Document:

EXHIBIT 4.4

 

CONFORMED THROUGH 

FOURTH AMENDMENT

 

 

KRAFT FOODS
GLOBAL, INC. THRIFT PLAN

 

(As Amended and Restated Effective

As of January 1, 2003)

 

 

Mayer, Brown, Rowe & Maw

Chicago

 

 

CERTIFICATE OF ADOPTION

 

By
virtue of the amending authority reserved to the Management Committee for
Employee Benefits (the “Committee”) in subsection 14.1 of the Kraft Foods North
America, Inc. Thrift Plan (the “Plan”), and pursuant to the authority delegated
to the undersigned by the Committee, the Plan is hereby amended, restated, and
continued, effective as of January 1, 2003, in
the form set forth herein.

 

IN WITNESS WHEREOF, the undersigned has executed this
amendment and restatement this 31st day of December, 2003.

 

	
   

  	
  By:

  	
  /s/ JILL K.
  YOUMAN 

  
	
   

  	
  Its:
  Vice-President, Human Resources, Benefits

  

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  SECTION 1

  	
  GENERAL

  	
  1

  
	
   

  	
   

  	
   

  
	
  1.1.

  	
  History,
  Purpose and Effective Date

  	
  1

  
	
   

  	
   

  	
   

  
	
  1.2.

  	
  Related
  Companies and Employers

  	
  1

  
	
   

  	
   

  	
   

  
	
  1.3.

  	
  Plan
  Administration, Trust and Fiduciary Responsibility

  	
  1

  
	
   

  	
   

  	
   

  
	
  1.4.

  	
  Plan Year

  	
  2

  
	
   

  	
   

  	
   

  
	
  1.5.

  	
  Accounting
  Dates

  	
  2

  
	
   

  	
   

  	
   

  
	
  1.6.

  	
  Applicable
  Laws

  	
  2

  
	
   

  	
   

  	
   

  
	
  1.7.

  	
  Gender and
  Number

  	
  2

  
	
   

  	
   

  	
   

  
	
  1.8.

  	
  Notices

  	
  2

  
	
   

  	
   

  	
   

  
	
  1.9.

  	
  Form of
  Election and Signature

  	
  2

  
	
   

  	
   

  	
   

  
	
  1.10.

  	
  Evidence

  	
  3

  
	
   

  	
   

  	
   

  
	
  1.11.

  	
  Action by
  Employers

  	
  3

  
	
   

  	
   

  	
   

  
	
  1.12.

  	
  Plan
  Supplements

  	
  3

  
	
   

  	
   

  	
   

  
	
  1.13.

  	
  Defined
  Terms

  	
  3

  
	
   

  	
   

  	
   

  
	
  1.14.

  	
  Compliance
  With USERRA

  	
  3

  
	
   

  	
   

  	
   

  
	
  SECTION 2

  	
  PARTICIPATION IN PLAN

  	
  3

  
	
   

  	
   

  	
   

  
	
  2.1.

  	
  Eligibility
  for Participation

  	
  3

  
	
   

  	
   

  	
   

  
	
  2.2.

  	
  Commencement
  of Participation

  	
  4

  
	
   

  	
   

  	
   

  
	
  2.3.

  	
  Inactive
  Participation

  	
  5

  
	
   

  	
   

  	
   

  
	
  2.4.

  	
  Plan Not
  Contract of Employment

  	
  5

  
	
   

  	
   

  	
   

  
	
  2.5.

  	
  Leased
  Employees

  	
  5

  
	
   

  	
   

  	
   

  
	
  2.6.

  	
  Automatic
  Enrollment

  	
  5

  
	
   

  	
   

  	
   

  
	
  SECTION 3

  	
  SERVICE

  	
  6

  
	
   

  	
   

  	
   

  
	
  3.1.

  	
  Years of
  Service

  	
  6

  
	
   

  	
   

  	
   

  
	
  3.2.

  	
  Hour of
  Service

  	
  6

  
	
   

  	
   

  	
   

  
	
  3.3.

  	
  One Year
  Break in Service

  	
  7

  
	
   

  	
   

  	
   

  
	
  3.4.

  	
  Service With
  Altria Group Affiliates and Predecessor Employers

  	
  8

  
	
   

  	
   

  	
   

  
	
  SECTION 4

  	
  BEFORE-TAX, AFTER-TAX AND
  ROLLOVER CONTRIBUTIONS

  	
  8

  
	
   

  	
   

  	
   

  
	
  4.1.

  	
  Before-Tax
  Contributions

  	
  8

  
	
   

  	
   

  	
   

  
	
  4.2.

  	
  After-Tax
  Contributions

  	
  9

  
	
   

  	
   

  	
   

  
	
  4.3.

  	
  Total
  Before-Tax and After-Tax Contributions

  	
  9

  

 

i

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  4.4.

  	
  Payment of
  Before-Tax and After-Tax Contributions

  	
  9

  
	
   

  	
   

  	
   

  
	
  4.5.

  	
  Modification,
  Discontinuance and Resumption of Before-Tax or After-Tax Contributions

  	
  9

  
	
   

  	
   

  	
   

  
	
  4.6.

  	
  Rollover
  Contributions

  	
  9

  
	
   

  	
   

  	
   

  
	
  4.7.

  	
  Eligible
  Compensation

  	
  10

  
	
   

  	
   

  	
   

  
	
  4.8.

  	
  Limitation
  on Compensation Taken Into Account For Any Plan Year

  	
  10

  
	
   

  	
   

  	
   

  
	
  SECTION 5

  	
  MATCHING AND QUALIFIED
  MATCHING CONTRIBUTIONS

  	
  10

  
	
   

  	
   

  	
   

  
	
  5.1.

  	
  Matching
  Contributions

  	
  10

  
	
   

  	
   

  	
   

  
	
  5.2.

  	
  Qualified
  Matching Contributions

  	
  11

  
	
   

  	
   

  	
   

  
	
  5.3.

  	
  Limitations
  on Amount of Employer Contributions

  	
  11

  
	
   

  	
   

  	
   

  
	
  5.4.

  	
  Payment of
  Employer Contributions

  	
  11

  
	
   

  	
   

  	
   

  
	
  SECTION 6

  	
  INVESTMENT OF THE TRUST
  FUND

  	
  11

  
	
   

  	
   

  	
   

  
	
  6.1.

  	
  Investment
  Funds and Loan Account

  	
  11

  
	
   

  	
   

  	
   

  
	
  6.2.

  	
  Loan Account
  and Investment Fund Accounting

  	
  13

  
	
   

  	
   

  	
   

  
	
  6.3.

  	
  Investment
  Fund Elections

  	
  13

  
	
   

  	
   

  	
   

  
	
  6.4.

  	
  Transfers
  Between Investment Funds

  	
  13

  
	
   

  	
   

  	
   

  
	
  6.5.

  	
  Automatic
  Transfers to the ESOP Fund

  	
  14

  
	
   

  	
   

  	
   

  
	
  6.6.

  	
  Independent
  Investment Advice

  	
  14

  
	
   

  	
   

  	
   

  
	
  SECTION 6A

  	
  INVESTMENT COMMITTEE

  	
  14

  
	
   

  	
   

  	
   

  
	
  6A.1.

  	
  Investment
  Committee Membership and Authority

  	
  14

  
	
   

  	
   

  	
   

  
	
  6A.2.

  	
  Allocation
  and Delegation of Investment Committee Responsibilities and Powers

  	
  16

  
	
   

  	
   

  	
   

  
	
  6A.3.

  	
  Exercise of
  Investment Committee’s Duties

  	
  16

  
	
   

  	
   

  	
   

  
	
  6A.4.

  	
  Remuneration
  and Expenses

  	
  16

  
	
   

  	
   

  	
   

  
	
  6A.5.

  	
  Indemnification
  of the Investment Committee

  	
  16

  
	
   

  	
   

  	
   

  
	
  6A.6.

  	
  Resignation
  of Investment Committee Member

  	
  16

  
	
   

  	
   

  	
   

  
	
  6A.7.

  	
  Removal of
  Investment Committee Member

  	
  17

  
	
   

  	
   

  	
   

  
	
  6A.8.

  	
  ERISA
  Section 404(c)

  	
  17

  
	
   

  	
   

  	
   

  
	
  SECTION 7

  	
  PLAN ACCOUNTING

  	
  17

  
	
   

  	
   

  	
   

  
	
  7.1.

  	
  Participants’
  Accounts

  	
  17

  
	
   

  	
   

  	
   

  
	
  7.2.

  	
  Allocation
  of Fund Earnings and Changes in Value

  	
  18

  

 

ii

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  7.3.

  	
  Allocation
  and Crediting of Contributions

  	
  19

  
	
   

  	
   

  	
   

  
	
  7.4.

  	
  Correction
  of Error

  	
  19

  
	
   

  	
   

  	
   

  
	
  7.5.

  	
  Statement of
  Plan Interest

  	
  19

  
	
   

  	
   

  	
   

  
	
  SECTION 8

  	
  LIMITATIONS ON
  COMPENSATION, CONTRIBUTIONS AND ALLOCATIONS

  	
  19

  
	
   

  	
   

  	
   

  
	
  8.1.

  	
  Reduction of
  Contribution Rates

  	
  19

  
	
   

  	
   

  	
   

  
	
  8.2.

  	
  Compensation
  for Limitation/Testing Purposes

  	
  20

  
	
   

  	
   

  	
   

  
	
  8.3.

  	
  Limitations
  on Annual Additions

  	
  20

  
	
   

  	
   

  	
   

  
	
  8.4.

  	
  Excess
  Annual Additions

  	
  21

  
	
   

  	
   

  	
   

  
	
  8.5.

  	
  Annual
  Dollar Limitation

  	
  21

  
	
   

  	
   

  	
   

  
	
  8.6.

  	
  Section
  401(k)(3) Testing

  	
  22

  
	
   

  	
   

  	
   

  
	
  8.7.

  	
  Correction
  Under Section 401(k) Test

  	
  22

  
	
   

  	
   

  	
   

  
	
  8.8.

  	
  Section
  401(m)(2) Testing

  	
  23

  
	
   

  	
   

  	
   

  
	
  8.9.

  	
  Correction
  Under Section 401(m) Test

  	
  23

  
	
   

  	
   

  	
   

  
	
  8.10.

  	
  Multiple Use
  of Alternative Limitation

  	
  24

  
	
   

  	
   

  	
   

  
	
  8.11.

  	
  Highly
  Compensated

  	
  24

  
	
   

  	
   

  	
   

  
	
  8.12.

  	
  Separate
  Testing of Early Eligible Group

  	
  24

  
	
   

  	
   

  	
   

  
	
  SECTION 9

  	
  VESTING SERVICE, VESTING
  AND TERMINATION DATES

  	
  24

  
	
   

  	
   

  	
   

  
	
  9.1.

  	
  Determination
  of Vesting Service and Vested Interest

  	
  24

  
	
   

  	
   

  	
   

  
	
  9.2.

  	
  Accelerated
  Vesting

  	
  25

  
	
   

  	
   

  	
   

  
	
  9.3.

  	
  Termination
  Date

  	
  25

  
	
   

  	
   

  	
   

  
	
  9.4.

  	
  Distribution
  of Before-Tax Account Only Upon Separation From Service

  	
  25

  
	
   

  	
   

  	
   

  
	
  SECTION 10

  	
  LOANS AND WITHDRAWALS OF
  CONTRIBUTIONS WHILE EMPLOYED

  	
  26

  
	
   

  	
   

  	
   

  
	
  10.1.

  	
  Loans to
  Participants

  	
  26

  
	
   

  	
   

  	
   

  
	
  10.2.

  	
  Withdrawals
  During Employment

  	
  29

  
	
   

  	
   

  	
   

  
	
  10.3.

  	
  Determination
  of Hardship

  	
  29

  
	
   

  	
   

  	
   

  
	
  10.4.

  	
  Withdrawals
  From General Foods Account Balances During Employment

  	
  30

  
	
   

  	
   

  	
   

  
	
  10.5.

  	
  Withdrawals
  of Dividends During and After Employment

  	
  31

  
	
   

  	
   

  	
   

  
	
  10.6.

  	
  Form of
  Withdrawals

  	
  31

  
	
   

  	
   

  	
   

  
	
  SECTION 11

  	
  DISTRIBUTIONS

  	
  31

  

 

iii

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  11.1.

  	
  Distributions
  to Participants After Termination of Employment

  	
  31

  
	
   

  	
   

  	
   

  
	
  11.2.

  	
  Distributions
  to Beneficiaries

  	
  33

  
	
   

  	
   

  	
   

  
	
  11.3.

  	
  Special
  Rules Governing Annuity Elections

  	
  34

  
	
   

  	
   

  	
   

  
	
  11.4.

  	
  Forfeitures
  and Restorations of Non-Vested Contributions

  	
  35

  
	
   

  	
   

  	
   

  
	
  11.5.

  	
  Limits on Commencement
  and Duration of Distributions

  	
  36

  
	
   

  	
   

  	
   

  
	
  11.6.

  	
  Beneficiary
  Designations

  	
  37

  
	
   

  	
   

  	
   

  
	
  11.7.

  	
  Form of
  Payment

  	
  38

  
	
   

  	
   

  	
   

  
	
  11.8.

  	
  Facility of
  Payment

  	
  38

  
	
   

  	
   

  	
   

  
	
  11.9.

  	
  Interests
  Not Transferable

  	
  38

  
	
   

  	
   

  	
   

  
	
  11.10.

  	
  Absence of
  Guaranty

  	
  39

  
	
   

  	
   

  	
   

  
	
  11.11.

  	
  Missing
  Participants or Beneficiaries

  	
  39

  
	
   

  	
   

  	
   

  
	
  11.12.

  	
  Direct
  Rollover Option

  	
  39

  
	
   

  	
   

  	
   

  
	
  11.13.

  	
  Distributions
  on Account of Permanent and Total Disability

  	
  40

  
	
   

  	
   

  	
   

  
	
  SECTION 12

  	
  NO REVERSION TO EMPLOYERS

  	
  40

  
	
   

  	
   

  	
   

  
	
  SECTION 13

  	
  ADMINISTRATION

  	
  41

  
	
   

  	
   

  	
   

  
	
  13.1.

  	
  Committee
  Membership and Authority

  	
  41

  
	
   

  	
   

  	
   

  
	
  13.2.

  	
  Allocation
  and Delegation of Committee Responsibilities and Powers

  	
  42

  
	
   

  	
   

  	
   

  
	
  13.3.

  	
  Uniform
  Rules

  	
  42

  
	
   

  	
   

  	
   

  
	
  13.4.

  	
  Information
  to be Furnished to Committee

  	
  42

  
	
   

  	
   

  	
   

  
	
  13.5.

  	
  Committee’s
  Decision Final

  	
  42

  
	
   

  	
   

  	
   

  
	
  13.6.

  	
  Exercise of
  Committees’ Duties

  	
  42

  
	
   

  	
   

  	
   

  
	
  13.7.

  	
  Remuneration
  and Expenses

  	
  42

  
	
   

  	
   

  	
   

  
	
  13.8.

  	
  Indemnification
  of the Committees

  	
  43

  
	
   

  	
   

  	
   

  
	
  13.9.

  	
  Resignation
  or Removal of Committee Member

  	
  43

  
	
   

  	
   

  	
   

  
	
  13.10.

  	
  Appointment
  of Successor Committee Members

  	
  43

  
	
   

  	
   

  	
   

  
	
  13.11.

  	
  Committee
  Discretion

  	
  43

  
	
   

  	
   

  	
   

  
	
  SECTION 14

  	
  AMENDMENT AND TERMINATION

  	
  43

  
	
   

  	
   

  	
   

  
	
  14.1.

  	
  Amendment

  	
  43

  
	
   

  	
   

  	
   

  
	
  14.2.

  	
  Termination

  	
  43

  
	
   

  	
   

  	
   

  
	
  14.3.

  	
  Merger and
  Consolidation of the Plan, Transfer of Plan Assets

  	
  44

  
	
   

  	
   

  	
   

  
	
  14.4.

  	
  Distribution
  on Termination and Partial Termination

  	
  44

  

 

iv

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  14.5.

  	
  Notice of
  Amendment, Termination or Partial Termination

  	
  44

  
	
   

  	
   

  	
   

  
	
  SECTION 15

  	
  CHANGE OF CONTROL
  PROVISIONS

  	
  44

  
	
   

  	
   

  	
   

  
	
  15.1.

  	
  Application

  	
  44

  
	
   

  	
   

  	
   

  
	
  15.2.

  	
  Definition
  of Change of Control

  	
  45

  
	
   

  	
   

  	
   

  
	
  15.3.

  	
  Contribution
  Requirement

  	
  46

  
	
   

  	
   

  	
   

  
	
  15.4.

  	
  Vesting

  	
  47

  
	
   

  	
   

  	
   

  
	
  15.5.

  	
  Enforcement
  Rights; Amendment Restrictions

  	
  47

  
	
   

  	
   

  	
   

  
	
  15.6.

  	
  Construction

  	
  48

  

 

v

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  Supplement A -

  	
  Top-Heavy Provisions

  	
   

  
	
   

  	
   

  	
   

  
	
  Supplement B -

  	
  Special Benefit Schedule for Former Participants in
  the H. F. Behrhorst & Son, Inc. Employees Profit Sharing Plan

  	
   

  
	
   

  	
   

  	
   

  
	
  Supplement C -

  	
  Special Benefit Schedule for Former Participants in
  the Profit Sharing Plan for Mueller Foodservice Corp.

