Document:

Form of 2005 Performance Incentive Plan Restricted Stock Agreement

 EXHIBIT 10.2 
 THE KRAFT FOODS INC. 
 2005 PERFORMANCE INCENTIVE PLAN 
 RESTRICTED STOCK AGREEMENT 
 (EXECUTIVE SIGN-ON) 
 (DATE) 
 KRAFT FOODS INC. (the “Company”), a Virginia corporation, hereby grants to the employee identified in the [YEAR] Restricted Stock Award section of the Award Statement (the “Employee”) under The
Kraft Foods Inc. 2005 Performance Incentive Plan (the “Plan”) a Restricted Stock Award (the “Award”) dated [DATE], with respect to the number of shares set forth in the [YEAR] Restricted Stock Award section of the Award Statement
(the “Shares”) of the Common Stock of the Company (the “Common Stock”), all in accordance with and subject to the following terms and conditions: 
 1. Book Entry Registration. The Shares shall be evidenced by a book entry account maintained by the Company’s Transfer Agent for the Common Stock. Upon the vesting of Shares, no certificates will be issued
except upon a separate written request therefor made to such Transfer Agent or other agent as determined by the Company. 
 2.
Restrictions. Subject to Section 3 below, the restrictions on the Shares shall lapse and the Shares shall vest based on the Vesting Schedule set forth in the [YEAR] Restricted Stock section of the Award Statement of this document (the
“Vesting Schedule”), provided that the Employee remains an employee of the Company (or a subsidiary or affiliate) during the entire period (the “Restriction Period”) commencing on the Award Date set forth in the Award Statement
and ending on the Vesting Dates. 
 3. Termination of Employment During Restriction Period. In the event of the termination of the
Employee’s employment with the Company (and with all subsidiaries and affiliates of the Company) prior to the Vesting Date due to death, Disability, or Normal Retirement, the restrictions on the Shares shall lapse and the Shares shall become
fully vested on the date of death, Disability, or Normal Retirement. 
 If the Employee’s employment with the Company (and with all
subsidiaries and affiliates of the Company) is involuntarily terminated for reasons other than for cause, the Employee shall vest in the Shares in accordance with the Vesting Schedule set forth in the Award Statement. 
 If the Employee’s employment with the Company (and with all subsidiaries and affiliates of the Company) is terminated involuntarily for cause, the
Employee shall forfeit all rights to the Shares. Notwithstanding the foregoing, the Compensation Committee of the Board of Directors of the Company may, in its sole discretion, waive the restrictions on, and the vesting requirements for, the Shares.

 For purposes of the above paragraph, “cause” means: 1) continued failure by one to substantially perform their job duties (other
than failure resulting from incapacity due to disability); 2) one’s gross negligence, dishonesty, or violation of any reasonable rule or regulation of the Company where the violation results in significant damage to the Company; or 3) one
engaging in other conduct which materially adversely reflects on the Company. 
 4. Voting and Dividend Rights. During the
Restriction Period, the Employee shall have the rights to vote the Shares and to receive any cash dividends payable with respect to the Shares, as paid, less applicable withholding taxes.  
 5. Transfer Restrictions. This Award and the Shares (until they become unrestricted pursuant to the terms hereof) are non-transferable and may not
be assigned, pledged or hypothecated and shall not be subject to execution, attachment or similar process. Upon any attempt to effect any such disposition, or upon the levy of any such process, the Award shall immediately become null and void and
the Shares shall be forfeited. 

