Document:

EX-10.1

Exhibit 10.1

CONSENT AND RATIFICATION AGREEMENT

     This CONSENT AND RATIFICATION AGREEMENT (this “Agreement”) is entered into as of April
21, 2009 by and among:

NATIONAL CITY BUSINESS CREDIT, INC., as Administrative Agent and Collateral Agent (in such
capacities, the “Agent”) for the Revolving Credit Lenders party to the Loan
Agreement referenced below;

     THE REVOLVING CREDIT LENDERS;

     FILENE’S BASEMENT, INC., a Delaware corporation (the “Borrower”);

     RETAIL VENTURES, INC., an Ohio corporation (“RVI”); and

     FB II ACQUISITION CORP., a Delaware corporation (the “Purchaser”),

in consideration of the mutual covenants herein contained and benefits to be derived herefrom.

W I T N E S S E T H:

     WHEREAS, reference is made to that certain Second Amended and Restated Loan and Security
Agreement dated as of January 23, 2008 (as amended, modified, supplemented or restated and in
effect from time to time, the “Loan Agreement”) by, among others, (i) the Borrower, (ii)
the Revolving Credit Lenders named therein, (iii) the Agent, and (iv) National City Bank, as
Issuer, pursuant to which the Agent and the Revolving Credit Lenders have agreed to provide loans
and other financial accommodations to or for the benefit of the Borrower;

     WHEREAS, reference is further made to that certain Second Amended and Restated Guaranty dated
as of January 23, 2008 (as amended, modified, supplemented or restated and in effect from time to
time, the “Guaranty”) by RVI and the other Facility Guarantors party thereto, in favor of
the Agent and the Secured Parties referenced therein, pursuant to which RVI and the other Facility
Guarantors jointly and severally unconditionally guarantied the payment and performance of the
Liabilities (as defined therein) of the Borrower;

     WHEREAS, reference is further made to that certain Second Amended and Restated Security
Agreement dated as of January 23, 2008 (as amended, modified, supplemented or restated and in
effect from time to time, the “Security Agreement”) by and among RVI and the other Facility
Guarantors party thereto (as Debtors thereunder) and the Collateral Agent, pursuant to which RVI
and the other Facility Guarantors granted a security interest in substantially all of their assets
(other than the Excluded Assets (as defined therein)) to the Collateral Agent, for the ratable
benefit of the Secured Parties (as defined therein) to secure their obligations arising under the
Guaranty;

     WHEREAS, reference is further made to that certain Second Amended and Restated Ownership
Interest Pledge Agreement dated as of January 23, 2008 (as amended, modified,

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supplemented or
restated and in effect from time to time, the “Pledge Agreement”) by RVI and the Collateral
Agent, pursuant to which, among other things, RVI pledged to the Collateral Agent, as security for
its obligations arising under the Guaranty and as a supplement to the grant of security interest
provided in the Security Agreement, all of RVI’s right, title and interest in and to (i) the shares
of capital stock and other equity interests of the Borrower (the “Borrower Shares”), and
(ii) the limited liability company interests of FB Services LLC (“Services LLC”) (the
“Services LLC Interests”) and its wholly-owned subsidiary, FB Leasing Services LLC
(“Leasing LLC”) (the “Leasing LLC Interests”, and together with the Services LLC
Interests, the “LLC Interests”, and together with the Borrower Shares, collectively, the
“Transferred Interests”);

     WHEREAS, reference is made to that certain Purchase Agreement dated as of April 21, 2009 (the
“Purchase Agreement”), by and between the Purchaser and RVI (as Seller thereunder), a true
and complete copy of which is annexed hereto as Exhibit A, pursuant to which RVI has agreed
to sell, and the Purchaser has agreed to purchase, the Transferred Interests (the “Sale”)
subject to the security interests in the Transferred Interests held by the Agent, for the ratable
benefit of the Secured Parties;

     WHEREAS, the Borrower has advised the Agent and the Revolving Credit Lenders that
contemporaneously with the execution of the Purchase Agreement, the Borrower intends to incur
Indebtedness in favor of Mesirow Insurance Services, Inc. (the “Insurance Lender”) in the
amount of $681,451.83 (the “Insurance Indebtedness”) pursuant to that certain Premium
Finance Agreement dated as of April 21, 2009 (the “Insurance Agreement”) by and between the
Borrower and the Insurance Lender, a true and complete copy of which is annexed hereto as
Exhibit B, for the purpose of financing the premiums due under the Borrower’s insurance
policies being issued on or about the date hereof, and that as security for such Insurance
Indebtedness, the Borrower intends to grant a security interest (the “Insurance Lien”) in
favor of the Insurance Lender on all unearned premiums or other sums which may become payable under
the insurance policies described in the Insurance Agreement;

     WHEREAS, pursuant to the Loan Agreement, the incurrence of the Insurance Indebtedness and the
granting of the Insurance Lien (collectively, the “Insurance Transactions”) are prohibited
absent the prior written consent of the Agents and the Revolving Credit Lenders;

     WHEREAS, the Purchase Agreement provides that following the Closing (as defined in the
Purchase Agreement), the Purchaser shall transfer the Services LLC Interests to the Borrower (the
“LLC Transfer”);

     WHEREAS, pursuant to the Loan Agreement, the Security Agreement and the Pledge Agreement, RVI
is prohibited from selling any Collateral, including, without limitation, the Transferred
Interests, without the prior written consent of the Agent and the Revolving Credit Lenders (except
to the extent otherwise set forth in the Loan Agreement);

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          WHEREAS, RVI and the Borrower have requested that the Agent and the Revolving Credit Lenders
consent to the Sale, the LLC Transfer, and the Insurance Transactions and make the other agreements
described herein;

     WHEREAS, the Agent and the Revolving Credit Lenders are willing to so consent and make such
other agreements, subject in each case to the terms and conditions of this Agreement;

     NOW, THEREFORE, the parties hereto hereby agree as follows:

	1.	 	Definitions. Unless otherwise defined herein, all capitalized terms used herein
shall have the meanings set forth in the Loan Agreement.
	 
	2.	 	Consent. In express reliance upon the terms and conditions of this letter agreement,
including without limitation, the Borrower’s, RVI’s, and the Purchaser’s representations and
warranties herein, the Agent and the Revolving Credit Lenders hereby consent to the Sale, the
Insurance Transactions, and the LLC Transfer and waive any Event of Default which otherwise
would be occasioned thereby, subject in each case to the terms and conditions set forth
herein.
	 
	3.	 	Purchase Price. RVI and the Purchaser each hereby acknowledges and agrees that the
entire Purchase Price to be paid by the Purchaser and all proceeds to be received by RVI
pursuant to the Purchase Agreement, including, without limitation, any Applicable Proceeds (as
defined in the Purchase Agreement) (collectively, the “Sale Proceeds”) shall be paid
directly to the Agent by federal wire transfer in immediately available funds for application
to the outstanding Liabilities.
	 
	4.	 	Purchase Agreement; Insurance Agreement. The foregoing consent of, and waiver by,
the Agent and the Revolving Credit Lenders is also based on (i) the Sale being consummated and
the LLC Transfer occurring in accordance with the terms and conditions of the Purchase
Agreement annexed hereto as Exhibit A, and (ii) the Insurance Transactions being
consummated in accordance with the terms and conditions of the Insurance Agreement annexed
hereto as Exhibit B. Without the prior written consent of the Agent, (x) no material
provisions of the Purchase Agreement may be modified, amended, or waived by RVI or the
Purchaser, and (y) no material provisions of the Insurance Agreement may be modified, amended,
or waived by the Borrower.
	 
	5.	 	Joinder by Services LLC and Leasing LLC. The foregoing consent of, and waiver by,
the Agent and the Revolving Credit Lenders is also conditioned upon Services LLC’s and Leasing
LLC’s having previously entered into a joinder agreement, in form and substance reasonably
satisfactory to the Agent, pursuant to which, among other things, each of Services LLC and
Leasing LLC shall have joined the Loan Documents as a Facility Guarantor and shall have
granted to the Agent a security interest in its assets of the type constituting Collateral.
	 
	6.	 	No Assumption of Duties. Under no circumstances shall the Agent or any Revolving
Credit Lender be obligated to perform, discharge, or assume, nor do the Agent or the

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	 	 	Revolving Credit Lenders agree to perform, discharge, or assume, any obligation, duty, or
liability of RVI or the Purchaser under Purchase Agreement.
	 
	7.	 	No Waiver of Loan Documents. The foregoing consent of, and waiver by, the Agent and
the Revolving Credit Lenders shall in no way constitute a modification or waiver of any of the
other terms and conditions of the Loan Agreement or any of the other Loan Documents, and the
sale or other transfer of any additional Collateral must strictly comply with the terms and
conditions of the Loan Agreement and the other Loan Documents. The consent and waiver
furnished herein relates solely to the Sale, the Insurance Transactions, and the LLC Transfer
and is not a continuing waiver.
	 
	8.	 	Amendment and Ratification of Loan Documents.

	 	a.	 	Upon consummation of the Sale and effectiveness of the consent provided hereby,
(i) the Pledge Agreement shall be deemed amended by deleting from Annex A thereof the
references to “Filene’s Basement, Inc.” and “FB Services LLC” and all information
relating thereto. and (ii) the Agent shall deliver or cause to be delivered to RVI or
its counsel Certificate Number 2, evidencing 100 shares of capital stock of the
Borrower owned by RVI, together with the stock power previously delivered to the Agent
in connection therewith, copies of each of which are annexed hereto as Exhibit
C, provided that in exchange therefor, the Purchaser shall have delivered
or caused to be delivered to the Agent all stock certificates and stock powers
evidencing the Purchaser’s right, title and interest in and to the capital stock of the
Borrower as further described in Section 11 hereof.
	 
	 	b.	 	Except as expressly provided herein, the Loan Agreement and each other Loan
Document, including, without limitation, the Guaranty, the Pledge Agreement, and the
Security Agreement, remain in full force and effect.
	 
	 	c.	 	Without limiting the generality of the foregoing, (i) each of RVI and each
other Facility Guarantor hereby (A) ratifies, confirms, and reaffirms all of the terms
and conditions of the Guaranty and each of the warranties and representations made
therein, (B) confirms that all such terms and conditions remain in full force and
effect, and (C) acknowledges and agrees that the Liabilities guarantied pursuant to the
Guaranty include, without limitation, any Liabilities arising under the Loan Agreement
and the other Loan Documents and any modification, supplement, or extension thereof
(the “Guaranteed Debt”), provided, however, that the aggregate
principal amount of the Guaranteed Debt shall not be increased following the
commencement by the Borrower of a bankruptcy case as described in Section 13 below
(except to the extent such increase arises as a result of a drawing on an L/C issued
and outstanding on the date thereof or the incurrence of any Costs of Collection), and
(ii) each of the Borrower, RVI and each other Facility Guarantor hereby acknowledges
and agrees that the Collateral continues to secure all of the Guaranteed Debt.