  	
   

  
	
   

  	
   

  	
   

  
	
  Supplement D -

  	
  Special Benefit Schedule for Former Participants in
  the Tombstone Pizza Corporation Profit Sharing Plan

  	
   

  
	
   

  	
   

  	
   

  
	
  Supplement E -

  	
  Special Benefit Schedule for Former Participants in
  the Churny Company, Inc. Profit Sharing Plan

  	
   

  
	
   

  	
   

  	
   

  
	
  Supplement F -

  	
  Special Benefit Schedule Applicable to Employees of
  the California Vegetable Concentrates Division

  	
   

  
	
   

  	
   

  	
   

  
	
  Supplement G -

  	
  Special Benefit Schedule for Former Participants in
  the Lender’s Bagel Bakery, Inc. Profit Sharing Plan

  	
   

  
	
   

  	
   

  	
   

  
	
  Supplement H -

  	
  Special Benefit Schedule for Former Participants in
  the Capri Sun, Inc. Retirement Savings Plan

  	
   

  
	
   

  	
   

  	
   

  
	
  Supplement I -

  	
  Special Benefit Schedule for Former Participants in
  the Jack’s Frozen Pizza, Inc. 401(k) Profit-Sharing Plan

  	
   

  
	
   

  	
   

  	
   

  
	
  Supplement J -

  	
  Special Benefit Schedule for Former Participants in
  the Salary Reduction and Voluntary Investment Plan for Salaried Employees of
  Oscar Mayer Foods Corporation

  	
   

  
	
   

  	
   

  	
   

  
	
  Supplement K -

  	
  Special Benefit Schedule for Former Participants in
  the RJR Nabisco Capital Investment Plan

  	
   

  

 

vi

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  Supplement L -

  	
  Special Benefit Schedule for Former Participants in
  the Entenmann’s, Inc. Employee Savings Plan

  	
   

  
	
   

  	
   

  	
   

  
	
  Supplement M -

  	
  Special Benefit Schedule for Former Participants in
  the Freihofer Savings and Profit Sharing Plan

  	
   

  
	
   

  	
   

  	
   

  
	
  Supplement N -

  	
  Special Benefit Schedule for Former Participants in
  the Balance Bar Company 401(k) Plan

  	
   

  
	
   

  	
   

  	
   

  
	
  Supplement O -

  	
  Special Benefit Schedule for Former Participants in
  the Long Term Savings Plan for Hourly Employees

  	
   

  
	
   

  	
   

  	
   

  
	
  Supplement P -

  	
  ESOP Fund Provisions

  	
   

  
	
   

  	
   

  	
   

  
	
  Supplement Q -

  	
  Nabisco Participants

  	
   

  
	
   

  	
   

  	
   

  
	
  Supplement R - 

  	
  Minimum Distribution Requirements After 2001 

  	
   

  
	
   

  	
   

  	
   

  
	
  Supplement S -

  	
  Special Benefit Schedule for Former Participants in
  the Veryfine Products, Inc. Retirement Savings Plan

  	
   

  

 

vii

 

INDEX OF DEFINED
TERMS

 

	
  Section

  	
   

  	
  Defined Term

  
	
   

  	
   

  	
   

  
	
  1.9

  	
   

  	
  Access
  System

  
	
  1.5

  	
   

  	
  Accounting
  Date

  
	
  7.1

  	
   

  	
  Accounts

  
	
  7.1(c)

  	
   

  	
  After-Tax
  Account

  
	
  4.2

  	
   

  	
  After-Tax
  Contribution

  
	
  6.1

  	
   

  	
  Altria
  Group

  
	
  6.1

  	
   

  	
  Altria
  Group Common Stock

  
	
  6.1

  	
   

  	
  Altria
  Group Stock Fund

  
	
  8.3

  	
   

  	
  Annual
  Additions

  
	
  7.1(b)

  	
   

  	
  Before-Tax
  Account

  
	
  4.1

  	
   

  	
  Before-Tax
  Contribution

  
	
  11.6

  	
   

  	
  Beneficiary

  
	
  15.2(c)

  	
   

  	
  Business
  Combination

  
	
  15.2

  	
   

  	
  Change
  of Control

  
	
  1.1

  	
   

  	
  Code

  
	
  1.2

  	
   

  	
  Committee

  
	
  1.3

  	
   

  	
  Committees

  
	
  6.1(c)

  	
   

  	
  Common
  Stock

  
	
  1.1

  	
   

  	
  Company

  
	
  8.2

  	
   

  	
  Compensation

  
	
  3.1(b)

  	
   

  	
  Computation
  Period

  
	
  8.9

  	
   

  	
  Contribution
  Percentage

  
	
  8.7

  	
   

  	
  Deferral
  Percentage

  
	
  11.1(c)

  	
   

  	
  Distribution
  Date

  
	
  1.1

  	
   

  	
  Effective
  Date

  
	
  4.6

  	
   

  	
  Eligible
  Compensation

  
	
  1.2

  	
   

  	
  Employer

  
	
  6.1

  	
   

  	
  Employer
  Common Stock

  
	
  6.2(a)

  	
   

  	
  Equity
  Fund

  
	
  1.3

  	
   

  	
  ERISA

  
	
  1.3

  	
   

  	
  ESOP
  Fund

  
	
  8.10

  	
   

  	
  Excess
  Aggregate Contributions

  
	
  8.8

  	
   

  	
  Excess
  Contributions

  
	
  6.5

  	
   

  	
  Ex-dividend
  Date

  
	
  8.7

  	
   

  	
  Family
  Member

  
	
  3.1

  	
   

  	
  Full-time
  employee

  
	
  1.3

  	
   

  	
  Fund

  
	
  1.04

  	
   

  	
  GF
  Plan

  
	
  10.3

  	
   

  	
  Hardship

  
	
  8.9

  	
   

  	
  Highly
  Compensated

  

 

viii

 

	
  8.7

  	
   

  	
  Highly
  Compensated Group

  
	
   

  	
   

  	
  Contribution
  Percentage

  
	
  8.7

  	
   

  	
  Highly
  Compensated Group

  
	
  8.7

  	
   

  	
  Highly
  Compensated Group

  
	
   

  	
   

  	
  Deferral
  Percentage

  
	
  3.2

  	
   

  	
  Hour
  of Service

  
	
  6.2(b)

  	
   

  	
  Interest
  Income Fund

  
	
  1.3

  	
   

  	
  Investment
  Committee

  
	
  6.1

  	
   

  	
  Investment
  Funds

  
	
  7.1(f)

  	
   

  	
  IRA
  Account

  
	
  11.3(a)

  	
   

  	
  Joint
  and Survivor Annuity

  
	
  6.1

  	
   

  	
  Kraft
  Foods Common Stock

  
	
  6.1

  	
   

  	
  Kraft
  Foods Stock Fund

  
	
  2.5

  	
   

  	
  Leased
  Employee

  
	
  6.2(e)

  	
   

  	
  Loan
  Fund

  
	
  7.1(a)

  	
   

  	
  Matching
  Account

  
	
  5.1

  	
   

  	
  Matching
  Contribution

  
	
  7.9

  	
   

  	
  Non-highly
  Compensated Group

  
	
   

  	
   

  	
  Contribution
  Percentage

  
	
  8.7

  	
   

  	
  Non-highly
  Compensated Group

  
	
   

  	
   

  	
  Deferral
  Percentage

  
	
  3.3

  	
   

  	
  One
  Year Break in Service

  
	
  15.2(a)

  	
   

  	
  Outstanding
  Parent Voting Securities

  
	
  2.1

  	
   

  	
  Participant

  
	
  1.9

  	
   

  	
  PIN

  
	
  1.1

  	
   

  	
  Plan

  
	
  1.4

  	
   

  	
  Plan
  Year

  
	
  3.4

  	
   

  	
  Predecessor
  Employer

  
	
  1.3

  	
   

  	
  Profit
  Sharing Fund

  
	
  7.1(d)

  	
   

  	
  Qualified
  Matching Account

  
	
  5.2

  	
   

  	
  Qualified
  Matching Contribution

  
	
  1.2

  	
   

  	
  Related
  Company

  
	
  11.5(b)

  	
   

  	
  Required
  Beginning Date

  
	
  7.1(d)

  	
   

  	
  Rollover
  Account

  
	
  4.8

  	
   

  	
  Rollover
  Contribution

  
	
  8.3

  	
   

  	
  Section
  415 Affiliate

  
	
  9.4

  	
   

  	
  Separation
  from service

  
	
  3.4

  	
   

  	
  Subsidiary

  
	
  9.3

  	
   

  	
  Termination
  Date

  
	
  1.3

  	
   

  	
  Trust

  
	
  1.3

  	
   

  	
  Trust
  Agreement

  
	
  1.3

  	
   

  	
  Trustee

  
	
  6.2(d)

  	
   

  	
  U.S.
  Government Securities Fund

  
	
  3.1,
  9.1

  	
   

  	
  Year
  of Service

  

 

ix

 

KRAFT FOODS
GLOBAL, INC. THRIFT PLAN

 

(As Amended and Restated Effective

As of January 1, 2003)

SECTION 1

 

General

 

1.1.          History,
Purpose and Effective Date. Kraft Foods Global, Inc. (known as Kraft Foods
North America, Inc. prior to March 19, 2004) (the “Company”), a Delaware
corporation, maintains the Kraft Foods Global, Inc. Thrift Plan (previously
known as Kraft Foods North America, Inc. Thrift Plan) (the “Plan”), to
encourage eligible employees to save a portion of their earnings on a regular
basis and to accumulate capital for their future economic security. The Plan,
which was originally adopted effective as of January 1, 1979, as a profit
sharing plan, is qualified under section 401(a) of the Internal Revenue Code of
1986, as amended (the “Code”) and includes a cash or deferred arrangement qualified
under section 401(k) of the Code. Effective on and after December 15, 2001, the
Plan is comprised of two portions:  one
portion continues to be a profit sharing plan (including a cash or deferred
arrangement) intended to continue to meet the requirements of sections 401(a)
and 401(k) of the Code; the other portion consists of a stock bonus plan that
is an employee stock ownership plan intended to meet the requirements of
sections 401(a) and 4975(e)(7) of the Code. The following provisions constitute
an amendment, restatement and continuation of the Plan as in effect immediately
prior to January 1, 2003, the “Effective Date” of the Plan as
set forth herein.

 

1.2.          Related
Companies and Employers. The term “Related Company” means any
corporation or trade or business during any period during which it is, along
with the Company, a member of a controlled group of corporations or a
controlled group of trades or businesses, as described in sections 414(b) and
414(c), respectively, of the Code. The Company and each Related Company which
adopts the Plan with the consent of the Management Committee for Employee
Benefits (the “Committee”)
are referred to below collectively as the “Employers” and individually as
an “Employer”.

 

1.3.          Plan
Administration, Trust and Fiduciary Responsibility. The authority to
control and manage the non-investment operations of the Plan is vested in the
Committee, as more fully described in subsection 13.1. Except as otherwise
expressly provided herein, the Committee shall have the rights, duties and
obligations of an “administrator” as that term is defined in section 3(16)(A)
of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) and of
a “plan administrator” as that term is defined in section 414(g) of the Code. The
authority to control and manage the investment operations of the Plan is vested
in the Benefits Investment Committee (the “Investment Committee”), as more
fully described in Section 6A. The Committee and the Investment Committee are
collectively referred to as the “Committees”. The Company and the Committees shall be “named
fiduciaries,” as described in section 402 of ERISA, with respect to their
authority under the Plan. All assets of the Plan will 

 

1

 

be held, managed and controlled by one or more
trustees (the “Trustee”)
acting under a “Trust”
established pursuant to a “Trust Agreement” which forms a part of the Plan. As of the
Effective Date, the assets of the Plan are held under the Kraft Foods Master
Defined Contribution Trust established pursuant to the Master Savings Plan
Trust Agreement by and among the Corporate Employee Plans Investment Committee
of Philip Morris Companies Inc., the Compensation and Governance Committee of
the Board of Directors of Kraft Foods Inc., Philip Morris Companies Inc., Kraft
Foods Inc. and Bankers Trust Company, Trustee, dated as of November 1, 2001. The
Trust fund established under the Trust Agreement (the “Fund”) is comprised of the “Profit Sharing Fund”
and the “ESOP Fund.”  The Profit Sharing Fund consists of all the
Investment Funds described in subsection 6.1 of the Plan, except the Subparts
thereof which are designated as the ESOP Fund. The ESOP Fund consists of the
Subparts of those Investment Funds described in subsection 6.1 which are
designated therein as the ESOP Fund. No contributions to the Plan of any kind
shall be made to the ESOP Fund; provided, however, that intraplan transfers to
the ESOP Fund shall be made in accordance with the provisions of subsection 6.5.
The Altria Group Stock Fund and the Kraft Foods Stock Fund described in
subsection 6.1 of the Plan (including the Subparts thereof designated as the
ESOP Fund) are designed to invest solely in qualifying employer securities
(within the meaning of section 409(l) and 4975(e)(8) of the Code), except for
cash reserves for the purposes set forth in subsection 6.1. For this purpose,
the term “qualifying employer securities” means common stock of the Employer or
a Related Company which is readily tradeable on an established securities
market.

 

1.4.          Plan
Year. The term “Plan
Year” means the twelve-consecutive-month period beginning on each
January 1 and ending on the following December 31.

 

1.5.          Accounting
Dates. The term “Accounting
Date” means each business day as determined by the Committee in its
sole discretion.

 

1.6.          Applicable
Laws. The Plan shall be construed and administered in accordance with the
internal laws of the State of Illinois to the extent that such laws are not
preempted by the laws of the United States of America.

 

1.7.          Gender
and Number. Where the context permits, words in any gender shall
include any other gender, words in the singular shall include the plural and
the plural shall include the singular.

 

1.8.          Notices.
Any notice or document required to be filed with the Committee under the Plan
will be properly filed if delivered or mailed by registered mail, postage
prepaid, to the Committee (or its delegate), in care of the Company, at its
principal executive offices. Any notice required under the Plan may be waived
by the person entitled to notice.

 

1.9.          Form
of Election and Signature. Unless otherwise specified herein, any election
or consent permitted or required to be made or given by any Participant or
other person entitled to benefits under the Plan, and any permitted
modification or revocation thereof, shall be made in writing or shall be given
by means of such interactive telephone system or Internet connection as the
Committee may designate from time to time as the vehicle(s) for executing
regular transactions under the Plan (referred to generally herein as the “Access System”).
Each 

 

2

 

Participant shall have a password for purposes of
executing transactions through the Access System, and entry by a Participant of
his password shall constitute his valid signature for purposes of any
transaction the Committee determines should be executed by means of the Access
System, including but not limited to enrolling in the Plan, electing contribution
rates, making investment choices, executing loan documents, and consenting to a
withdrawal or distribution. Any election made through the Access System shall
be considered submitted to the Committee on the date it is electronically
transmitted.

 

1.10.        Evidence.
Evidence required of anyone under the Plan may be by certificate, affidavit,
document or other information which the person acting on it considers pertinent
and reliable, and signed, made or presented by the proper party or parties.

 

1.11.        Action
by Employers. Any action required or permitted to be taken by any Employer
which is a corporation shall be by resolution of its Board of Directors or a
duly authorized committee thereof, or by a duly authorized officer of the
Employer. Any action required or permitted to be taken by any Employer which is
a partnership shall be by a general partner of such partnership or by a duly
authorized officer thereof.

 

1.12.        Plan
Supplements. The provisions of the Plan as applied to any Employer or any
group of employees of any Employer may be modified or supplemented from time to
time by the Committee by the adoption of one or more Supplements. Each
Supplement shall form a part of the Plan as of the Supplement’s effective date.
In the event of any inconsistency between a Supplement and the Plan document,
the terms of the Supplement shall govern.

 

1.13.        Defined
Terms. Terms used frequently with the same meaning are defined throughout
the Plan. The Index of Defined Terms contains an alphabetical listing of all
such terms and the subsections in which they are defined.

 

1.14.        Compliance
With USERRA. Notwithstanding any provisions of the Plan to the contrary,
contributions and benefits with respect to qualified military service will be
provided in accordance with section 414(u) of the Code.

 

SECTION 2

 

Participation in Plan

 

2.1.          Eligibility
for Participation. Subject to the provisions of subsection 2.6,
participation in the Plan is voluntary. An eligible employee who elects to
participate (or who is deemed to elect to participate pursuant to subsection
2.6) (in either case, a “Participant”) shall commence participation on the
date determined under subsection 2.2. Subject to the conditions and limitations
of the Plan, each individual who was a Participant in the Plan immediately
prior to the Effective Date will continue as such on and after that date, and
each other employee of an Employer who was not a Participant immediately prior
to the Effective Date will be eligible to participate in the Plan on the date
he meets the following eligibility requirements:

 

(a)           he has
completed one Year of Service (as defined in subsection 3.1);

 

3

 

(b)           contributions
are not being made on his behalf to another defined contribution plan intended
to be qualified under section 401(a) of the Code that is sponsored by an
Employer or a Related Company;

 

(c)           he is not
a member of either (i) a collective bargaining unit as to which retirement
benefits have been the subject of good faith bargaining unless the Plan has
been extended to the collective bargaining unit under a currently effective
collective bargaining agreement, (ii) a unit of agricultural workers or (iii)
any other group of employees who have specifically been excluded from
participation in the Plan by Committee action; and

 

(d)           he does
not perform services for an Employer under a contract, agreement or arrangement
that purports to treat him as either an independent contractor or the employee
of a leasing organization, agency, vendor or any other third-party, even if he
is subsequently determined (by judicial action or otherwise) to have instead
been a common law employee of such Employer.

 

Notwithstanding the foregoing provisions of this
subsection 2.1, if an individual is employed or reemployed by an Employer on or
after the date on which he first completes one Year of Service, he shall be
eligible to become a Participant in the Plan on the first day on which he meets
the requirements of paragraphs (b) and (c) of this subsection 2.1. Effective
May 1, 1998 a regular full-time employee or a regular part-time salaried
employee scheduled to work at least 1,000 hours per year who otherwise is
eligible under this subsection 2.1 may begin to participate in the Plan for
purposes of Section 4 immediately, even though he has not completed a Year of
Service, although eligibility for matching contributions under Section 5 is
still conditioned on satisfaction of paragraph (a) above. Hourly part-time
employees, and salaried part-time employees scheduled to work fewer than 1,000
hours per year, must satisfy all of the eligibility requirements of this
subsection to participate in the Plan. Notwithstanding the preceding two
sentences, part-time sales representatives of the Nabisco Biscuit and Snacks
Group (“PTSRs”) employed by an Employer before January 1, 2003 (whether or not
such PTSRs are scheduled to work 1000 hours per year and whether or not they
have completed one Year of Service) will be eligible to participate in the Plan
as of January 1, 2003 and will be immediately eligible for any Matching
Contribution applicable to such group, and PTSRs employed by an Employer during
the period beginning January 1, 2003 and ending December 31, 2003 (whether or
not they are scheduled to work 1000 hours per year and whether or not they have
completed one Year of Service) will be immediately eligible to participate in
the Plan on their date of hire, but will be eligible for any Matching
Contribution applicable to such group only after a period of one-year has
elapsed from their date of hire.

 

2.2.          Commencement
of Participation. Except as otherwise provided in subsection 2.6, each
employee eligible to participate in the Plan is required to make an election to
participate prior to his commencement of participation in the Plan. An employee
may elect to commence participation in the Plan on the first day following the
date he has satisfied the eligibility requirements set forth in subsection 2.1.
If an eligible employee does not properly elect to commence participation on
such date, and is not deemed to elect to commence participation pursuant to
subsection 2.6, he may commence participation on any day thereafter provided
that he is then an eligible employee.

 

4

 

2.3.          Inactive
Participation. If an individual ceases to meet the eligibility requirements
of subsection 2.1, such individual shall be considered an inactive Participant
in the Plan as long as any amount is credited to his Account under the Plan,
and:

 

(a)           no
contributions shall be made by or for him under Section 4 or Section 5;

 

(b)           he may not
obtain a loan after he has ceased to be an employee of an Employer or a Related
Company, unless he otherwise is a “party in interest” with respect to the Plan
(as such term is defined in section 3(14) of ERISA); and

 

(c)           he may not
make a withdrawal under Section 10 after he ceases to be an employee of an
Employer or a Related Company.

 

2.4.          Plan
Not Contract of Employment. The Plan does not constitute a contract of
employment, and participation in the Plan will not give any employee or
Participant the right to be retained in the employ of any Employer nor any
right or claim to any benefit under the Plan, unless such right or claim has
specifically accrued under the terms of the Plan.

 

2.5.          Leased
Employees. If a person satisfies the requirements of section 414(n) of the
Code and applicable Treasury regulations for treatment as a “Leased Employee”,
such Leased Employee shall not be eligible to participate in this Plan but, to
the extent required by section 414(n) of the Code and applicable Treasury
regulations, such person shall be treated as if the services performed by him
in such capacity were performed by him as an employee of a Related Company
which has not adopted the Plan; provided, however, that no such service shall
be credited for any period during which not more than 20% of the non-Highly
Compensated workforce of the Employers and the Related Companies consists of
Leased Employees and the Leased Employee is a participant in a money purchase
pension plan maintained by the leasing organization which (i) provides for
a non-integrated employer contribution of at least 10 percent of compensation,
(ii) provides for full and immediate vesting, and (iii) covers all
employees of the leasing organization (beginning with the date they become
employees), other than those employees excluded under section 414(n)(5) of the
Code. For purposes of this subsection 2.5, “Highly Compensated” shall have the
meaning set forth in subsection 8.11.