 6. Withholding Taxes. The Company is authorized to satisfy the minimum statutory withholding taxes
(including withholding pursuant to applicable tax equalization policies of the Company and its subsidiaries and affiliates) arising from the granting or vesting of this Award, as the cases may be, by (i) deducting the number of shares having an
aggregate value equal to the amount of withholding taxes due from the total number of shares awarded or the number of shares vesting or otherwise becoming subject to current taxation; or (ii) deducting the required amounts from any proceeds
realized by the Employee upon the sale of vested Shares. Shares deducted from this Award in satisfaction of withholding requirements shall be valued at the Fair Market Value of the Shares on the date as of which the amount giving rise to the
withholding requirement first became includible in the gross income of the Employee under applicable tax laws or tax equalization policies of the Company and its subsidiaries and affiliates. 
 7. Death of Employee. If any of the Shares shall vest upon the death of the Employee, they shall be registered in the name of the estate of the
Employee unless the Company shall have theretofore received in writing a beneficiary designation, in which event they shall be registered in the name of the designated beneficiary. 
 8. Other Terms and Provisions. The terms and provisions of the Plan (a copy of which will be furnished to the Employee upon written request to the
Office of the Corporate Secretary, Kraft Foods Inc., Three Lakes Drive, Northfield, IL 60093) are incorporated herein by reference. To the extent any provision of this Award is inconsistent or in conflict with any term or provision of the Plan, the
Plan shall govern. For purposes of this Agreement, (a) the term “Disability” means permanent and total disability as determined under procedures established by the Company for purposes of the Plan, and (b) the term “Normal
Retirement” means retirement from active employment under a pension plan of the Company, any subsidiary or affiliate or under an employment contract with any of them on or after the date specified as the normal retirement age in the pension
plan or employment contract, if any, under which the Employee is at that time accruing pension benefits for his or her current service (or, in the absence of a specified normal retirement age, the age at which pension benefits under such plan or
contract become payable without reduction for early commencement and without any requirement of a particular period of prior service). In any case in which (i) the meaning of “Normal Retirement” is uncertain under the definition
contained in the prior sentence or (ii) a termination of employment at or after age 65 would not otherwise constitute “Normal Retirement,” an Employee’s termination of employment shall be treated as a “Normal
Retirement” under such circumstances as the Committee, in its sole discretion, deems equivalent to retirement. For purposes of this Agreement, (x) a “subsidiary” includes only any company in which the Company, directly or
indirectly, has a beneficial ownership interest of greater than 50 percent and (y) an “affiliate” includes only any company that (A) has a beneficial ownership interest, directly or indirectly, in the Company of greater than 50
percent or (B) is under common control with the Company through a parent company that, directly or indirectly, has a beneficial ownership interest of greater than 50 percent in both the Company and the affiliate. Capitalized terms not otherwise
defined herein have the meaning set forth in the Plan. 

 IN WITNESS WHEREOF, this Restricted Stock Agreement has been duly executed as of DATE. 
  

	
	KRAFT FOODS INC.
	
	  

	Executive Vice President
	Global Human ResourcesOffer of Employment Letter

 EXHIBIT 10.3 
 VIA FEDERAL EXPRESS 
 PERSONAL AND CONFIDENTIAL 
 August 22, 2007 
 Mr. Timothy McLevish 
 724
Jane Drive 
 Franklin Lakes, NJ 07417 
 Dear Tim, 
 I am very pleased to provide you with this letter confirming the verbal offer that has been extended to you for the position of Executive Vice President and Chief
Financial Officer located in Northfield, Illinois, USA. If you accept our offer, we have discussed our interest in you joining Kraft as soon as possible. This letter sets forth all of the terms and conditions of the offer. 
 Listed below are details of your compensation and benefits that will apply to this offer. 
 Annualized Compensation 
  

				
	 Annual Base Salary
	  	$	675,000
		
	 Target Management Incentive Plan – (90%*)
	  	$	607,500
		
	 Target Long-Term Incentive Plan – (150%*)
	  	$	1,012,500
		
	 Target Annual Equity Award
	  	$	1,475,000
		
	 Total Annual Target Compensation
	  	$	3,770,000

	*	Target as a percent of base salary. 

 Annual Incentive Plan 

 You will be eligible to participate in the Kraft Management Incentive Plan (MIP), which is the Company’s annual incentive program. Your target award
opportunity under the MIP is equal to 90% of your base salary. The actual amount you will receive may be lower or higher depending on your individual performance and the performance of Kraft Foods Inc. Your 2007 award will be payable in February
2008. Your MIP eligibility will begin on your date of employment. 
  

 August 22, 2007 
  Page

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 of 4 
  

 Long-Term Incentive Plan 
 You will also be eligible to participate in the Long-Term Incentive Plan (LTIP), which is the Company’s executive long-term cash incentive program. The current LTIP performance cycle began on January 1, 2007
and is scheduled to end on December 31, 2009. Your LTIP eligibility will begin on your employment date. Your target opportunity under the LTIP is equal to 150% of your average base salary during the performance cycle. The actual amount you will
receive may be lower or higher depending upon the performance of Kraft Foods Inc. during the performance cycle. It is anticipated that the form of award under this program in the future will be stock-based beginning with the 2008 – 2010
performance cycle. 
 Stock Program 
 Also, you
will be eligible to participate in the Company’s stock award program. Stock awards are typically made on an annual basis, with the next award anticipated to be granted in the first quarter of 2008. The most recent stock program design delivered
100% of equity value in the form of restricted stock with a three-year cliff vest. The Compensation Committee has approved a change to the program beginning in 2008. Going forward, awards will delivered as follows: 50% of equity value in restricted
stock and 50% in stock options. Actual award size is based on individual potential and performance. 
 Sign-On Incentives 
 In recognition of the loss of short-term and long-term incentives from your previous employer, upon hire, you will receive one-time sign-on incentives in the form of cash
and restricted stock as follows: 
  

