Document:

EX-10(A)(XI)

Exhibit 10 (a) (xi)

1986

DEFERRED COMPENSATION PROGRAM

FOR EXECUTIVES OF H. J. HEINZ COMPANY

AND AFFILIATED COMPANIES

(as amended and restated effective January 1, 2005)

	1.	 	Purpose

     The purpose of this Program is to provide Eligible Executives with an opportunity to defer
current income.

	2.	 	Definitions

	 	2.1	 	“Account” shall mean a deferred compensation reserve account established for
bookkeeping purposes only in the financial accounting records of the Corporation
which reflect Awards deferred pursuant to Section 3, plus Rollovers pursuant to
Section 4, plus earnings credited at the applicable Crediting Rate.
	 
	 	2.2	 	“Age” shall mean the Participant’s attained age in years.
	 
	 	2.3	 	“Affiliate” shall mean any corporation, partnership, trust, or sole
proprietorship, whether domestic or foreign, which is affiliated with the Company
through direct or indirect ownership of greater than fifty percent (50%) of the
voting and equity interests therein.
	 
	 	2.4	 	“Award” shall mean, for any fiscal year, the amount granted to an Eligible
Executive of the Company for that year and, in the absence of a Deferral Election
with respect to such Award, payable to him in the succeeding fiscal year under MIP
and LTIP.
	 
	 	2.5	 	“Board” shall mean the Board of Directors of the Corporation.

 

 

	 	2.6	 	“Beneficiary” shall mean the person or entity designated by the Participant
or the Spouse of a Participant in a time and manner determined by the Committee to
receive Benefits under this Program. If no Beneficiary designation by a Participant
is in effect, the Beneficiary shall be the Participant’s Spouse, if any, or if none,
then the Participant’s estate. If a Participant’s Spouse makes no Beneficiary
designation, then the Beneficiary shall be such Spouse’s estate. A Participant or
his surviving Spouse may revoke or change their Beneficiary designation at any time
in the manner determined from time to time by the Committee.
	 
	 	2.7	 	“Benefit” shall mean any payment made from an Account to a Participant or
his Beneficiary. Such Benefit shall be payable in United States currency by a check
or draft drawn upon an account of the Company at any United States domestic bank.
Such check or draft shall be mailed by regular first class United States mail to
the latest address provided by the Participant or his Beneficiary no later than the
date specified for such Benefit to be paid pursuant to the terms of this Program.
	 
	 	2.8	 	“Committee” shall mean the Management Development and Compensation
Committee of the Board and its designee or their successors.
	 
	 	2.9	 	“Company” shall mean H. J. Heinz Company or any Affiliate.
	 
	 	2.10	 	“Corporation” shall mean H. J. Heinz Company, a Pennsylvania corporation,
and any successor thereto by merger, purchase, or otherwise.
	 
	 	2.11	 	“Crediting Rate” shall mean for any Plan Year the greater of 150% of Moody’s
Composite Bond Index or 15% per annum, until such time as periodic Benefits begin
pursuant to Section 6, Section 7, or Section 8, whereupon the Crediting Rate shall
be 15% per annum. No crediting of earnings at the applicable Crediting Rate will be
made after the last day of the month in which the event occurs which causes a single
sum Benefit payment to become payable pursuant to Section 7 or Section 8. Crediting
of earnings shall commence on July 1, 1987 and continue each July 1 thereafter to a
Participant’s Account up to the date a Benefit is payable from such Account.

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	 	 	 	Once
the first periodic Benefit payment from an Account is made, crediting of earnings
on such Account at the applicable Crediting Rate shall be accrued annually from
the date such first periodic Benefit payment is made.
	 
	 	2.12	 	“Deferral Election” shall mean the signing of the irrevocable deferral
election form authorized by the Committee under which the Eligible Executive elects
to defer all or a portion of his Award pursuant to Section 3, or elects to make a
complete or partial Rollover Election pursuant to Section 4 (Rollover Election).
	 
	 	2.13	 	“Deferral Date” shall mean July 1, 1986 with respect to any Awards deferred
under a Deferral Election entered into by an Eligible Executive for a fiscal year
1986 Award and a Rollover, and July 1, 1987 for a fiscal year 1987 Award deferred
under a Deferral Election.
	 
	 	2.14	 	“Eligible Executive” shall mean an employee of the Company who is eligible
for MIP and/or LTIP as of April 30, 1986 and who has not attained age 65 by such
date, provided, however, that the Committee, in its sole discretion, may designate
any employee of the Company as an Eligible Executive.
	 
	 	2.15	 	“MIP” and/or “LTIP” shall mean the Company’s existing Management Incentive
Plan and the Company’s Long Term Incentive Plan, respectively, as each may be
amended from time to time.
	 
	 	2.16	 	“Moody’s Composite Bond Index” shall mean the Monthly Average of the
Composite Yield on Seasoned Corporate Bonds as published by Moody’s Investors
Service, Inc. or any successor thereto for the calendar month which ends two months
prior to the beginning of any applicable Plan Year. If such index is no longer
published, the Committee, in its sole discretion, may use any seasoned United States
corporate bond index published generally in the United States.
	 
	 	2.17	 	“Participant” shall mean an Eligible Executive who elects to defer all or a
portion of his Award pursuant to Section 3 or elects a Rollover pursuant to Section
4.

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	 	2.18	 	“Plan Year” shall mean the twelve months beginning July 1 through June 30
commencing July 1, 1986 and each twelve month period thereafter so long as the
Program remains in existence.
	 
	 	2.19	 	“Program” shall mean the 1986 Deferred Compensation program for Executives
of H. J. Heinz Company and Affiliated Companies.
	 
	 	2.20	 	“Retirement” shall mean the eligibility of a Participant to receive an
immediate cash allowance from any funded pension plan generally applicable to
employees of the Company.
	 
	 	2.21	 	“Rollover” shall mean amounts credited pursuant to Section 4 from previously
deferred cash awards together with interest accrued thereon under WHIP and/or LTIP
to a Participant’s Account.
	 
	 	2.22	 	“RSP” shall mean the H.J. Heinz Company Employees Retirement and Savings
Plan, as amended from time to time, or any predecessor to such plan.
	 
	 	2.23	 	“Spouse” shall mean the person who is legally married to the Participant at
the time of the Participant’s death and is not then subject to an agreement or court
decree of separate maintenance or a trust in which such person is the sole income
Beneficiary.

	3.	 	Deferral of Awards

	 	3.1	 	An Eligible Executive may elect, subject to section 3.3, to defer whole
dollars or a percentage of his Award as follows:

	 	(a)	 	up to 100% of his fiscal year 1986 Award, if any; and/or
	 
	 	(b)	 	up to 100% of his fiscal year 1987 Award, if any.

	 	3.2	 	Such election shall be made by executing an irrevocable Deferral Election
with the Company on or before April 30, 1986.
	 
	 	3.3	 	The minimum amount of an Award which an Eligible Executive may defer in any
year shall be $5,000. Deferral Elections of less than $5,000 shall be void and of no
effect.