 

2.6.          Automatic
Enrollment. Effective January 1, 2006, each individual who first becomes
employed by an Employer on or after that date and who satisfies the
requirements of paragraphs 2.1(b), (c) and (d) shall be deemed to have elected
to participate in the Plan effective as of the earliest date permitted under
subsection 2.1 or as otherwise determined in accordance with uniform procedures
established by the Committee, unless he files a timely election not to
participate in the Plan in accordance with such procedures. Each eligible
employee who is subject to the automatic enrollment provisions of this
subsection 2.6 shall be provided a written notice which explains his rights
with respect to automatic enrollment and a reasonable period of time to decline
such participation and receive cash in lieu of having compensation reduction
contributions made to the Plan on his behalf pursuant to subsection 4.1.

 

5

 

SECTION 3

 

Service

 

3.1.          Years
of Service. For purposes of Section 2, an employee’s “Years of Service” means:

 

(a)           With
respect to any full-time employee, the aggregate of all time periods commencing
on the employee’s first day of employment or reemployment and ending on the day
he commences a One Year Break in Service (as defined in subsection 3.3). An
employee’s first day of employment or reemployment is the first day for which
he is credited with an Hour of Service (as defined in subsection 3.2).

 

(b)           With
respect to any part-time or seasonal employee, each Computation Period (as
defined below) during which he completes at least 1,000 Hours of Service. A “Computation Period”
is the initial 12-consecutive-month period commencing on the date an employee
is first credited with an Hour of Service, and each Plan Year commencing with
the first Plan Year which begins on or after the date he is first credited with
an Hour of Service. An individual who completes 1,000 Hours of Service during
his first Computation Period will be eligible to begin participating in the
Plan on the day following the end of such Computation Period; an individual who
first completes 1,000 Hours of Service in a subsequent Computation Period will
be eligible to begin participating in the Plan on the day following the day in
which he worked his 1,000th Hour of Service.

 

For purposes of this subsection 3.1, a full-time
employee is an employee who is regularly scheduled to work at least 1,000 hours
in a calendar year, and a part-time or seasonal employee is an employee who is
scheduled to work for fewer than 1,000 hours in a calendar year.

 

3.2.          Hour
of Service. The term “Hour of Service” means, with respect to any employee,
each hour for which he is paid or entitled to payment for the performance of
duties for an Employer or a Related Company or for which back pay, irrespective
of mitigation of damages, has been awarded to the employee or agreed to by an
Employer or a Related Company, subject to the following:

 

(a)           An
employee or Participant shall be credited with the number of regularly
scheduled working hours included in the time period on the basis of which
payment to the Employee is calculated (or, if the number of such hours is not
determinable, 8 Hours of Service per day (to a maximum of 40 Hours of Service
per week)) for any period during which he performs no duties for an Employer or
a Related Company (irrespective of whether the employment relationship has
terminated) by reason of a vacation, holiday, illness, incapacity (including
disability), layoff, jury duty, military duty, leave of absence or salary
continuation period pursuant to a severance plan of (or severance agreement
with) his Employer or a Related Company, but for which he is directly or
indirectly paid or entitled to payment by an Employer or a Related Company. Payments
considered 

 

6

 

for
purposes of the foregoing sentence shall include payments unrelated to the
length of the period during which no duties are performed but shall not include
payments made solely as reimbursement for medically related expenses or solely
for the purpose of complying with applicable workmen’s compensation,
unemployment compensation or disability insurance laws.

 

(b)           Hours of
Service shall be calculated and credited pursuant to Department of Labor
Regulation section 2530.200b-2, which is incorporated herein by reference.

 

3.3.          One
Year Break in Service. Except with respect to an employee whose absence
from employment constitutes a Maternity or Paternity Absence, an approved leave
of absence, military service or a salary continuation period (as described
below), the term “One
Year Break in Service” means the 12-consecutive-month period
commencing on the earlier of

 

(a)           the day an
employee’s employment with the Employers and Related Companies is terminated
for any reason, or

 

(b)           in the
event an employee remains absent from service with the Employers and Related
Companies for any reason other than a quit, retirement, discharge or death, the
first anniversary of the first day of such period of absence,

 

if he is not paid or entitled to payment for the
performance of duties for an Employer or a Related Company during that
12-consecutive-month period. An employee or Participant who is absent on an
approved leave of absence for a period shorter than 12 months will commence a
One Year Break in Service on the date of his scheduled return to work if he
does not in fact return to work at the expiration of such leave, and an
employee or Participant who is absent on an approved leave of absence for a
period of 12 months or more will commence a One Year Break in Service on the
first anniversary of the first day of such leave if he does not return to work
at the scheduled expiration of such leave. An individual who is absent because
of service in the U.S. Armed Forces will begin a One Year Break in Service on
the 91st day following his discharge from military service, if he does not
return to work within 90 days of such discharge. With respect to an individual
whose absence from employment constitutes a Maternity or Paternity Absence, a
One Year Break in Service will commence on the second anniversary of the first
day of such absence, and the period between the first and second anniversaries
of the first day of a Maternity or Paternity Absence shall not constitute a
Year of Service. The term “Maternity or Paternity Absence” means an employee’s or
Participant’s absence from work because of the pregnancy of such individual,
the birth of a child of such individual, the placement of a child with such
individual in connection with the adoption of a child by such individual, or
for purposes of caring for the child by such individual immediately following
such birth or placement. The Committee may require the employee or Participant
to furnish such information as it considers necessary to establish that such
individual’s absence was a Maternity or Paternity Absence. If a Participant is
credited with Hours of Service under subsection 3.2 for a salary continuation
period pursuant to a severance plan or severance agreement with his Employer or
a Related Company, a One Year Break in Service with respect to such Participant
shall not begin until the completion of such salary continuation period.

 

7

 

3.4.          Service
With Altria Group Affiliates and Predecessor Employers. For purposes of
subsections 3.1 and 9.1, service with a Subsidiary or a Predecessor Employer
shall be counted in the same manner as if such entity were a Related Company. A
“Subsidiary” is any corporation in which Altria Group, Inc. (known as Philip
Morris Companies Inc. prior to January 27, 2003) owns (directly or
indirectly) more than 50% of the outstanding voting stock. “Predecessor
Employer” means a corporation or business which has been merged into or
consolidated with, or all or substantially all of its assets acquired by, a
Related Company or a Subsidiary.

 

SECTION 4

 

Before-Tax, After-Tax and Rollover Contributions

 

4.1.          Before-Tax
Contributions. Subject to the terms and conditions of the Plan, each
Participant may elect as follows:

 

(a)           Subject to
the limitations set forth in subsections 4.3 and 4.8 and Section 8 and such
additional rules as the Committee may establish on a uniform and
nondiscriminatory basis, for any payroll period, a Participant may elect to
have his salary or wages from his Employer reduced by a whole percentage, and a
corresponding amount contributed on his behalf to the Profit Sharing Fund by
his Employer as a “Before-Tax
Contribution”. Such amount shall not be less than 1 percent nor more
than 16 percent of his Eligible Compensation (as defined in subsection
4.7) for that payroll period. Except as otherwise affirmatively elected by the
Participant pursuant to subsection 4.5, each eligible employee who becomes a
Participant pursuant to subsection 2.6 (relating to automatic enrollment) shall
be deemed to have elected to have Before Tax contributions made to the Plan on
his behalf in an amount equal to 2 percent of his Eligible Compensation. Any
election made pursuant to this subsection 4.1 shall be effective as soon as
practicable after the Participant has made his election in accordance with the
applicable Access System procedures or other procedure approved by the
Committee.

 

(b)           Each
Participant who is eligible to make Before-Tax Contributions under this Plan
for any Plan Year pursuant to paragraph (a) next above and who has attained age
50 before the close of such Plan Year shall be eligible to make, in addition to
the Before-Tax Contributions described in paragraph (a) next above, “catch-up”
Before-Tax Contributions in accordance with, and subject to the limitations of,
section 414(v) of the Code and such additional rules as the Company may
establish on a uniform and nondiscriminatory basis. Such catch-up Before-Tax
Contributions shall not be taken into account for purposes of the limitations
on Before-Tax Contributions described in paragraph (a) next above or subsection
4.3 or the provisions of the Plan implementing the required limitations of
sections 402(g) and 415 of the Code. The Plan shall not be treated as failing
to satisfy the provisions of the Plan implementing the requirements of sections
401(k)(3), 410(b), or 416 of the Code, as applicable, by reason of the making
of such catch-up Before-Tax Contributions.

 

8

 

4.2.          After-Tax
Contributions. Subject to the limitations set forth in subsections 4.3 and
4.8 and Section 8 and such additional rules as the Committee may establish on a
uniform and nondiscriminatory basis, for any payroll period, a Participant may
elect to make “After-Tax
Contributions” to the Profit-Sharing Fund through payroll deduction
in a whole percentage that is not less than 1 percent nor more than 16 percent
of his Eligible Compensation for that payroll period. Any election pursuant to
this subsection 4.2 shall be entered into the Access System or filed in
accordance with other procedures approved by the Committee prior to the time it
is to take effect.

 

4.3.          Total
Before-Tax and After-Tax Contributions. Notwithstanding the foregoing
provisions of this Section 4, Before-Tax Contributions made on behalf of a
Participant and After-Tax Contributions made by such Participant for any
payroll period may not together exceed 16 percent (in the case of a Highly
Compensated Participant, 8 percent for the period January 1, 2004 through March
31, 2004 and 10 percent for periods on and after April 1, 2004) of his Eligible
Compensation for such payroll period. The Secretary of the Committee has the
authority and discretion to amend the Plan from time to time to change the
maximum percentage of total Before-Tax Contributions and After-Tax
Contributions which may be made by Highly Compensated Participants.

 

4.4.          Payment
of Before-Tax and After-Tax Contributions. Before-Tax Contributions and
After-Tax Contributions shall be made through periodic payroll deductions and
shall be paid to the Trustee by the Employer for deposit in the Profit Sharing
Fund on the earliest date on which such contributions can reasonably be
segregated from the Employer’s general assets, but not later than the 15th
business day of the month following the month in which such amounts would
otherwise have been payable to the Participant.

 

4.5.          Modification,
Discontinuance and Resumption of Before-Tax or After-Tax Contributions. Subject
to such rules and restrictions as the Committee may establish on a uniform and
nondiscriminatory basis, a Participant may adjust his Before-Tax and/or
After-Tax Contributions prospectively by entering into the Access System, prior
to the time such change is to be effective, an election to make any of the
changes listed below:

 

(a)           change his
Before-Tax and/or After-Tax Contribution rates within the limits specified
above;

 

(b)           discontinue
making Before-Tax and/or After-Tax Contributions; and

 

(c)           resume
making Before-Tax and/or After-Tax Contributions.

 

4.6.          Rollover
Contributions. A Participant or an employee who meets the eligibility
requirements of subsection 2.1 (without regard to paragraph (a) thereof) may
make a Rollover Contribution (as defined below) to the Profit Sharing Fund,
subject to the determination of the Committee that such rollover satisfies the
requirements of this subsection 4.6. Before approving a rollover, the Committee
may request from the Participant or employee any documents or opinion of counsel
which the Committee, in its discretion, deems necessary. The term “Rollover Contribution”
means a rollover contribution to the Profit Sharing Fund of all or part of a
distribution which, under applicable provisions of the Code, is permitted to be
rolled over to a 

 

9

 

qualified plan, except that, in no event shall the
Plan accept a Rollover Contribution of amounts that would otherwise be
excludible from a Participant’s gross income. If an employee who is not
otherwise a Participant makes a Rollover Contribution to the Profit Sharing
Fund, he shall be treated as a Participant only with respect to his Rollover
Account (defined in subsection 7.1) until he has met all of the requirements
for Plan participation set forth in subsections 2.1 and 2.2.

 

4.7.          Eligible
Compensation. A Participant’s “Eligible Compensation” for any Plan Year shall mean the
amounts actually paid or made available to the Participant during the Plan Year
for personal services rendered in the course of his employment with an
Employer, amounts paid as salary continuation under an Employer’s severance
program (except the last payment thereof) or short term disability program,
which are includable in gross income as wages, salary, commissions, tips,
bonuses, overtime and other premium pay, plus any amounts contributed by an
Employer pursuant to a salary reduction agreement and which are not includable
in gross income under Code sections 125, 402(a)(8), 402(h) or 132(f)(4), but
excluding (even if includable in gross income) long term disability payments,
reimbursements or other expense allowances, fringe benefits and other non-cash
compensation, deferred bonuses, dividends on stock granted under a management
incentive compensation or stock ownership program or a restricted stock plan,
cash payments or stock distribution made under a restricted stock plan, long
term incentive plan or stock option plan, any cash or stock payments under a
phantom stock program, proceeds from the exercise of stock options, any
one-time lump sum severance payment, the last payment made to a Participant as
salary continuation under an Employer’s severance program, tuition or moving
expense reimbursements, and bonuses, incentive compensation, vacation pay or
any other compensation paid subsequent to termination of employment (except
salary continuation payments that are not specifically excluded by the
foregoing provisions of this subsection 4.7). For purposes of this subsection
4.7 an amount shall be considered a bonus only if it is paid to a Participant
under a program of general application, as determined by the Committee in its
sole discretion. Examples of bonuses to be included under this subsection 4.7
are the annual Management Incentive Plan bonus and the Corporate Incentive Plan
bonus. An example of a payment excluded under this subsection 4.7 is a payment
made with respect to an employee’s sale of his home.

 

4.8.          Limitation
on Compensation Taken Into Account For Any Plan Year. Notwithstanding any
other provision of the Plan to the contrary except subsection 4.1(b), once a
Participant or employee has earned Eligible Compensation at the maximum level
permitted for a Plan Year under section 401(a)(17) of the Code, such
Participant’s or employee’s active participation in the Plan for the remainder
of such Plan Year shall cease regardless of whether he has taken maximum
advantage of the contributions permitted under Sections 4 and 5 up to that
point in the Plan Year.

 

SECTION 5

 

Matching and Qualified

Matching Contributions

 

5.1.          Matching
Contributions. Subject to the conditions and limitations of subsection 4.8
and Section 8, for each payroll period during a Plan Year, an Employer shall
contribute to the 

 

10

 

Profit Sharing Fund on behalf of each Participant
employed by such Employer who has completed a Year of Service an amount equal
to a specified percentage (as determined for that Plan Year by the Company in
its sole discretion) of the Before-Tax and After-Tax Contributions made by and
on behalf of the Participant that together do not exceed 6 percent of such
Participant’s Eligible Compensation for such payroll period during a Plan Year.
The Committee, in its sole discretion, may designate different matching
percentages for different groups of participating employees for a Plan Year. Any
contribution made pursuant to this subsection 5.1 shall be referred to
hereinafter as a “Matching
Contribution”. Matching Contributions shall not be made with respect
to catch-up Before-Tax Contributions.

 

5.2.          Qualified
Matching Contributions. For each Plan Year, any Employer may, but shall not
be required to, contribute to the Profit Sharing Fund an additional percentage
of the Before-Tax Contributions made on behalf of Participants employed by such
Employer who are not Highly Compensated (as defined in subsection 8.12). Any
contribution made pursuant to this subsection 5.2 shall be referred to
hereinafter as a “Qualified
Matching Contribution”. At the discretion of the Committee,
Qualified Matching Contribution may be tested under subsection 8.6 or 8.8 in
accordance with applicable Treasury regulations.

 

5.3.          Limitations
on Amount of Employer Contributions. Except as otherwise specifically
provided in Section 12, in no event shall the sum of any Before-Tax
Contributions, Matching Contributions and Qualified Matching Contributions made
by an Employer for any Plan Year exceed the limitations imposed by section 404
of the Code on the maximum amount deductible on account thereof by the Employer
for that year.

 

5.4.          Payment
of Employer Contributions. Each Employer’s contributions (other than Before-Tax
Contributions) to the Profit Sharing Fund for any Plan Year shall be paid to
the Trustee for deposit in the Profit Sharing Fund, without interest, no later
than the time prescribed by law for filing the Employer’s federal income tax
return, including any extensions thereof.

 

SECTION 6

 

Investment of the Trust Fund

 

6.1.          Investment
Funds and Loan Account. The Investment Committee shall establish and cause
the Trustee to maintain a Loan Account to reflect any loans to Participants
pursuant to subsection 10.1 and the following “Investment Funds” for the
investment of Participants’ Accounts in the Fund:

 

(a)           an “Altria Group Stock Fund”  (known as the Philip Morris Stock Fund prior
to January 27, 2003) consisting of two Subparts:  a fund forming part of the Profit Sharing
Fund and invested in common stock of Altria Group, Inc. (known as Philip Morris
Companies Inc. prior to January 27, 2003) (“Altria Group Common Stock”); and
a fund designated as forming part of the ESOP Fund and invested in Altria Group
Common Stock, a qualifying employer security within the meaning of sections
4975(e)(8) and 409(l) of the Code. The Altria Group Stock Fund shall be
invested solely in Altria Group Common Stock, except for 

 

11

 

cash
reserves held solely as needed for administrative purposes. Altria Group Common
Stock for either Subpart may be purchased at its then fair market value on the
open market or by private purchase, including purchases from Altria Group, Inc.
(known as Philip Morris Companies Inc. prior to January 27, 2003) (“Altria Group”).
Prior to December 15, 2001, the Philip Morris Stock Fund was a single fund
primarily invested in the common stock of Philip Morris Companies Inc.

 

(b)           a “Kraft Foods Stock Fund”
consisting of two Subparts:  a fund
forming part of the Profit Sharing Fund and invested in Class A common stock of
Kraft Foods Inc. (“Kraft
Foods Common Stock”); and a fund designated as forming part of the
ESOP Fund and invested in Kraft Foods Common Stock, a qualifying employer
security within the meaning of sections 4975(e)(8) and 409(l) of the Code. The
Kraft Foods Stock Fund shall be invested solely in Kraft Foods Common Stock,
except for cash reserves held solely as needed for administrative purposes. Kraft
Foods Common Stock for either Subpart may be purchased at its then fair market
value on the open market or by private purchase (other than from Kraft Foods
Inc.). Prior to December 15, 2001 and after its introduction on
November 1, 2001, the Kraft Foods Stock Fund was a single fund primarily
invested in Kraft Foods Common Stock.

 

(c)           three or
more other Investment Funds designated by the Investment Committee and forming
part of the Profit Sharing Fund.

