (B) or (C) above within ninety (90) days
            after the occurrence of such event, the Executive shall be deemed to
            have been Involuntarily Terminated ninety (90) days after receipt of
            such written notice by the Company.

                                       4
<PAGE>

                  (ii) At any time during the two (2) year period beginning on a
            Change of Control, Involuntary Termination shall be deemed to occur
            if the Executive voluntarily terminates employment after an event of
            "Good Reason". For purposes of this Agreement "Good Reason" shall
            mean, without the Executive's express written consent, any of the
            following:

                        (A) Any reduction in the Executive's duties, any
                  diminution in the Executive's position or any adverse change
                  in the Executive's reporting relationship from those in effect
                  immediately prior to the Change of Control;

                        (B) Any reduction in the Executive's base salary, grade
                  or annual bonus or long term incentive opportunity as in
                  effect immediately prior to the Change of Control or as the
                  same may thereafter be increased from time to time during the
                  term of this Agreement;

                        (C) The failure to continue in effect any compensation
                  or benefit plan in which the Executive participates or is
                  entitled to participate in at the time of the Change of
                  Control, including but not limited to the relevant LTIP, the
                  relevant AIAP, any defined benefit or defined contribution
                  plan or related supplemental plans, or any substitute plans
                  adopted prior to the Change of Control, unless an equitable
                  arrangement (embodied in an ongoing substitute or alternative
                  plan providing the Executive with substantially similar
                  benefits) has been made with respect to such plan in
                  connection with the Change of Control, or the failure to
                  continue the Executive's participation therein on
                  substantially the same basis, both in terms of the amount of
                  the benefits provided and the level of the Executive's
                  participation relative to other participants, as existed at
                  the time of the Change of Control;

                        (D) The taking of any action which would directly or
                  indirectly reduce any of the benefits to be provided under
                  Section 5 or any benefits thereunder or any compensation or
                  benefit plan of the Company, NGH or NHC including, without
                  limitation the LTIPs, the AIAPs and the Company's Deferred
                  Compensation Plan or deprive the Executive of or reduce any
                  benefits or amounts with respect to any perquisite or any
                  material fringe benefit enjoyed by the Executive at the time
                  of the Change of Control, or the failure to provide the
                  Executive with the number of paid vacation days to which the
                  Executive is entitled on the basis of the Company's practice
                  with respect to the Executive as in effect at the time of the
                  Change of Control;

                                       5
<PAGE>

                        (E) Any material breach by the Company, NGH or NHC of
                  any provision of this Agreement including, but not limited to
                  any provision of Section 5, any benefits thereunder or any
                  compensation, benefit or perquisite plan of the Company, NGH
                  or NHC including, without limitation the LTIPs, the AIAPs and
                  the Company's Deferred Compensation Plan, or any agreements
                  entered into pursuant thereto;

                        (F) Any purported termination of Executive's employment
                  which is not effected pursuant to a Notice of Termination
                  satisfying the requirements of subsection (c) below; provided
                  further that for purposes of this Agreement, no such purported
                  termination shall be effective; or

                        (G) Requiring the Executive to be based at any office or
                  location more than thirty-five (35) miles from the office or
                  location at which the Executive was based immediately prior to
                  such Change of Control, except for travel reasonably
                  consistent with the Executive's travel requirements prior to
                  such Change of Control;

                        If the Executive provides written notice of the
                  Executive's non-consent to any of the events in (A), (B), (C),
                  (D), (E), (F) or (G), above within 180 days after the
                  occurrence of any such event, the Executive shall be deemed to
                  have been Involuntarily Terminated upon the earlier of the
                  date set forth in Executive's Notice of Termination or 181
                  days after the occurrence of such event.