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	 	3.4	 	Awards deferred and Rollovers under the Program are not included in
determining a Participant’s benefits under any qualified retirement plan of the
Company or determining allowable contributions under the RSP. To the extent that any
deferred Award and/or Rollover would have been included in determining a
Participant’s retirement benefit had such amount not been deferred, the Company will
make additional supplemental payments to the Participant outside of the Heinz
Retirement System so that each Participant will receive the same retirement benefit
from the Company that he would have received had he not elected to defer such Award
or Rollover.

	4.	 	Rollovers of MIP and/or LTIP

	 	4.1	 	An Eligible Executive may make an irrevocable one-time election in whole
dollars for the Rollover of all or a portion, but not less than $5,000, of his
previously deferred cash awards plus interest accrued thereon under MIP and/or LTIP
as of June 30, 1986 including such amounts the Eligible Executive previously elected
to defer with respect to FY1986 and/or FY1987 MIP and/or LTIP. Rollovers shall
become part of a Participant’s Account and shall be subject to the rules of the
Program. A Rollover election may be made by an Eligible Executive independent of the
deferral of an Award pursuant to Section 3.

	5.	 	Death Prior to Deferral Date

	 	5.1	 	If a Participant dies prior to a Deferral Date for any Award or Rollover,
the Deferral Election or Rollover Election with respect to such Award or Rollover
shall be void and of no effect. The Company’s sole obligation in such circumstance
with respect to an Award shall be to pay such Award to the Participant’s estate or
personal legal representative. Rollover amounts transferred pursuant to this Program
will be paid out in accordance with the rules of MIP and/or LTIP as if the Rollover
election had never taken place.

	6.	 	Participant’s Benefit at Age 65

	 	6.1	 	A Benefit shall be payable from a Participant’s Account in 15 equal annual
installments beginning on the 1st day of the month next

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	 	 	 	following the day such
Participant attains age 65 and on the same day of each year thereafter until all
annual installments have been paid. Each installment shall be deducted from the
Participant’s Account and shall be in an amount sufficient to exhaust the
Participant’s Account together with interest compounded at 15% per annum on the
declining Account balance. The amount of each installment shall be calculated by
dividing a Participant’s Account as of the date installments commence by 6.72447561.
If a Participant dies after attaining age 65, his Account at his date of death shall
be paid in accordance with Section 8.4.

	7.	 	Benefits at Termination of Employment

	 	7.1	 	A Participant whose employment with the Company has terminated prior to
attaining age 50 for any reason whatsoever, except for death, shall receive his
Account in a single sum as soon as practicable following the date of his termination
of employment.
	 
	 	7.2	 	If such Participant has attained age 50 or is eligible for Retirement at the
time of his termination of employment for any reason whatsoever except for death,
Benefits shall be payable pursuant to Section 6 beginning the first day of the month
next following the day such Participant attains age 65.
	 
	 	7.3	 	Notwithstanding Section 2.11, if a Participant whose employment with the
Company has terminated pursuant to Section 7.1 in the first year after any Deferral
Date for any Award or Rollover, the Crediting Rate applied to such Award or Rollover
will be reduced to zero, and if such Participant’s termination of employment occurs
for any reason, except for death, in the second year after any Deferral Date for any
Award or Rollover, the Crediting Rate will be reduced to 5% per annum. If such
Participant’s termination of employment occurs for any reason whatsoever except for
death after two years from any Deferral Date of any Award or Rollover, the Crediting
Rate shall be the same as stated in Section 2.11.
	 
	 	7.4	 	Notwithstanding anything to the contrary contained herein, if a
Participant’s employment with the Company or any Affiliate of the Company terminates
because the Company has sold the Affiliate, division or other portion of the
business to a party that is not an 

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	 	 	 	Affiliate of the Company, the Participant may
continue to receive the benefits of the Program that he or she would otherwise have
received had the Participant continued to be employed by an Affiliate of the
Company, provided the Board of Directors or the Executive Committee of the Board of
Directors specifically authorizes such Participant to continue to receive the
benefits of the Program following the disposition of the Affiliate, division, or
other business in which such Participant was employed.

	8.	 	Death Benefits

	 	8.1	 	If a Participant dies prior to age 65 and is not eligible for Retirement, his
Beneficiary shall receive a single sum as soon as practicable following his date of
death equal to the greater of:

	 	(a)	 	three times the sum of Awards deferred under Section 3 and
any Rollover pursuant to Section 4; or
	 
	 	(b)	 	the Participant’s Account at his date of death.

	 	8.2	 	If a Participant dies prior to age 65 and is eligible for Retirement and his
Beneficiary is his Spouse, then a Benefit of 15 annual payments calculated pursuant
to Section 6 will be paid, commencing as soon as practicable, to such Spouse. The
Spouse’s Benefit will be based on the greater of:

	 	(a)	 	three times the sum of Awards deferred under Section 3 and
any Rollover pursuant to Section 4; or
	 
	 	(b)	 	the Participant’s Account at his date of death.

	 	8.3	 	If a Participant dies prior to age 65 and is eligible for Retirement and his
Beneficiary is not his Spouse, then a single sum Benefit will be paid equal to the
greater of:

	 	(a)	 	three times the sum of Awards deferred under Section 3 and
any Rollover pursuant to Section 4; or
	 
	 	(b)	 	the Participant’s Account at his date of death.

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	 	8.4	 	If a Participant dies after age 65, his Beneficiary, if such Beneficiary is
the Participant’s Spouse, shall receive the remainder of the 15 annual installments
pursuant to Section 6. If the Participant’s Beneficiary is other than his Spouse, a
single sum payment equal to the Participant’s Account at his date of death shall be
paid to such Beneficiary as soon as practicable.
	 
	 	8.5	 	In the event of the death of a Participant’s Spouse before the 15 annual
installments pursuant to Section 6 have been completed, such Spouse’s Beneficiary
shall receive a single sum Benefit equal to the Account balance at the Spouse’s date
of death as soon as practicable.

	9.	 	Administration

	 	9.1	 	Consistent with the provisions of Section 24.1, the Committee shall
administer and interpret the Program, establish rules to further the purposes of the
Program and take any other action necessary for the proper operation of the Program.
	 
	 	9.2	 	Consistent with the provisions of Section 24.1, the Board, in its sole
discretion and upon such terms as it may prescribe, may permit any company or
corporation directly or indirectly controlled by the Corporation to participate in
the Program for such periods as the Committee may determine.
	 
	 	9.3	 	The Committee shall provide adequate written notice to any Participant or
Beneficiary whose claim for Benefits under this Program has been denied setting
forth specific reasons for such denial. A reasonable opportunity shall be afforded
to any such Participant or Beneficiary for a full and fair review by the Committee
of its decision denying Benefits.
	 
	 	9.4	 	All acts and decisions of the Committee shall be final and binding upon all
Participants, Beneficiaries, heirs, estates, personal legal representatives, and
their successors.
	 
	 	9.5	 	The Committee may, in its sole discretion, reduce the Crediting Rate for
future Plan Years in the event of material adverse Federal, state, or local tax law
changes which increase the cost of the Program to the Corporation.

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	 	9.6	 	Prior to paying any Benefit under this Program, the Committee may require
any Participant, Beneficiary, estate, heir, or personal legal representative to
provide information to the Committee. The Committee may withhold payment of any
Benefit under this Program until it receives all such information including, but not
limited to certified copies of birth or death certificates and marriage licenses.