 

Altria Group Common Stock or Kraft Foods Common Stock
(collectively referred to as “Employer Common Stock”) sold to the trustee for purposes of
the Plan may be reacquired. The Trustee shall purchase shares of Employer
Common Stock invested in the Altria Group Stock Fund or the Kraft Foods Stock
Fund pursuant to a non-discretionary purchasing program pursuant to the terms
of the Trust Agreement and may retain such Employer Common Stock, regardless of
market fluctuation and, in the normal course, shall sell such shares of
Employer Common Stock only upon the direction of Participants or Beneficiaries
or to otherwise meet the administrative and distribution requirements of the
Plan. Subject to the provisions of this subsection 6.1, the Investment
Committee in its discretion may add additional Investment Funds, may delete any
Investment Fund or may change the investment strategy of any Investment Fund
without prior notice to Participants; provided, however, that no Investment
Fund or Subpart thereof shall be designated as forming a part of the ESOP Fund
unless it is invested solely in qualifying employer securities (within the
meaning of sections 409(l) and 4975(e)(8) of the Code), except for cash
reserves held solely as needed for administrative purposes and pending the
distribution from that Subpart of dividends (but not any earnings thereon) from
shares of Employer Common Stock to those Participants and Beneficiaries who
have elected to have the dividend paid to them rather than reinvested in
additional shares of such Employer Common Stock (or in units representing such
shares). Any earnings on the investment of such dividends shall be allocated to
the Accounts of Participants or Beneficiaries based on the Account’s share of
such dividends and shall be invested in additional shares of Employer Common
Stock (or in units representing such shares). Any earnings on the investment of
such dividends shall be allocated to the Accounts of Participants or
Beneficiaries based on the Account’s share of such 

 

12

 

dividends and shall be invested in additional shares
of Employer Common Stock (or in units representing such shares) to be held in
the applicable Subpart designated as forming part of the ESOP Fund. The
Investment Committee (or an “investment manager” as that term is defined in
section 3(38) of ERISA (“Investment Manager”))
may, in its sole discretion, keep any portion of an Investment Fund (or a
Subpart thereof), other than the Altria Group Stock Fund and the Kraft Foods
Stock Fund, in cash or short-term investments (including a commingled fund of
the Trustee) for liquidity purposes, pending the selection and purchase of
permanent investments for such Investment Fund (or Subpart thereof).

 

6.2.          Loan
Account and Investment Fund Accounting. The Committee shall maintain or
cause to be maintained separate subaccounts for each Participant in each of the
Investment Funds (or Subpart thereof) and in the Loan Account to separately reflect
his interests in each such fund or Subpart or in the Loan Account and the
portion thereof that is attributable to each of his Accounts.

 

6.3.          Investment
Fund Elections. At the time that a Participant enrolls in the Plan he
may specify the percentage of contributions subsequently credited to his
Accounts that are to be initially invested in each of the Investment Funds in
the Profit Sharing Fund (but not in the ESOP Fund) in accordance with uniform
rules established by the Committee from time to time. Any such investment
direction shall be deemed to be a continuing direction until changed. During
any period in which no such direction has been given in accordance with rules
established by the Committee, contributions credited to a Participant shall be
invested in the Investment Funds in the Profit Sharing Fund as determined by
the Committee. A Participant may modify his investment direction prospectively
by entering into the Access System his election to do so prior to the effective
time of the change in accordance with uniform rules established by the
Committee; provided, however, that a Participant shall not be permitted to
direct the initial investment of future contributions in the ESOP Fund.

 

6.4.          Transfers
Between Investment Funds. Subject to uniform rules established by the
Committee from time to time, each Participant may elect to transfer
prospectively the value of his Accounts held in any Investment Fund forming
part of the Profit Sharing Fund to any other Investment Fund forming part of
the Profit Sharing Fund then made available to such Participant. Subject to
such uniform rules, each Participant may elect to transfer prospectively the
value of his Accounts held in any Subpart of an Investment Fund designated as
forming part of the ESOP Fund to any Investment Fund (or Subpart thereof)
forming part of the Profit Sharing Fund; provided, however, that a Participant
may not transfer the value of his Accounts held in the Subpart of an Investment
Fund designated as forming a part of the ESOP Fund to the Subpart of such
Investment Fund forming part of the Profit Sharing Fund. Any such election
shall be made by entering it into the Access System prior to the time it is to
be effective in accordance with uniform rules established by the Committee. Notwithstanding
the foregoing, if a Participant terminates employment before he is fully vested
in his Accounts, and forfeiture of the non-vested portion of his Accounts is
delayed pending distribution of the vested portion, such non-vested portion
shall be invested in accordance with rules established by the Committee to
minimize the risk of loss, and shall not be subject to the investment direction
of the Participant.

 

13

 

6.5.          Automatic
Transfers to the ESOP Fund. Notwithstanding the foregoing provisions of
this Section 6, the following provisions shall apply:

 

(a)           In
accordance with procedures established by the Committee, all shares of Employer
Common Stock (and all units representing such shares) held in the Subpart of
either the Altria Group Stock Fund or the Kraft Foods Stock Fund forming part
of the Profit-Sharing Fund shall be transferred to that Subpart of each such
fund designated as forming part of the ESOP Fund as of the business day
immediately preceding each applicable Ex-dividend Date (as defined below) or at
such other time or times as the Committee, in its sole discretion, shall
determine in order for Participants and Beneficiaries to make the election
described in subsection 10.5 with respect to any dividends payable with respect
to all shares of Employer Common Stock (and units representing such shares)
invested in such funds.

 

(b)           The term “Ex-dividend Date”
means the first date on which a purchaser of shares of Employer Common Stock is
not entitled to receive a dividend that has been previously declared by the
applicable Board of Directors. Under current industry practice, the Ex-dividend
Date is three days prior to the date on which the identity of shareholders
entitled to receive a dividend that has been declared is ascertained (the
record date).

 

6.6.          Independent
Investment Advice. The Company, as a named fiduciary, shall be allocated
the fiduciary responsibility to offer investment advice to Participants
(including inactive Participants), Beneficiaries and alternate payees with
respect to investment of their Accounts under the Plan. The Company shall
designate an Investment Manager to render such investment advice, which
Investment Manager shall acknowledge in writing to the Company that it is a fiduciary
with respect to the Plan. The Investment Manager shall render such investment
advice to any Participant, Beneficiary or alternate payee who requests it and
who furnishes to the Investment Manager such information as it may reasonably
request.

 

SECTION 6A

 

Investment Committee

 

6A.1.       Investment
Committee Membership and Authority. The Investment Committee referred to in
subsection 1.3 is hereby established under the Plan and shall consist of the
following positions of Kraft Foods Inc. or its subsidiaries, effective as of
January 27, 2004:  Executive Vice
President, Chief Financial Officer; Executive Vice President, Global Human
Resources;  Executive Vice President,
General Counsel & Corporate Secretary; and Senior Vice President &
Controller. Each member of the Investment Committee shall acknowledge in
writing to the Company that he or she is a fiduciary with respect to the Plan. Except
as otherwise specifically provided in this subsection 6A.1, the Investment
Committee shall act by a majority of its then members, by meeting or by writing
filed without meeting, and shall have the following discretionary authority,
powers, rights and duties in addition to those vested in it elsewhere in the
Plan or Trust Agreement:

 

14

 

(a)           to select,
appoint or remove one or more Trustees, custodians, Investment Managers and
insurance companies to handle Plan assets, and to allocate Plan assets to each
of them;

 

(b)           to direct
a Trustee with respect to the investment of an Investment Fund;

 

(c)           to select
and appoint one or more successor Trustees and to enter into and amend a Trust
Agreement with a Trustee or any successor Trustee on behalf of the Employer;

 

(d)           to
determine the advisability of establishing or modifying the description of any
Investment Fund (as defined in subsection 6.1) made available under the Plan;

 

(e)           to
establish investment guidelines, proxy voting policies and securities trading
procedures;

 

(f)            to
monitor the investment performance of each of the Investment Funds under the
Plan and the fiduciaries responsible for the investment of Plan assets;

 

(g)           to adopt
such rules of procedure and regulations as, in its opinion, may be necessary to
carry out its duties under the Plan and that are consistent with the provisions
of the Plan;

 

(h)           to
maintain and keep adequate records concerning its proceedings and acts in such
form and detail as the Investment Committee may decide;

 

(i)            to employ
agents, attorneys, investment advisors or other persons (who may also be employed
by or represent the Employers) for such purposes as the Investment Committee
considers necessary or desirable to discharge its duties;

 

(j)            to
furnish the Employers, the Committee and the Trustee with such information with
respect to the Plan and the Trust as may be required by them for tax or other
administrative or similar purposes;

 

(k)           to
coordinate with the Committee on establishing procedures to ensure the
confidentiality of information relating to the purchase, holding and sale of
interests in the Altria Group Stock Fund (including
both Subparts thereof) and the Kraft Foods
Stock Fund (including both Subparts thereof) and on the
exercise of voting, tender and similar rights by Participants, inactive
Participants and Beneficiaries; and

 

(l)            to coordinate
with the Committee and the Company (1) on providing and making available
sufficient information to enable Participants, inactive Participants and
Beneficiaries to make informed investment decisions, and (2) on performing any
and all acts necessary to obtain the relief offered by section 404(c) of ERISA.

 

15

 

The certificate of a majority of the members of the
Investment Committee that the Investment Committee has taken or authorized any
action shall be conclusive in favor of any person relying on the certificate.

 

6A.2.       Allocation
and Delegation of Investment Committee Responsibilities and Powers. In
exercising its authority to control and manage the assets of the Plan the
Investment Committee may allocate all or any part of its responsibilities and
powers to any one or more of its members and may delegate all or any part of
its responsibilities and powers to any person or persons selected by it. Any
such allocation or delegation may be revoked at any time. Any member or
delegate exercising Investment Committee responsibilities and powers under this
subsection shall periodically report to the Investment Committee on its
exercise thereof and the discharge of such responsibilities. The Investment
Committee, and any member or delegate exercising Investment Committee
responsibilities and powers under this subsection 6A.2, shall have no duty to
report to the Company or its Board of Directors, or any Related Company or its
Board of Directors, which in turn shall have no duty or authority to monitor
the Investment Committee or any member or delegate exercising Investment
Committee responsibilities and powers under this subsection 6A.2  Neither the Company nor its Board of
Directors shall have any duty or authority to remove any member of the
Investment Committee, except insofar as it amends this Section 6A in its
settlor capacity.

 

6A.3.       Exercise
of Investment Committee’s Duties. Notwithstanding any other provisions of
the Plan, the Investment Committee shall discharge its duties hereunder solely
in the interests of the Participants and other persons entitled to benefits
under the Plan, and:

 

(a)           for the
exclusive purpose of providing benefits to Participants and other persons
entitled to benefits under the Plan; and

 

(b)           with the
care, skill, prudence and diligence under the circumstances then prevailing
that a prudent man acting in a like capacity and familiar with such matters
would use in the conduct of an enterprise of a like character and with like
aims.

 

6A.4.       Remuneration
and Expenses. No remuneration shall be paid from the Plan to a member of
the Investment Committee who is an employee of any Employer or Related Company.

 

6A.5.       Indemnification
of the Investment Committee. To the extent not reimbursed by any applicable
insurance policy, the Investment Committee, the individual members thereof and
the secretary (if any) of the Investment Committee shall be indemnified by the
Employers against any and all liabilities, losses, costs and expenses
(including legal fees and expenses) of whatsoever kind and nature which may be
imposed on, incurred by or asserted against any of them by reason of the
performance of the Investment Committee’s functions if the Investment Committee
or such members or secretary did not act dishonestly or in willful violation of
the law or regulation under which such liability, loss, cost or expense arises.

 

6A.6.       Resignation
of Investment Committee Member. A member of the Investment Committee may
resign at any time by resigning from the position designated in subsection 6A.1

 

16

 

hereof that makes him a member, or by requesting that
the Company amend the Plan to remove that position from the list of Investment
Committee members, in either case by giving ten days’ advance written notice to
the Company, the Trustee and the other Investment Committee members.

 

6A.7.       Removal
of Investment Committee Member. The Company may, solely in its settlor
capacity, add or remove Investment Committee members, temporarily or
indefinitely, by amending the Plan to add to or remove from the list of
positions that make up the Investment Committee members, and by giving advance
written notice to any new members (who shall acknowledge their fiduciary status
as provided above), to any members whose position is removed, to the Trustee,
and to the other Investment Committee members. If there is a vacancy in any of
the positions that make up the Investment Committee, the remaining Investment
Committee members shall have the same powers as the full Investment Committee
until the vacancy is filled.

 

6A.8.       ERISA
Section 404(c). The Plan is intended to comply with the provisions of
section 404(c) of ERISA and the Department of Labor regulation section
2550.404c-1. Accordingly, each Participant and inactive Participant (and
Beneficiary) shall have the right to exercise control over the balance in his
Accounts, including the power:

 

(a)           to direct
the investment of the balance in his Accounts (and future contributions to such
Accounts) among the Investment Funds not less frequently than quarterly; and

 

(b)           to
exercise voting, tender and similar rights with respect to the full and
fractional shares of Employer Common Stock allocated to his Accounts and held
in the Altria Group Stock Fund (including
both Subparts thereof) and the Kraft Foods
Stock Fund (including both Subparts thereof) in accordance
with Supplement P (7) to the Plan.

 

SECTION 7

 

Plan Accounting

 

7.1.          Participants’
Accounts. The Committee shall maintain the following “Accounts” in the name of each
Participant:

 

(a)           a “Matching Account,”
which shall reflect Matching Contributions, if any, made on his behalf to the
Profit Sharing Fund and the income, losses, appreciation and depreciation
attributable thereto;

 

(b)           a “Before-Tax Account,”
which shall reflect Before-Tax Contributions, if any, made on his behalf to the
Profit Sharing Fund and the income, losses, appreciation and depreciation
attributable thereto;

 

17

 

(c)           an “After-Tax Account,”
which shall reflect After-Tax contributions, if any, made by the Participant to
the Profit Sharing Fund and the income, losses, appreciation and depreciation
attributable thereto;

 

(d)           a “Qualified Matching
Account,” which shall reflect Qualified Matching Contributions, if
any, made on his behalf to the Profit Sharing Fund, and the income, losses,
appreciation and depreciation attributable thereto;

 

(e)           a “Rollover Account,”
which shall reflect Rollover Contributions, if any, made by him to the Profit
Sharing Fund and the income, losses, appreciation and depreciation attributable
thereto; and

 

(f)            a “QVEC Account,”
which shall reflect qualified voluntary employee contributions, if any, made by
him to the Profit Sharing Fund prior to January 1, 1987, and the income,
losses, appreciation and depreciation attributable thereto.

 

In addition, the Committee may maintain subaccounts
within the Before-Tax and After-Tax Accounts to distinguish contributions (and
the earnings thereon) eligible to be matched from contributions (and the
earnings thereon) above the matching limit, subaccounts to reflect balances
transferred to this Plan from another qualified plan that are subject to
special rules and subaccounts reflecting the portion of the Accounts held in
the ESOP Fund. The Accounts and subaccounts provided for in this subsection 7.1
shall be for accounting purposes only, and there shall be no segregation of
assets within the Investment Funds or the Loan Account among the separate
Accounts. Reference to the “balance” in a Participant’s Accounts means the
aggregate of the balances in the subaccounts maintained in the Investment Funds
and Loan Account attributable to those Accounts.

 

7.2.          Allocation
of Fund Earnings and Changes in Value. Subject to the last sentence of this
subsection, as of each Accounting Date, interest, dividends and changes in
value in each Investment Fund since the preceding Accounting Date shall be
allocated to each Participant’s subaccounts invested in such Investment Fund by
adjusting upward or downward the balance of his subaccounts invested in such
Investment Fund in the ratio which the subaccounts of such Participant invested
in such Investment Fund bears to the total of the subaccounts of all
Participants invested in such Investment Fund as of such Accounting Date,
excluding therefrom, for purposes of this allocation only all Before-Tax,
After-Tax, Matching, Qualified Matching and Rollover Contributions to the
Profit Sharing Fund received since the preceding Accounting Date, so that the
total of the subaccounts of all Participants in each Investment Fund (or
Subpart thereof) shall equal the total value of such fund (or Subpart thereof)
(exclusive of such contributions) as determined by the Trustee in accordance
with uniform procedures consistently applied. Notwithstanding the fact that the
Plan shall use a daily valuation system, which generally means that
Participants’ Accounts will be updated each Accounting Date to reflect activity
for that day, such as new contributions to the Profit Sharing Fund received by
the Trustee, changes in Participants’ investment elections, and changes in the
unit value of the Investments Funds, events may occur that cause an
interruption in the process affecting a single Participant or a group of Participants.
Neither the Employers, the Trustee nor the Plan guarantee that any given
transaction will be processed on the anticipated day. The Investment Committee,
in its discretion, may establish special rules for valuing any Investment Fund
invested solely in 

 

18

 

Employer Common Stock (except for cash reserves for
the purposes set forth in Section 6.1 hereof) to address the possibility of
unusually high trading volume or a temporary suspension of trading in such
stock. Such rules may set forth the circumstances under which transfers out of
such Investment Fund will be valued using either the closing price on the
applicable day on the New York Stock Exchange, a composite price listed in the
Wall Street Journal, or a weighted average selling price.

 

7.3.          Allocation
and Crediting of Contributions. Subject to the provisions of Section 8,
contributions shall be allocated and credited as follows:

 

(a)           Before-Tax,
After-Tax, Matching, and Rollover Contributions made on behalf of a Participant
to the Profit Sharing Fund for any payroll period shall be credited to that
Participant’s appropriate Accounts as of the Accounting Date coinciding with or
immediately following the last day of such payroll period; and

 

(b)           As of the
last day of each Plan Year, any Qualified Matching Contributions made by an
Employer to the Profit Sharing Fund for that year shall be allocated among and
credited to the Accounts of non-Highly Compensated Participants who are
employed on the last day of that year by such Employer in accordance with
subsection 5.2.

 

Notwithstanding the foregoing, unless the Committee
establishes uniform rules to the contrary, contributions made to the Profit
Sharing Fund shall share in the gains and losses of the Investment Funds only
when actually made to the Trustee.

 

7.4.          Correction
of Error. In the event of an error in the adjustment of a Participant’s
Accounts, the Committee, in its sole discretion, may correct such error by
either crediting or charging the adjustment required to make such correction to
or against income and expenses of the Trust for the Plan Year in which the
correction is made or the Employer may make an additional contribution to
permit correction of the error. Except as provided in this subsection 7.4, the
Accounts of other Participants shall not be readjusted on account of such
error.

 

7.5.          Statement
of Plan Interest. As soon as practicable after the last day of each Plan
Year and at such other intervals as the Committee may determine, the Committee
shall provide each Participant with a statement reflecting the balances of his
Accounts. Each Participant is responsible for reviewing his statement and any
Participant who discovers an error shall bring it to the attention of the
Committee within 90 days of receipt of the statement. If a Participant does not
bring errors in his statement to the attention of the Committee within 90 days
of receipt of his statement, the Participant will be deemed to have confirmed
the accuracy of the statement.

 

SECTION 8

 

Limitations on Compensation, Contributions and Allocations

 

8.1.          Reduction
of Contribution Rates. To conform the operation of the Plan to
sections 401(a)(4), 401(k)(3), 401(m)(2), 402(g) and 415(c) of the Code, the
Committee may 

 

19

 

establish limits on the
Before-Tax and After-Tax Contribution rates that may be elected by
Participants, may unilaterally modify or revoke any Before-Tax or After-Tax
Contribution election made by a Participant pursuant to subsections 4.1 and
4.2, and may reduce the level of Matching Contributions (even to zero)
allocable to any Participant pursuant to subsection 5.l.

 

8.2.          Compensation
for Limitation/Testing Purposes. “Compensation” for purposes of this
Section 8 shall mean:

 

(a)           the
Participant’s wages, salary, commissions, bonuses and other amounts received
(in cash or kind) during the Plan Year from any Employer or Related Company for
personal services actually rendered in the course of employment and includable
in gross income, including taxable fringe and welfare benefits, nonqualified
stock options taxable in the year of grant, amounts taxable under a section
83(b) election and nondeductible moving expenses, but excluding distributions
from any deferred compensation plan (qualified or nonqualified), amounts
realized from the exercise of (or disposition of stock acquired under) any
nonqualified stock option or other benefits given special tax treatment and
lump sum severance pay, all as defined in Treas. Reg. § 1.415-2(d)(2), plus

 

(b)           any
amounts contributed on the Participant’s behalf for the Plan Year to a plan
sponsored by an Employer or Related Company pursuant to a salary reduction
agreement which are not includable in gross income pursuant to section 125,
402(e)(3), 402(h) or 132(f)(4) of the Code,

 

up to the maximum limit for that year under Code
section 401(a)(17).