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	 	d.	 	RVI and each Facility Guarantor acknowledges and agrees that the foregoing
ratification of the Guaranty includes the indemnification therein, and that the
indemnification would cover any claim, demand, threat, action, or cause of action
brought or asserted against any of the Agent and/or the Revolving Credit Lenders
arising out of or in any way related to the consent granted herein.
	 
	 	e.	 	As further security for its obligations under the Guaranty, RVI covenants and
agrees that it shall maintain with National City Bank an interest-bearing deposit
account, under the control of the Agent, having a balance of not less than
$2,500,000.00 at all times until such time as Guaranteed Debt (excluding the
Participation (as defined in the Participation Agreement)) shall have been indefeasibly
paid in full in cash, the Revolving Credit Lenders’ commitment to provide loans or
other financial accommodations to the Borrower shall have been terminated, and all
outstanding L/Cs shall have expired, been returned undrawn or otherwise cash
collateralized in a manner reasonably satisfactory to the Agent and the Issuing Bank
(collectively, “Paid In Full”).

	9.	 	Insurance Transactions. As a condition precedent to the effectiveness of the consent
to the Insurance Transactions, the Borrower shall have provided to the Agent, in form and
substance reasonably satisfactory to the Agent, evidence of the Borrower’s insurance policies
of the types and with the terms required by the Loan Agreement, together with endorsements to
such insurance policies naming the Agent as loss payee and/or additional insured and otherwise
in form and substance reasonably satisfactory to the Agent.
	 
	10.	 	Transferred Interests Remain Subject to Lien of Agent. As provided in Section 1.1(a)
of the Purchase Agreement, RVI is selling the Transferred Interests to the Purchaser subject
to the security interests granted by RVI to the Agent, for the ratable benefit of the Secured
Parties. The Purchaser hereby (i) confirms, acknowledges and agrees that the Purchaser is
purchasing the Transferred Interests subject to such security interests on a non-recourse
basis, which shall remain in full force and effect following the Sale, and (ii) ratifies the
grant of such security interests (on a non-recourse basis) to the Agent, for the ratable
benefit of the Secured Parties.
	 
	11.	 	Security Interest in Transferred Interests. As a condition precedent to the
effectiveness of the consent provided hereby, the Purchaser shall execute and deliver to the
Agent (A) a pledge and security agreement, in form and substance satisfactory to the Agent,
evidencing the grant of security interest by the Purchaser (on a non-recourse basis) to the
Agent, for the ratable benefit of the Secured Parties, in the Transferred Interests, as
security for (i) RVI’s obligations arising under the Guaranty, and (ii) the Liabilities
(including, without limitation, any Liabilities arising under the Loan Agreement and the other
Loan Documents and any modification, supplement, or extension thereof), whether now existing
or hereafter arising, and (B) all stock certificates and other equity interest certificates
representing the Transferred Interests, accompanied by stock powers or other appropriate
instruments of assignment thereof duly executed in blank by the Purchaser. As a further
condition precedent to the effectiveness of the consent provided hereby, (x) the Borrower
shall execute and deliver a pledge and security agreement, in form and

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	 	 	substance satisfactory to the Agent, evidencing the grant of security interest by the
Borrower to the Agent, for the ratable benefit of the Secured Parties, in the Services LLC
Interests, and (y) Services LLC shall execute and deliver a pledge and security agreement,
in form and substance satisfactory to the Agent, evidencing the grant of security interest
by Services LLC to the Agent, for the ratable benefit of the Secured Parties, in the Leasing
LLC Interests.
	 
	12.	 	Retention of Chief Restructuring Officer and Independent Consultant. The Borrower
acknowledges, agrees, and covenants that until such time as the Guaranteed Debt shall have
been Paid In Full, the Borrower shall continue to retain (i) as Chief Restructuring Officer,
Alan Cohen of Abacus Advisors Group LLC, or such other Person as approved by the board of
directors of the Borrower and accepted by the Agent and the Revolving Credit Lenders in their
discretion, and (ii) as Financial Consultant, Perry Mandarino of PricewaterhouseCoopers, or
such other Person as approved by the board of directors of the Borrower and accepted by the
Agent and the Revolving Credit Lenders in their discretion. RVI and the Purchaser each
acknowledges, agrees, and covenants that it will not take any actions inconsistent with the
foregoing agreement by the Borrower until such time as the Guaranteed Debt shall have been
Paid In Full. This Section 12 may be amended by the Borrower, the Purchaser, the Agent and
the Revolving Credit Lenders from time to time without the consent of RVI, provided,
that any such amendment shall not increase the obligations or liabilities of RVI in any
respect (except to the extent such obligations or liabilities may otherwise be increased in
accordance with the terms of this Agreement) without the prior written consent of RVI.
	 
	13.	 	Forbearance From Enforcement of Guaranty. The Agent and the Revolving Credit Lenders
agree to forbear from making demand upon RVI for payment under the Guaranty until the
substantial completion of the sale and/or liquidation of the Borrower’s business and assets,
so long as (i) all terms and conditions of this letter agreement are performed and there is no
breach hereunder by the Borrower, RVI, or the Purchaser, (ii) the Agent, the Revolving Credit
Lenders, and the Borrower agree upon all terms and conditions of a mutually acceptable order
for use of cash collateral (the “Cash Collateral Order”) containing terms and
conditions customary and usual for cases involving retail bankruptcy sales/liquidations, prior
to the commencement by the Borrower of a bankruptcy case, which the Borrower expects to
commence on or about April 21, 2009, and (iii) no Event of Default has occurred under the Cash
Collateral Order, provided, that the Cash Collateral Order shall provide that in the
event RVI shall cause the Guaranteed Debt to be Paid In Full as a result of an Event of
Default under the Cash Collateral Order, RVI shall immediately assume and benefit from all
rights and obligations of the Agent under the Cash Collateral Order (including, without
limitation, to the extent permitted under applicable law, all claims, suits, causes of action
and any other right of the Agent against the Borrower).
	 
	14.	 	Consent Fee. Upon execution of this letter agreement, RVI shall pay to the Agent
for the ratable benefit of the Revolving Credit Lenders a consent fee in the amount of
$100,000.00. The consent fee shall be fully earned upon the execution of this letter

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	 	 	agreement and shall not be refunded or disgorged in whole or in part under any
circumstances.
	 
	15.	 	Miscellaneous.

	 	a.	 	This Agreement may be executed in several counterparts and by each party on a
separate counterpart, each of which, when so executed and delivered, shall be an
original, and all of which together shall constitute one instrument.
	 
	 	b.	 	This Agreement expresses the entire understanding of the parties with respect
to the matters set forth herein. No prior discussions or negotiations shall limit,
modify, or otherwise affect the provisions hereof.
	 
	 	c.	 	Any determination that any provision of this Agreement or any application
hereof is invalid, illegal or unenforceable in any respect and in any instance shall
not effect the validity, legality, or enforceability of such provision in any other
instance, or the validity, legality or enforceability of any other provisions of this
Agreement.
	 
	 	d.	 	The Borrower shall pay on demand all costs and expenses of the Agent and the
Revolving Credit Lenders, including, without limitation, reasonable attorneys’ fees, in
connection with the preparation, negotiation, execution and delivery of this Agreement.
	 
	 	e.	 	The Borrower, RVI, and the Purchaser, at their expense, shall execute such
additional documents and undertake such additional actions as the Agent may reasonably
request in order to more fully evidence the agreements set forth herein,
provided, that as between RVI and the Purchaser, RVI shall reimburse the
Purchaser for any of the foregoing expenses.
	 
	 	f.	 	This Agreement and all rights and obligations hereunder, including matters of
construction, validity, and performance, shall be governed by the laws of the State of
Ohio, without regard to principles of conflicts of law thereof.
	 
	 	g.	 	This Agreement shall constitute a Loan Document for all purposes.

[SIGNATURE PAGES FOLLOW]

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     IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the day and year first
above written.

	 	 	 	 	 	 	 
	 	 	NATIONAL CITY BUSINESS CREDIT, INC., as Agent and as
	 	 	a Revolving Credit Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

Signature Page to Consent and Ratification Agreement

 

 

	 	 	 	 	 	 	 
	 	 	WELLS FARGO RETAIL FINANCE, LLC, as a Revolving Credit Lender
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

Signature Page to Consent and Ratification Agreement

 

 

	 	 	 	 	 	 	 
	 	 	FILENE’S BASEMENT, INC., as Borrower	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

Signature Page to Consent and Ratification Agreement

 

 

	 	 	 	 	 	 	 
	 	 	RETAIL VENTURES, INC., as RVI	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

James A. McGrady
	 	 
	 

	 	Title:
	 	Chief Executive Officer, Chief Financial
Officer, Treasurer and Secretary	 	 

Signature Page to Consent and Ratification Agreement

 

 

	 	 	 	 	 	 	 
	 	 	FB II ACQUISITION CORP., as Purchaser	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

Scott Rusczyk
	 	 
	 

	 	Title:
	 	President	 	 

Signature Page to Consent and Ratification Agreement

 

 

Acknowledged and Agreed (for purposes of
Section 8 and 15 only):

	 	 	 	 	 
	RETAIL VENTURES LICENSING, INC., as a Facility Guarantor	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	Name:

	 	 

	 	 
	Title:

	 	 

	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	RETAIL VENTURES IMPORTS, INC., as a Facility Guarantor	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	Name:

	 	 

	 	 
	Title:

	 	 

	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	RETAIL VENTURES SERVICES, INC., as  a Facility Guarantor	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	Name:

	 	 

	 	 
	Title:

	 	 

	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	FB SERVICES LLC, as a Facility Guarantor	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	Name:

	 	 

	 	 
	Title:

	 	 

	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	FB LEASING SERVICES LLC, as a Facility Guarantor	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	Name:

	 	 

	 	 
	Title:

	 	 

	 	 
	 

	 	 

	 	 

Signature Page to Consent and Ratification AgreementEX-10.1

Exhibit
10.1

 

    KELLOGG
    COMPANY 2009 LONG-TERM INCENTIVE PLAN

 

    1. PURPOSE. The purpose of the 2009 Long-Term
    Incentive Plan is to further and promote the interests of
    Kellogg Company, its Subsidiaries and its shareowners by
    enabling the Company and its Subsidiaries to attract, retain and
    motivate employees and officers or those who will become
    employees or officers, and to align the interests of those
    individuals and the Company’s shareowners. To do this, the
    Plan offers performance-based incentive awards and equity-based
    opportunities providing such employees and officers with a
    proprietary interest in maximizing the growth, profitability and
    overall success of the Company and its Subsidiaries.