	10.	 	Termination and Amendment of the Program

	 	10.1	 	Consistent with the provisions of Section 24.1, the Board may, in its sole
discretion, terminate or amend this Program at any time. In the event the Program and
the Deferral and/or Rollover Elections are terminated, a Participant shall receive a
single sum payment equal to his Account, less any Benefits already paid to a
Participant under this Program. However, if the Participant or a Spouse is receiving
a Benefit pursuant to Section 6, Section 7, or Section 8 such Benefit shall continue
unchanged. Any single sum payment shall be made as soon as practicable following the
date the Program is terminated and shall be in lieu of any other Benefit which may be
payable to the Participant under this Program.

	11.	 	Employment Not Guaranteed

	 	11.1	 	The existence of this Program or the execution of a Deferral or Rollover
Election does not constitute a contract for continued employment between an Eligible
Executive or a Participant and the Company. The Company reserves the right to modify
an Eligible Executive’s or Participant’s compensation and to terminate the
employment of an Eligible Executive or a Participant for any reason and at any time,
notwithstanding the existence of this Program or of a Deferral or Rollover Election.

	12.	 	Assignment of Benefits

	 	12.1	 	The right to receive any Benefit under this Program may not be pledged,
hypothecated, transferred, assigned, nor is it subject to garnishment, attachment, or
other legal or equitable process.

	13.	 	Tax Withholding

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	 	13.1	 	The Company shall deduct from all Benefits paid under this Program all
applicable Federal, state, local, and foreign taxes required by law to be withheld.
Participants or Beneficiaries under this Program must provide all information
required by law in order to report payments to any taxing jurisdiction.

	14.	 	Tax Consequences of Program

	 	14.1	 	The Company makes no representations or warranties with respect to any tax
consequences of the Program. Participants are advised to consult their own estate
planner and tax advisor concerning the Federal, state, and local income, estate, and
inheritance tax consequences of the Program especially in the event such tax laws
change in the future.

	15.	 	Life Insurance and Participant’s Health

	 	15.1	 	The current health condition of a Participant will not prevent participation
in the Program.
	 
	 	15.2	 	The Company, in its sole discretion, may, but shall not be required to,
purchase life insurance policies on the life of a Participant in such amounts and in
such forms as the Company may choose. The Company will be the owner and beneficiary
of such life insurance policies. Neither the Participant, his Beneficiary, estate,
heirs, or personal legal representatives shall have any interest whatsoever in such
life insurance policies. As a condition to participating in this Program, a
Participant must complete an accurate, truthful health statement and at the request
of the Company shall submit to medical examinations and supply information and
execute documents as may be required by the insurance company or companies to whom
the Company has applied for insurance.

	16.	 	Misrepresentations by Participant

	 	16.1	 	The Participant will be required to warrant that all information supplied to
the Company and/or insurance companies is accurate and complete. If a Participant
makes or has made any material misrepresentation or omission which results in a cost
or loss to the Company, the Company in its sole discretion may pay the 

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	 	 	 	Participant
or his Beneficiary an amount equal to his Award and/or Rollover under this Program,
less any Benefits already paid.

	17.	 	Suicide

	 	17.1	 	Should a Participant commit suicide within two years after the Deferral Date
of any Award or Rollover, the Company’s only obligation under this Program will be to
pay the Award and/or Rollover to the Beneficiary, less any Benefits already paid.

	18.	 	Rights in Company Assets

	 	18.1	 	Nothing in this Program or in a Deferral Election shall require the Company
to segregate any monies or assets from its general funds, or to create a trust or
make any special deposit for any Benefits to be paid to any Participant,
Beneficiary, heir, or personal legal representative.
	 
	 	18.2	 	The rights of a Participant, Beneficiary, heir, or personal legal
representative under this Program shall be solely those of an unsecured creditor of
the Company. The maintaining of an Account for a Participant by the Corporation for
bookkeeping purposes creates no security interest in any assets of the Company. Any
insurance policy or other asset acquired or held by the Corporation in connection
with this Program shall not be deemed to be held under any trust for the benefit of
the Participant, his Beneficiaries, his heirs, his estate, or his personal legal
representatives, or to be security for the performance of the obligations of the
Company under this Program, and shall be, and remain, a general, unpledged and
unrestricted asset of the Company.

	19.	 	Vesting

	 	19.1	 	All Awards deferred and Rollovers transferred to a Participant’s Account
shall be vested and will not be subject to forfeiture for any reason.

	20.	 	Severability

	 	20.1	 	The invalidity or unenforceability of any provision of this Program or of a
Deferral Election and Rollover Election shall in no way 

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	 	 	 	affect the validity or
enforceability of any other provision of this Program.

	21.	 	Captions

	 	21.1	 	The captions at the head of a section or paragraph of this Program are
designed for convenience of reference only and are not to be resorted to for the
purpose of interpreting any provision of this Program.

	22.	 	Pronouns

	 	22.1	 	The masculine pronoun shall mean the feminine pronoun and the singular shall
include the plural wherever appropriate.

23. Construction

	 	23.1	 	This Program and any Deferral Election or Rollover Election shall be
governed by the laws of the Commonwealth of Pennsylvania.

	24.	 	Internal Revenue Code Section 409A

	 	24.1	 	It is the intention of the Company that this Program and any Deferral
Election or Rollover Election under this Program will never be subject to the
provisions of Internal Revenue Code section 409A because this Program applies to
deferred compensation that was deferred on or before December 31, 2004. It is also
intended that amounts deferred under this Program will not be taxable under Internal
Revenue Code section 409A. This Program shall be interpreted and administered, to
the extent possible, in a manner that does not result in a “material modification”
of this Program (within
the meaning of section 885(d)(2)(B) of the American Jobs Creation Act of 2004 or
Treasury Regulation section 1.409A-6(a)(4)), and in a manner that does not result
in a “plan failure” (within the meaning of Internal Revenue Code section
409A(a)(1)) of this Program or any other plan or arrangement maintained by the
Company.

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Exhibit 10 (a) (xii)

H. J. HEINZ COMPANY

Executive Deferred Compensation Plan

(as amended and restated effective January 1, 2005)

 

 

Contents

	 	 	 	 	 
	 	 	Page	 
	Article 1 Effective Date and Purpose
	 	 	1	 
	 
	 	 	 	 
	Article 2 Administration
	 	 	1	 
	 
	 	 	 	 
	Article 3 Eligibility and Participation
	 	 	2	 
	 
	 	 	 	 
	Article 4 Elective Deferrals
	 	 	3	 
	 
	 	 	 	 
	Article 5 Nonelective Deferrals
	 	 	6	 
	 
	 	 	 	 
	Article 6 Deferred Compensation Accounts
	 	 	9	 
	 
	 	 	 	 
	Article 7 Rights of Participants
	 	 	12	 
	 
	 	 	 	 
	Article 8 Withholding of Taxes
	 	 	13	 
	 
	 	 	 	 
	Article 9 Amendment and Termination
	 	 	13	 
	 
	 	 	 	 
	Article 10 Miscellaneous
	 	 	13	 

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H. J. Heinz Company

Executive Deferred Compensation Plan

Article 1. Effective Date and Purpose

1.1 Effective Date. H. J. Heinz Company (the “Company”) established the “H. J. Heinz
Company Executive Deferred Compensation Plan” (the “Plan”) effective as of June 8, 1994. The Plan
was amended and restated effective as of January 1, 1998. On September 12, 2000 January 11, 2001,
and December 27, 2001, the Plan was again amended and restated effective as of those dates.
Effective January 1, 2005, the Plan was again amended and restated as described herein. This
amended and restated Plan shall govern amounts deferred under the Plan on or after January 1, 2005;
the prior version of the Plan shall continue to govern amounts deferred under the Plan on or before
December 31, 2004.