 

8.3.          Limitations
on Annual Additions. Notwithstanding any other provisions of the Plan to
the contrary, and except to the extent permitted under subsection 4.1(b) of the
Plan and section 414(v) of the Code, a Participant’s Annual Additions (as
defined below) for any Plan Year shall not exceed an amount equal to the lesser
of:

 

(a)           $40,000
(indexed for cost-of-living increases in accordance with regulations under
section 415(d) of the Code); or

 

(b)           100
percent of the Participant’s Compensation for that Plan Year, calculated as if
each Section 415 Affiliate (defined below) were a Related Company,

 

reduced by any Annual Additions for the Participant
for the Plan Year under any other defined contribution plan of an Employer or a
Related Company or Section 415 Affiliate, provided that, if any other such plan
has a similar provision, the reduction shall be pro rata. The term “Annual Additions”
means, with respect to any Participant for any Plan Year, the sum of all
contributions allocated to a Participant’s Accounts under the Profit Sharing
Fund for such year, excluding Rollover Contributions and any Before-Tax
Contributions to the Profit Sharing Fund that are distributed as excess
deferrals in accordance with subsection 8.5, but including any Before-Tax,
After-Tax or Matching Contributions treated as excess contributions or excess
aggregate contributions under subsections 8.7, 8.9 and 8.10. The term Annual
Additions shall also include employer contributions allocated for a Plan Year
to any individual medical account (as defined in 

 

20

 

section 415(l) of the Code) of a Participant and any
amount allocated for a Plan Year to the separate account of a Participant for
payment of post-retirement medical benefits under a funded welfare benefit plan
(as described in section 419A (d)(2) of the Code), which is maintained by an
Employer or a Related Company or Section 415 Affiliate; provided, however, that
the compensation limit referred to in paragraph (b) next above shall not apply
to any contribution for medical benefits after separation from service (within
the meaning of section 401(h) or section 419(f)(2) of the Code) which is
otherwise treated as an Annual Addition. “Section 415 Affiliate” means any
entity that would be a Related Company if the ownership test of section 414 of
the Code was “more than 50%” rather than “at least 80%”.

 

8.4.          Excess
Annual Additions. If, as a result of a reasonable error in estimating a
Participant’s Compensation, a reasonable error in determining the amount of
Before-Tax Contributions that may be made with respect to a Participant under
the limits of section 415 of the Code or such other mitigating
circumstances as the Commissioner of Internal Revenue shall prescribe, the
Annual Additions for a Participant for a Plan Year exceed the limitations set
forth in subsection 8.3, the excess amounts shall be treated, as necessary, in
accordance with Treas. Reg. § 1.415-6(b)(6)(ii), after any After-Tax
Contributions, and then any Before-Tax Contributions, and any income, losses,
appreciation or depreciation attributable to the foregoing, are first returned
to the Participant to reduce the excess amount.

 

8.5.          Annual
Dollar Limitation. In no event shall the Before-Tax Contributions for a
Participant to the Profit Sharing Fund and any other elective deferrals (as
defined in section 402(g)(3) of the Code) under any other cash-or-deferred
arrangement maintained by an Employer or a Related Company for any taxable year
exceed the amount permitted under section 402(g) of the Code. If during
any taxable year a Participant is also a participant in any other
cash-or-deferred arrangement, and if his elective deferrals made under such
other arrangements together with his Before-Tax Contributions made to the
Profit Sharing Fund exceed the maximum amount permitted for the Participant for
that year under section 402(g) of the Code, the Participant, not later than
March 1 following the close of such taxable year, may request the Committee to
direct the Trustee to distribute all or a portion of such excess to him, with
any gains or losses allocable thereto for that Plan Year determined in
accordance with any reasonable method adopted by the Committee for that Plan
Year that either (i) conforms to the accounting provisions of
Section 7 and is consistently applied to the distribution of excess
contributions under this subsection 8.5 and subsections 8.7, 8.9 and 8.10
to all affected Participants, or (ii) satisfies any alternative method set
forth in applicable Treasury regulations. Any such request shall be in writing
and shall include adequate proof of the existence of such excess, as determined
by the Committee in its sole discretion. If the Committee is so notified, such
excess amount shall be distributed to the Participant no later than the April
15 following the close of the Participant’s taxable year. In addition, if the
applicable limitation for a Plan Year is exceeded with respect to this Plan
alone, or this Plan and another plan or plans of the Employers and Related
Companies, the Committee shall direct such excess Before-Tax Contributions
(with allocable gains or losses) to be distributed to the Participant as soon
as practicable after the Committee is notified of the excess deferrals by the
Company, an Employer or the Participant, or otherwise discovers the error (but
no later than the April 15 following the close of the Participant’s
taxable year). Notwithstanding the foregoing provisions of this
subsection 8.5, the dollar amount of any distribution due hereunder shall
be reduced by the dollar amount of any

 

21

 

Before-Tax Contributions
previously distributed to the same Participant pursuant to subsection 8.7;
provided, however, that for purposes of subsections 8.3 and 8.6, the
correction under this subsection 8.5 shall be deemed to have occurred
before the correction under subsection 8.7.

 

8.6.          Section
401(k)(3) Testing. For any Plan Year,
the amount by which the average of the Deferral Percentages for such Plan Year
(as defined below) of each eligible employee who is Highly Compensated (the “Highly Compensated Group
Deferral Percentage”) for such plan year exceeds the average of the
Deferral Percentages for such Plan Year of each eligible employee who is not
Highly Compensated for such Plan Year (the “Non-highly Compensated Group Deferral
Percentage”), shall be less than or equal to either (i) a
factor of 1.25 or (ii) both a factor of 2 and a difference of 2. The “Deferral Percentage”
for any eligible employee for a Plan Year shall be determined by dividing his
Before-Tax Contributions (and Qualified Matching Contributions, if applicable)
for that Plan Year by his Compensation for that Plan Year, subject to any
special rules set forth in applicable Treasury regulations.

 

8.7.          Correction
Under Section 401(k) Test. In the event that the Highly Compensated Group
Deferral Percentage for any Plan Year does not initially satisfy one of the
tests referred to in subsection 8.6, the Committee shall direct the Trustee to
distribute to the Highly Compensated Participants to whose accounts Excess
Contributions (as defined below) were allocated for such year, the amount of
each such Participant’s Excess Contributions, with any gains or losses
allocable thereto for that Plan Year. The aggregate amount of “Excess Contributions”
for any Plan Year shall be equal to the excess of the aggregate amount of
Before-Tax Contributions taken into account in computing the actual deferral
ratios of Highly Compensated Participants for such year over the maximum
aggregate amount of Before-Tax Contributions permitted under the tests set
forth in Section 8.6 for such year, determined by reducing the amount of
Before-Tax Contributions made on behalf of Highly Compensated Participants, in
descending order of their actual deferral ratios beginning with the highest, in
accordance with the ratio leveling method set forth in Treas. Reg. Section
1.401(k)-1(f)(2). The dollar amount of Before-Tax Contributions to be
distributed with respect to any Highly Compensated Participant for any Plan
Year shall be determined using a leveling method under which the amount of the
Before-Tax Contributions of each Highly Compensated Participant is reduced, in descending
order of the dollar amount of their Before-Tax Contributions beginning with the
highest, until the Before-Tax Contributions of each Highly Compensated
Participant equals the amount of the Before-Tax Contributions of the Highly
Compensated Participant with the next highest amount of Before-Tax
Contributions or, if less, until the total amount of Excess Contributions have
been distributed. The gain or loss allocable to Excess Contributions shall be
determined in accordance with any reasonable method adopted by the Committee
for that Plan Year that either (i) conforms to the accounting provisions
of Section 7 and is consistently applied to making corrective
distributions under this subsection 8.7 and subsections 8.5, 8.9 and
8.10 to all affected Participants or (ii) satisfies any alternative method
set forth in applicable Treasury regulations. The amounts to be distributed to
any Participant pursuant to this subsection 8.7 shall be reduced by the amount
of any Before-Tax Contributions distributed to him for the taxable year ending
with or within such Plan Year pursuant to subsection 8.5. The Committee shall
take such actions and cause any distribution to be made no later than the close
of the Plan Year following the Plan Year for which the Excess Contributions
were made.

 

22

 

8.8.          Section
401(m)(2) Testing. For any Plan Year, the amount by which the average of
the Contribution Percentages for such Plan Year (as defined below) of each
eligible employee who is Highly Compensated for such Plan Year (the “Highly Compensated Group
Contribution Percentage”) exceeds the average of the Contribution
Percentages for such Plan Year of each eligible employee who is not Highly
Compensated (the “Non-highly
Compensated Group Contribution Percentage”) shall be less than or
equal to either (i) a factor of 1.25 or (ii) both a factor of 2 and a
difference of 2. The “Contribution
Percentage” for any eligible employee for a Plan Year shall be
determined by dividing his total After-Tax Contributions and Matching
Contributions (and, if applicable, Qualified Matching Contributions) for that
Plan Year by his Compensation for that Plan Year, subject to any special rules
set forth in applicable Treasury regulations.

 

8.9.          Correction
Under Section 401(m) Test. In the event that the Highly Compensated
Group Contribution Percentage for any Plan Year does not initially satisfy one
of the tests referred to in subsection 8.8, the Committee shall direct the
Trustee to distribute to the Highly Compensated Participants to whose Accounts
Excess Aggregate Contributions (as defined below) were allocated for such year,
the amount of each such Participant’s Excess Aggregate Contributions, with any
gains or losses allocable thereto for that Plan Year. The aggregate amount of “Excess Aggregate
Contributions” for any Plan Year shall be equal to the excess of the
aggregate amount of After-Tax and Matching Contributions taken into account in
computing the actual contribution ratios of Highly Compensated Participants for
such year over the maximum amount of After-Tax and Matching Contributions
permitted under the tests set forth in subsection 8.8 of the Plan, determined
by reducing the amount of such contributions made on behalf of Highly
Compensated Participants in order of their actual contribution ratios,
beginning with the highest, using the ratio leveling method prescribed in
Treas. Reg. Section 1.401(m)-1(e)(2). The Excess Aggregate Contributions to be
distributed, or if forfeitable, forfeited, with respect to any Highly
Compensated Participant for any Plan Year shall be determined by using a
leveling method under which the amount of the After-Tax and Matching
Contributions for each Highly Compensated Participant are reduced, in
descending order based on the dollar amount of such contributions beginning
with the highest, until the Highly Compensated Participant’s After-Tax and
Matching Contributions equal the After-Tax and Matching Contributions of the
Highly Compensated Participant with the next highest dollar amount of After-Tax
and Matching Contributions or, if less, until the Excess Aggregate
Contributions are distributed or forfeited. Excess Aggregate Contributions
shall include, first, any unmatched After-Tax Contributions, then (if
necessary) a proportionate share of matched After-Tax Contributions and the
Matching Contributions allocable thereto, and last, any remaining Matching
Contributions. The gain or loss allocable to Excess Aggregate Contributions
shall be determined in accordance with any reasonable method adopted by the
Committee for that Plan Year that either (i) conforms to the accounting
provisions of Section 7 and is consistently applied to making corrective
distributions under this subsection 8.9 and subsections 8.5, 8.7 and
8.10 to all affected Participants or (ii) satisfies any alternative method
set forth in applicable Treasury regulations. Notwithstanding the foregoing
provisions of this subsection 8.9, any Matching Contributions distributable as
Excess Aggregate Contributions that are not yet vested in accordance with
subsection 9.1 or are attributable to excess Before-Tax or After-Tax
Contributions distributed in accordance with subsections 8.4, 8.5 or 8.7 or
this subsection 8.9 shall be forfeited as of the end of the Plan Year to which
such corrective distributions relate (and treated in the same manner as any
other 

 

23

 

forfeiture under the Plan). The
Committee shall make any necessary distribution no later than the close of the
Plan Year following the Plan Year in which such Excess Aggregate Contributions
were contributed.

 

8.10.        Multiple
Use of Alternative Limitation. Notwithstanding any other provision of this
Section 8, if the 1.25 factors referred to in subsections 8.6 and 8.8 are both
exceeded for a Plan Year beginning before January 1, 2002, the leveling method
of correction prescribed in subsection 8.9 shall be continued until the
aggregate limit set forth in Treas. Reg. §1.401(m)-2(b) is satisfied for
such Plan Year. The multiple use test described in Treas. Reg. section
1.401(m)-2 and this subsection 8.12 shall not apply with respect to Plan Years
beginning after 2001.

 

8.11.        Highly
Compensated. An employee or Participant shall be “Highly Compensated” for
any Plan Year if:

 

(a)           during
that Plan Year or the preceding Plan Year, he was at any time a 5 percent owner
of an Employer or a Related Company; or

 

(b)           during the
preceding Plan Year he received Compensation in excess of $80,000 (indexed for
cost-of-living adjustments under section 415(d) of the Code).

 

8.12.        Separate
Testing of Early Eligible Group. Notwithstanding the foregoing provisions
of this Section 8, for any Plan Year the Committee may elect, in accordance
with applicable Treasury regulations, to apply the tests set forth in
subsections 8.6 and 8.8 separately with respect to all eligible employees who
would not have been eligible to participate in the Plan for that Plan Year had
the Plan utilized the maximum age and service requirements for eligibility
permitted by the Code.

 

SECTION 9

 

Vesting Service, Vesting
and Termination Dates

 

9.1.          Determination
of Vesting Service and Vested Interest. A Participant at all times shall
have a fully vested, nonforfeitable interest in his Before-Tax Account,
After-Tax Account, Qualified Matching Account, Rollover Account and QVEC
Account. A Participant shall become vested in his Matching Account in
accordance with the following schedule:

 

	
  Completed Years of Service

  	
   

  	
  Percent Vested

  	
   

  
	
  Less than 2

  	
   

  	
  0

  	
  %

  	
   

  
	
  2

  	
   

  	
  25

  	
  %

  	
   

  
	
  3

  	
   

  	
  50

  	
  %

  	
   

  
	
  4

  	
   

  	
  75

  	
  %

  	
   

  
	
  5

  	
   

  	
  100

  	
  %

  	
   

  

 

Notwithstanding the foregoing, a Participant shall be
100% vested in the amount of any dividend payable on or after December 15, 2001
with respect to shares of Employer Common Stock (or 

 

24

 

with respect to units representing such shares) that
are allocated to his Account and held under the ESOP Fund, regardless of
whether such dividend is distributed in cash pursuant to subsection 10.5 or
reinvested in the Participant’s Account. For purposes of this subsection 9.1, a
Participant’s “Years of Service” will be computed in accordance with paragraph
3.1(a) and subsection 3.4 regardless of whether he is a full-time employee or a
part-time or seasonal employee, provided that no part-time or seasonal employee
shall have fewer Years of Service for purposes of this subsection 9.1 as of
December 31, 1993 than he would have had under the method of computing vesting
service applicable to him under the terms of the Plan as in effect on December
31, 1992. Notwithstanding the foregoing provisions of this subsection 9.1, if
an employee or Participant terminates employment with the Employers and Related
Companies when he does not have a vested right to any portion of his Matching
Account under this subsection 9.1, and if the number of his consecutive One
Year Breaks in Service (as defined in subsection 3.3) equals or exceeds the
greater of five (5) or the aggregate number of his Years of Service prior to
the first such One Year Break in Service, then his Years of Service prior to
such break shall be erased and, if he is later employed or reemployed by an
Employer or a Related Company, he shall be considered a new employee for
purposes of this subsection 9.1.

 

9.2.          Accelerated
Vesting. Notwithstanding the foregoing provisions of this Section 9, a
Participant shall have a fully vested, nonforfeitable interest in all his
Accounts when he attains age 65, dies or becomes permanently and totally
disabled while employed by an Employer or a Related Company. A Participant who
was a participant in one of the GF Plans (as defined in subsection 10.4) shall
be fully vested upon his retirement at or after attainment of age 55. In
addition, in the event of the Plan’s termination (in accordance with subsection
14.2) or partial termination (as determined under applicable law and
regulations) or the complete discontinuance of Employer contributions to the
Plan, each affected Participant shall be fully vested in all his Accounts. The
Committee in its discretion may also determine that the Accounts of
Participants affected by a divestiture, plant closing or termination of an
operation shall be fully vested, even though such event does not constitute a
partial termination. For purposes of this subsection 9.2, a Participant will be
considered “permanently and totally disabled” if either (i) the Participant has
been determined to be permanently and totally disabled under the terms of an
Employer’s long term disability plan in which the Participant participates, or
(ii) the Participant has received a determination of disability by the Social
Security Administration.

 

9.3.          Termination
Date. If a Participant is terminated for any reason, his “Termination Date”
generally will be the last day for which he is paid wages or salary for
services performed for an Employer, unless he is terminated while on an unpaid
leave of absence, in which case his Termination Date will be the day as of
which he is notified of his termination or resigns (whichever is applicable).

 

9.4.          Distribution
of Before-Tax Account Only Upon Separation From Service. Notwithstanding
any other provision of the Plan to the contrary, a Participant may not commence
distribution of the portion of his Account attributable to his Before-Tax
Contributions prior to the date he attains age 591⁄2, even though his employment
with the Employers and Related Companies has terminated and he is otherwise
eligible for a distribution under Section 11, unless or until he also has a “separation
from service” within the meaning of section 401(k)(2)(B) of the Code. The
foregoing restriction shall not apply, however, if the Participant’s
termination of 

 

25

 

employment occurs in connection
with the sale by an Employer or a Related Company to an unrelated corporation
of at least 85% of the assets of a trade or business or the disposition of its
interest in a subsidiary to an unrelated entity that meets the requirements for
distribution under applicable Treasury regulations. Notwithstanding the
foregoing, effective for distributions in Plan Years beginning after December
31, 2001, and subject to the other provisions of the Plan regarding
distribution, distribution shall not be prohibited by reason of this subsection
9.4 with respect to a Participant who has severed from employment (within the
meaning of section 401(k)(2) of the Code) as of such date, regardless of when
the severance from employment occurred.

 

SECTION 10

 

Loans and Withdrawals of
Contributions While Employed

 

10.1.        Loans
to Participants. The Committee, upon request by a Participant who is an
employee of an Employer or a Related Company (excluding any employee on layoff
or a leave of absence without pay) or who is a “party in interest” with respect
to the Plan (as such term is defined in section 3(14) of ERISA) may authorize a
loan to be made to the Participant from his vested interest in the Trust Fund,
subject to the following:

 

(a)           The
minimum loan amount is $1,000. No loan shall be made to a Participant if,
immediately after such loan, the sum of the outstanding balances (including
principal and interest) of all loans made to him under this Plan and under any
other qualified retirement plans maintained by the Related Companies would
exceed the lesser of:

 

(i)            $50,000,
reduced by the excess, if any, of:

 

(A)          the highest
outstanding balance of all loans to the Participant from the plans during the
one-year period ending on the day immediately before the date on which the loan
is made; over

 

(B)           the
outstanding balance of loans from the plans to the Participant on the date on
which such loan is made; or

 

(ii)           the
combined values of the Participant’s After-Tax, Before-Tax and Rollover
Accounts;

 

and no loan shall be made to a Participant
from the Plan in an amount that would exceed one-half of the total vested
balance of the Participant’s Accounts under the Plan as of the date the loan is
made. Notwithstanding the foregoing, if the amount described in clause (ii)
above declines because of investment losses between the date the loan is
requested and the Accounting Date as of which it is made, the difference may be
taken from the vested portion of his Matching Account (so long as the loan does
not exceed one-half of the total vested balance of his Accounts).