 

    2. DEFINITIONS. Unless the context clearly
    indicates otherwise, for purposes of the Plan, the following
    terms shall have the following meanings:

 

    2.1. “10% Shareowner” has the
    meaning set forth in Section 6.2.

 

    2.2. “Award” means an award or
    grant made to a Participant under Sections 6, 7, 8
    and/or 9 of
    the Plan.

 

    2.3. “Award Agreement” means the
    written agreement executed by a Participant pursuant to
    Sections 3.2 and 16.7 of the Plan in connection with the
    granting of an Award.

 

    2.4. “Base Value” has the meaning
    set forth in Section 7.2.

 

    2.5. “Board” means the Board of
    Directors of the Company, as constituted from time to time.

 

    2.6. “Change in Control” has the
    meaning set forth in Section 14.2.

 

    2.7. “Change in Control Price” has
    the meaning set forth in Section 13.3

 

    2.8. “Code” means the Internal
    Revenue Code of 1986, as in effect and as amended from time to
    time, or any successor statute thereto, together with any rules,
    regulations and interpretations promulgated thereunder or with
    respect thereto.

 

    2.9. “Collective Awards” means
    Awards together with any awards issued under Old Plans as of the
    Effective Date.

 

    2.10. “Committee” means the
    committee of the Board designated to administer the Plan, as
    described in Section 3 of the Plan.

 

    2.11. “Common Stock” means the
    Common Stock, par value $0.25 per share, of the Company or any
    security of the Company issued by the Company in substitution or
    exchange therefor.

 

    2.12. “Company” means Kellogg
    Company, a Delaware corporation, or any successor corporation to
    Kellogg Company.

 

    2.13. “Covered Employee” has the
    meaning set forth in Section 9.6.

 

    2.14. “Director” means a director
    of the Company.

 

    2.15. “Disability” means disability
    as defined in the Participant’s then effective employment
    agreement, or if the Participant is not then a party to an
    effective employment agreement with the Company which defines
    disability, “Disability” means disability as
    determined by the Committee in accordance with standards and
    procedures similar to those under the Company’s long-term
    disability plan, if any. Subject to the first sentence of this
    Section 2.15, at any time that the Company does not
    maintain a long-term disability plan, “Disability”
    shall mean any physical or mental disability which is determined
    to be total and permanent by a physician selected in good faith
    by the Company. Notwithstanding the foregoing, for purposes of
    Incentive Stock Options “Disability” shall mean a
    permanent and total disability as defined in
    Section 22(e)(3) of the Code, and for purposes of any Award
    that is subject to Section 409A of the Code,
    “Disability” shall mean that a Participant is
    “disabled” under Section 409A(a)(2)(c)(i) or
    (ii) of the Code.

 

    2.16. “Effective Date” has the
    meaning set forth in Section 16.11.

 

    2.17. “Exchange Act” means the
    Securities Exchange Act of 1934, as in effect and as amended
    from time to time, or any successor statute thereto, together
    with any rules, regulations and interpretations promulgated
    thereunder or with respect thereto.

    

    1

 

    2.18. “Exercise Value” has the
    meaning set forth in Section 7.2.

 

    2.19. “Fair Market Value” on any
    date means (a) the officially quoted closing price in the
    primary trading session for a share of the Common Stock on the
    New York Stock Exchange-Composite Transactions Tape or on any
    other stock exchange, if any, on which the Common Stock is
    primarily traded (or if no shares of the Common Stock were
    traded on such date, then on the most recent previous date on
    which any shares of the Common Stock were so traded), or
    (b) if clause (a) is not applicable, the value of a
    share of the Common Stock for such date as established by the
    Committee, using any reasonable method of valuation consistent
    with the requirements of Section 409A of the Code.

 

    2.20. “Incentive Stock Option”
    means any stock option granted pursuant to the
    provisions of Section 6 of the Plan (and the relevant Award
    Agreement) that is intended to be (and is specifically
    designated as) an “incentive stock option” within the
    meaning of Section 422 of the Code.

 

    2.21. “Incumbent Board” has the
    meaning set forth in Section 14.2.

 

    2.22. “Merger Event” has the
    meaning set forth in Section 13.3.

 

    2.23. “Net Exercise” means a
    Participant’s ability to exercise a Stock Option by
    directing the Company to deduct from the shares of Common Stock
    issuable upon exercise of his or her Stock Option a number of
    shares of Common Stock having an aggregate Fair Market Value
    equal to the sum of the aggregate exercise price therefor plus
    the amount of the Participant’s minimum tax withholding (if
    any), whereupon the Company shall issue to the Participant the
    net remaining number of shares of Common Stock after such
    deductions.

 

    2.24. “Non-Employee Director” means
    a director of the Company who is a “nonemployee
    director” within the meaning of
    Rule 16b-3
    promulgated under the Exchange Act.

 

    2.25. “Non-Qualified Stock Option”
    means any Stock Option granted pursuant to the
    provisions of Section 6 of the Plan (and the relevant Award
    Agreement) that is not an Incentive Stock Option.

 

    2.26. “Old Plans” means the Kellogg
    Company 2001 Long-Term Incentive Plan and the Kellogg Company
    2003 Long-Term Incentive Plan.

 

    2.27. “Outside Director” means a
    director of the Company who is an “outside director”
    within the meaning of Section 162(m) of the Code.

 

    2.28. “Outstanding Company Common Stock”
    has the meaning set forth in Section 14.2.

 

    2.29. “Outstanding Company Voting
    Securities” has the meaning set forth in
    Section 14.2.

 

    2.30. “Participant” means any
    individual who is selected from time to time under
    Section 5 to receive an Award under the Plan.

 

    2.31. “Performance-Based Compensation”
    means any Award that is intended to constitute
    “performance-based compensation” within the meaning of
    Code Section 162(m)(4)(C).

 

    2.32. “Performance Share Unit” or
    “Performance Share” means an Award granted
    pursuant to the provisions of Section 9 of the Plan and the
    relevant Award Agreement, or a Restricted Share Unit or
    Restricted Share intended to be
    Performance-Based
    Compensation.

 

    2.33. “Performance Unit” means an
    Award granted pursuant to the provisions of Section 9 of
    the Plan and the relevant Award Agreement.

 

    2.34. “Person” has the meaning set
    forth in Section 14.2.

 

    2.35. “Plan” means this Kellogg
    Company 2009 Long-Term Incentive Plan, as set forth herein and
    as in effect and as amended from time to time (together with any
    rules and regulations promulgated by the Committee with respect
    thereto).

 

    2.36. “Restricted Shares” means an
    Award of restricted shares of Common Stock granted pursuant to
    the provisions of Section 8 of the Plan and the relevant
    Award Agreement.

 

    2.37. “Restricted Share Units”
    means an Award granted pursuant to the provisions of
    Section 8 of the Plan and the relevant Award Agreement.

 

    2.38. “Restriction Period” has the
    meaning set forth in Section 8.3.

    

    2

 

    2.39. “Retirement” means the
    voluntary termination by the Participant from active employment
    with the Company and its Subsidiaries on or after the attainment
    of normal retirement age under Company-sponsored pension or
    retirement plans, or any other age with the consent of the
    Committee.

 

    2.40. “Section 16 Officer”
    means an “officer” as such term is defined in
    Rule 16a-1(f)
    of the Exchange Act.

 

    2.41. “Stock Appreciation Right”
    means an Award described in Section 7.2 of the Plan
    and granted pursuant to the provisions of Section 7 of the
    Plan.

 

    2.42. “Stock Option” means a
    Non-Qualified Stock Option or an Incentive Stock Option.

 

    2.43. “Subsidiary(ies)” means any
    corporation or other entity of which outstanding shares or
    ownership interests representing 50% or more of the combined
    voting power of such corporation or other entity entitled to
    elect the management thereof, or such lesser percentage as may
    be approved by the Committee, are owned directly or indirectly
    by the Company. Notwithstanding the foregoing, for purposes of
    Incentive Stock Options, “Subsidiary” means any
    subsidiary corporation of the Company within the meaning of
    Section 424(f) of the Code.

 

    3. ADMINISTRATION.

 

    3.1.  The Committee. The Plan shall be
    administered by the Compensation Committee of the Board, as
    constituted from time to time. The Committee shall consist of
    two or more non-employee directors, each of whom shall be
    (i) a “non-employee director” as defined in
    Rule 16b-3
    of the Exchange Act; (ii) to the extent required by
    Section 162(m) of the Code, an “outside director”
    as defined under Section 162(m) of the Code; and
    (iii) an “independent director” as defined under
    Section 303A of the Listed Company Manual of the New York
    Stock Exchange or such other applicable stock exchange rule. To
    the extent no Committee exists that has the authority to
    administer this Plan, the functions of the Committee shall be
    exercised by the Board. If for any reason the appointed
    Committee does not meet the requirements of
    Rule 16b-3
    of the Exchange Act, Section 162(m) of the Code or
    Section 303A of the Listed Company Manual, such
    noncompliance shall not affect the validity of Awards, grants,
    interpretations or other actions of the Committee.

 

    3.2.  Plan Administration and Plan Rules.
    The Committee is authorized to construe and interpret
    the Plan and to promulgate, amend and rescind rules and
    regulations relating to the implementation, administration and
    maintenance of the Plan. Subject to the terms and conditions of
    the Plan, the Committee shall make all determinations necessary
    or advisable for the implementation, administration and
    maintenance of the Plan including, without limitation,
    (a) selecting the Plan’s Participants, (b) making
    Awards in such amounts and form as the Committee shall
    determine, (c) imposing such restrictions, terms and
    conditions upon such Awards as the Committee shall deem
    appropriate, and (d) correcting any technical defect(s) or
    technical omission(s), or reconciling any technical
    inconsistency(ies), in the Plan
    and/or any
    Award Agreement. Subject to applicable law, the Committee may
    designate persons other than members of the Committee to carry
    out the day-to-day ministerial administration of the Plan under
    such conditions and limitations as it may prescribe. Subject to
    the requirements of Section 157(c) of the Delaware General
    Corporation Law (or any successor statute), the Committee may,
    in its sole discretion, delegate its authority to one or more
    senior executive officers for the purpose of making Awards to
    Participants who are not Section 16 Officers, but no
    officer of the Company shall have the authority to grant Awards
    to himself or herself. Any such delegation shall be made by
    resolution of the Board and such resolution shall set forth the
    total number of shares of Common Stock that may be subject to
    Awards granted pursuant to such delegation. The Committee’s
    determinations under the Plan need not be uniform and may be
    made selectively among Participants, whether or not such
    Participants are similarly situated. Any determination, decision
    or action of the Committee in connection with the construction,
    interpretation, administration, implementation or maintenance of
    the Plan shall be final, conclusive and binding upon all
    Participants and any person(s) claiming under or through any
    Participants. The Company shall effect the granting of Awards
    under the Plan, in accordance with the determinations made by
    the Committee, by execution of Award Agreements in such form as
    is approved by the Committee.