                  (iii) As used herein, a "Change of Control" shall occur on the
            date upon which one of the following events occurs (except as
            otherwise provided in paragraph (C) below):

                        (A) Any individual, corporation, partnership, group,
                  associate or other entity or "person" as such term is defined
                  in Section 14(d) of the Securities Exchange Act of 1934 (the
                  "Exchange Act"), other than NHC, NGH or any of their
                  Subsidiaries, or any employee benefit plan(s) sponsored by
                  NHC, NGH or any of their Subsidiaries, is or becomes the
                  "beneficial owner" (as defined in Rule 13D-3 under the
                  Exchange Act), directly or indirectly, of 30% or more of the
                  combined voting power of NHC or NGH outstanding securities
                  ordinarily having the right to vote at elections of directors;

                        (B) Individuals who constitute the Board of either NHC
                  or NGH on January 1, 2000 (each such Board the "Incumbent
                  Board") cease for any reason to constitute at least a majority
                  of the Board of NHC or NGH, as the case may be, provided that
                  any person becoming a director subsequent to such date hereof
                  whose election, or nomination for election by NHC or NGH
                  shareholders, as the case may

                                       6
<PAGE>

                  be, was approved by a vote of at least three-quarters of the
                  directors comprising that Incumbent Board (either by a
                  specific vote or by approval of the proxy statement of NHC or
                  NGH, as the case may be, in which such person is named a
                  nominee of NHC or NGH, as the case may be, but excluding for
                  this purpose any such individual whose initial assumption of
                  office occurs as a result of either an actual or threatened
                  election contest (as such terms are used in Rule 14a-11 of
                  Regulation 14A promulgated under the Exchange Act) or other
                  actual or threatened solicitation of proxies or consents by or
                  on behalf of an individual, corporation, partnership, group,
                  associate or other entity or "person" other than the NHC or
                  NGH Board, as the case may be, shall be, for purposes of this
                  paragraph (B), considered as though such person were a number
                  of the Incumbent Board.

                        (C) The approval by the shareholders of NHC or NGH, as
                  the case may be, of a plan or agreement providing (I) for a
                  merger or consolidation of NHC or NGH, as the case may be,
                  other than with a wholly-owned subsidiary or with NGH, NHC or
                  any of their subsidiaries, and other than a merger or
                  consolidation that would result in the voting securities of
                  NHC or NGH, as the case may be, outstanding immediately prior
                  thereto continuing to represent (either by remaining
                  outstanding or by being converted into voting securities of
                  the surviving entity) more than 50% of the combined voting
                  power of the voting securities of NHC or NGH, as the case may
                  be, of such surviving entity outstanding immediately after
                  such merger or consolidation or (II) for a sale, exchange or
                  other disposition of all or substantially all of the assets of
                  NHC or NGH. If any of the events enumerated in this paragraph
                  (C) occurs, the NHC Board shall determine the effective date
                  of the Change of Control resulting therefrom.

             (c) (i) Any purported termination of the Executive's employment by
      the Company or by the Executive shall be communicated by written Notice of
      Termination to the other party hereto in accordance with Section 7(b)
      hereof. For purposes of this Agreement, (A) during the twenty-four (24)
      month period beginning on a Change of Control a "Notice of Termination" by
      the Company shall mean, and (B) prior to, and following the second
      anniversary of, a Change of Control a "Notice of Termination" by the
      Executive shall mean, a notice which shall indicate the specific
      termination provision in this Agreement relied upon and shall set forth in
      reasonable detail the facts and circumstances claimed to provide a basis
      for termination of Executive's employment under the provision so
      indicated.

                                       7
<PAGE>

                  (ii) "Date of Termination" shall mean (i) if the Executive's
            employment is terminated for Disability, thirty (30) days after
            Notice of Termination is given (provided that the Executive shall
            not have returned to the full-time performance of the Executive's
            duties during such thirty (30) day period), (ii) if the Executive's
            employment is terminated by reason of the Executive's death, the
            date of the Executive's death, (iii) if the Executive's employment
            is terminated by reason of the Executive's Retirement, for Cause,
            Involuntary Termination or for any other reason (other than
            Disability or death), the date specified in the Notice of
            Termination (which (A) in the case of a termination for Cause during
            the two (2) year period beginning on a Change of Control shall not
            be less than thirty (30) nor more than sixty (60) days from the date
            such Notice of Termination is given and (B) in the case of the
            Executive's voluntary termination (other than pursuant to Section
            4(b) and other than during the two (2) year period beginning on a
            Change of Control) shall not be less than three (3) months after the
            date such Notice of Termination is given).