			
	Cash Sign-On Incentive	  	$500,000 with a two-year repayment agreement
		
	Equity Sign-On Incentive	  	$1,500,000 restricted stock award to vest one-third each year over a three-year period

 If, prior to the end of the two-year repayment period, your employment with the Company ends due to involuntary
termination for reasons other than cause, you will not be required to repay the cash sign-on amount. 
 Similarly, if prior to full vesting of the sign-on
restricted shares granted per this offer letter, your employment with the Company ends due to involuntary termination for reasons other than cause, the value of the total number of unvested shares shall vest on the scheduled vesting dates. The
number of shares that you will receive will be determined based upon the fair market value of Kraft Foods Inc. Common Stock on your date of hire. You will receive dividends on the shares during the vesting period consistent in amount and timing with
that of Common Stock shareholders. 

 August 22, 2007 
  Page

 3
 of 4 
  

 The stock award will vest based on the following schedule: 
  

			
	 Number of Shares
	  	 Vesting Date

	One-third	  	1st anniversary from date of grant
	One-third	  	2nd anniversary from date of grant
	One-third	  	3rd anniversary from date of grant

 For purposes of this offer letter, “cause” means: 1) continued failure to substantially perform the
job’s duties (other than resulting from incapacity due to disability); 2) gross negligence, dishonesty, or violation of any reasonable rule or regulation of the Company where the violation results in significant damage to the Company; or 3)
engaging in other conduct which materially adversely reflects on the Company. 
 The other terms and conditions set forth in Kraft’s standard Stock
Award Agreement will apply. 
 Perquisites 
 You
will be eligible for a company car allowance under the executive perquisite policy. The Company leases new company cars for business and personal use by executives. Under the policy, cars are leased for a three-year period. The company will provide
you with a car with a maximum value of $45,000. You can invest your own funds if the value of the car exceeds $45,000. You will have an opportunity to purchase the car at the end of the lease period. You will be eligible for an annual financial
counseling allowance of $7,500. You may use any firm of your choosing. 
 Stock Ownership Guidelines 
 You will be required to attain and hold Company stock equal in value to six times your base salary. You will have five years from your date of employment to achieve this
level of ownership. Stock held for ownership determination includes common stock held directly or indirectly, unvested restricted stock or share equivalents held in the Company’s 401(k) plan. It does not include unexercised stock option shares.

 Other Benefits 
 Your offer includes
Kraft’s comprehensive benefits package available to full-time salaried employees. This benefits package is described in the enclosed Kraft Benefits Summary brochure. You will be eligible for four weeks of vacation. In addition, you are eligible
for ten designated holidays and two personal days. 

 August 22, 2007 
  Page

 4
 of 4 
  

 You will be a U.S. employee of Kraft Foods and your employment status will be governed by and shall be construed in
accordance with the laws of the United States. As such, your status will be that of an “at will” employee. This means that either you or Kraft is free to terminate the employment relationship at any time, for any reason. 
 If your employment with the Company ends due to an involuntary termination other than for cause, you will receive severance arrangements no less favorable than those
accorded recently terminated senior executives of the Company. 
 To assist in your relocation from New Jersey to Illinois, we offer relocation assistance as
outlined in Kraft’s Relocation Guide. In addition to the standard relocation policy, you will be eligible for temporary living accommodations for a period of up to seven months. 
 This offer is contingent upon successful completion of our pre-employment checks, which may include a standard background screen and post-offer drug test pursuant to testing procedures determined by Kraft. 

If you have any questions, I can be reached at the office at (847) 646-6042 or on my cell phone at (847) 341-0905. 
 Sincerely, 
 /s/ Karen J. May 
 I accept the offer as expressed above. 
  

					
	 /s/ Timothy R. McLevish
	  	 August 24, 2007
	  	
	 Signature
	  	Date	  	

  

			
	Enclosure:	  	Kraft Foods Benefits Summary
		  	Restricted Stock Agreement
		  	Employee Expense Repayment Agreement

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