 

    3.3.  Liability Limitation. Neither the
    Board, the Committee, nor any member of either, or any of their
    designees, shall be liable for any act, omission,
    interpretation, construction or determination made in good faith
    in connection with the Plan (or any Award Agreement) or any
    transaction hereunder, and the members of the Board and the
    Committee shall be entitled to indemnification and reimbursement
    by the Company in respect of any claim, loss, damage or expense
    (including, without limitation, attorneys’ fees) arising or
    resulting therefrom to the fullest extent permitted by law
    and/or under
    any directors and officers liability insurance coverage which
    may be in effect from time to time.

 

    4. TERM OF PLAN/COMMON STOCK SUBJECT TO PLAN.

 

    4.1.  Limitations for Incentive Stock Options.
    Incentive Stock Options may not be granted following
    February 19, 2019, which is the ten-year anniversary of the
    Board’s adoption of the Plan. The maximum number of shares
    of Common

    

    3

 

    Stock that may be issued pursuant to the grant of Incentive
    Stock Options under the Plan shall be 27,000,000 shares (as
    may be adjusted pursuant to Section 13.2), without regard
    to the provisions of Section 4.2(ii).

 

    4.2.  Limitations for Common Stock.

 

    (i) The maximum number of shares of Common Stock in respect
    of which Awards may be granted or paid out under the Plan,
    subject to adjustment as provided in this Section,
    Section 4.3 and Section 13.2 of the Plan, shall not
    exceed 27,000,000 shares, plus the aggregate number
    of shares of Common Stock described in Section 4.2(ii).

 

    (ii) Any shares of Common Stock that are subject to
    Collective Awards that expire or lapse or are forfeited,
    surrendered, cancelled, terminated or settled in cash in lieu of
    Common Stock shall again be available for Awards under the Plan
    to the extent of such expiration, forfeiture, surrender,
    cancellation, termination or settlement of such Collective
    Awards (as may be adjusted pursuant to Section 13.2).
    Shares of Common Stock that as of the Effective Date have not
    been issued under the Old Plans, and are not covered by
    outstanding awards under the Old Plans granted on or before the
    Effective Date, shall not be available for Awards under the Plan.

 

    (iii) Common Stock which may be issued under the Plan may
    be either authorized and unissued shares or issued shares which
    have been reacquired by the Company (in the open-market or in
    private transactions) and which are being held as treasury
    shares. No fractional shares of Common Stock shall be issued
    under the Plan, and the Committee shall determine the manner in
    which fractional share value shall be treated.

 

    (iv) In the event of a change in the Common Stock of the
    Company that is limited to a change in the designation thereof
    to “Capital Stock” or other similar designation, or to
    a change in the par value thereof, or from par value to no par
    value, without increase or decrease in the number of issued
    shares, the shares resulting from any such change shall be
    deemed to be the Common Stock for purposes of the Plan.

 

    (v) The maximum number of shares of Common Stock that may
    be issued pursuant to the grant of Awards (other than Stock
    Options and Stock Appreciation Rights) under the Plan shall not
    exceed 5,000,000 shares (as may be adjusted pursuant to
    Section 13.2).

 

    4.3.  Computation of Available Shares.

 

    (i) For the purpose of computing the total number of shares
    of Common Stock available for Awards under the Plan, there shall
    be counted against the limitations set forth in Section 4.2
    of the Plan (subject to the remainder of this Section and
    Section 13.2) the maximum number of shares of Common Stock
    issued upon exercise or settlement of Awards granted under
    Sections 6 and 7 of the Plan and the number of shares of
    Common Stock issued under grants of Restricted Shares,
    Restricted Share Units and Performance Share Units pursuant to
    Sections 8 and 9 of the Plan, in each case determined as of
    the date on which such Awards are issued.

 

    (ii) If a Stock Appreciation Right is settled, in part or
    in whole, through the issuance of shares of Common Stock or
    Restricted Shares, then all shares that were covered by the
    exercised Stock Appreciation Right shall not again be available
    for issuance under the Plan.

 

    (iii) If the exercise price of any Award is paid by tender
    to the Company, or attestation to the ownership, of shares of
    Common Stock owned by the Participant, or by means of a Net
    Exercise, the number of shares of Common Stock available for
    issuance under the Plan shall be reduced by the gross number of
    shares of Common Stock for which the Award is exercised.

 

    (iv) Shares of Common Stock withheld or deducted by the
    Company for tax withholding obligations pursuant to
    Section 16.1 shall not again be available for issuance
    under the Plan.

 

    (v) Shares of Common Stock repurchased on the open market
    with the proceeds from the exercise of an Award shall not be
    added to the shares of Common Stock available for Awards under
    this Plan.

 

    4.4.  Maximum Yearly Awards. The maximum
    annual Common Stock amounts in this Section 4.4 are subject
    to adjustment under Section 13.2 and are subject to the
    Plan maximum determined pursuant to Sections 4.2 and 4.3.

 

    4.4.1 Stock Options and Stock Appreciation Rights.
    The maximum number of shares of Common Stock that may be
    subject to Awards of Stock Options or Stock Appreciation Rights
    to any Participant in any calendar year under the Plan shall not
    exceed 2,000,000 shares of Common Stock.

 

    4.4.2 Restricted Shares and Restricted Share Units.
    There is no annual individual share limitation for
    Awards of Restricted Shares or Restricted Share Units which are
    not intended to be Performance-Based Compensation.

    

    4

 

    4.4.3 Performance Share Units. The maximum
    number of shares of Common Stock that may be subject to
    Performance Share Units granted to any Participant in any
    calendar year under the Plan shall not exceed
    1,000,000 shares of Common Stock.

 

    4.4.4 Performance Units. The maximum cash
    amount payable under any Performance Unit intended to be
    Performance-Based Compensation to any Participant for any
    calendar year shall be $10 million.

 

    4.5.  Minimum Purchase Price.
    Notwithstanding any provision of the Plan to the
    contrary, if authorized but previously unissued shares of Common
    Stock are issued under the Plan, such shares shall not be issued
    for consideration that is less than as permitted under
    applicable law.

 

    5. ELIGIBILITY. Individuals eligible for
    Awards under the Plan shall consist of employees, officers and
    directors, or those who will become employees, officers or
    directors, of the Company
    and/or its
    Subsidiaries whose performance or contribution, in the sole
    discretion of the Committee, benefits or will benefit the
    Company or any Subsidiary.

 

    6. STOCK OPTIONS.

 

    6.1.  Terms and Conditions. Stock
    Options granted under the Plan shall be in respect of Common
    Stock and may be in the form of Incentive Stock Options or
    Non-Qualified Stock Options. Such Stock Options shall be subject
    to the terms and conditions set forth in this Section 6 and
    any additional terms and conditions, not inconsistent with the
    express terms and provisions of the Plan, as the Committee shall
    set forth in the relevant Award Agreement.

 

    6.2.  Grant. Stock Options may be
    granted under the Plan in such form as the Committee may from
    time to time approve. Stock Options may be granted alone or in
    addition to other Awards under the Plan or in tandem with Stock
    Appreciation Rights. Additional provisions shall apply to
    Incentive Stock Options granted to any employee who owns (within
    the meaning of Section 422(b)(6) of the Code) more than ten
    percent (10%) of the total combined voting power of all classes
    of stock of the Company or its parent corporation or any
    Subsidiary of the Company, within the meaning of
    Sections 424(e) and (f) of the Code (a “10%
    Shareowner”).

 

    6.3.  Exercise Price. The exercise price
    per share of Common Stock subject to a Stock Option shall be
    determined by the Committee; provided, however, that the
    exercise price of a Stock Option shall not be less than one
    hundred percent (100%) of the Fair Market Value of the Common
    Stock on the grant date of such Stock Option; provided, further,
    however, that, in the case of a 10% Shareowner, the exercise
    price of an Incentive Stock Option shall not be less than one
    hundred ten percent (110%) of the Fair Market Value of the
    Common Stock on the grant date.

 

    6.4.  Term. The term of each Stock
    Option shall be such period of time as is fixed by the
    Committee; provided, however, that the term of any Stock Option
    shall not exceed ten (10) years (five (5) years, in
    the case of a 10% Shareowner receiving an Incentive Stock
    Option) after the date immediately preceding the date on which
    the Stock Option is granted.

 

    6.5.  Method of Exercise. A Stock Option
    may be exercised, in whole or in part, by giving written notice
    of exercise to the Secretary of the Company, or the
    Secretary’s designee, specifying the number of shares to be
    purchased. Such notice shall be accompanied by payment in full
    of the exercise price. The methods of payment permitted by this
    Plan for payment in full of the aggregate exercise price of a
    Stock Option are as follows: (i) by cash, certified check,
    bank draft, electronic transfer, or money order payable to the
    order of the Company, (ii) if permitted by the Committee in
    its sole discretion, by surrendering (or attesting to the
    ownership of) shares of Common Stock already owned by the
    Participant, (iii) pursuant to a Net Exercise arrangement;
    provided, however, that in such event, the Committee may
    exercise its discretion to limit the use of a Net Exercise
    solely with respect to the portion of such payment required to
    be made with respect to tax withholding, or (iv) if
    permitted by the Committee (in its sole discretion) and
    applicable law, by delivery of, alone or in conjunction with a
    partial cash or instrument payment, some other form of payment
    acceptable to the Committee. Payment instruments shall be
    received by the Company subject to collection. The proceeds
    received by the Company upon exercise of any Stock Option may be
    used by the Company for general corporate purposes. Any portion
    of a Stock Option that is exercised may not be exercised again.
    The shares issued to an optionee for the portion of any Stock
    Option exercised by attesting to the ownership of shares shall
    not exceed the number of shares issuable as a result of such
    exercise (determined as though payment in full therefor were
    being made in cash) less the number of shares for which
    attestation of ownership is submitted. The value of owned shares
    submitted (directly or by attestation) in full or partial
    payment for the shares purchased upon exercise of a Stock Option
    shall be equal to the aggregate Fair Market Value of such owned
    shares on the date of the exercise of such Stock Option.

 

    6.6.  Exercisability. Any Stock Option
    granted under the Plan shall become exercisable on such date or
    dates, or based on the attainment of such performance goals, as
    determined by the Committee (in its sole discretion) at any time

    

    5

 

    and from time to time in respect of such Stock Option, and as
    set forth in the applicable Award Agreement. Notwithstanding
    anything to the contrary contained in this Section 6.6,
    unless otherwise provided in an Award Agreement, such Stock
    Option shall become one hundred percent (100%) vested and
    exercisable as to the aggregate number of shares of Common Stock
    underlying such Stock Option upon the death, Disability or
    Retirement of the Participant.