      5. Compensation Continuance Under This Agreement.

            (a) Compensation Period. If at any time during the term of this
      Agreement the Executive has an Involuntary Termination pursuant to Section
      4, subject to Section 6(g), if applicable, the Executive will be provided
      with Compensation Continuance as provided in this Section 5.

            (b) Cash Compensation.

                  (i)(A) Upon an Involuntary Termination prior to, or after the
            second anniversary of, a Change of Control, the Executive will be
            entitled to cash compensation equal to two (2) year's Full Pay,
            calculated as described below, payable in equal monthly installments
            over the Compensation Period (as defined below), each installment
            representing 1/18th of one year's Full Pay (as defined below). One
            year's "Full Pay" is the sum of (x) plus (y), where (x) is the
            Executive's highest annual rate of base salary in effect during the
            twelve (12) month period prior to the Executive's Involuntary
            Termination and (y) is the annual target amount of the Executive's
            annual bonus under the relevant AIAP and/or LTIP for the calendar
            year in which the Executive's employment terminated (or, if greater,
            the amount of such actual award for the next preceding calendar year
            of full-time employment). For all purposes of this Agreement,
            "Compensation Period" shall mean the three (3) year period
            commencing on the Date of Termination.

                                       8
<PAGE>

                        (B) Upon an Involuntary Termination during the two (2)
            year period beginning on a Change of Control, the Executive will be
            entitled to a lump sum payment within fifteen (15) business days
            following the date of such Involuntary Termination equal to twice
            the sum of (u), (v) and (w), where (u) is the greater of the
            Executive's annual base salary as in effect immediately prior to
            such Termination or immediately prior to such Change of Control
            (such greater amount, the "Base Salary"), (v) is the greater of the
            Executive's annual target bonus under the relevant AIAP and/or LTIP
            immediately prior to such Termination or immediately prior to the
            Change of Control or ("Target Amount") and (w) is 1.5 times the
            greater of the annual perquisite allowance applicable to the
            Executive under the Nabisco Flexible Perquisite Program (the
            "Program") as in effect immediately prior to such Termination or
            immediately prior to such Change of Control (such greater amount,
            the "Allowance"). The sum of Base Salary, Target Amount and
            Allowance are hereinafter referred to as "Base Cash". For purposes
            of this Agreement, "Compensation Period" shall mean the three (3)
            year period commencing on the Date of Termination.

                  (ii) Cash compensation paid pursuant to this Section 5(b)
            shall be subject to all required payroll deductions.

            (c) Annual Incentive and Retention Plan Awards.

                  (i) Upon an Involuntary Termination prior to, or after the
            second anniversary of, a Change of Control, the Executive will be
            paid at the time of such Involuntary Termination a portion of the
            Executive's annual bonus under the relevant AIAP and/or LTIP, based
            upon the target award for the year in which the Executive's
            Involuntary Termination occurs, prorated for the Executive's active
            employment during such year. Except as stated in the foregoing
            sentence, all provisions of the relevant AIAP and/or LTIP shall be
            applicable to the Executive.

                  (ii) Upon an Involuntary Termination prior to, or after the
            second anniversary of, a Change of Control, all provisions of NHC's
            1999 Retention Program (the "1999 Program") shall be applicable to
            the Executive.

                  (iii) Upon an Involuntary Termination during the two (2) year
            period beginning on a Change of Control, the Company shall pay to
            the Executive, not later than fifteen (15) business days following
            the Date of Termination, a lump sum cash payment equal to the sum of
            (A) and (B), where (A) is Executive's AIAP Vested Amount for such
            plan year and (B) is the sum of (x) and (y) where (x) is the
            Executive's Vested 1999 Program Award Amount and (y) is the
            Executive's Earned 1999 Program Amount (each as defined in Exhibit
            A) as of the Date of Termination.

                                       9
<PAGE>

            (d) Long Term Incentive Plan Awards. The treatment of long term
      incentive awards during the Compensation Period shall be determined
      pursuant to the terms of the relevant LTIP and related award agreements;
      provided, however, that for such purposes, the Compensation Period shall
      be treated as a period of salary and benefit continuance.