1.2 Purpose. The Plan is a deferred compensation plan for key employees the primary purpose
of which is to provide certain key employees of the Company, or an “Affiliate” (as defined in
Section 3.1) of the Company, with deferred cash awards and the opportunity to voluntarily defer a
portion of their compensation, in each case subject to the terms of the Plan. By adopting the Plan,
the Company desires to enhance its ability to attract and retain employees of outstanding
competence.

Article 2. Administration

2.1 The Committee. Subject to the provisions of Section 10.8, the Plan shall be
administered by the Management Development & Compensation Committee of the Board of Directors of
the Company (“Board”) or any other successor Committee appointed by the Board (the “Committee”).
The members of the Committee shall be appointed by, and shall serve at the discretion of, the
Board.

2.2 Authority of the Committee. Except as limited by law or by the Company’s Articles of
Incorporation or Bylaws, and subject to the provisions herein, the Committee shall have authority
to select eligible employees of the Company for participation in the Plan; determine the terms and
conditions of each employee’s participation in the Plan; select the recipients of deferred cash
awards and determine the amounts and terms of such awards; interpret the Plan; establish, amend, or
waive rules and regulations for the Plan’s administration; and, subject to Article 9 herein, amend
the terms and conditions of the Plan and any agreement entered into under the Plan. Further, the
Committee shall make all other

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determinations that may be necessary or advisable for the administration of the Plan. As permitted
by law, the Committee may delegate any of its authority granted under the Plan to such other person
or entity it deems appropriate, including but not limited to, senior management of the Company.
The Committee shall also have the authority, as it determines in its sole discretion to be
necessary or appropriate, to administer under the provisions of this Plan, and in a manner
consistent with the provisions of such other plans, any grants and awards made under any other
plans of the Company that may be deferred under this Plan.

2.3 Guidelines. Subject to the provisions herein, the Committee may adopt written
guidelines for the implementation and administration of the Plan.

2.4 Decisions Binding. All determinations and decisions of the Committee arising under the
Plan shall be final, binding, and conclusive upon all parties.

Article 3. Eligibility and Participation

3.1 Eligibility. Subject to Section 3.2, Employees eligible to be selected to participate
in the Plan in any fiscal year of the Company (hereinafter, a “Year”) include full-time, salaried
employees of the Company, or an “Affiliate” of the Company who are key employees, as determined by
the Committee in its sole discretion. “Affiliate” shall mean H. J. Heinz Finance Company and any
corporation, partnership, trust or sole proprietorship, whether domestic or foreign, which is
affiliated with the Company through direct or indirect ownership of greater than fifty percent
(50%) of the voting and equity interests therein.

3.2 Limitation on Eligibility. It is the intent of the Company that the Plan qualify for
treatment as a “top hat” plan, that is, an unfunded plan maintained primarily for the purpose of
providing deferred compensation for a select group of management or highly compensated employees
within the meaning of sections 201(2), 301(a)(3), and 401(a)(1) of the Employee Retirement Income
Security Act of 1974, as amended from time to time, or any successor Act thereto (“ERISA”), and
therefore is exempt from Parts 2, 3, and 4 of Title I of ERISA. Accordingly, to the extent required
by ERISA to obtain such “top hat” treatment, eligibility shall be extended only to those executives
who comprise a select group of management or highly compensated employees. Further, the Committee
may place such additional limitations on eligibility as it deems necessary and appropriate under
the circumstances.

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3.3 Participation. Participation in the Plan shall be determined annually by the Committee
based upon the criteria set forth in Sections 3.1 and 3.2 herein. An employee who is chosen to
participate in the Plan in any Year (a “Participant”) shall be so notified in writing. In the event
a Participant selected to participate in the Plan on an elective basis no longer meets the criteria
for participation, such Participant shall become an inactive Participant, retaining all the rights
described under the Plan, except the right to make any further deferrals, until such time that the
Participant again becomes an active Participant.

3.4 Partial Year Eligibility. In the event that an employee first becomes eligible to
participate in the Plan on an elective basis during a Year, within thirty (30) calendar days after
becoming eligible such employee shall be notified by the Company of his or her eligibility to
participate, and the Company shall provide each such employee with an Election Form, which must be
completed by the employee as provided in Section 4.2 herein within said thirty (30) day period.

3.5 No Right to Participate. No employee shall have the right to be selected as a
Participant, or having been so selected for any given Year, to be selected again as a Participant
for any other Year.

Article 4. Elective Deferrals

4.1 Amount Which May Be Deferred. A Participant may elect to defer, in any Year, up to one
hundred percent (100%) of eligible components of Compensation, including, but not limited to,
Bonus, Long-Term Awards and Discretionary Awards, all as defined herein; provided, however, that
the Committee shall have sole discretion to designate which components of Compensation are eligible
for deferral elections under the Plan in any given Year. In addition, the Committee may, in its
sole discretion, designate the minimum amount or increments of any single eligible component of
Compensation which may be deferred in any Year or establish any other limitations as it deems
appropriate in any Year. The following definitions shall apply for purposes of this Plan:

(a) “Bonus” means any incentive award based on an assessment of performance, payable by
the Company to a Participant with respect to the Participant’s services during a Year,
including, but not limited to, amounts awarded under the H.J. Heinz Company Annual
Incentive Plan (“AIP”) or the H.J. Heinz Company Senior Executive Incentive Compensation
Plan (“SEICP”); provided, however, that for purposes of the Plan, “Bonus”

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shall not include incentive awards which relate to a period exceeding one (1) Year.

(b) “Long-Term Award” means any cash award payable to a Participant pursuant to a Company
program that establishes incentive award opportunities that are contingent upon
performance that is measured over a calendar or fiscal year period in excess of one (1)
Year.

(c) “Discretionary Award” means any cash award payable to a Participant not described in
(a) or (b) above.

(d) “Compensation” means the gross salary, Bonus, Long-Term Awards, Discretionary Awards,
and any other payments eligible for deferral under the Plan, which are payable to a
Participant with respect to services performed.

4.2 Time of Deferral Election. An election to defer a component of Compensation permitted
by the Committee to be deferred by a Participant under the Plan shall be given effect in accordance
with the following timing rules:

(a) An election to defer “Bonus” for any Year shall apply only if a properly executed
Election Form has been filed with the Committee, or its designee, on or before the
commencement of the period of services to which the “Bonus” relates; provided, however,
that if the “Bonus” qualifies as “performance-based compensation” under Internal Revenue
Code (“Code”) section 409A, on or before the date that is six months before the end of the
performance period to which such “Bonus” relates.