 

    6.7.  Tandem Grants. If Non-Qualified
    Stock Options and Stock Appreciation Rights are granted in
    tandem, as designated in the relevant Award Agreements, the
    right of a Participant to exercise any such tandem Stock Option
    shall terminate to the extent that the shares of Common Stock
    subject to such Stock Option are used to calculate amounts or
    shares receivable upon the exercise of the related tandem Stock
    Appreciation Right.

 

    6.8.  No Reload Provision. Stock Options
    granted under this Plan shall not contain any provision
    entitling the optionee to the automatic grant of additional
    Stock Options in connection with any exercise of the original
    Stock Option.

 

    7. STOCK APPRECIATION RIGHTS.

 

    7.1.  Terms and Conditions. The grant of
    Stock Appreciation Rights under the Plan shall be subject to the
    terms and conditions set forth in this Section 7 and any
    additional terms and conditions, not inconsistent with the
    express terms and provisions of the Plan, as the Committee shall
    set forth in the relevant Award Agreement.

 

    7.2.  Stock Appreciation Rights. A Stock
    Appreciation Right is an Award granted with respect to a
    specified number of shares of Common Stock, as shall be
    determined by the Committee, entitling a Participant to receive
    an amount equal to the excess of the Fair Market Value of a
    share of Common Stock on the date of exercise (the
    “Exercise Value”) over the Fair Market
    Value of a share of Common Stock on the grant date of the Stock
    Appreciation Right (the “Base Value”),
    multiplied by the number of shares of Common Stock with respect
    to which the Stock Appreciation Right shall have been exercised.
    In the case of a Stock Appreciation Right related to a Stock
    Option described in Section 6.7, the Base Value shall be
    the purchase price of a share of Common Stock under the Stock
    Option, provided, however, such amount may not be less than the
    Fair Market Value of the Common Stock on the date the Stock
    Appreciation Right is awarded. The Base Value of a Stock
    Appreciation Right shall not be less than one hundred percent
    (100%) of the Fair Market Value of the Common Stock on the grant
    date of such Stock Appreciation Right.

 

    7.3.  Grant. A Stock Appreciation Right
    may be granted in addition to any other Award under the Plan or
    in tandem with or independent of a Non-Qualified Stock Option.

 

    7.4.  Term. The term of each Stock
    Appreciation Right shall be such period of time as is fixed by
    the Committee; provided, however, that the term of any Stock
    Appreciation Right shall not exceed ten (10) years after
    the date immediately preceding the date on which the Stock
    Appreciation Right is granted.

 

    7.5.  Date of Exercisability. In respect
    of any Stock Appreciation Right granted under the Plan, unless
    otherwise (a) determined by the Committee (in its sole
    discretion) at any time and from time to time in respect of any
    such Stock Appreciation Right, or (b) provided in the Award
    Agreement, a Stock Appreciation Right may be exercised by a
    Participant, in accordance with and subject to all of the
    procedures established by the Committee, in whole or in part at
    such time or times
    and/or based
    on the achievement of such performance goals as determined by
    the Committee in its sole discretion. Notwithstanding the
    preceding sentence, in no event shall a Stock Appreciation Right
    be exercisable prior to the exercisability of any Non-Qualified
    Stock Option with which it is granted in tandem. The Committee
    may also provide, as set forth in the relevant Award Agreement
    and without limitation, that some Stock Appreciation Rights
    shall be automatically exercised and settled on one or more
    fixed dates specified therein by the Committee.

 

    7.6.  Form of Payment. Upon exercise of
    a Stock Appreciation Right, payment may be made to the
    Participant in respect thereof in cash, in Restricted Shares or
    in shares of unrestricted Common Stock, or in any combination
    thereof, as the Committee, in its sole discretion, shall
    determine and provide in the relevant Award Agreement.

 

    7.7.  Tandem Grant. The right of a
    Participant to exercise a tandem Stock Appreciation Right shall
    terminate to the extent such Participant exercises the
    Non-Qualified Stock Option to which such Stock Appreciation
    Right is related.

 

    8. RESTRICTED SHARES AND RESTRICTED SHARE
    UNITS.

 

    8.1.  Restricted Share and Restricted Share Unit
    Grants. A grant of Restricted Shares is an Award of
    shares of Common Stock granted to a Participant, subject to such
    restrictions, terms and conditions as the Committee deems
    appropriate, including, without limitation,
    (a) restrictions on the sale, assignment, transfer,
    hypothecation or other disposition of such shares, (b) the
    requirement that the Participant deposit such shares with the
    Company while such shares are subject to such restrictions, and
    (c) the requirement that such shares be forfeited upon
    termination of employment for specified reasons within a
    specified period of time or for other reasons (including,
    without limitation, the

    

    6

 

    failure to achieve designated performance goals). A grant of
    Restricted Share Units is a notional Award of shares of Common
    Stock which entitle the Participant to a number of unrestricted
    shares of Common Stock equal to (or a cash amount equal in value
    to such number of unrestricted shares of Common Stock) the
    number of Restricted Share Units upon the lapse of similar
    restrictions, terms and conditions.

 

    8.2.  Terms and Conditions. Grants of
    Restricted Shares and Restricted Share Units shall be subject to
    the terms and conditions set forth in this Section 8 and
    any additional terms and conditions, not inconsistent with the
    express terms and provisions of the Plan, as the Committee shall
    set forth in the relevant Award Agreement. Restricted Shares and
    Restricted Share Units may be granted alone or in addition to
    any other Awards under the Plan. Subject to the terms of the
    Plan, the Committee shall determine the number of Restricted
    Shares and Restricted Share Units to be granted to a Participant
    and the Committee may provide or impose different terms and
    conditions on any particular Restricted Share or Restricted
    Share Units grant made to any Participant. With respect to each
    Participant receiving an Award of Restricted Shares, there shall
    be issued a stock certificate (or certificates) in respect of
    such Restricted Shares. Such stock certificate(s) shall be
    registered in the name of such Participant, shall be accompanied
    by a stock power duly executed by such Participant, and shall
    bear, among other required legends, the following legend:

 

    “The transferability of this certificate and the shares of
    stock represented hereby are subject to the terms and conditions
    (including, without limitation, forfeiture events) contained in
    the Kellogg Company 2009 Long-Term Incentive Plan and an Award
    Agreement entered into between the registered owner hereof and
    Kellogg Company. Copies of such Plan and Award Agreement are on
    file in the office of the Secretary of Kellogg Company, One
    Kellogg Square, Battle Creek, MI 49016. Kellogg Company will
    furnish to the recordholder of the certificate, without charge
    and upon written request at its principal place of business, a
    copy of such Plan and Award Agreement. Kellogg Company reserves
    the right to refuse to record the transfer of this certificate
    until all such restrictions are satisfied, all such terms are
    complied with and all such conditions are satisfied.”

 

    Such stock certificate evidencing such shares shall, in the sole
    discretion of the Committee, be deposited with and held in
    custody by the Company until the restrictions thereon shall have
    lapsed and all of the terms and conditions applicable to such
    grant shall have been satisfied. With respect to each
    Participant receiving an Award of Restricted Share Units that is
    settled in shares of Common Stock, there shall be issued a stock
    certificate (or certificates) in respect of the underlying
    shares of Common Stock upon the lapse of the restrictions
    associated with such Restricted Share Units.

 

    8.3.  Restriction Period. In accordance
    with Sections 8.1 and 8.2 of the Plan and unless otherwise
    determined by the Committee (in its sole discretion) at any time
    and from time to time, Restricted Shares and Restricted Share
    Units shall only become unrestricted and vested in accordance
    with the vesting schedule relating to such Restricted Shares and
    Restricted Share Units, if any, as the Committee may establish
    in the relevant Award Agreement, which may be based on the lapse
    of a specified time period or periods or on the attainment of
    specified performance goals (the “Restriction
    Period”). During the Restriction Period, such
    Restricted Shares and the underlying shares of Common Stock with
    respect to the Restricted Share Units shall be and remain
    unvested and a Participant may not sell, assign, transfer,
    pledge, encumber or otherwise dispose of or hypothecate such
    Award. Upon satisfaction of the vesting schedule and any other
    applicable restrictions, terms and conditions, the Participant
    shall be entitled to receive payment of the Restricted Shares or
    a portion thereof, as the case may be, as provided in
    Section 8.4 of the Plan. Restricted Share Units may be paid
    in cash, shares of Common Stock or any combination thereof, as
    determined by the Committee. To the extent that any Restricted
    Share Award or Restricted Share Unit Award is intended to be
    Performance-Based Compensation, such award shall be subject to
    the provisions of Sections 9.4, 9.6 and 9.7, and the
    certification requirements contained in Section 9.5.

 

    8.4.  Payment of Restricted Share and Restricted
    Share Unit Grants. After the satisfaction
    and/or lapse
    of the restrictions, terms and conditions established by the
    Committee in respect of a grant of Restricted Shares, a new or
    additional certificate, without the legend set forth in
    Section 8.2 of the Plan, for the number of shares of Common
    Stock which are no longer subject (or deemed subject) to such
    restrictions, terms and conditions shall, as soon as practicable
    thereafter, be delivered to the Participant. Restricted Share
    Units may be paid or settled in cash or in shares of Common
    Stock, or in combination thereof, as the Committee, in its sole
    discretion, shall determine and provide in the relevant Award
    Agreement.

 

    8.5.  Shareowner Rights. A Participant
    shall have, with respect to the shares of Common Stock
    underlying a grant of Restricted Shares (but not under
    Restricted Share Units), all of the rights of a shareowner of
    such shares (except as such rights are limited or restricted
    under the Plan or in the relevant Award Agreement).

    

    7

 

    9. PERFORMANCE UNITS AND PERFORMANCE SHARE
    UNITS.

 

    9.1.  Terms and Conditions. Performance
    Units and Performance Share Units shall be subject to the terms
    and conditions set forth in this Section 9 and any
    additional terms and conditions, not inconsistent with the
    express provisions of the Plan, as the Committee shall set forth
    in the relevant Award Agreement.

 

    9.2.  Performance Unit and Performance Share
    Unit Grants. A grant of Performance Units is a notional
    Award of units (with each unit representing such monetary amount
    or value as is designated by the Committee in the Award
    Agreement) granted to a Participant, subject to such terms and
    conditions as the Committee deems appropriate, including,
    without limitation, the requirement that the Participant forfeit
    such units (or a portion thereof) in the event certain
    performance criteria or other conditions are not met within a
    designated period of time. A grant of Performance Share Units is
    an Award of actual or notional shares of Common Stock which
    entitle the Participant to a number of shares of Common Stock
    equal to the number of Performance Share Units upon achievement
    of specified performance goals and such other terms and
    conditions as the Committee deems appropriate.