            (e) Welfare Benefits. During the Compensation Period the Executive
      will be provided the welfare benefits and other fringe benefits afforded
      by the employee benefit plans and programs maintained by the Company in
      which the Executive participated immediately prior to Involuntary
      Termination.

            (f) Retirement and Savings Plans.

                  (i) If Executive was participating in any Retirement Plan or
            Savings Plan (each as defined in Exhibit A) immediately prior to an
            Involuntary Termination prior to, or after the second anniversary
            of, a Change of Control, the Executive will continue to accrue or be
            deemed to accrue benefits during the Compensation Period under such
            Retirement Plans and Savings Plans for purposes of benefit accrual
            and employer matching contributions, as applicable, based on the
            same formula and matching amount as in effect immediately prior to
            such Termination. If the Executive will have attained age 50 at the
            end of the Compensation Period with 10 years of service (including
            the Compensation Period), the Executive will, subject to the
            conditions of Paragraph 6, be deemed retired with the consent of the
            Company for the purposes of welfare and executive compensation plans
            but not for the purposes of any Retirement or Savings Plan.
            Notwithstanding any provision herein to the contrary, upon such a
            Termination pension benefits under any Retirement Plan based on
            "Average Final Compensation" will be calculated applying the rate of
            one year's Full Pay and the Executive's Annual Flexible Perquisite
            Allowance for each year in the Compensation Period.

                  (ii) If Executive was participating in any Retirement Plan
            immediately prior to an Involuntary Termination during the two (2)
            year period beginning on a Change of Control, the Executive will be
            deemed to accrue benefits during the Compensation Period under such
            Retirement Plans for purposes of benefit accrual based on the same
            formula as in effect immediately prior to such Termination. If the
            Executive will have attained age 50 at the end of the Compensation
            Period with 10 years of service (including the Compensation Period),
            the Executive will, subject to the conditions of Paragraph 6, be
            deemed retired with the consent of the Company for the purposes of
            welfare and executive compensation plans but not for the purposes of
            any Retirement. Notwithstanding any provision herein to the
            contrary, upon such a Termination pension benefits under any
            Retirement Plan based on "Average Final Compensation" will be
            calculated applying the rate of one year's Base Cash for each year
            in the Compensation Period.

                                       10
<PAGE>

            (g) Flexible Perquisite Program. During the Compensation Period, the
      Executive shall continue to receive benefits under the Program; provided,
      further, that in the event of an Involuntary Termination during the two
      (2) year period beginning on a Change of Control, ownership of the
      automobile assigned to the Executive immediately prior to such Termination
      shall be transferred to the Executive within fifteen (15) business days
      after such Termination. At the time of such transfer, the Company shall
      pay to the Executive such amount in cash that, after payment of all
      applicable federal, state and local taxes thereon, computed at the maximum
      marginal rates, is equal to all such taxes, so computed, imposed in
      connection with such transfer.

            (h) Outplacement. During the Compensation Period, Executive will be
      provided with outplacement counseling services at Company expense;
      provided, however, this expense shall not exceed 18% of the amount of one
      year's Full Pay or Base Cash, as the case may be. This counseling shall
      include, but is not limited to, skill assessment, job market analysis,
      resume preparation, interviewing skills, job search techniques and
      negotiating.

6. Conditions on Compensation Continuance.

            (a) Availability and Consulting. Upon an Involuntary Termination
      prior to, or after the second anniversary of, a Change of Control, during
      the related Compensation Period the Executive shall provide consulting
      services to the Company on a reasonable basis subject to appropriate
      notice and reimbursement of all travel and other expenses. During the
      first six (6) months of such Compensation Period, the Executive may be
      required by the Company to provide up to fifteen (15) days of consultation
      during normal business hours and business days. When and if the Executive
      becomes employed on a full-time basis, either with another company or on a
      self-employed basis, the Executive's obligation to provide consulting
      services shall be limited by the requirements of such employment, and
      under appropriate circumstances, may be restricted to telephone
      conference.