(b) An election to defer a “Long-Term Award” shall apply only if a properly executed
Election Form has been filed with the Committee on or before the commencement of the
period of services to which the “Long-Term Award” relates; provided, however, that if the
“Long-Term Award” qualifies as “performance-based compensation” under Code section 409A,
on or before the date that is six months before the end of the performance period to which
such “Long-Term Award” relates; and further provided that if the “Long-Term Award”
qualifies as “performance-based compensation” under Code section 409A and if there is more
than one performance period in a multi-year award period the election to defer with
respect to each performance period of at least twelve (12) consecutive months within such
multi-year award period must be filed with the

- 4 -

 

Committee on or before the date that is six months before the end of each such performance
period.

4.3 Content of Deferral Election. All deferral elections shall be irrevocable, and shall be
made on an Election Form, as described herein. Participants shall make the following irrevocable
elections on each Election Form:

(a) The amount to be deferred with respect to each eligible component of Compensation for
the Year;

(b) The length of the deferral period with respect to each eligible component of
Compensation, pursuant to the terms of Section 4.4 herein; and

(c) The form of payment to be made to the Participant at the end of the deferral
period(s), pursuant to the terms of Section 4.5 herein.

Notwithstanding the amounts requested to be deferred pursuant to Subparagraph (a) above, the limits
on deferrals determined under Section 4.1 herein shall apply to the requested deferrals each Year.

4.4 Length of Deferral. The deferral periods elected by each Participant with respect to
deferrals of Compensation (and accumulated investment gains and losses thereon) for any Year shall
be at least equal to one (1) year following the end of the Year in which the Compensation is
earned, and shall be no greater than the date of retirement or other “Separation from Service” (as
defined in Section 4.7), whichever is earlier. However, notwithstanding the deferral periods
elected by a Participant pursuant to Section 4.3(b) or the form of payment in effect under Section
4.3(c), payment of deferred amounts and accumulated investment gains or losses thereon shall be
accelerated in the event the Participant’s employment with the Company is terminated by reason of
death or, at the election of the Participant, total disability, as defined in Treasury Regulation
section 1.409A-3(i)(4), at any time prior to full payment of deferred amounts and accumulated
investment gains or losses thereon. Notwithstanding a Participant’s irrevocable deferral election,
the Participant may extend the deferral period originally elected by such Participant to a later
date, but not later than “Separation from Service” (as defined in Section 4.7), with respect to
amounts which are not otherwise payable prior to twelve (12) months after the end of the calendar
month in which any such election to extend the deferral period is made, and provided that any such
re-deferral must extend the payment for a period of not less than five (5) years from the date such
payment would otherwise have been made. For purposes of such re-deferral

- 5 -

 

elections, a series of installment payments shall be treated as a single payment, and the
re-deferral rules described herein apply to the first such installment payment.

4.5 Payment of Deferred Amounts. Participants shall be entitled to elect to receive payment
of electively deferred amounts, together with accumulated investment gains or losses thereon, at
the end of the deferral period in a single lump sum cash payment (or in shares of Company stock in
the case of deferred amounts that are invested in the H. J. Heinz Capital Stock hypothetical
investment account described in Section 6.3(b)), by means of installments, or in such other format
approved by the Committee.

(a) Lump Sum Payment. Such payment shall be made in cash (or in shares of Company stock in
the case of deferred amounts that are invested in the H. J. Heinz Capital Stock
hypothetical investment account described in Section 6.3(b)), within ninety (90) calendar
days of the date specified by the Participant as the date for payment of deferred
Compensation as described in Section 4.3 and 4.4 hereof (provided, however, that if this
90 day period overlaps two taxable years of the Participant the Participant does not have
the right to designate the taxable year of the payment).

(b) Installment Payments. Participants may elect payout in installments, with a minimum
number of installments of two (2) and a maximum of fifteen (15). The initial payment shall
be made in cash (or in shares of Company stock in the case of deferred amounts that are
invested in the H. J. Heinz Capital Stock hypothetical investment account described in
Section 6.3(b)) within ninety (90) calendar days after the commencement date selected by
the Participant pursuant to Sections 4.3 and 4.4 hereof (provided, however, that if this
90 day period overlaps two taxable years of the Participant the Participant does not have
the right to designate the taxable year of the payment). The remaining installment
payments shall be made in cash (or in shares of Company stock in the case of deferred
amounts that are invested in the H. J. Heinz Capital Stock hypothetical investment account
described in Section 6.3(b)) each calendar year thereafter, until the Participant’s entire
deferred compensation account has been paid. Investment gains and losses shall accrue on
the deferred amounts in the Participant’s deferred compensation account, as provided in
Section 6.2 of this Plan. The amount of each installment payment shall be equal to the
balance remaining in the Participant’s deferred compensation account immediately prior to
each such payment, multiplied by a fraction, the numerator of which is one (1),

- 6 -

 

and the denominator of which is the number of installment payments remaining.

(c) Alternative Payment Schedule. A Participant may submit an alternate payment schedule
to the Committee for approval; provided, however, that no such alternate payment schedule
shall be permitted unless, consistent with Section 10.8, it is approved by the Committee
prior to the commencement of the relevant service period to which such deferred
Compensation relates.

4.6 Unforeseeable Emergency. The Committee shall have the authority to alter the timing or
manner of payment of deferred amounts in the event that the Participant establishes, to the
satisfaction of the Committee, an “unforeseeable emergency,” as defined in Treasury Regulation
section 1.409A-3(i)(3)(i). In such event, consistent with Section 10.8, the Committee may, in its
sole discretion:

(a) Authorize the cessation of deferrals by such Participant under the Plan; or

(b) Provide that all or a portion of the amount previously deferred by the Participant
shall immediately be paid in a lump-sum cash (or in shares of Company stock in the case of
deferred amounts that are invested in the H. J. Heinz Capital Stock hypothetical
investment account described in Section 6.3(b)) payment, provided that such payment is
limited to the amount reasonably necessary to satisfy the emergency need, as required by
Code section 409A; or

(c) Provide that all or a portion of the installments payable over a period of time shall
immediately be paid in a lump-sum cash (or in shares of Company stock in the case of
deferred amounts that are invested in the H. J. Heinz Capital Stock hypothetical
investment account described in Section 6.3(b)) payment, provided that such payment is
limited to the amount reasonably necessary to satisfy the emergency need, as required by
Code section 409A.

For purposes of this Section 4.6, “unforseeable emergency” shall be determined by the Committee, in
its sole discretion, in accordance with all applicable laws and consistent with the limitations of
Code section 409A and the provisions of Section 10.8. The Committee’s decision with respect to the
severity of financial hardship and the manner in which, if at all, the Participant’s future
deferral opportunities shall be ceased, and/or the manner in which, if at all, the payment of

- 7 -

 

deferred amounts of the Participant shall be altered or modified shall be consistent with the
limitations of Code section 409A and the provisions of Section 10.8, and shall be final,
conclusive, and not subject to appeal. Investment gains and losses will be credited in accordance
with Article 6 up to the date of distribution.

4.7 Limits on Distributions to Specified Employees pursuant to Code Section 409A.
Notwithstanding anything in this Article 4 to the contrary, to the extent that “deferred
compensation” (as defined by Code section 409A) is payable from this Plan, in the case of a
“Specified Employee,” payment shall not be made before the earlier of: (i) the date that is 6
months after the date of Separation from Service of such Participant or (ii) the date of the
Specified Employee’s death.