 

    9.3.  Grants. Performance Units and
    Performance Share Units may be granted alone or in addition to
    any other Awards under the Plan. Subject to the terms of the
    Plan, the Committee shall determine the number of Performance
    Units and Performance Share Units to be granted to a Participant
    and the Committee may impose different terms and conditions on
    any particular Performance Units and Performance Share Units
    granted to any Participant.

 

    9.4.  Performance Goals and Performance Periods.
    Participants receiving a grant of Performance Units and
    Performance Share Units shall be entitled to payment in respect
    of such Awards if the Company
    and/or the
    Participant achieves specified performance goals (the
    “Performance Goals”) during and in
    respect of a designated performance period (the
    “Performance Period”). The Performance
    Goals and the Performance Period shall be established in writing
    by the Committee, in its sole discretion. The Committee shall
    establish Performance Goals for each Performance Period prior
    to, or as soon as practicable after, the commencement of such
    Performance Period (and, in any event, no later than ninety
    (90) days after the commencement of the Performance Period
    or such other period required by applicable law). At the time of
    the granting of Performance Units and Performance Share Units
    which are intended to constitute Performance-Based Compensation,
    or at any time thereafter, in either case to the extent
    permitted under Section 162(m) of the Code without
    adversely affecting the treatment of the Award as
    Performance-Based Compensation, the Committee may provide for
    the manner in which performance will be measured against the
    Performance Goals (or may adjust the Performance Goals) to
    reflect the impact of specified corporate transactions,
    accounting or tax law changes and other extraordinary or
    nonrecurring events. The Committee shall also establish a
    schedule or schedules for Performance Units and Performance
    Share Units setting forth the portion of the Award which will be
    earned or forfeited based on the degree of achievement, or lack
    thereof, of the Performance Goals at the end of the relevant
    Performance Period. In setting Performance Goals, the Committee
    may use, but shall not be limited to, such measures as total
    shareowner return, return on equity, net earnings growth, sales
    or revenue growth, cash flow, or such other measure or measures
    of performance as the Committee, in its sole discretion, may
    deem appropriate (which may include those measures set forth in
    Section 9.6). Such performance measures shall be defined as
    to their respective components and meaning by the Committee (in
    its sole discretion) and may be based on the attainment of
    specified levels of Company (or Subsidiary, division, or other
    operational or administrative department of the Company)
    performance relative to the performance of other corporations or
    based on individual participant Performance Goals.

 

    9.5.  Payment of Units. With respect to
    each Performance Unit and Performance Share Unit, the
    Participant shall, if the applicable Performance Goals have been
    achieved, or partially achieved, as determined by the Committee
    in its sole discretion, by the Company
    and/or the
    Participant during the relevant Performance Period, be entitled
    to receive payment in an amount equal to the designated value of
    each Performance Unit and Performance Share Unit times the
    number of such units so earned. Prior to the vesting, payment,
    settlement or lapsing of any restrictions with respect to any
    Performance Unit and Performance Share Unit that is intended to
    constitute Performance-Based Compensation made to a Participant
    who is subject to Section 162(m) of the Code, the Committee
    shall certify in writing that the applicable Performance Goals
    have been satisfied to the extent necessary for such Award to
    qualify as Performance-Based Compensation. Payment in settlement
    of earned Performance Units shall be made in cash as soon as
    practicable in the calendar year following the conclusion of the
    respective Performance Period. Payment in settlement of earned
    Performance Share Units shall be made in unrestricted Common
    Stock or in Restricted Shares, or any combination thereof, as
    the Committee in its sole discretion shall determine and provide
    in the relevant Award Agreement, and in any case as soon as
    practicable in the calendar year following the conclusion of the
    respective Performance Period.

 

    9.6.  Performance-Based Awards.
    Performance Units, Performance Share Units, Restricted
    Shares, and Restricted Share Units and other Awards subject to
    performance criteria that are intended to be Performance-Based
    Compensation

    

    8

 

    shall be paid solely on account of the attainment of one or more
    pre-established, objective Performance Goals within the meaning
    of Section 162(m) and the regulations thereunder. Until
    otherwise determined by the Committee, the Performance Goals
    shall be the attainment of pre-established levels of (or
    pre-established changes or improvements in) any of net sales,
    net income, market price per share, earnings per share, return
    on equity, return on capital employed, return on invested
    capital, cash flow, discounted cash flow, cumulative cash flow,
    operating profit, gross or pre-tax profits, post-tax profits,
    gross or net margins, consolidated net income, unit sales
    volume, economic value added, costs or cost reduction
    initiatives, production, unit production volume, improvements in
    financial ratings, regulatory compliance, achievement of balance
    sheet or income statement objectives, market or category share,
    organizational objectives (including diversity, safety and
    K-values), productivity initiatives, acquisition integration,
    total return to shareowners (including both the market value of
    the Company’s stock and dividends thereon) or any other
    performance measure the Committee deems appropriate. Performance
    Goals may be in respect of the performance of the Company, any
    of its Subsidiaries or affiliates or any combination thereof on
    either a consolidated, business unit or divisional level.
    Performance Goals may be absolute or relative (to prior
    performance of the Company or to the performance of one or more
    other entities or external indices) and may be expressed in
    terms of a progression within a specified range. The payout of
    any such Award to a Covered Employee may be reduced, but not
    increased, based on the degree of attainment of other
    performance criteria or otherwise at the discretion of the
    Committee. For purposes of the Plan, “Covered
    Employee” has the same meaning as set forth in
    Section 162(m) of the Code.

 

    9.7.  Termination of Employment. If the
    Participant ceases to be an employee before the end of any
    Performance Period due to the Participant’s death,
    Retirement or Disability before the end of any Performance
    Period, such Participant (or the Participant’s legal
    representative or designated beneficiary) shall receive all of
    the amount which would have been paid to the Participant had the
    Participant continued as an employee to the end of the
    Performance Period, payable at the same time as it would
    otherwise would have been paid in the absence of any such
    termination. Unless otherwise determined by the Committee, if a
    Participant ceases to be an employee for any other reason, any
    unpaid amounts for outstanding Performance Periods shall be
    forfeited.

 

    10. DEFERRAL ELECTIONS/TAX REIMBURSEMENTS.
    The Committee may permit or require a Participant to elect to
    defer receipt of any payment of cash or any delivery of shares
    of Common Stock or other item that would otherwise be due to
    such Participant by virtue of the exercise, settlement or
    payment of any Award made under the Plan. If any such election
    is permitted or required, the Committee may impose any
    restrictions it deems to be necessary or appropriate with
    respect to (i) any deferral election made with respect to
    an Award under the Plan and (ii) the timing of the payment
    of any deferred amounts, in each case, in order to cause such
    deferral election and payment timing to comply with the
    requirements of Section 409A(a) of the Code. The Committee
    may also provide in the relevant Award Agreement for a tax
    reimbursement payment to be made by the Company in cash in favor
    of any Participant in connection with the tax consequences
    resulting from the grant, exercise, settlement, or payment of
    any Award made under the Plan.

 

    11. DIVIDEND AND DIVIDEND EQUIVALENTS. As
    specified in the relevant Award Agreement, the Committee may
    provide that Awards (other than Stock Options, Stock
    Appreciation Rights and unvested Performance Share Units)
    denominated in shares earn dividends or dividend equivalents.
    Dividends or any such dividend equivalents may be paid currently
    in cash or shares of Common Stock or may be credited to an
    account established by the Committee under the Plan in the name
    of the Participant. To the extent that such Dividends or
    dividend equivalents are credited to an account and are not paid
    currently, such credited amounts shall be paid at such time or
    times as determined by the Committee and set forth in an Award
    Agreement consistent with the requirements of Section 409A
    of the Code. Any crediting of dividends or dividend equivalents
    may be subject to such restrictions and conditions as the
    Committee may establish, including reinvestment in additional
    shares or share equivalents. Any stock dividends paid in respect
    of unvested Restricted Shares or unvested Restricted Share Units
    shall be treated as additional Restricted Shares or Restricted
    Share Units and shall be subject to the same restrictions and
    other terms and conditions that apply to the unvested Restricted
    Shares or unvested Restricted Share Units in respect of which
    such stock dividends are issued.

 

    12. NON-TRANSFERABILITY OF AWARDS. Except as
    provided below, no Award under the Plan or any Award Agreement,
    and no rights or interests herein or therein, shall or may be
    assigned, transferred, sold, exchanged, encumbered, pledged, or
    otherwise hypothecated or disposed of by a Participant or any
    beneficiary(ies) of any Participant, except by testamentary
    disposition by the Participant or the laws of intestate
    succession. No such interest shall be subject to execution,
    attachment or similar legal process, including, without
    limitation, seizure for the payment of the Participant’s
    debts, judgments, alimony, or separate maintenance. Except as
    provided below, during the lifetime of a Participant, Stock
    Options and Stock Appreciation Rights are exercisable only by
    the Participant or his or her legal representative.
    Notwithstanding the foregoing, the Committee may from time to
    time permit Awards to be transferable to “family
    members” (within the meaning of the General Instructions to
    Form S-8)
    subject to such terms and conditions as the

    

    9

 

    Committee may impose and applicable law; provided, however,
    no Award may be transferred for value (as defined in the
    General Instructions to
    Form S-8).
    Any transfer contrary to this Section 12 will nullify the
    Award.

 

    13. CHANGES IN CAPITALIZATION AND OTHER
    MATTERS.

 

    13.1.  No Corporate Action Restriction.
    The existence of the Plan, any Award Agreement
    and/or the
    Awards granted hereunder shall not limit, affect or restrict in
    any way the right or power of the Board or the shareowners of
    the Company to make or authorize (a) any adjustment,
    recapitalization, reorganization or other change in the
    Company’s or any Subsidiary’s capital structure or its
    business, (b) any merger, consolidation or change in the
    ownership of the Company or any Subsidiary, (c) any issue
    of bonds, debentures, capital, preferred or prior preference
    stocks ahead of or affecting the Company’s or any
    Subsidiary’s capital stock or the rights thereof,
    (d) any dissolution or liquidation of the Company or any
    Subsidiary, (e) any sale or transfer of all or any part of
    the Company’s or any Subsidiary’s assets or business,
    or (f) any other corporate act or proceeding by the Company
    or any Subsidiary. No Participant, beneficiary or any other
    person shall have any claim against any member of the Board or
    the Committee, the Company or any Subsidiary, or any employees,
    officers, shareowners or agents of the Company or any
    Subsidiary, as a result of any such action.