            (b) Confidentiality and Conduct. The Executive warrants that the
      Executive will not disclose to any other person any confidential
      information or trade secrets concerning the Company or any of its
      subsidiaries at any time during or after the Compensation Period and upon
      an Involuntary Termination prior to, or after the second anniversary of, a
      Change of Control, the Executive will at all times refrain from taking any
      action or making any statements, written or oral, which are intended to
      and do disparage the goodwill or reputation of the Company, its directors,
      officers or executives or which could adversely affect the morale of
      Company employees.

                                       11
<PAGE>

            (c) Breach of Conditions. In the event that the Executive
      unreasonably refuses to provide consulting services to the extent required
      under paragraph (a) above or materially violates the terms and conditions
      of paragraph (b) above, the Company may, at its election upon ten (10)
      days notice, terminate any ongoing Compensation Period, discontinue cash
      compensation payments and employee benefits coverage and cancel any
      outstanding stock options or restricted stock. The Company may also
      initiate any form of legal action it may deem appropriate seeking damages
      or injunctive relief with respect to any material violations of paragraph
      (b) above.

            (d) Non-Competition. Any Compensation Period resulting from an
      Involuntary Termination prior to, or after the second anniversary of, a
      Change of Control shall be terminated if the Executive, without the
      Company's written approval, accepts a substantially similar or higher
      executive position, paying a substantially comparable or greater level of
      cash compensation, with any company (other than an Affiliate of the
      Company) conducting a business which is substantially competitive with a
      business conducted by the Company. Alternatively, the Company may, in its
      discretion, appropriately reduce the Executive's cash compensation and
      employee benefits coverage for the balance of such Compensation Period.

            (e) Employment With Another Employer During Compensation Period.
      Except as otherwise provided in this Section 6, if the Executive commences
      employment with another employer during a Compensation Period commencing
      prior to, or after the second anniversary of, a Change of Control, the
      Executive will continue to receive the compensation continuance provided
      under Section 5 for the balance of such Compensation Period, except that,
      unless otherwise required by law, benefits under the Company's Employee
      Benefits Plans, including the Program, if applicable, shall be
      appropriately terminated or offset to the extent the same are provided by
      the other employer.

            (f) Other Severance Benefits. The Executive is entitled to no form
      of severance benefits, including benefits otherwise payable under any of
      the Company's regular severance policies, other than those set forth or
      made applicable by reference in this Agreement. Notwithstanding the
      foregoing, the Executive will at the time of termination of employment be
      eligible for any form of post-retirement benefit provided under the
      Company's qualified Employee Benefits Plans, including retiree medical
      benefits, as any other employee upon retirement with the same age and
      service. Nothing contained in this Agreement shall adversely affect the
      Executive's rights to accrued vested pension benefits or the Executive's
      right to receive previously deferred awards or amounts under any of the
      Company's short and long term incentive award programs or deferred
      compensation plans or perquisite programs.

                                       12
<PAGE>

            (g) Release and Waiver of Claims. In consideration of the
      compensation and benefits continuance available pursuant to this
      Agreement, upon an Involuntary Termination prior to, or after the second
      anniversary of, a Change of Control the Executive agrees to execute a
      release, in form and substance reasonably acceptable to the Executive and
      the Company, releasing the Company, NHC and NGH from all claims and
      liabilities relating to such Termination and the Company's employment of
      the Executive.

            (h) Disability. In the event the Executive is eligible for benefits
      under the Company's Short Term or Long Term Disability Plan during the
      Executive's Compensation Period, any Compensation Continuance will be
      suspended while disability benefits are paid from any Company plan and
      resumed when such disability payments cease. All other provisions of this
      Agreement shall remain in effect notwithstanding the Executive's
      disability.

            (i) Death. In the event of the Executive's death subsequent to
      commencement of the Executive's Compensation Period hereunder, the balance
      of Compensation Continuance will be paid to the Executive's beneficiary in
      a lump sum. "Beneficiary" shall mean the Executive's designated
      beneficiary under the Executive's Executive Program life insurance or, if
      not so eligible, the Executive's core life insurance benefit under the
      Company's plans.