For purposes of this Section 4.7, Specified Employee shall mean, for each 12-month period beginning
on May 1st, a person who met the requirements of Code section 416(i)(a)(i), (ii) or
(iii) (applied in accordance with the regulations thereunder and disregarding Code section
416(i)(5)) as of the identification date for such 12-month period, which shall be the first day of
the calendar year in which such 12-month period begins. For purposes of this determination a person
is a Specified Employee on the applicable identification date if he or she is a Specified Employee
under the requirements of Code section 416(i)(1)(A)(i), (ii) or (iii), applied as indicated above,
at any time during the 12 month period ending on the applicable identification date. In other
words, the identification of Specified Employees is determined for the 12 month period ending on
each January 1st, and such identified Specified Employees are Specified Employees for purposes of
this Plan effective for the 12 month period beginning on the immediately following May
1st of that same calendar year in which the applicable identification date occurred.

Separation from Service shall mean the death of the Participant or the retirement or other
termination of employment of the Participant such that he ceases to be an employee of the Company
or a Subsidiary (as such term is defined in Section 5.4(a), but in all cases requiring direct
and/or indirect ownership of at least a fifty percent (50%) voting or profits interest) of the
Company, provided that no change in a Participant’s employment status shall be considered a
Separation from Service unless it would be treated as such pursuant to regulations under Code
section 409A. For purposes of determining whether or not a Separation from Service has occurred if
an employee is expected to work less than 50% of the time that he/she worked in the preceding 36
month period a termination of employment is presumed to have occurred, and if an employee is
expected to work greater than or equal to 50% of the time that he/she
worked in the preceding 36 month period a termination of employment is presumed not to have
occurred.

- 8 -

 

Article 5. Nonelective Deferrals

5.1 Deferred Cash Awards. Subject to the requirements of Code section 409A and the
provisions of Section 10.8, the Committee may, at its discretion during any Year, make deferred
cash awards on behalf of designated Participants, subject to the applicable vesting requirements as
provided under Section 5.3, in amounts in the aggregate not to exceed 50% of the total amounts
awarded under both the Company’s Annual Incentive Plan (“AIP”) and the Company’s Senior Executive
Incentive Compensation Plan (“SEICP”) during the prior Year.

5.2 Deferred Period. The period of time during which each such award shall be deferred, and
the form, manner and timing of payment, shall be as specified by the Committee at the time of the
grant of such deferred cash awards; provided, however, that the Committee shall have the authority
to alter the timing of any specified payout schedule with respect to vested nonelective deferrals
upon the Participant’s establishing, pursuant to the rules and procedures established in Section
4.6, the existence of an unforeseeable emergency, as defined in Treasury Regulation section
1.409A-3(i)(3)(i). Notwithstanding the deferral periods or form of payment specified by the
Committee in its grants of deferred cash awards, payment of deferred amounts and accumulated
investment gains or losses thereon with respect to vested nonelective deferrals shall be
accelerated in the event the Participant’s employment with the Company is terminated by reason of
death or, at the election of the Participant, “total disability,” as defined in Treasury Regulation
section 1.409A-3(i)(4), at any time prior to full payment of such deferred amounts and accumulated
investment gains or losses thereon. Notwithstanding the deferral periods or form of payment
specified by the Committee in a Nonelective Deferral, a Participant may extend the deferral period
originally specified by the Committee in the award grant to a later date, but not later than
“Separation from Service” (as defined in Section 4.7), with respect to amounts that are not
otherwise payable prior to twelve (12) months after the end of the month in which any such election
to extend the deferral period is made, and provided that any such re-deferral must extend the
payment for a period of not less than five (5) years from the date such payment would otherwise
have been made. For purposes of such re-deferral elections, a series of installment payments shall
be treated as a single payment, and the deferral rules described herein apply to the first such
installment payment.

5.3 Vesting Requirements. The Committee at the time of granting a deferred cash award under
this Article 5, in its sole discretion, may impose vesting requirements with respect to such award
pursuant to which all or a portion of such

- 9 -

 

award may be forfeited under conditions specified by the
Committee. Notwithstanding the imposition of vesting requirements with respect to any award, the
entire amount of such award and any additions thereto pursuant to Section 6.5 shall become 100%
vested and nonforfeitable in the following circumstances: (a) upon the occurrence of a Change in
Control as defined in Section 5.4; (b) upon the termination of employment of the Participant as a
result of the Participant’s death; (c) upon the termination of employment of the Participant as a
result of the Participant’s total disability; (d) upon the termination of employment of the
Participant as a result of the Participant’s retirement under any retirement plan of the Company or
a Subsidiary (as such term is defined in Section 5.4(a)) of the Company; or (e) upon the
termination of employment of the Participant that constitutes an involuntary termination of
employment without cause. For purposes of subparagraph (c) above, “total disability” shall be
determined as defined in the Company’s Long-Term Disability Plan, and the determination of the
existence of “total disability” shall be made by the Committee and such determination by the
Committee shall be final. For purposes of subparagraph (d) above, the determination of the
existence of “retirement” shall be made by the Committee and such determination by the Committee
shall be final. For purposes of subparagraph (e) above, “cause” shall mean an act of dishonesty,
moral turpitude or an intentional or grossly negligent act detrimental to the best interests of the
Company or a Subsidiary (as such term is defined in Section 5.4(a)) of the Company.

5.4 Change in Control. The term “Change in Control’’ shall mean any of the following
events:

	 	(a)	 	An acquisition (other than directly from the Company) of any voting
securities of the Company (the “Voting Securities”) by any “Person” (as the term
person is used for purposes of Section 13(d) or 14(d) of the Securities Exchange Act
of 1934, as amended (the “Exchange Act”)) immediately after which such Person has
“Beneficial Ownership” (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) of twenty percent (20%) or more of the combined voting power of the
Company’s then outstanding Voting Securities; provided, however, that in determining
whether a Change in Control has occurred, Voting Securities which are acquired in a
“Non-Control Acquisition” (as hereinafter defined) shall not constitute an
acquisition that would cause a Change in Control. A “Non-Control
Acquisition” means an acquisition by: (i) an employee benefit plan (or a trust
forming a part thereof) maintained by the Company or any Subsidiary (as hereinafter
defined); (ii) the Company or any 

- 10 -

 

	 	 	 	Subsidiary; or (iii) any Person in connection with
a transaction described in paragraph (c) below. “Subsidiary” means any corporation,
partnership, joint venture or other entity during any period in which at least a
fifty percent (50%) voting or profits interest is owned, directly or indirectly, by
the Company (or by any entity that is a successor to the Company), and any other
business venture designated by the Committee in which the Company (or any entity that
is a successor to the Company) has a significant interest, as determined in the
discretion of the Committee.
	 