 

    13.2.  Recapitalization Adjustments. In
    the event of a dividend or other distribution (whether in the
    form of cash, Common Stock, other securities, or other property)
    other than regular cash dividends, recapitalization, stock
    split, reverse stock split, reorganization, merger,
    consolidation,
    split-up,
    spin-off, combination, Change in Control or exchange of Common
    Stock or other securities of the Company, or other corporate
    transaction or event affects the Common Stock such that an
    adjustment is necessary or appropriate in order to prevent
    dilution or enlargement of benefits or potential benefits
    intended to be made available under the Plan, the Board shall
    equitably adjust (i) the number of shares of Common Stock
    or other securities of the Company (or number and kind of other
    securities or property) with respect to which Awards may be
    granted, (ii) the maximum share limitation applicable to
    each type of Award that may be granted to any individual
    participant in any calendar year, (iii) the number of
    shares of Common Stock or other securities of the Company (or
    number and kind of other securities or property) subject to
    outstanding Awards, and (iv) the exercise price with
    respect to any Stock Option or the Base Value with respect to
    any Stock Appreciation Right.

 

    13.3.  Mergers. If the Company enters
    into or is involved in any merger, reorganization, Change in
    Control or other business combination with any person or entity
    (a “Merger Event”), the Board may, prior
    to such Merger Event and effective upon such Merger Event, take
    such action as it deems appropriate, including, but not limited
    to, replacing Awards with substitute Awards in respect of the
    shares, other securities or other property of the surviving
    corporation or any affiliate of the surviving corporation on
    such terms and conditions, as to the number of shares, pricing
    and otherwise, which shall substantially preserve the value,
    rights and benefits of any affected Awards granted hereunder as
    of the date of the consummation of the Merger Event.
    Notwithstanding anything to the contrary in the Plan, if any
    Merger Event or Change in Control occurs, the Company shall have
    the right, but not the obligation, to cancel each
    Participant’s Stock Options
    and/or Stock
    Appreciation Rights and to pay to each affected Participant in
    connection with the cancellation of such Participant’s
    Stock Options
    and/or Stock
    Appreciation Rights, an amount equal to the excess (if any) of
    the Change in Control Price (as defined below), as determined by
    the Board, of the Common Stock underlying any unexercised Stock
    Options or Stock Appreciation Rights (whether then exercisable
    or not) over the aggregate exercise price of such unexercised
    Stock Options
    and/or Stock
    Appreciation Rights, and make additional adjustments
    and/or
    settlements of other outstanding Awards as it determines to be
    fair and equitable to affected Participants.

 

    Upon receipt by any affected Participant of any such substitute
    Award (or payment) as a result of any such Merger Event, such
    Participant’s affected Awards for which such substitute
    Awards (or payment) were received shall be thereupon cancelled
    without the need for obtaining the consent of any such affected
    Participant.

 

    For purposes of the Plan, “Change in Control
    Price” means the highest price per share of Common
    Stock paid in any transaction related to a Change in Control of
    the Company or a Merger Event. To the extent that the
    consideration paid in any such transaction described above
    consists all or in part of securities or other non-cash
    consideration, the value of such securities or other non-cash
    consideration shall be determined in the good-faith discretion
    of the Board consistent with provisions of Section 409A of
    the Code
    and/or other
    applicable law.

    

    10

 

    14. CHANGE IN CONTROL PROVISIONS.

 

    14.1.  Impact of Event. Notwithstanding
    any other provision of the Plan to the contrary and unless
    otherwise determined by the Committee, prior to a Change in
    Control, in the event of a Change in Control:

 

    (i) Any Stock Options and Stock Appreciation Rights
    outstanding as of the date such Change in Control is determined
    to have occurred, and which are not then exercisable and vested,
    shall become fully exercisable and vested;

 

    (ii) The restrictions and deferral limitations applicable
    to any Restricted Shares shall lapse, and such Restricted Shares
    shall become free of all restrictions and become fully vested
    and transferable;

 

    (iii) All Performance Units shall be considered to be
    earned and payable in full, and any deferral or other
    restrictions shall lapse, and such Performance Units shall be
    settled in cash (with the value being determined by the
    Committee, in its sole discretion), and all Restricted Share
    Units and Performance Share Units shall become fully vested and
    payable, in each case, as promptly as is practicable on or
    following the Change in Control; provided, however, that
    in the event that the Change in Control does not constitute a
    “change in the ownership or effective control,” or a
    “change in the ownership of a substantial portion of the
    assets,” of the Company, in each case within the meaning of
    Section 409A(a)(2)(A)(v) of the Code, Performance Units,
    Restricted Share Units and Performance Share Units shall not be
    payable until the date such Performance Units, Restricted Share
    Units and Performance Share Units would have been payable in the
    absence of this Section 14.1 if the acceleration of such
    payment would cause the tax consequences set forth in
    Section 409A(a)(1) of the Code to apply to such Performance
    Units, Restricted Share Units and Performance Share
    Units; and

 

    (iv) The Committee may also make additional adjustments
    and/or
    settlements of outstanding Awards as it deems appropriate and
    consistent with the Plan’s purposes (including
    Section 13.3).

 

    14.2.  Definition of Change in Control.
    For purposes of the Plan, a “Change in
    Control” shall mean the happening of any of the
    following events:

 

    (i) An acquisition after the date hereof by any individual,
    entity or group (within the meaning of Section 13(d)(3) or
    14(d)(2) of the Exchange Act) (a
    “Person”) of beneficial ownership
    (within the meaning of
    Rule 13d-3
    promulgated under the Exchange Act) of 20% or more of either
    (a) the then outstanding shares of common stock of the
    Company (the “Outstanding Company Common
    Stock”) or (b) the combined voting power of
    the then outstanding voting securities of the Company entitled
    to vote generally in the election of directors (the
    “Outstanding Company Voting
    Securities”); excluding, however, the following:
    (1) any acquisition directly from the Company, other than
    an acquisition by virtue of the exercise of a conversion
    privilege unless the security being so converted was itself
    acquired directly from the Company or approved by the Incumbent
    Board (as defined below), (2) any increase in beneficial
    ownership of a Person as a result of any acquisition by the
    Company, (3) any acquisition by any employee benefit plan
    (or related trust) sponsored or maintained by the Company or any
    entity controlled by the Company, (4) any acquisition by an
    underwriter temporarily holding Company securities pursuant to
    an offering of such securities, or (5) any acquisition
    pursuant to a transaction which complies with clauses (1),
    (2) and (3) of subsection (iii) of this
    Section 14.2; or

 

    (ii) A change in the composition of the Board such that the
    individuals who, as of the Effective Date of the Plan,
    constitute the Board (such Board shall be hereinafter referred
    to as the “Incumbent Board”) cease for
    any reason to constitute at least a majority of the Board;
    provided, however, for purposes of this Section, that any
    individual who becomes a member of the Board subsequent to the
    Effective Date of the Plan, whose election, or nomination for
    election by the Company’s shareowners, was approved by a
    vote of at least a majority of those individuals who are members
    of the Board and who were also members of the Incumbent Board
    (or deemed to be such pursuant to this proviso), either by a
    specific vote or by approval of the proxy statement of the
    Company in which such person is named as a nominee for director,
    without written objection to such nomination shall be considered
    as though such individual were a member of the Incumbent Board;
    but, provided further, that any such individual whose
    initial assumption of office occurs as a result of either an
    actual or threatened election contest with respect to the
    election or removal of directors or other actual or threatened
    solicitation of proxies or consents by or on behalf of a Person
    other than the Board shall not be so considered as a member of
    the Incumbent Board; or

 

    (iii) Consummation of a reorganization, merger or
    consolidation (or similar transaction), a sale or other
    disposition of all or substantially all of the assets of the
    Company, or the acquisition of assets or stock of another
    entity; in each case, unless immediately following such
    transaction (1) all or substantially all of the individuals
    and

    

    11

 

    entities who are the beneficial owners, respectively, of the
    Outstanding Company Common Stock and Outstanding Company Voting
    Securities immediately prior to such transaction will
    beneficially own, directly or indirectly, more than 60% of,
    respectively, the outstanding shares of common stock, and the
    combined voting power of the then outstanding voting securities
    entitled to vote generally in the election of directors, as the
    case may be, of the corporation resulting from such transaction
    (including, without limitation, a corporation which as a result
    of such transaction owns the Company or all or substantially all
    of the Company’s assets either directly or through one or
    more subsidiaries) in substantially the same proportions as
    their ownership, immediately prior to such transaction, of the
    Outstanding Company Common Stock and Outstanding Company Voting
    Securities, as the case may be, (2) no Person (other than
    the Company, any employee benefit plan (or related trust) of the
    Company or such corporation resulting from such transaction)
    will beneficially own, directly or indirectly, 20% or more of,
    respectively, the outstanding shares of common stock of the
    corporation resulting from such transaction or the combined
    voting power of the outstanding voting securities of such
    corporation entitled to vote generally in the election of
    directors, except to the extent that such ownership existed
    prior to the transaction, and (3) individuals who were
    members of the Incumbent Board at the time of the Board’s
    approval of the execution of the initial agreement providing for
    such transaction will constitute at least a majority of the
    members of the board of directors of the corporation resulting
    from such transaction (including, without limitation, a
    corporation which as a result of such transaction owns the
    Company or all or substantially all of the Company’s assets
    either directly or through one or more subsidiaries); or

 

    (iv) The approval by the shareowners of the Company of a
    complete liquidation or dissolution of the Company.

 

    15. AMENDMENT, SUSPENSION, AND TERMINATION.

 

    15.1.  In General. The Board may suspend
    or terminate the Plan (or any portion thereof) at any time and
    may amend the Plan at any time and from time to time in such
    respects as the Board may deem advisable to ensure that any and
    all Awards conform to or otherwise reflect any change in
    applicable laws or regulations, or to permit the Company or the
    Participants to benefit from any change in applicable laws or
    regulations, or in any other respect the Board may deem to be in
    the best interests of the Company or any Subsidiary. No such
    amendment, suspension or termination shall (a) subject to
    Section 16.6, materially adversely affect the rights of any
    Participant under any outstanding Awards, without the consent of
    such Participant, (b) make any change that would disqualify
    the Plan, or any other plan of the Company or any Subsidiary
    intended to be so qualified, from the benefits provided under
    Section 422 of the Code, or any successor provisions
    thereto, or (c) except as contemplated by Section 13,
    increase the number of shares available for Awards pursuant to
    Section 4.2 without shareowner approval. In addition, the
    Company will obtain shareowner approval of any modification of
    the Plan or Awards to the extent required by applicable laws or
    regulations or the regulations of any stock exchange upon which
    the Common Stock is then listed that purport to
    (i) materially modify the requirements as to eligibility
    for participation in the Plan, (ii) allow the repurchase of
    Stock Options or Stock Appreciation Rights for cash, other types
    of Awards under the Plan or other property (other than in
    connection with a Change in Control) or (iii) extend the
    termination date of the Plan.