 

26

 

(b)           Each loan
to a Participant shall be charged against the Participant’s Accounts in the
order and manner determined by the Committee, and shall be charged pro rata
against each Investment Fund in which such Accounts are invested.

 

(c)           Each loan
shall be evidenced by a written note providing for:

 

(i)            a
repayment period of 12 through 60 months, inclusive;

 

(ii)           a
reasonable rate of interest (as determined below);

 

(iii)          substantially
equal payments of principal and interest over the term of the loan no less
frequently than quarterly; and

 

(iv)          such other
terms and conditions as the Committee shall determine.

 

The interest rate shall provide the Plan with
a return commensurate with the interest rates charged by persons in the
business of lending money for loans which would be made under similar
circumstances and shall be a fixed rate for the life of the loan, except to the
extent that a reduction in the interest rate is required by Federal law during
a period of military service. The interest rate which applies to a loan shall
be the rate in effect on the date that the loan application is made by the
Participant.

 

(d)           A loan
shall be the borrowing Participant’s individual investment within the Loan
Account.

 

(e)           Payments
of principal and interest to the Trustee with respect to any loan to a
Participant:

 

(i)            shall
reduce the outstanding balance with respect to that loan;

 

(ii)           shall
reduce the balance of the Loan Account holding the promissory note reflecting
that loan;

 

(iii)          shall
be credited to the Participant’s Accounts in the reverse order in which they
were charged; and

 

(iv)          shall be
invested in the Investment Funds in accordance with his current investment
directions with respect to such Accounts.

 

(f)            A
Participant’s obligation to repay a loan (or loans) from the Plan shall be
secured by the Participant’s vested interest in the Plan. The note evidencing
the loan, the security agreement and the payroll deduction authorization shall
each be executed by the Participant by entry of his password into the Access
System. Endorsement of the loan check shall constitute the Participant’s
affirmation of the note, security agreement and payroll deduction authorization
set forth in the written confirmation sent to the Participant after he made his
loan request.

 

27

 

(g)           Generally,
loan repayments will be made by automatic payroll deductions. However, during
any period when payroll deduction is not possible or is not permitted under
applicable law, repayment will be made by check or money order sent to the Plan’s
service center. The obligation to repay a loan shall be suspended during
periods of military service to the extent permitted under section 414(u)(4) of
the Code and the regulations thereunder. A Participant’s loan repayment obligation
shall not be suspended on account of the Participant’s filing of a bankruptcy
petition under the United States Bankruptcy Code, notwithstanding that the
Participant voluntarily or involuntarily ceases loan repayments by payroll
deduction or otherwise.

 

(h)           The loan
may be prepaid in full, without penalty, at any time after it has been
outstanding for 12 months.

 

(i)            Any loan
to a Participant shall become immediately due and payable without notice of any
kind upon his Termination Date. Notwithstanding any other provision of the Plan
to the contrary, if the outstanding balance of principal and interest on any
loan is not paid within the grace period established by the Committee for a
delinquent payment (not later than the end of the calendar quarter following
the quarter in which it is due) or within 90 days after acceleration in
accordance with the preceding sentence, a default shall occur and the Trustee
shall apply all or a portion of the Participant’s vested interest in the Plan
in satisfaction of such outstanding obligation, but only to the extent such
vested interest (or portion thereof) is then distributable under applicable
provisions of the Code. If necessary to satisfy the entire outstanding
obligation, such application of the Participant’s vested interest may be
executed in a series of actions as amounts credited to the Participant’s
Accounts become distributable. Any partial payments shall be applied first to
the payment of accrued interest and thereafter to the payment of outstanding
principal. During any period that an active Participant has a defaulted loan
outstanding with respect to which amounts are not distributable as described in
this subsection 10.1(i), interest shall continue to accrue on the outstanding
balance of the loan at the rate determined under paragraph (c) next above. While
he remains an active employee, such Participant may elect to repay the
outstanding loan balance (including any accrued interest) in accordance with
uniform procedures established by the Committee. Any loan repayments made in
accordance with the preceding sentence shall be allocated to the Participant’s
After-Tax Account.

 

(j)            If
distribution is to be made to a Beneficiary in accordance with subsection 11.2,
any outstanding promissory note of the Participant shall be canceled and the
unpaid balance of the loan, together with any accrued interest thereon, shall
be treated as a distribution to or on behalf of the Participant immediately
prior to commencement of distribution to the Beneficiary.

 

(k)           The Committee
shall establish uniform procedures for applying for a loan, evaluating loan
applications, setting reasonable rates of interest, and loan fees, which shall
be communicated to Participants in writing or such other manner as 

 

28

 

may be permitted
under applicable law. A Participant may have only one loan outstanding at any
time under the Plan and, for this purpose, loans outstanding under any plan of
the Employers or any Related Company shall be considered a loan under the Plan.
If a Participant has any loan outstanding under any defined contribution plan
sponsored by the Employers or any Related Company, any such loan must be repaid
in full before the Participant may obtain a loan from the Plan.

 

10.2.        Withdrawals
During Employment. Subject to the provisions of paragraph 10.3(c), a
Participant whose Termination Date has not yet occurred and who incurs a
Hardship (as defined in subsection 10.3) may elect to withdraw all or part of
his interest in his Accounts, as provided and in the order set forth below:

 

(a)           up to 100%
of his After-Tax Account, and the earnings thereon, in the following order:

 

(i)            first, from the After-Tax Contributions
(excluding any earnings thereon) made by the Participant prior to January 1,
1987; and

 

(ii)           then, from the balance of his After-Tax
Account;

 

(b)           up to 100%
of his Rollover Account;

 

(c)           up to 100%
of the Before-Tax Contributions credited to his Before-Tax Account and any
earnings credited to such account as of December 31, 1988; and

 

(d)           up to 100%
of his QVEC Account.

 

Any such Hardship withdrawal is subject to a minimum
amount of $500. A Participant who does not have at least $500 in the Accounts
listed above is ineligible for a Hardship withdrawal. Once a Participant attains
age 591⁄2, he may withdraw all or any portion of his entire vested Account
balance regardless of whether he has a Hardship.

 

10.3.        Determination
of Hardship. A withdrawal will not be considered to be made on account of “Hardship”
unless the following requirements are met:

 

(a)           The
withdrawal is requested because of an immediate and heavy financial need of the
Participant, and will be so deemed if the Participant represents that the
withdrawal is made on account of:

 

(i)            uninsured
expenses for medical care described in section 213(d) of the Code incurred
by the Participant, the Participant’s spouse or any dependent of the
Participant (as defined in section 152 of the Code) or necessary for such
persons to obtain such medical care;

 

(ii)           the
purchase (excluding mortgage payments) of a principal residence of the
Participant;

 

29

 

(iii)          payment
of tuition and related educational fees for the next 12 months of
post-secondary education for the Participant, or his spouse, children or
dependents;

 

(iv)          the need to
prevent the eviction of the Participant from his principal residence or
foreclosure on the mortgage of the Participant’s principal residence; or

 

(v)           funeral
expenses of a family member, past due taxes, past due child support, other past
due obligations, cash settlements due in a divorce, the cost of repairs to the
Participant’s home as a result of major damage or to a major appliance, or
repairs to or purchase of a car needed to commute to work.

 

(b)           The withdrawal
must also be necessary to satisfy an immediate and heavy financial need of the
Participant. It will be considered necessary if the Committee determines that
the amount of the withdrawal does not exceed the amount required to relieve the
financial need (taking into account any applicable income or penalty taxes
resulting from the withdrawal) and if the need cannot be satisfied from other
resources that are reasonably available to the Participant. In making this
determination, the Committee may reasonably rely on the Participant’s written
representation that the need cannot be relieved:

 

(i)            through
reimbursement or compensation by insurance or otherwise;

 

(ii)           by
reasonable liquidation of the Participant’s assets, to the extent such
liquidation would not itself give rise to an immediate and heavy financial
need;

 

(iii)          by
ceasing to make Before-Tax or After-Tax Contributions to the Plan (or any other
plan of the Employer permitting deferral of compensation); or

 

(iv)          by a loan
pursuant to subsection 10.1 or by borrowing from commercial sources on
reasonable commercial terms.

 

(c)           The
withdrawal must be made pursuant to a written request to the Committee, which
request shall include any representation required by this subsection 10.3 and
adequate proof thereof, as determined by the Committee in its sole discretion.

 

10.4.        Withdrawals
From General Foods Account Balances During Employment. A Participant whose
Termination Date has not yet occurred and whose Accounts include monies
transferred to the Plan from either the General Foods Employee
Thrift-Investment Plan or the General Foods Employee Thrift-Investment Plan for
Salaried Employees (the “GF Plans”) may withdraw the portion of his After-Tax
Account attributable to after-tax contributions and the earnings thereon
credited to the GF Plans immediately prior to such transfer, and, if he has
been a participant in the GF Plan and the Plan together for at least 5 years,
the portion of his Matching Account attributable to matching contributions and
the earnings thereon credited to the GF Plans 

 

30

 

immediately
prior to such transfer. Until November 1, 1999, any such withdrawal is
subject to a minimum amount of $500 or the total amount that may be withdrawn
pursuant to this subsection 10.4, whichever is less. A Participant who is
eligible to make a withdrawal under this subsection 10.4 must withdraw the full
amount available to him before he makes a Hardship withdrawal under subsection
10.2.

 

10.5.        Withdrawals
of Dividends During and After Employment. Subject to such rules and
conditions as the Committee shall prescribe on a uniform, consistent and
nondiscriminatory basis, a Participant or Beneficiary may elect to have any
cash dividend payable with respect to shares of Employer Common Stock (or with
respect to units representing such shares) allocated to his Account and held
under the ESOP Fund distributed to the Participant or Beneficiary in cash not
later than ninety (90) days after the close of the Plan Year in which the
dividend was paid. If a Participant or Beneficiary shall fail to make an
election, any such dividends shall be paid to the applicable Subpart and
reinvested in Employer Common Stock (or in additional units representing such
shares) to be allocated to the Participant’s or Beneficiary’s Account.

 

10.6.        Form
of Withdrawals. All loan proceeds shall be paid in cash. Withdrawals from
the Altria Group Stock Fund or the Kraft Foods Stock Fund (other than dividend
withdrawals described in subsection 10.5) shall be made in cash, except to the
extent that the Participant elects to receive whole shares of Altria Group
Common Stock or Kraft Foods Common Stock, respectively, and withdrawals from
the other Investment Funds shall be made in cash. Withdrawals described in
subsection 10.5 and hardship withdrawals shall be made solely in cash.

 

SECTION 11

 

Distributions

 

11.1.        Distributions
to Participants After Termination of Employment. If a Participant’s
Termination Date occurs (for a reason other than his death), the vested
portions of his Accounts shall be distributed in accordance with the following
provisions of this subsection 11.1, subject to the provisions of subsection 9.3
and 11.5:

 

(a)           If the
value of the vested portions of the Participant’s Accounts (including any loans
outstanding on his Termination Date) does not exceed $5,000 ($1,000 in the case
of distributions on and after March 23, 2005), determined as of the Accounting
Date coincident with or next following his Termination Date, such vested
portions, less any outstanding loan balance distributable in accordance with
subsection 10.1(i), shall be distributed to him approximately 90 days following
notification, in a lump sum payment.

 

(b)           If the
value of the vested portions of the Participant’s Accounts (including any loans
outstanding on his Termination Date) exceeds the cash-out limit described in
paragraph (a) above, determined as of the Accounting Date coincident with
or next following his Termination Date, such vested portions, less any outstanding
loan balance distributable in accordance with subsection 10.1(i), shall be
distributed (or shall begin to be distributed) to the Participant on (or as
soon as 

 

31

 

practicable after)
the Distribution Date (as defined in paragraph (c) below) he elects, by one of
the following methods chosen by the Participant:

 

(i)            by
payment in a lump sum; or

 

(ii)           by payment
in a series of monthly, quarterly, semi-annual or annual installments for a
period selected by the Participant that complies with subsection 11.5 (the
amount of each installment as of each applicable Accounting Date shall be equal
to the product of the Participant’s then Account balances multiplied by a
fraction, the numerator of which is one and the denominator of which is the
difference between the number of installments selected and the number of
installments previously paid); provided, however, that a Participant may elect
payments in the form of a fixed amount option under which the Participant will
receive a specified dollar amount payable at specified intervals (monthly,
quarterly, semiannually or annually) until his account is completely
liquidated, and a Participant may elect to change the fixed amount (without
shortening or lengthening the payout period or changing the frequency of the
payments) subject to uniform rules established by the Committee; and provided
further that the Participant may elect to accelerate any installment payments
and to have his remaining vested Account balance distributed to him in a lump
sum payment as soon as practicable after the Accounting Date coincident with or
next following the date his acceleration election is submitted to the
Committee; or

 

(iii)          by
purchase from an insurance company and distribution to him of an annuity
contract providing for periodic distributions to him for his life (with or
without a period certain) or to him and his Beneficiary for their joint lives,
subject to the provisions of subsection 11.3 ; provided, however, that
distribution in the form of an annuity contract pursuant to this subparagraph
(iii) shall not be permitted for any distribution with an Annuity Starting Date
after December 31, 2002 or, if later, the 90th day after the date that
Participants are furnished a notice of the elimination of this form of
distribution which satisfies the requirements of 29 CFR 2520.104b-3 (relating
to a summary of material modifications) for pension plans, but not later than
January 1, 2004.

 

Notwithstanding the foregoing, unless a
Participant elects otherwise in accordance with this subsection 11.1,
distribution of the portion, if any, of the Participant’s Account invested in
the ESOP Fund shall be made in a single payment.

 

(c)           A
Participant’s “Distribution
Date” shall mean the Accounting Date as of which a payment in any
form is made to him pursuant to this Section 11, without regard to any
reasonable administrative delay; provided, however, that in the event of an
election of an annuity under clause (b)(iii) above, the Distribution Date shall
be no later than the date payment is irrevocably made on behalf of the
Participant to the insurance company issuing the annuity contract. A
Participant may elect that 

 

32

 

his Distribution
Date occur as of any Accounting Date occurring on or after his Termination Date
(but not retroactively and not later than the date on which he attains age
701⁄2), provided that no election of a Distribution Date will be valid if it is
made more than 90 days prior to such date.

 

(d)           Notwithstanding
the foregoing provisions of this subsection 11.1, a Participant with an Account
balance of at least $1,000 above the limit for involuntary cash outs under
paragraph (a) above may elect one partial lump sum payment of any portion of
such balance (but not less than $1,000). Any such election may be made at any
time after his Termination Date, provided his Distribution Date with respect to
a distribution under paragraph (b) has not yet occurred. Any such partial
lump sum distribution shall be charged against his Accounts and his interests
in the Investment Funds in such order and proportion as the Committee shall
determine in accordance with uniform rules it establishes. If a partial lump
sum distribution is taken after calculated installment payments have commenced
pursuant to subparagraph (b)(ii) above, the amount of the remaining
installments will be reduced proportionately to reflect such lump sum payment.

 

11.2.        Distributions
to Beneficiaries. Subject to subsection 11.5, the following rules shall
apply if a Participant dies while any vested portion of his Accounts remains
undistributed:

 

(a)           If the
Participant dies before benefit payments to him have commenced, the vested
balance of his Accounts, less any outstanding loan balance distributable in
accordance with paragraph 10.1(j), shall be distributed as follows:

 

(i)            If the
value of the vested portion of the Participant’s Accounts (less the outstanding
loan balance) does not exceed $5,000 ($1,000 in the case of distributions on
and after March 23, 2005), determined as of the Accounting Date coincident with
or next following his date of death, or, if the Beneficiary is not the
Participant’s surviving spouse, such vested portion (less the outstanding loan
balance) shall be distributed to his Beneficiary as soon as practicable after
the Accounting Date following the date of his death, in a lump sum payment.

 

(ii)           If the
value of the vested portion of the Participant’s Accounts (less the outstanding
loan balance) exceeds $5,000 ($1,000 in the case of distributions on and after
March 23, 2005), determined as of the Accounting Date coincident with or next
following his date of death, and the Beneficiary is the Participant’s spouse,
such vested portion (less the outstanding loan balance) shall be distributed to
his Beneficiary as of any Accounting Date following the date of his death
selected by the Beneficiary (in compliance with subsection 11.5), in one of the
methods described at paragraph 11.1(b) as chosen by the Beneficiary.

 

Notwithstanding the foregoing, unless the
Beneficiary elects otherwise, distribution of the portion of an Account
invested in the ESOP Fund shall be distributed in a single payment.

 

33

 

(b)           If a
Participant dies after benefit payments to him have commenced, the vested
balance, if any, of his Accounts shall continue to be distributed to his
Beneficiary in accordance with the method of distribution selected by the
Participant; provided, however, that the Beneficiary may elect to accelerate
the payments and to have such remaining vested balances distributed in a lump
sum payment as soon as practicable after the Accounting Date next following the
date the Beneficiary’s acceleration election is filed with the Committee.

 

11.3.        Special
Rules Governing Annuity Elections. If a married Participant elects
distribution in the form of an annuity pursuant to clause 11.1(b)(iii), the
following rules shall apply and shall supersede any other provision of the Plan
to the contrary:

 

(a)           The vested
portions of the Participant’s Accounts, less any outstanding loan balance
distributable in accordance with paragraph 10.1(i), shall be used to purchase a
nontransferable “Joint
and Survivor Annuity” (that is, an annuity that commences
immediately and is payable for the life of the Participant with a survivor
annuity payable for the life of his spouse which survivor annuity is not less
than 50% of the amount of the annuity payable during the joint lives of the
Participant and spouse), unless he elects another form of annuity and, if
applicable, a Beneficiary other than his spouse, with the consent of his spouse
to such form and Beneficiary, during the 90-day period immediately preceding
his Distribution Date.

 

(b)           No consent
by the spouse to the election of a form of annuity other than the Joint and
Survivor Annuity and, if applicable, to a Beneficiary other than the spouse
shall be effective unless it is in writing, acknowledges the effect of such
consent and is witnessed by a Plan representative or a notary public (unless
the Committee determines that there is no spouse, that the spouse cannot be
located, that the Participant and his spouse are legally separated, that the
Participant has been abandoned (under applicable state law) and the Participant
has a court order to that effect, or that consent may be waived because of such
other circumstances as regulations or rulings under Code section 417 set
forth).

 

(c)           During the
period between his election of an annuity and his Distribution Date, no loan
may be made to a Participant pursuant to subsection 10.1, no amount may be
withdrawn by the Participant pursuant to subsection 10.2 or 10.4 and no amount
may be distributed to the Participant pursuant to subsection 11.1, in any form
other than a Joint and Survivor Annuity, without the written consent of the
spouse as provided in paragraph (b) of this subsection 11.3.

 

(d)           Subject to
paragraph (e) below, if the Participant dies during the period between his
election of an annuity and his Distribution Date, the vested portions of his
Accounts (less any amounts credited to the Loan Fund, which shall be
distributed in accordance with paragraph 10.1(j)) shall be paid to his spouse
in the form of a life annuity as of the Accounting Date next following the date
the Participant would have attained age 65 or, if the spouse so elects, as soon
as practicable after any earlier Accounting Date next following his death;
provided, however, that a 

 

34

 

spouse to whom
payment is due under this paragraph (d) may elect to have such vested portions,
if any, distributed in the form of a lump sum payment.