            (j) No Mitigations. Notwithstanding anything to the contrary in this
      Agreement, the Executive shall not be required to mitigate the amount of
      any payment provided for in Section 5 by seeking other employment or
      otherwise, nor, except under coordination of benefit rules in connection
      with certain welfare benefits under Section 5(e), shall the amount of any
      payment or benefit provided for in Section 5 hereof be reduced by any
      compensation earned by the Executive as the result of employment by
      another employer or by retirement benefits after the Date of Termination
      of employment, or otherwise.

      7. General Provisions.

            (a) Limited Right of Appeal. If the Executive's Compensation Period
      is terminated pursuant to Section 6, the Executive may, within fifteen
      (15) days after mailing of notice thereof to the Executive, submit to the
      Chief Executive Officer of the Company a written objection to such
      termination. In such event, the Compensation Committee of the NHC Board at
      or before its next regularly scheduled meeting must determine by majority
      vote that termination of the Compensation Period was appropriate or,
      failing that, the Compensation Period must be reinstated with full
      retroactive effect.

                                       13
<PAGE>

            (b) Notices. All notices hereunder shall be in writing and deemed
      given if delivered by hand and receipted or if mailed by registered mail,
      return receipt requested. Notices to the Company shall be directed to the
      Corporate Secretary at the Company's headquarters offices. Notices to the
      Executive shall be directed to the Executive's last known home address.

            (c) Limited Waiver. The waiver by any party hereto of a violation of
      any of the provisions of this Agreement, whether express or implied, shall
      not operate or be construed as a waiver of any subsequent violation of any
      such provision.

            (d) No Assignment. Except as provided herein, no right, benefit,
      obligation or interest hereunder shall be subject to assignment,
      encumbrance, charge, pledge, hypothecation or set off by Executive or the
      Company. The Company, however, may assign its obligations hereunder in the
      event of the transfer of the Executive's employment to an Affiliated
      Company or the divestiture (whether by the sale of shares or assets) of
      the operating company employing the Executive. In the event the
      obligations of the Company under this Agreement are assigned to an
      employing Affiliated Company as contemplated by Section 4(a)(iii), the
      Company agrees to guarantee to Executive the obligations of such
      Affiliated Company under this Agreement. Except as provided in the
      preceding sentence, upon any permitted assignment of the Company's
      obligations hereunder, "Company" shall be deemed to refer to the assignee
      as the context may require.

            (e) Amendment. This Agreement may not be amended, modified or
      cancelled except by written agreement of the parties.

            (f) Severability. In the event that any provision or portion of this
      Agreement shall be determined to be invalid or unenforceable for any
      reason, the remaining provisions of this Agreement shall remain in full
      force and effect to the fullest extent permitted by law.

            (g) Binding Effect. This Agreement shall be binding upon and inure
      to the benefit of the Executive, the Company, its affiliates, and any
      successor organization or organizations which shall succeed to
      substantially all of the business and property of the Company, whether by
      means of merger, consolidation, acquisition of substantially all of the
      assets of the Company or otherwise, including by operation of law.

            (h) Unsecured Promise. Unless otherwise stated herein, no benefit or
      promise hereunder shall be secured by any specific assets of the Company.
      Unless otherwise stated herein, the Executive shall have only the rights
      of an unsecured general creditor of the Company in seeking satisfaction of
      such benefits or promises. Notwithstanding the foregoing, the Company may
      choose to maintain a rabbi trust or trusts for the purpose of paying
      certain of the benefits hereunder or under other plans and programs of the
      Company and, if so, the Executive shall be entitled to payments therefrom,
      if any, as and to the extent provided in such rabbi trust or trusts.

                                       14
<PAGE>

            (i) Governing Law. This Agreement has been made in and shall be
      governed and construed in accordance with the laws of the State of
      Delaware.

            (j) Entire Agreement. This Agreement sets forth the entire agreement
      and understanding of the parties hereto with respect to the matters
      covered hereby. This Agreement supersedes and replaces any prior agreement
      with respect to employment, compensation continuation and the matters
      contained in this Agreement which the Executive may have had with the
      Company or any affiliate.

            (k) Legal Fees and Expenses.