 

    15.2.  No Repricing. Except as
    contemplated by Section 13, in the event of a decline in
    stock price the Board may not amend the Plan or any Award
    Agreement to decrease the purchase price of any outstanding
    Stock Option or the Base Value of any outstanding Stock
    Appreciation Right to a price less than Fair Market Value on the
    date of grant, either by decreasing the exercise price of any
    outstanding Stock Option or the Base Value of any outstanding
    Stock Appreciation Right, or through the cancellation of
    outstanding Stock Options or Stock Appreciation Rights in
    connection with granting Awards at a lower exercise price or
    Base Value.

 

    15.3.  Award Agreement Modifications.
    Subject to Section 15.1, the Committee may (in its
    sole discretion) amend or modify at any time and from time to
    time the terms and provisions of any outstanding Stock Options,
    Stock Appreciation Rights, Performance Units, Performance Share
    Units, Restricted Share Units, or Restricted Share grants, in
    any manner to the extent that the Committee under the Plan or
    any Award Agreement could have initially determined the
    restrictions, terms and provisions of such Stock Options, Stock
    Appreciation Rights, Performance Units, Performance Share Units,
    Restricted Share Units
    and/or
    Restricted Share grants, including, without limitation, changing
    or accelerating (a) the date or dates as of which such
    Stock Options or Stock Appreciation Rights shall become
    exercisable, (b) the date or dates as of which such
    Restricted Share grants or Restricted Share Units shall become
    vested, or (c) the performance period or goals in respect
    of any Performance Share Units or Performance Units. Subject to
    Section 16.6, no such amendment or modification shall,
    however, materially adversely affect the rights of any
    Participant under any such Award without the consent of such
    Participant. Notwithstanding the foregoing, without the consent
    of affected Participants, Awards may be amended or revised when
    necessary to avoid the imposition of additional tax under
    Section 409A of the Code.

    

    12

 

    16. MISCELLANEOUS.

 

    16.1.  Tax Withholding. The Company
    shall have the right to deduct from any payment or settlement
    under the Plan, including, without limitation, the exercise of
    any Stock Option or Stock Appreciation Right, or the delivery,
    transfer or vesting of any Common Stock or Restricted Shares,
    any domestic or foreign federal, state, local or other taxes of
    any kind which the Committee, in its sole discretion, deems
    necessary to be withheld to comply with the Code
    and/or any
    other applicable law, rule or regulation. Shares of Common Stock
    may be used to satisfy any such tax withholding. Such shares of
    Common Stock shall be valued based on the Fair Market Value of
    such shares as of the date the tax withholding is required to be
    made, such date to be determined by the Committee. In addition,
    the Company shall have the right to require payment from a
    Participant to cover any applicable withholding or other
    employment taxes due upon any payment or settlement under the
    Plan.

 

    16.2.  No Right to Employment. Neither
    the adoption of the Plan, the granting of any Award, nor the
    execution of any Award Agreement, shall confer upon any employee
    of the Company or any Subsidiary any right to continued
    employment with the Company or any Subsidiary, as the case may
    be, nor shall it interfere in any way with the right, if any, of
    the Company or any Subsidiary to terminate the employment of any
    employee at any time for any reason.

 

    16.3.  Unfunded Plan. The Plan shall be
    unfunded and the Company shall not be required to segregate any
    assets in connection with any Awards under the Plan. Any
    liability of the Company to any person with respect to any Award
    under the Plan or any Award Agreement shall be based solely upon
    the contractual obligations that may be created as a result of
    the Plan or any such Award Agreement. No such obligation of the
    Company shall be deemed to be secured by any pledge of,
    encumbrance on, or other interest in, any property or asset of
    the Company or any Subsidiary. Nothing contained in the Plan or
    any Award Agreement shall be construed as creating in respect of
    any Participant (or beneficiary thereof or any other person) any
    equity or other interest of any kind in any assets of the
    Company or any Subsidiary or creating a trust of any kind or a
    fiduciary relationship of any kind between the Company, any
    Subsidiary
    and/or any
    such Participant, any beneficiary thereof or any other person.

 

    16.4.  Payments to a Trust. The
    Committee is authorized to cause to be established a trust
    agreement or several trust agreements or similar arrangements
    from which the Committee may make payments of amounts due or to
    become due to any Participants under the Plan.

 

    16.5.  Other Company Benefit and Compensation
    Programs. Payments and other benefits received by a
    Participant under an Award made pursuant to the Plan shall not
    be deemed a part of a Participant’s compensation for
    purposes of the determination of benefits under any other
    employee welfare or benefit plans or arrangements, if any,
    provided by the Company or any Subsidiary unless expressly
    provided in such other plans or arrangements, or except where
    the Board expressly determines in writing that inclusion of an
    Award or portion of an Award should be included to accurately
    reflect competitive compensation practices or to recognize that
    an Award has been made in lieu of a portion of competitive
    annual base salary or other cash compensation. Awards under the
    Plan may be made in addition to, in combination with, or as
    alternatives to, grants, awards or payments under any other
    plans or arrangements of the Company or its Subsidiaries. The
    existence of the Plan notwithstanding, the Company or any
    Subsidiary may adopt such other compensation plans or programs
    and additional compensation arrangements as it deems necessary
    to attract, retain and motivate employees.

 

    16.6.  Listing, Registration and Other Legal
    Compliance. No Awards or shares of the Common Stock
    shall be required to be issued or granted under the Plan unless
    legal counsel for the Company shall be satisfied that such
    issuance or grant will be in compliance with all applicable
    securities laws and regulations and any other applicable laws or
    regulations. The Committee may require, as a condition of any
    payment or share issuance, that certain agreements,
    undertakings, representations, certificates,
    and/or
    information, as the Committee may deem necessary or advisable,
    be executed or provided to the Company to assure compliance with
    all such applicable laws or regulations. Certificates for shares
    of the Restricted Shares
    and/or
    Common Stock delivered under the Plan may be subject to such
    stock-transfer orders and such other restrictions as the
    Committee may deem advisable under the rules, regulations, or
    other requirements of the Securities and Exchange Commission,
    any stock exchange upon which the Common Stock is then listed,
    and any applicable laws. In addition, if, at any time specified
    herein (or in any Award Agreement or otherwise) for (a) the
    making of any Award, or the making of any determination,
    (b) the issuance or other distribution of Restricted Shares
    and/or
    Common Stock, or (c) the payment of amounts to or through a
    Participant with respect to any Award, any law, rule, regulation
    or other requirement of any governmental authority or agency
    shall require either the Company, any Subsidiary or any
    Participant (or any estate, designated beneficiary or other
    legal representative thereof) to take any action in connection
    with any such determination, any such shares to be issued or
    distributed, any such payment, or the making of any such
    determination, as the case may be, shall be deferred until such
    required action is taken. With respect to

    

    13

 

    Section 16 Officers, transactions under the Plan are
    intended to comply with all applicable conditions of
    Rule 16b-3
    promulgated under the Exchange Act. In addition, the Company or
    Committee may, at the time of grant or thereafter, impose
    additional or different conditions or take other actions with
    respect to Awards made to Participants in countries outside of
    the United States of America, to the extent required or made
    advisable by applicable laws and regulations.

 

    16.7.  Award Agreements. Each
    Participant receiving an Award under the Plan shall enter into
    an Award Agreement with the Company in a form specified by the
    Committee. Each such Participant shall then agree to the
    restrictions, terms and conditions of the Award set forth
    therein and in the Plan. An Award Agreement may provide that,
    notwithstanding any other provision in this Plan to the
    contrary, if the Participant breaches provisions in the Award
    Agreement during or after the Participant’s employment,
    then the Participant will forfeit
    and/or repay
    all Awards (whether unvested or vested) and profits realized in
    connection therewith.

 

    16.8.  Designation of Beneficiary. Each
    Participant to whom an Award has been made under the Plan may
    designate a beneficiary or beneficiaries to exercise any Award
    or to receive any payment which under the terms of the Plan and
    the relevant Award Agreement may become exercisable or payable
    on or after the Participant’s death. At any time, and from
    time to time, any such designation may be changed or cancelled
    by the Participant without the consent of any such beneficiary.
    Any such designation, change or cancellation must be on a form
    provided for that purpose by the Committee and shall not be
    effective until received by the Committee. If no beneficiary has
    been designated by a deceased Participant, or if the designated
    beneficiaries have predeceased the Participant, the beneficiary
    shall be the Participant’s estate. If the Participant
    designates more than one beneficiary, any payments under the
    Plan to such beneficiaries shall be made in equal shares unless
    the Participant has expressly designated otherwise, in which
    case the payments shall be made in the shares designated by the
    Participant.

 

    16.9.  Leaves of Absence/Transfers. The
    Committee shall have the power to promulgate rules and
    regulations and to make determinations, as it deems appropriate,
    under the Plan in respect of any leave of absence from the
    Company or any Subsidiary granted to a Participant. Without
    limiting the generality of the foregoing, the Committee may
    determine whether any such leave of absence shall be treated as
    if the Participant has terminated employment with the Company or
    any such Subsidiary. If a Participant transfers within the
    Company, or to or from any Subsidiary, such Participant shall
    not be deemed to have terminated employment as a result of such
    transfers.

 

    16.10.  Governing Law. The Plan and all
    actions taken thereunder shall be governed by and construed in
    accordance with the laws of the State of Delaware, without
    reference to the principles of conflict of laws thereof. Any
    titles and headings herein are for reference purposes only, and
    shall in no way limit, define or otherwise affect the meaning,
    construction or interpretation of any provisions of the Plan.

 

    16.11.  Effective Date. The Plan shall
    be effective as of February 20, 2009 (the
    “Effective Date”) subject to approval by
    the shareowners of the Company. Prior to such shareowner
    approval, the Committee may grant Awards conditioned on
    shareowner approval. If such shareowner approval is not obtained
    at or before the first annual meeting of shareowners to occur
    after the adoption of the Plan by the Board (including any
    adjournments or postponements thereof), the Plan and any Awards
    made thereunder shall terminate ab initio and be of no
    further force and effect. In no event shall awards be granted
    under the Plan after February 19, 2019 (or such earlier
    date that the Plan may be terminated by the Board), but the term
    and exercise of Awards granted theretofore may extend beyond
    that date.

 

    16.12.  Section 409A of the Code.
    The Plan is intended to comply with the applicable
    requirements of Section 409A of the Code and shall be
    limited, construed and interpreted in accordance with such
    intent. To the extent that any Award is subject to
    Section 409A of the Code, it shall be paid in a manner that
    will comply with Section 409A of the Code, including the
    final treasury regulations or any other official guidance issued
    by the Secretary of the Treasury or the Internal Revenue Service
    with respect thereto. Notwithstanding anything herein to the
    contrary, any provision on the Plan that is inconsistent with
    Section 409A of the Code shall be deemed to be amended to
    comply with Section 409A of the Code and to the extent such
    provision cannot be amended to comply therewith, such provision
    shall be null and void.

    

    14

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