 

(e)           The
provisions of paragraph (d) above shall not apply, and distribution upon the
death of the Participant shall be made in accordance with subsection 11.2, if
the spouse consents to the designation of a Beneficiary other than the spouse
in accordance with subsection 11.6 during the period between the Participant’s
election of an annuity and his death, and acknowledges that such consent to the
Participant’s designation of such Beneficiary constitutes the spouse’s consent
to the Participant’s waiver of a qualified preretirement survivor annuity
payable to the spouse in accordance with section 417 of the Code.

 

(f)            A
Participant may revoke his election pursuant to this subsection 11.3, and may
make a new election of any form of distribution permitted under paragraph
11.1(b), at any time during the 90-day period immediately preceding his
Distribution Date; provided, however, that if the effect of such revocation is
to select a distribution form other than a Joint and Survivor Annuity, it shall
be ineffective without the written consent of his spouse in accordance with
paragraph (b) of this subsection 11.3 to the new form of distribution and, if applicable,
a Beneficiary other than the spouse.

 

11.4.        Forfeitures
and Restorations of Non-Vested Contributions. If a Termination Date occurs
with respect to a Participant who is not fully vested in his Accounts (as
determined under Section 9), the following rules shall apply:

 

(a)           The
non-vested portion of his Accounts shall be forfeited as of the earlier of the
date as of which the vested portion of his Accounts is distributed to him or
the date the Participant incurs five consecutive One Year Breaks in Service.

 

(b)           If a
forfeiture occurs due to the distribution of the vested portion of the
Participant’s Accounts, and the Participant is reemployed by an Employer or a
Related Company before he incurs five consecutive One Year Breaks in Service,
the Matching Contributions and earnings thereon forfeited under paragraph (a)
above shall be restored, with adjustment for earnings under the Interest Income
Fund, as soon as practicable after his reemployment.

 

(c)           If a
forfeiture occurs due to the distribution of the vested portion of the
Participant’s Accounts, and the Participant is reemployed by an Employer or
Related Company after he incurs five consecutive One Year Breaks in Service,
such reemployment shall have no effect on the forfeiture under paragraph (a)
above.

 

(d)           The
restoration referred to in paragraph (b) above shall be made first from current
forfeitures, if any, under the Plan and then, if necessary, from a special
Employer contribution to the Plan.

 

35

 

(e)           A
restoration pursuant to paragraph (b) above shall not be considered an annual
addition for purposes of subsection 8.3.

 

(f)            If a
Participant who is reemployed by an Employer or Related Company prior to
incurring five consecutive One Year Breaks in Service received a distribution
of the vested portion of his Matching Account, the amount restored under
paragraph (b) above shall be maintained in a separate subaccount within the
Participant’s Matching Account and his vested interest in each subaccount shall
be determined in accordance with the rules set forth in Treasury regulation §
1.411(a)-7(d)(5)(iii)(A).

 

(g)           During the
period between the Participant’s Termination Date and the date he is either
reemployed by an Employer or Related Company or the date the non-vested portion
of his Matching Account is forfeited, such non-vested portion shall be credited
to a forfeiture subaccount and invested in the Interest Income Fund.

 

(h)           All
forfeitures under this subsection 11.4 shall be used to reduce Matching Contributions
under Section 5, except to the extent needed to restore prior forfeitures under
paragraph (b) above.

 

11.5.        Limits
on Commencement and Duration of Distributions. The following
distribution rules are intended to conform distributions under the Plan to the
requirements of section 401(a)(14) and 401(a)(9) of the Code and applicable
regulations thereunder, including the minimum distribution incidental benefit
requirement of section 401(a)(9)(G) of the Code, and, with respect to any
portion of an Account invested in the ESOP Fund, to section 409(o) of the Code,
and such provisions of law shall supersede any other provision of the Plan to
the contrary:

 

(a)           Unless the
Participant elects otherwise, distribution shall commence no later than 60 days
after the close of the Plan Year in which the latest of the following events
occurs:  the Participant’s attainment of
age 65; the 10th anniversary of the year in which the Participant began
participating in the Plan; or the Participant’s Termination Date. The failure
of a Participant to consent to a distribution is deemed to be an election to
defer commencement of payment for purposes of the preceding sentence.

 

(b)           Solely in
the case of that portion of an Account invested in the ESOP Fund, the
Participant may elect that distribution commence to be made not later than one
year after the close of the Plan Year:

 

(i)            in which
the Participant separates from service by reason of attaining the age of
sixty-five (65), death or disability; or

 

(ii)           which is
the fifth Plan Year following the Plan Year in which the Participant otherwise
separates from service (except that this clause shall not apply if the
Participant is reemployed by a Related Company before distribution is required
to begin under this clause (ii)).

 

36

 

(c)           Notwithstanding
any other provision herein to the contrary, in the case of a Participant who
has not incurred a Termination Date, distribution of his Accounts shall
commence to be made to him (or on his behalf) in the form of a lump sum
distribution or, if elected by the Participant, in any other form permitted by
paragraph 11.1(b), on or before his Required Beginning Date (as defined below)
and each December 31 thereafter. (In the event an annuity or lump sum has been
elected, each additional payment shall consist of a lump sum payment of all
amounts then credited to his Accounts.) 
A Participant’s “Required Beginning Date” shall be the April 1 of the
calendar year following the calendar year in which the later of the following
events occurs:  he attains age 701⁄2 or he
terminates employment with the Employers and related Companies, except that the
latter shall not apply to a 5% owner. If a Participant (other than a 5% owner)
to whom payment of required distributions has commenced in accordance with this
paragraph (c) is reemployed by the Employer, required distributions shall be
suspended during the periods of reemployment. If a Participant (other than a 5%
owner) to whom payment of required distributions has commenced in accordance
with this paragraph (c) is reemployed by the Employer, required distributions
shall be suspended during the period of reemployment.

 

(d)           Required
minimum distributions for calendar years after 2001 shall be governed by
Supplement R to the Plan.

 

11.6.        Beneficiary
Designations. The term “Beneficiary” shall mean the Participant’s surviving
spouse, except as otherwise provided below in this subsection 11.6:

 

(a)           If
a Participant is not married at his death, or if the Participant is married but
his spouse has consented (as provided below) to the designation of a person
other than the spouse, the term Beneficiary shall mean such person or persons
as the Participant designates to receive the vested portions of his Accounts
upon his death. Such a designation may be made, revoked or changed (without the
consent of any previously-designated Beneficiary except his spouse) only by an
instrument signed by the Participant and filed with the Committee prior to his
death.

 

(b)           A
spouse’s consent to the designation of a Beneficiary other than the spouse
shall be in writing, shall acknowledge the effect of such designation, shall be
witnessed by a Plan representative or a notary public and shall be effective
only with respect to such consenting spouse; provided, however, that no spousal
consent to the designation of a person other than, or in addition to, the
spouse as Beneficiary shall be required if (i) the Participant and his spouse
are legally separated or the Participant has been abandoned (under applicable
state law) and the Participant has a court order to that effect, or (ii) it is
established to the satisfaction of the Committee that the spouse’s consent
cannot be obtained because there is no spouse, because the spouse cannot be
located or because of such other circumstances as may be prescribed in
applicable Treasury regulations. Foi purposes of the Plan, the term “spouse”
means the person to whom the Participant is legally married at the relevant
time.

 

37

 

(c)           If
a Participant dies after December 31, 2002, with no surviving Beneficiary
designated by him and no surviving spouse, his Beneficiary shall be his
surviving children (in equal shares) or, if he has no living child, his estate.
If a Participant dies on or before December 31, 2002, his Beneficiary shall be
determined under the provisions of the Plan as in effect on the date of his
death.

 

(d)           Notwithstanding
the foregoing provisions of this subsection 11.6, if (i) a Participant
designates his spouse as beneficiary under the Plan in a beneficiary
designation form filed with the Committee and not revoked prior to his death,
and (ii) the Participant and such spouse are divorced after the date on which
such beneficiary designation form is filed with the Committee and they are not
married to each other on the date of the Participant’s death, then such former
spouse shall be deemed to have predeceased the Participant for purposes of
determining the Participant’s Beneficiary under the Plan; provided, however,
that the provisions of this paragraph (d) shall not apply to the extent that
(iii) the Participant designates the former spouse as beneficiary in a
beneficiary designation form filed with the Committee after the date of
dissolution of the Participant’s marriage to such former spouse, or (iv) a
qualified domestic relations order provides that the former spouse shall be
treated as the Participant’s surviving spouse for purposes of the Plan or
otherwise assigns all or a portion of the Participant’s interest in the Plan to
the former spouse as alternate payee. The provisions of this paragraph (d)
shall apply only with respect to a Participant who dies after December 31,
2003.

 

11.7.        Form
of Payment. Distributions in accordance with this Section 11 from the
Altria Group Stock Fund or the Kraft Foods Stock Fund shall be made in cash,
except to the extent the Participant or Beneficiary elects to receive whole
shares of Altria Group Common Stock or Kraft Foods Common Stock, respectively. Distributions
from Investment Funds other than the Altria Group Stock Fund or the Kraft Foods
Stock Fund shall be made in cash.

 

11.8.        Facility
of Payment. Notwithstanding the provisions of subsections 11.1 and
11.2, if, in the Committee’s opinion, a Participant or other person entitled to
benefits under the Plan is under a legal disability or is in any way
incapacitated so as to be unable to manage his financial affairs, the Committee
may direct the Trustee to make payment to a relative or friend of such person
for his benefit until claim is made by a conservator or other person legally
charged with the care of his person or his estate. Thereafter, any benefits
under the Plan to which such Participant or other person is entitled shall be
paid to such conservator or other person legally charged with the care of his
person or his estate.

 

11.9.        Interests
Not Transferable. The interests of Participants and other persons
entitled to benefits under the Plan are not subject to the claims of their
creditors and may not be voluntarily or involuntarily assigned, alienated or
encumbered, except in the case of qualified domestic relations orders that
relate to the provision of child support, alimony or marital rights of a
spouse, child or other dependent and which meet such other requirements as may
be imposed by section 414(p) of the Code or regulations issued thereunder. Notwithstanding
any other provision of the Plan to the contrary, distribution of the entire
portion of the Account balance of a Participant awarded to his alternate payee may
be made in a lump sum payment, as soon as practicable after the Committee
determines that such order is qualified, without regard to 

 

38

 

whether
the Participant would himself be entitled under the terms of the Plan to
withdraw or receive a distribution of such amount at that time, but only if the
terms of the order provide for such immediate distribution either specifically
or by general reference to any manner of distribution permitted under the Plan.

 

11.10.      Absence
of Guaranty. None of the Committee, the Trustee, or the Employers in any
way guarantee the assets of the Plan from loss or depreciation. The Employers
do not guarantee any payment to any person. The liability of the Trustee to
make any payment is limited to the available assets of the Plan held under the
Trust.

 

11.11.      Missing
Participants or Beneficiaries. Each Participant and each designated
Beneficiary must file with the Committee from time to time in writing his post
office address and each change of post office address. Any communication,
statement or notice addressed to a Participant or designated Beneficiary at his
last post office address filed with the Committee, or, in the case of a
Participant, if no address is filed with the Committee, then at his last post
office address as shown on the Employers’ records, will be binding on the
Participant and his designated Beneficiary for all purposes of the Plan. None
of the Committee, the Employers, or the Trustee will be required to search for
or locate a Participant or designated Beneficiary. In the event that a benefit
which has become payable remains unclaimed after a reasonable period
(determined by the Committee in accordance with uniform procedures established
by it), such benefit shall be forfeited; provided, however, that any such
benefit shall be reinstated if a claim is made for such benefit by the
Participant or beneficiary entitled to it. The amount of any benefit so
forfeited shall be retained in the trust and applied in accordance with
subsection 11.4.

 

11.12.      Direct
Rollover Option. In accordance with uniform rules established by the
Committee, each Participant, surviving spouse of a Participant or alternate
payee under a qualified domestic relations order within the meaning of section
414(p) of the Code who is due to receive an eligible rollover distribution from
the Plan may direct the Committee to transfer all or a portion of such
distribution directly to another eligible retirement plan. For purposes of this
subsection, the terms “eligible rollover distribution” and “eligible retirement
plan” as applied to any such individual shall have the meaning accorded such
terms under section 401(a)(31) of the Code (or any successor provision thereto)
and applicable Treasury regulations and notices thereunder. Effective for
distributions in Plan Years beginning after December 31, 2001:  (i) any amount that is distributed on account
of hardship shall not be an eligible rollover distribution and the distributee
may not elect to have any portion of such a distribution paid directly to an
eligible retirement plan; (ii) a portion of a distribution shall not fail to be
an eligible rollover distribution merely because the portion consists of
after-tax employee contributions which are not includible in gross income,
except that any such portion may be transferred only to an individual
retirement account or annuity described in section 408(a) or (b) of the Code,
or to a qualified defined contribution retirement plan described in section
401(a) or 403(a) of the Code that agrees to separately account for amounts so
transferred, including separately accounting for the portion of such
distribution which is includible in gross income and the portion of such
distribution which is not so includible; (iii) an “eligible retirement plan”
includes an individual retirement account described in section 408(a) of the
Code, an individual retirement annuity described in section 408(b) of the Code,
an annuity plan described in section 403(a) of the Code or a qualified trust
described in section 401(a) of the Code, that accepts the distributee’s
eligible rollover 

 

39

 

distribution; and (iv) an
eligible retirement plan shall also include an annuity contract described in
section 403(b) of the Code and an eligible plan under section 457(b) of the
Code which is maintained by a state, political subdivision of a state, or any
agency or instrumentality of a state or political subdivision of a state and
which agrees to separately account for amounts transferred into such plan from
the Plan. The definition of eligible retirement plan shall also apply in the
case of a distribution to a surviving spouse or to a spouse or former spouse
who is the alternate payee under a qualified domestic relations order, as
defined in section 414(p).

 

11.13.      Distributions
on Account of Permanent and Total Disability. For purposes of this Section
11, a Participant will be considered to have terminated employment and will be
entitled to a distribution of his vested Account balances when he is eligible
for long term disability benefits under a disability plan sponsored by an
Employer and determined by the Committee to be permanently and totally disabled
(as defined in subsection 9.2).

 

SECTION 12

 

No Reversion to Employers

 

No part of the corpus or income of the Trust shall
revert to the Employers or be used for, or diverted to, purposes other than the
exclusive benefit of Participants and Beneficiaries, subject to the following:

 

(a)           Each
contribution made by an Employer under the Plan shall be conditioned upon its
deductibility under section 404 of the Code, unless (1) prior to the due date
(including extensions) of the Federal income tax return of Altria Group, Inc.
for any year, the Chief Financial Officer of Kraft Foods Inc. (or his delegate)
determines in writing that all or a portion of the contributions for that Plan
Year are not conditioned on the deductibility of the contributions for that
Plan Year, and (2) either such officer (or his delegate), in consultation with
the Chief Financial Officer of Altria Group, Inc., determines in writing by
such tax return due date that such contributions, in combination with
contributions to any other plan qualified under section 401(a) of the Code by
the Company or any Related Company for such Plan Year, will not result in the
imposition of excise tax under Code section 4972 or the Company or one or more
of the Related Companies pays any such excise tax. To the extent that the
deduction of a contribution made by an Employer and conditioned upon
deductibility is disallowed, the nondeductible amount shall be returned to the
affected Employer within one (1) year after the deduction is disallowed.

 

(b)           If a
contribution or any portion thereof is made by an Employer by a mistake of
fact, the Trustee shall, upon written request of that Employer, return the
amount of such contribution or portion, reduced by the amount of any losses
thereon, to that Employer within one year after the date of payment.

 

(c)           If, upon
termination of the Plan, any amounts are held under the Plan in a suspense
account pursuant to Treas. Reg. § 1.415-6(b)(6)(ii) and such amounts 

 

40

 

may not be
credited to the Accounts of Participants, such amount will be returned to the
Employers as soon as practicable after the termination of the Plan.

 

SECTION 13

 

Administration

 

13.1.        Committee
Membership and Authority. The Committee
referred to in subsection 1.3 shall consist of one or more
members appointed by the Company. Except as otherwise specifically provided in
this Section 13, the Committee shall act by a majority of its then members, by
meeting or by writing filed without meeting, and shall have the following
discretionary authority, powers, rights and duties in addition to those vested
in it elsewhere in the Plan or Trust Agreement:

 

(a)           to adopt
such rules of procedure and regulations as, in its opinion, may be necessary
for the proper and efficient administration of the Plan and as are consistent
with the provisions of the Plan;

 

(b)           to enforce
the Plan in accordance with its terms and with such applicable rules and
regulations as may be adopted by the Committee;

 

(c)           to
determine conclusively all questions arising under the Plan, including the
power to determine the eligibility of employees and the rights of Participants
and other persons entitled to benefits under the Plan and their respective
benefits, to make factual findings and to remedy ambiguities, inconsistencies
or omissions of whatever kind;

 

(d)           to
maintain and keep adequate records concerning the Plan and concerning its
proceedings and acts in such form and detail as the Committee may decide;

 

(e)           to direct
all payments of benefits under the Plan;

 

(f)            to
perform the functions of a “plan administrator”, as defined in section 414(g)
of the Code, for all purposes of the Plan, including for purposes of
establishing and implementing procedures to determine the qualified status of
domestic relations orders (in accordance with the requirements of section
414(p) of the Code) and to administer distributions under such qualified
orders;

 

(g)           to employ
agents, attorneys, accountants or other persons (who may also be employed by or
represent the Employers) for such purposes as the Committee considers necessary
or desirable to discharge its duties;

 

(h)           to
establish a claims procedure in accordance with section 503 of ERISA; and

 

(i)            to
furnish the Employers, the Investment Committee and the Trustee with such
information with respect to the Plan as may be required by them for tax or
other purposes.

 

41

 

The certificate of a majority of the members of the
Committee that the Committee has taken or authorized any action shall be
conclusive in favor of any person relying on the certificate.

 

13.2.        Allocation
and Delegation of Committee Responsibilities and Powers. In exercising its
authority to control and manage the operation and administration of the Plan,
the Committee may allocate all or any part of its responsibilities and powers
to any one or more of its members and may delegate all or any part of its
responsibilities and powers to any person or persons selected by it. Any such
allocation or delegation may be revoked at any time. Any member or delegate
exercising Committee responsibilities and powers under this subsection shall
periodically report to the Committee on its exercise thereof and the discharge
of such responsibilities.

 

13.3.        Uniform
Rules. In managing the Plan, the Committee shall uniformly apply rules
and regulations adopted by it to all persons similarly situated.

 

13.4.        Information
to be Furnished to Committee. The Employers and Related Companies shall
furnish the Committee such data and information as may be required for it to
discharge its duties. The records of the Employers and Related Companies as to
an employee’s or Participant’s period of employment, termination of employment
and the reason therefor, leave of absence, reemployment and Compensation shall
be conclusive on all persons unless determined to be incorrect. Participants
and other persons entitled to benefits under the Plan must furnish to the
Committee such evidence, data or information as the Committee considers
desirable to carry out the Plan.