	 	(b)	 	The individuals who, as of the Effective Date (set forth in Section 1.1),
are members of the Board of Directors of the Company (the “Incumbent Board”), cease
for any reason to constitute at least two-thirds of the Board of Directors; provided,
however, that if the election, or nomination for election by the Company’s
shareholders, of any new director was approved by a vote of at least two-thirds of
the Incumbent Board, such new director shall, for purposes of this Plan, be
considered as a member of the Incumbent Board; provided, further, however, that no
individual shall be considered a member of the Incumbent Board if such individual
initially assumed office as a result of either an actual or threatened “Election
Contest” (as described in Rule 14a-11 promulgated under the Exchange Act) or other
actual or threatened solicitation of proxies or consents by or on behalf of a Person
other than the Board of Directors (a “Proxy Contest”) including by reason of any
agreement intended to avoid or settle any Election Contest or Proxy Contest;
	 
	 	(c)	 	A merger, consolidation or reorganization involving the Company or a
Subsidiary, unless

	 	(1)	 	the Voting Securities of the Company, immediately before
such merger, consolidation or reorganization, continue immediately following
such merger, consolidation or reorganization to represent, either by
remaining outstanding or by being converted into voting securities of the
surviving corporation resulting from such merger, consolidation or
reorganization or its parent (the “Surviving Corporation”), at
least 60% of the combined voting power of the outstanding voting securities
of the Surviving Corporation;

- 11 -

 

	 	(2)	 	the individuals who were members of the Incumbent Board
immediately before the execution of the agreement providing for such merger,
consolidation or reorganization constitute more than one-half of the members
of the board of directors of the Surviving Corporation; and
	 
	 	(3)	 	no person (other than the Company, any Subsidiary, any
employee benefit plan (or any trust forming a part thereof) maintained by
the Company, the Surviving Corporation or any Subsidiary, or any Person who,
immediately before such merger, consolidation or reorganization had
Beneficial Ownership of 15% or more of the then outstanding Voting
Securities) has Beneficial Ownership of 15% or more of the combined voting
power of the Surviving Corporation’s then outstanding voting securities.

	 	(d)	 	A complete liquidation or dissolution of the Company;
	 
	 	(e)	 	Completion of the sale or other disposition of all or substantially all of
the assets of the Company to any Person (other than a transfer to a Subsidiary); or
	 
	 	(f)	 	Any other transaction involving the Company designated as a “Change in
Control” by a majority of the Board of Directors of the Company.

Notwithstanding the foregoing, a Change in Control shall not be deemed to occur solely because any
Person (the “Subject Person”) acquired Beneficial Ownership of more than the permitted amount of
the outstanding Voting Securities as a result of the acquisition of Voting Securities by the
Company which, by reducing the number of Voting Securities outstanding, increases the proportional
number of shares Beneficially Owned by the Subject Person, provided that if a Change in Control
would occur (but for the operation of this sentence) as a result of the acquisition of Voting
Securities by the Company, and after such share acquisition by the Company the Subject Person
becomes the Beneficial Owner of any additional voting Securities which increases the percentage of
the then outstanding Voting Securities Beneficially Owned by the Subject Person, then a Change in
Control shall occur.

Article 6. Deferred Compensation Accounts

- 12 -

 

6.1 Participant Accounts. The Company shall establish and maintain an individual
bookkeeping account (“Participant Account”) in the name of each Participant by or on behalf of whom
deferrals have been made under Article 4 or Article 5 hereof. Each Participant Account shall have
a subaccount (the “Elective Account”) for elective deferrals under Article 4 which shall be
credited with each amount deferred under Article 4 as of the date that such amount otherwise would
have become due and payable to the Participant. Each Participant Account established for a
Participant on whose behalf an award has been made under Article 5 shall have a separate subaccount
(“Nonelective Account”) that shall be credited with each such award as of the effective date of
such award as determined by the Committee.

6.2 Investment Gains and Losses. The Participant’s Elective Account and the Participant’s
Nonelective Account shall be credited with investment gains and losses commencing on the date the
Elective Account or the Nonelective Account first has a positive balance. The investment gains and
losses shall be based on the performance of the hypothetical investments described in Section 6.3
made available by the Committee from time to time, as selected by the Participant in accordance
with the rules of Section 6.4. The value of the deferred compensation benefits paid under this Plan
shall depend on the investment gains and losses credited to the Elective Account or the Nonelective
Account, based on the Participant’s selections from among the investment alternatives. There shall
be no guaranteed rate of return on the Elective Account or the Nonelective Account under this Plan.
Nothing contained herein shall require the Company to invest the deferred amounts in any actual
investments. Deferred amounts shall continue to accrue investment gains and losses until paid to
Participants, or, if applicable in the case of Nonelective Accounts, until such amounts are
forfeited by reason of vesting conditions imposed on such deferred amounts. Investment gains and
losses credited on deferred amounts shall be paid out to Participants at the same time and in the
same manner as the underlying vested deferred amounts.

6.3 Hypothetical Investment Choices. The Committee from time to time may make available any
or all of the following hypothetical investments:

(a) Interest-Bearing Cash Account. A Participant’s Elective Account (or Nonelective
Account, as the case may be) shall be credited daily with compound interest at the
effective annual rate selected by the Committee and announced to Participants from time to
time, provided that the
designated interest rate constitutes a reasonable rate of interest (determined in
accordance with Treasury Regulation section 31.3121(v)(2)-1(d)(2)(i)(C)).

- 13 -

 

(b) H. J. Heinz Capital Stock Account. Amounts credited to the Participant’s Elective
Account (or Nonelective Account, as the case may be) shall be restated in the form of
“stock units” and adjusted from time to time in accordance with the following rules:

(1) The number of units initially credited shall be determined by dividing the
dollar amount to be credited to the Account by a unit value equal to the closing
trading price of one share of the Company’s common stock on the day that the
Compensation would have been paid but for the deferral, except that in the case
of a deferral of any “Bonus” or “Long-Term Award” as defined in Section 4.1(b)
and (c) respectively, such day shall be the day the Committee approves the amount
of the award.

(2) The Participant’s Elective Account (or Nonelective Account, as the case may
be) will also be credited with additional units equal to the dollar amount of
dividends paid from time to time during the deferral period on a number of shares
of the Company’s common stock equal to the number of units then credited to the
Participant’s Elective Account (or Nonelective Account, as the case may be)
divided by a unit value equal to the closing trading price of one share of the
Company’s common stock on the day the dividend is paid.

(3) In the event of any change in the outstanding shares of the Company’s common
stock by reason of any stock dividend or split, recapitalization, merger,
consolidation, spin-off, reorganization, combination or exchange of shares, or
other similar corporate change, then an equitable equivalent adjustment shall be
made in the stock units credited to the Elective Accounts (or the Nonelective
Accounts, as the case may be) under the Plan.

(4) When payment of a Participant’s Elective Account (or Nonelective Account, as
the case may be) occurs, the portion thereof which is represented by stock units
shall be payable, unless necessary to satisfy the Participant’s minimum statutory
withholding obligations (as required by Article 8), by transferring
to the Participant or beneficiary a number of shares of the Company’s common
stock equal to the number of whole units then distributable from the
Participant’s Elective Account (or

- 14 -

 

Nonelective Account, as the case may be), with
cash in lieu of fractional units.