                  (i) The Company shall pay to the Executive as incurred all
            legal and accounting fees and expenses incurred by the Executive as
            a result of the Executive's Involuntary Termination on or during the
            two (2) year period beginning on a Change of Control (including all
            such fees and expenses, if any, in seeking to obtain or enforce any
            right or benefit provided by this Agreement or any other
            compensation-related plan, agreement or arrangement of the Company)
            unless the Executive's claim is found by an arbitral tribunal of
            competent jurisdiction to have been frivolous.

                  (ii) The Company shall pay to the Executive as incurred all
            legal and accounting fees and expenses incurred by the Executive
            during the two (2) year period beginning on a Change of Control as a
            result of both (A) the Executive's Involuntary Termination prior to
            such Change of Control and (B) the Company's refusal after such
            Change of Control to provide any right or benefit provided by this
            Agreement or any other compensation-related plan, agreement or
            arrangement of the Company in respect of such Termination, including
            all such fees and expenses, if any, in seeking to obtain or enforce
            any such right or benefit unless the Executive's claim is found by
            an arbitral tribunal or court of competent jurisdiction to have been
            frivolous.

            (l) Certain AIAP and LTIP Change of Control Provisions.

                  (i) In the event of a Change of Control, the Executive will be
            paid within fifteen (15) business days following the date of such
            Change of Control a lump sum cash payment equal to the Executive's
            AIAP Vested Amount.

                  (ii) Upon a Change of Control, all stock options, shares of
            restricted stock, restricted stock units and restricted stock
            equivalents then held by the Executive under either LTIP shall
            become 100% vested and non-forfeitable on the date of such Change of
            Control and any restrictions thereon shall immediately lapse on such
            date.

                                       15
<PAGE>

            (m) Certain Payments.

                  (i) Anything herein to the contrary notwithstanding, in the
            event that it is determined that any payment or distribution by the
            Company to or for the Executive's benefit, whether paid or payable
            or distributed or distributable pursuant to the terms hereof,
            including but not limited to Section 7(l), or otherwise, other than
            any payment pursuant to this Section 7(m), (a "Payment"), would be
            subject to the excise tax imposed by Section 4999 of the Code or any
            interest or penalties with respect to such excise tax (such excise
            tax, together with any such interest and penalties, are hereinafter
            collectively referred to as the "Excise Tax"), then the Executive
            shall be entitled to receive, within fifteen (15) business days
            following the determination described in Section 7(m)(ii) below, an
            additional payment ("Excise Tax Adjustment Payment") in an amount
            such that after payment by the Executive of all applicable Federal,
            state and local taxes (computed at the maximum marginal rates and
            including any interest or penalties imposed with respect to such
            taxes), including any Excise Tax, imposed upon the Excise Tax
            Adjustment Payment, the Executive shall retain an amount of the
            Excise Tax Adjustment Payment equal to the Excise Tax imposed upon
            the Payments.

                  (ii) All determinations required to be made under this Section
            7(m), including whether Excise Tax Adjustment Payment is required
            and the amount of such Excise Tax Adjustment Payment, shall be made
            by Deloitte & Touche LLP, or such other accounting firm as the
            Company may designate prior to a Change of Control, which shall
            provide to the Company and the Executive detailed supporting
            calculations within fifteen (15) business days of the date of the
            Executive's termination of employment. Except as hereinafter
            provided, any determination by Deloitte & Touche LLP, or such other
            accounting firm as the Company may designate prior to a Change of
            Control, shall be binding upon the Company and the Executive. As a
            result of the uncertainty in the application of Section 4999 of the
            Code at the time of the initial determination hereunder, it is
            possible that (x) Excise Tax Adjustment Payments which should have
            been made will not have been made by the Company ("Underpayment"),
            or (y) certain Payments will have been made which should not have
            been made ("Overpayment"), consistent with the calculations required
            to be made hereunder. In the event of an Underpayment, the Company
            shall promptly determine the amount of the Underpayment that has
            occurred and any such Underpayment shall be promptly paid by the
            Company to or for the Executive's benefit. In the event that the
            Executive discovers that an Overpayment shall have occurred, the
            amount thereof shall be promptly repaid to the Company.