(c) Phantom Investment Alternatives. Each Phantom Investment Alternative is a phantom
investment opportunity based on a publicly traded mutual fund or quoted benchmark such as
the NASDAQ Combined Composite Index or the S&P 500 Index. The Committee will name the
investment choices available under the Phantom Investment Alternatives from time to time.
The portion of a Participant’s Elective Account (or the Participant’s Nonelective Account
as the case may be) allocated to the Phantom Investment Alternatives will be credited with
investment gains and losses based on the investment performance as periodically reported
by the proxy mutual funds or quoted benchmarks using unit accounting as if the
Participant’s deferred amounts had been invested in those portfolios. The accounting for
additions to Phantom Investment Alternatives or redemptions therefrom shall be similarly
based on unit accounting as of the date of the transaction.

6.4 Selection and Reallocation of Hypothetical Investment Choices. Investment choices may
be made or changed in accordance with the following rules:

(a) A Participant shall designate on an Election Form the percentage of each deferred
amount which shall be allocated to each available investment choice. In default of a
complete designation, the Participant’s Elective Account or Nonelective Account, as the
case may be (or the undesignated portion thereof) shall be credited with investment gains
and losses in accordance with Section 6.3(a).

(b) The Participant may request a change in the allocation of previously deferred portions
of his or her Elective Account (or Nonelective Account, as the case may be) among the
various investment alternatives, provided, however, that amounts that have been allocated
to the H. J. Heinz Capital Stock Account may not later be transferred to other investment
options. Such changes may be made not more frequently than once during any calendar month
and, to the extent administratively practical, will become effective as of the first day
of the next calendar month following the Participant’s request provided the request is
filed at
least 3 business days before the end of the month. The Participant may also change the
allocation that shall apply to any new elective deferral amounts and deferred cash awards
under the same rules.

- 15 -

 

6.5 Additions to Nonelective Accounts. The Participant’s Nonelective Account, which is
attributable to deferred cash awards described in Section 5.1, shall be credited with investment
gains and losses in the manner specified in Section 6.2, based on the performance of the
hypothetical investments described in Section 6.3 made available by the Committee from time to
time, as selected by the Participant in accordance with the rules of Section 6.4.

6.6 Charges Against Accounts. There shall be charged against each Participant’s deferred
compensation account and subaccounts any payments made to the Participant or to his or her
beneficiary, investment losses, and forfeitures of any unvested amounts at termination of
employment.

Article 7. Rights of Participants

7.1 Contractual Obligation. The Plan shall create a contractual obligation on the part of
the Company to make payments from the Participant Accounts when due after the expiration of any
vesting period. Payment of account balances shall be made out of the general funds of the Company.

7.2 Unsecured Interest. No Participant or party claiming an interest in amounts deferred by
or on behalf of a Participant, including any investment gains or losses thereon, shall have any
interest whatsoever in any specific asset of the Company. Any and all investments remain the
property of the Company. To the extent that any party acquires a right to receive payments under
the Plan, such right shall be equivalent to that of an unsecured general creditor of the Company.

7.3 Authorization for Trust. The Company may, but shall not be required to, establish one
or more trusts, with such trustee as the Committee may approve, for the purpose of providing for
the payment of vested deferred amounts. Such trust or trusts may be irrevocable, but the assets
thereof shall be subject to the claims of the Company’s creditors. To the extent any amounts
deferred under the Plan are actually paid from any such trust, the Company shall have no further
obligation with respect thereto, but to the extent not so paid, such vested deferred amounts shall
remain the obligation of, and shall be paid by, the Company.

7.4 Employment. Nothing in the Plan shall interfere with nor limit in any way the right of
the Company to terminate any Participant’s employment at any time, nor confer upon any Participant
any right to continue in the employ of the Company.

- 16 -

 

Article 8. Withholding of Taxes

Subject to the provisions of Section 10.8, all awards under the Plan are subject to withholding of
all applicable taxes, and the Committee may condition the delivery of any cash or stock under the
Plan on the satisfaction of applicable withholding obligations. The Committee, in its discretion,
and subject to such requirements as the Committee may impose prior to the occurrence of such
withholding, may permit such withholding obligations to be satisfied through cash payment by the
Participant, through the surrender of stock which the Participant already owns, or through the
surrender of cash or stock to which the Participant is otherwise entitled under the Plan.

Article 9. Amendment and Termination

Subject to the provisions of Section 10.8, the Company hereby reserves the right to amend, modify,
or terminate the Plan at any time by action of the Committee. Except as described below in Section
10.5, no such amendment or termination shall in any material manner adversely affect any
Participant’s rights to amounts previously deferred hereunder, or investment gains or losses
thereon, without the consent of the Participant.

Article 10. Miscellaneous

10.1 Notice. Any notice or filing required or permitted to be given to the Company under
the Plan shall be sufficient if in writing and hand delivered, or sent by registered or certified
mail to either the Vice President – Human Resources or General Counsel at the principal office of
the Company at 600 Grant Street, Pittsburgh, PA 15219. Notice mailed to a Participant shall be at
such address as is given in the records of the Company. Notices shall be deemed given as of the
date of delivery or, if delivery is made by mail, as of the date shown on the postmark on the
receipt for registration or certification.

10.2 Nontransferability. Participant’s rights to deferred amounts, contributions, and
investment gains and losses credited thereon under the Plan may not be sold, transferred, assigned,
or otherwise alienated or hypothecated, other than by will or by the laws of descent and
distribution. In no event shall the Company make any payment under the Plan to any assignee or
creditor of a Participant.

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10.3 Severability. In the event any provision of the Plan shall be held illegal or invalid
for any reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and
the Plan shall be construed and enforced as if the illegal or invalid provision had not been
included.

10.4 Costs of the Plan. All costs of implementing and administering the Plan shall be borne
by the Company.

10.5 Status under ERISA. The Plan is intended to be an unfunded plan which is maintained
primarily to provide deferred compensation benefits for a select group of “management or highly
compensated employees” within the meaning of Sections 201, 301, and 401 of ERISA, and to therefore
be exempt from the provisions of Parts 2, 3, and 4 of Title I of ERISA. Accordingly, subject to the
provisions of Section 10.8, the Committee may terminate the Plan and commence termination payout
for all or certain Participants, or remove certain employees as Participants, if it is determined
by the United States Department of Labor or a court of competent jurisdiction that the Plan
constitutes an employee pension plan within the meaning of Section 3(2) of ERISA which is not so
exempt. Payout of Elective Accounts shall be made in the manner selected by each Participant under
Section 4.5 herein as applicable, and payout of vested Nonelective Accounts shall be made as
specified by the Committee.

10.6 Applicable Law. The Plan shall be governed by and construed in accordance with the
laws of the Commonwealth of Pennsylvania.

10.7 Successors. All obligations of the Company under the Plan shall be binding on any
successor to the Company, whether the existence of such successor is the result of a direct or
indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business
and/or assets of the Company.

10.8 Compliance with Internal Revenue Code Section 409A. It is intended that amounts
deferred under this Plan will not be taxable under Internal Revenue Code section 409A. This Plan
(including prior versions) shall be interpreted and administered, to the extent possible, in a
manner that does not result in a “plan failure” (within the meaning of Code section 409A(a)(1)) of
this Plan or any other plan or arrangement maintained by the Company or a Subsidiary (as such term
is defined in Section 5.4(a)) of the Company. The Plan is designed to comply with Code section
409A (without incurring penalties). In the event of an inconsistency between the terms of the Plan
and Code section 409A, the terms of Code section 409A shall control.

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