                                       16
<PAGE>

            (n) Arbitration. Following a Change of Control, any dispute or
      controversy arising under or in connection with this Agreement shall be
      settled exclusively by arbitration in New York, New York in accordance
      with the National Rules for the Resolution of Employment Disputes of the
      American Arbitration Association then in effect. The determination of the
      arbitral tribunal shall be conclusive and binding on the parties and
      judgment may be entered on the arbitrator's award in any court having
      jurisdiction.

            (o) Unconditional Obligation. The Company's obligations to make all
      payments and honor all commitments under this Agreement or otherwise
      following a Change of Control or in connection with an Involuntary
      Termination during the two (2) year period beginning on a Change of
      Control shall be absolute and unconditional and shall not be affected by
      any circumstances including, without limitation, any set-off,
      counterclaim, recoupment, defense or other right which the Company may
      have against the Executive.

            (p) Late Payments. To the extent that any payments required to be
      made hereunder following a Change of Control in connection with any
      Involuntary Termination occurring prior to the second anniversary of such
      Change of Control are not made within the period specified therefor, the
      Company shall be liable for interest on such delayed payments at the rate
      of 150% of the prime rate compounded monthly, as posted by the Morgan
      Guaranty Trust Company of New York, from time to time.

                                       17
<PAGE>

            (q) Actuarial Calculations. All required actuarial calculations of
      payments to be made hereunder shall be made by Watson Wyatt Worldwide, New
      York, New York, or such other actuarial firm as the Company may designate
      prior to a Change of Control.

      IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first above written.

                                    NABISCO, INC.

                                    By: /s/ C. Michael Sayeau
                                       -------------------------------------
                                       C. Michael Sayeau
                                       Executive Vice President and
                                       Chief Personnel Officer

                                    NABISCO HOLDINGS CORP.

                                    By: /s/ C. Michael Sayeau
                                       -------------------------------------
                                       C. Michael Sayeau
                                       Executive Vice President and
                                       Chief Personnel Officer

                                    NABISCO GROUP HOLDINGS, INC.

                                    By: /s/ James M. Kilts
                                       -------------------------------------
                                       James M. Kilts
                                       President and Chief Executive Officer

THE EXECUTIVE

/s/ James E. Healey
-------------------
James E. Healey

                                       18
<PAGE>

                                    EXHIBIT A
                                   DEFINITIONS

      AIAP Vested Amount means, as of a Change of Control or as of a Termination
Date during the two (2) year period beginning on a Change of Control, as the
case may be, an amount equal to the value of the Executive's target award under
the relevant AIAP for the relevant performance period in which the Change of
Control or such termination occurs, as the case may be, multiplied by a
fraction, the numerator of which is the number of months (including partial
months) in the period beginning on the first day of the relevant performance
period and ending on the Change of Control or such Termination Date, as the case
may be, and the denominator of which is the number of months in such performance
period; provided that in the event of a termination of employment following a
Change of Control in the year in which a Change of Control occurs, for purposes
of computing the AIAP Vested Amount as of the date of such termination, the
performance period shall be deemed to begin on the first day following the
Change of Control and the target award shall be that in effect immediately
preceding such Change of Control.

      Earned 1999 Program Amount means, as of a Termination Date during the two
(2) year period beginning on a Change of Control, an amount equal to the
Executive's Retention Award or awards under the 1999 Program in respect of
calendar years ending prior to such Termination Date and not previously paid to
the Executive.

      Vested 1999 Program Amount means, as of a Termination Date during the two
(2) year period beginning on a Change of Control, an amount equal to the value
of the Executive's Retention Award under the 1999 Program in respect of the year
in which such Termination Date occurs.

      Retirement Plans means the Retirement Plan for Employees of Nabisco, Inc.,
the Additional Benefits Plan of Nabisco, Inc. and participating Companies, the
Supplemental Benefits Plan of Nabisco, Inc. and participating Companies and the
Supplemental Executive Retirement Plan of Nabisco, Inc. and participating
Companies, and such other plans as the Board may hereafter determine.

      Savings Plans means the Capital Investment Plan of Nabisco, Inc., the
Additional Benefits Plan of Nabisco, Inc. and participating Companies and the
Supplemental Benefits Plan of Nabisco, Inc. and participating Companies, and
such other plans as the Board may hereafter determine.

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