 

13.5.        Committee’s
Decision Final. Any interpretation of the Plan and any decision on any
matter within the discretion of the Committee made by the Committee shall be
binding on all persons. A misstatement or other mistake of fact shall be
corrected when it becomes known, and the Committee shall make such adjustment
on account thereof as it considers equitable and practicable.

 

13.6.        Exercise
of Committees’ Duties. Notwithstanding any other provisions of the
Plan, the Committees shall discharge their duties hereunder solely in the
interests of the Participants and other persons entitled to benefits under the
Plan, and:

 

(a)           for the
exclusive purpose of providing benefits to Participants and other persons
entitled to benefits under the Plan; and

 

(b)           with the
care, skill, prudence and diligence under the circumstances then prevailing
that a prudent man acting in a like capacity and familiar with such matters
would use in the conduct of an enterprise of a like character and with like
aims.

 

13.7.        Remuneration
and Expenses. No remuneration shall be paid from the Plan to a
member of any of the Committees who is an employee of any Employer or Related
Company. Except as otherwise determined by the Committee, the reasonable
expenses of administering the Plan and the fees and expenses incurred in
connection with the collection, administration, management, investment,
protection and distribution of the Plan assets under the Trust shall be 

 

42

 

paid
directly by the Trust out of Plan assets or, if paid by one or more Employers,
reimbursed by the Trust to the maximum extent permitted by law.

 

13.8.        Indemnification
of the Committees. To the extent not reimbursed by any applicable insurance
policy, the Committees, the individual members thereof and the secretary
(if any) of each of the Committees shall be indemnified by the Employers
against any and all liabilities, losses, costs and expenses (including legal
fees and expenses) of whatsoever kind and nature which may be imposed on,
incurred by or asserted against any of them by reason of the performance of the
Committees’ functions if the Committees or such members or secretary did not
act dishonestly or in willful violation of the law or regulation under which
such liability, loss, cost or expense arises.

 

13.9.        Resignation
or Removal of Committee Member. A Committee member may resign at any time
by giving ten days’ advance written notice to the Company, the Trustee and the
other Committee members. The Company may remove a Committee member by giving
advance written notice to him and the other Committee members.

 

13.10.      Appointment
of Successor Committee Members. The Company may fill any vacancy in the
membership of the Committee and shall give prompt written notice thereof to the
other Committee members.  While there is a vacancy in the membership of
the Committee, the remaining Committee members shall have the same powers as
the full Committee until the vacancy is filled.

 

13.11.      Committee
Discretion. Benefits under this Plan will be paid only if the Committee
decides, in its discretion, that the Participant is entitled to them under the
terms of the Plan.

 

SECTION 14

 

Amendment and Termination

 

14.1.        Amendment.
While it is expected that the Plan will be continued, either the Company or the
Committee nevertheless may terminate the Plan or amend it from time to time,
except that no amendment will reduce a Participant’s interest in the Plan to
less than an amount equal to the amount he would have been entitled to receive
if he had resigned from the employ of the Employers and the Related Companies
on the day of the amendment, and no amendment will eliminate an optional form
of benefit with respect to a Participant or Beneficiary except as otherwise
permitted by law.

 

14.2.        Termination.
The Plan will terminate as to all of the Employers on any day specified by
the Company upon advance written notice of the termination given to the
Employers. Employees of an Employer shall cease active participation in the
Plan (and will be treated as inactive Participants in accordance with subsection 2.3)
on the first to occur of the following:

 

43

 

(a)           the date
on which that Employer ceases to be a contributing sponsor of the Plan, by
appropriate action taken by the Company or by such Employer;

 

(b)           the date
that Employer is judicially declared bankrupt or insolvent; or

 

(c)           the
dissolution, merger, consolidation, reorganization or sale of that Employer, or
the sale of all or substantially all of the assets of an Employer, except that,
subject to the provisions of subsection 14.3, with the consent of the Company
or the Committee, in any such event arrangements may be made whereby the Plan
will be continued by any successor to that Employer or any purchaser of all or
substantially all of that Employer’s assets, in which case the successor or
purchaser will be substituted for the Employer under the Plan.

 

14.3.        Merger
and Consolidation of the Plan, Transfer of Plan Assets. The Committee in
its discretion may direct the Trustee to transfer all or a portion of the
assets of this Plan to another defined contribution plan of the Employers or
Related Companies which is qualified under section 401(a) of the Code or,
in the event of the sale of stock of an Employer or all or a portion of the
assets of an Employer, to a qualified plan of an employer which is not a
Related Company, or to accept a transfer of assets and liabilities to this Plan
from another defined contribution plan that is qualified under section 401(a)
of the Code. In the case of any such merger, or transfer of assets and
liabilities, provision shall be made so that each affected Participant in the
Plan on the date thereof would receive a benefit immediately after the merger,
or transfer which is equal to the benefit he would have been entitled to
receive immediately prior to the merger, or transfer. The Committee may adopt
such amendment or Supplement to the Plan as may be necessary to preserve
protected rights that may not be changed or eliminated by reason of such
transfer or merger under section 411 of the Code; pending such amendment or
adoption of such Supplement, the applicable provisions of the merged or
transferee plan describing such section 411 protected rights shall be
incorporated herein by reference.

 

14.4.        Distribution
on Termination and Partial Termination. Upon termination or partial
termination of the Plan, all benefits under the Plan shall continue to be paid
in accordance with Sections 10 and 11 as those sections may be amended from
time to time.

 

14.5.        Notice
of Amendment, Termination or Partial Termination. Affected Participants
will be notified of an amendment, termination or partial termination of the
Plan as required by law.

 

SECTION 15

 

Change of Control
Provisions

 

15.1.        Application.
In the event of a Change of Control (as defined in subsection 15.2), the
provisions of this Section 15 shall apply, notwithstanding any other provision
in the Plan to the contrary.

 

44

 

15.2.        Definition
of Change of Control. For purposes of the Plan, a “Change of Control” means the
happening of any of the following events:

 

(a)           The
acquisition by any individual, entity or group (within the meaning of Section
13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (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 (i) the then
outstanding shares of common stock of Altria Group (the “Parent”) (such stock
hereinafter referred to as the “Outstanding Parent Common Stock”) or (ii) the
combined voting power of the then outstanding voting securities of the Parent
entitled to vote generally in the election of directors (the “Outstanding
Parent Voting Securities”); provided, however, that the following acquisitions
shall not constitute a Change of Control: 
(i) any acquisition directly from the Parent, (ii) any acquisition by
the Parent, (iii) any acquisition by any employee benefit plan (or related
trust) sponsored or maintained by the Parent or any corporation controlled by
the Parent or (iv) any acquisition by any corporation pursuant to a transaction
described in clauses (i), (ii) and (iii) of paragraph (c) of this subsection
15.2; or

 

(b)           Individuals
who, as of November 1, 1989, constitute the Board of Directors of the Parent
(the “Incumbent Board”) cease for any reason to constitute at least a majority
of such Board; provided, however, that any individual becoming a director
subsequent to November 1, 1989 whose election, or nomination for election
by the Parent’s shareholders, was approved by a vote of at least a majority of
the directors then comprising the Incumbent Board shall be considered as though
such individual were a member of the Incumbent Board, but excluding, for this
purpose, any such individual whose initial assumption of office occurs as a
result of 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 Incumbent Board; or

 

(c)           Approval
by the shareholders of the Parent of a reorganization, merger, share exchange
or consolidation (a “Business Combination”), in each case, unless, following
such Business Combination, (i) all or substantially all of the individuals and
entities who were the beneficial owners, respectively, of the Outstanding
Parent Common Stock and Outstanding Parent Voting Securities immediately prior
to such Business Combination beneficially own, directly or indirectly, more
than 80% of, respectively, the then 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 Business Combination (including, without
limitation, a corporation which as a result of such transaction owns the Parent
through one or more subsidiaries) in substantially the same proportions as
their ownership, immediately prior to such Business Combination, of the
Outstanding Parent Common Stock and Outstanding Parent Voting Securities, as
the case may be, (ii) 

 

45

 

no Person
(excluding any employee benefit plan (or related trust) of the Parent or such
corporation resulting from such Business Combination) beneficially owns,
directly or indirectly, 20% or more of, respectively, the then outstanding
shares of common stock of the combined voting power of the then outstanding
voting securities of such corporation except to the extent that such ownership
existed prior to the Business Combination and (iii) at least a majority of the
members of the board of directors of the corporation resulting from such
Business Combination were members of the Incumbent Board at the time of the
execution of the initial agreement, or of the action of the Incumbent Board,
providing for such Business Combination; or

 

(d)           Approval
by the shareholders of the Parent of (i) a complete liquidation or dissolution
of the Parent or (ii) the sale or other disposition of all or substantially all
of the assets of the Parent, other than to a corporation, with respect to which
following such sale or other disposition, (A) more than 80% of, respectively,
the then outstanding shares of common stock of such corporation and the
combined voting power of the then outstanding voting securities of such
corporation entitled to vote generally in the election of directors is then
beneficially owned, directly or indirectly, by all or substantially all of the
individuals and entities who were the beneficial owners, respectively, of the
Outstanding Parent Common Stock and Outstanding Parent Voting Securities
immediately prior to such sale or other disposition in substantially the same
proportion as their ownership, immediately prior to such sale or other
disposition, of the Outstanding Parent Common Stock and Outstanding Parent
Voting Securities, as the case may be, (B) less than 20% of, respectively, the
then outstanding shares of common stock of such corporation and the combined
voting power of the then outstanding voting securities of such corporation
entitled to vote generally in the election of directors is then beneficially
owned, directly or indirectly, by any Person (excluding any employee benefit plan
(or related trust) of the Parent or such corporation), except to the extent
that such Person owned 20% or more of the Outstanding Parent Common Stock or
Outstanding Parent Voting Securities prior to the sale or disposition and (C)
at least a majority of the members of the board of directors of such
corporation were members of the Incumbent Board at the time of the execution of
the initial agreement, or of the action of the Incumbent Board, providing for
such sale or other disposition of assets of the Parent or were elected,
appointed or nominated by the Incumbent Board.

 

15.3.        Contribution
Requirement. Subject to the conditions and limitations of Section 8 (after
taking into account the effect thereon of the last sentence of this subsection
15.3) and of the next sentence, upon the occurrence of a Change of Control, for
the year in which the Change of Control occurs and for each of the two years
following the year in which the Change of Control occurs, each Employer shall
make a “Matching Contribution” to the Profit Sharing Fund on behalf of each
Participant employed by such Employer who has made Before-Tax or After-Tax
Contributions to the Profit Sharing Fund for that year in an amount equal to
the greater of:

 

46

 

(a)           the
average rate of matching contributions made by that Employer to the Profit
Sharing Fund for the two Plan Years prior to the Plan Year in which the Change
of Control occurs, or

 

(b)           75 percent
of the Before-Tax and After-Tax Contributions made by each Participant,
excluding any such contributions which exceed, in the aggregate, 6 percent of
the Participant’s Eligible Compensation.

 

Except as otherwise specifically provided in Section
12, in no event shall the sum of the Before-Tax Contributions and any Matching
Contributions made by an Employer for any Plan Year exceed the limitations
imposed by section 404 of the Code on the maximum amount deductible on account
thereof by the Employer for that year. Each Employer’s Matching Contributions
for any Plan Year shall be paid to the Trustee for deposit in the Profit
Sharing Fund, without interest, no later than the time prescribed by law for
filing the Federal corporate income tax return of Altria Group, or its
successors, as applicable, including any extensions thereof. The Matching
Contributions made on behalf of a Participant pursuant to this Section 14
shall be allocated to a “Matching Contribution Account” established for each
Participant, shall be aggregated with the Participant’s After-Tax Contributions,
if any, for purposes of determining contribution percentages and applying
the limitations of Section 8, and, to the extent corrective distributions are
required to be made to any highly compensated employee in accordance with
Section 8, the amounts required to be distributed shall be made first from the
affected Highly Compensated employee’s unmatched After-Tax Contributions (if
any) and thereafter on a pro rata basis from his matched After-Tax
Contributions (if any) and his Matching Contributions.

 

15.4.        Vesting.
Upon and after a Change of Control, a Participant’s vested percentage in all
his Accounts under the Plan shall be 100%.

 

15.5.        Enforcement
Rights; Amendment Restrictions.

 

(a)           In
addition to all other rights under the Plan and applicable law, any individual
who shall be a Participant or Beneficiary at the date on which the Change of
Control occurs (the “Control Date”) shall from and after such date have the
right to bring an action, either individually or on behalf of all Participants
and Beneficiaries, to enforce the provisions of this Section 15 by seeking
injunctive relief or damages, or both, and the Company shall be obligated to
pay or reimburse such Participant or Beneficiary who shall prevail, in whole or
in substantial part, for all reasonable expenses, including attorney’s fees, in
connection with such action.

 

(b)           Anything
in the Plan to the contrary notwithstanding, on and after the Control Date,
none of the provisions of this Section 15 shall be amended unless within
sixty days after the date of the action taken to amend such provisions at least
two-thirds of the individuals who were Participants at the date of such action
shall have given their written approval of such action based on full and
complete information provided to them regarding the actual and potential
effects of such action on them.

 

47

 

15.6.        Construction.
The foregoing provisions of this Section 15 shall be construed liberally
to the end that its purposes shall be fully implemented.

 

48

 

SUPPLEMENT A

 

KRAFT FOODS GLOBAL, INC. THRIFT PLAN

Top-Heavy Provisions

 

(1)           Application: 
This Supplement A to the Kraft Foods Global, Inc. Thrift Plan shall be
applicable on and after the date on which the Plan becomes Top-Heavy (as
described in paragraph (5)).

 

(2)           Effective Date:  The Effective Date of the top-heavy
provisions as set forth in this Supplement A is January 1, 1993.

 

(3)           Definitions: 
Unless the context clearly implies or indicates the contrary, a word,
term or phrase used or defined in the Plan is similarly used or defined for
purposes of this Supplement A.

 

(4)           Affected Participant:  For purposes of this Supplement A, the term “Affected
Participant” means each Participant who is employed by an Employer or a Related
Company during any Plan Year for which the Plan is Top-Heavy; provided,
however, that the term “Affected Participant” shall not include any Participant
who is covered by a collective bargaining agreement if retirement benefits were
the subject of good faith bargaining between his Employer and his collective
bargaining representative.

 

(5)           Top-Heavy: 
The Plan shall be “Top-Heavy” for any Plan Year if, as of the
Determination Date for that year (as described in subparagraph (a) next below),
the present value of the benefits attributable to Key Employees (as defined in
paragraph (6)) under all Aggregation Plans (as defined in paragraph (9))
exceeds 60% of the present value of all benefits under such plans. The foregoing
determination shall be made in accordance with the provisions of section 416 of
the Code. Subject to the preceding sentence:

 

(a)           The
Determination Date with respect to any plan for purposes of determining
Top-Heavy status for any plan year of that plan shall be the last day of the
preceding plan year or, in the case of the first plan year of that plan, the
last day of that year. The present value of benefits as of any Determination
Date shall be determined as of the accounting date or valuation date coincident
with or next preceding the Determination Date. If the plan years of all
Aggregation Plans do not coincide, the Top-Heavy status of the Plan on any
Determination Date shall be determined by aggregating the present value of Plan
benefits on that date with the present value of the benefits under each other
Aggregation Plan determined as of the Determination Date of such other
Aggregation Plan which occurs in the same calendar year as the Plan’s
Determination Date.

 

(b)           Benefits
under any plan as of any Determination Date shall include the amount of any
distributions from that plan made during the plan year which includes the
Determination Date (including distributions under a terminated plan which, if
it had not been terminated, would have been included in an aggregation group)
or 

 

A-1

 

during any of the preceding four plan years, but shall
not include any amounts attributable to employee contributions which are
deductible under section 219 of the Code, any amounts attributable to
employee-initiated rollovers or transfers made after December 31, 1983
from a plan maintained by an unrelated employer, or, in case of a defined
contribution plan, any amounts attributable to contributions made after the
Determination Date unless such contributions are required by section 412
of the Code or are made for the plan’s first plan year.

 

(c)           Benefits
attributable to a participant shall include benefits paid or payable to a
beneficiary of the participant, but shall not include benefits paid or payable
to any participant who has not performed services for an Employer or Related
Company during any of the five plan years ending on the applicable
Determination Date; provided, however, that if a participant performs no
services for five years and then performs services, the benefits attributable
to such participant shall be included.

 

(d)           The
accrued benefit of any participant who is a Non-Key Employee with respect to a
plan but who was a Key Employee with respect to such plan for any prior plan
year shall not be taken into account.

 

(e)           The
accrued benefit of a Non-Key Employee shall be determined under the method
which is used for accrual purposes for all plans of the Employer and Related
Companies; or, if there is not such method, as if the benefit accrued not more
rapidly than the slowest accrual rate permitted under section 411(b)(1)(C) of
the Code.

 

(f)            The
present value of benefits under all defined benefit plans shall be determined
on the basis of a 7.5% per annum interest factor and the 1951 Group Annuity
Projected Mortality Table for Males, with a one-year setback.

 

(6)           Key Employee: 
The term “Key Employee” means an employee or deceased employee (or
beneficiary of such deceased employee) who is a Key Employee within the meaning
ascribed to that term by section 416(i) of the Code. Subject to the
preceding sentence, the term Key Employee includes any employee or deceased
employee (or beneficiary of such deceased employee) who at any time during the
plan year which includes the Determination Date or during any of the four
preceding plan years was:

 

(a)           an
officer of any Employer or Related Company with Compensation for that year in
excess of 50 percent of the amount in effect under section 415(b)(1)(A) of
the Code for the calendar year in which that year ends; provided, however, that
the maximum number of employees who shall be considered Key Employees under
this paragraph (a) shall be the lesser of 50 or 10% of the total number of
employees of the Employers and the Related Companies disregarding any
excludable employees under Code section 414(q)(8).

 

(b)           one
of the 10 employees owning the largest interests in any Employer or any Related
Company (disregarding any ownership interest which is less than 1/2 of 

 

A-2

 

one percent), excluding any employee for any plan year
whose Compensation for that year did not exceed the applicable amount in effect
under section 415(c)(1)(A) of the Code for the calendar year in which
that year ends;

 

(c)           a
5% owner of any Employer or of any Related Company; or

 

(d)           a
1% owner of any Employer or any Related Company having Compensation for that
year in excess of $150,000.

 

(7)           Compensation: 
The term “Compensation” for purposes of this Supplement A means the
amount reported as wages for Federal income tax withholding purposes on any Form W-2
issued to the employee by an Employer or Related Company plus, solely for
purposes of determining who is a Key Employee, the amount of any employer
contributions made pursuant to a salary reduction arrangement that are
excludable from the Participant’s gross income pursuant to sections 125,
402(g)(3), or 132(f)(4) of the Code. However, for Plan Years beginning on
or after January 1, 1989, solely for purposes of determining who is a Key
Employee, the term “Compensation” means compensation as defined in Code section 414(q)(7).

 

(8)           Non-Key Employee:  The term “Non-Key Employee” means any
employee (or beneficiary of a deceased employee) who is not a Key Employee.

 

(9)           Aggregation Plan:  The term “Aggregation Plan” means the Plan
and each other retirement plan (including any terminated plan) maintained by an
Employer or Related Company which is qualified under section 401(a) of
the Code and which:

 

(a)           during
the plan year which includes the applicable Determination Date, or during any
of the preceding four plan years, includes a Key Employee as a participant;

 

(b)           during
the plan year which includes the applicable Determination Date or, during any
of the preceding four plan years, enables the Plan or any plan in which a Key
Employee participates to meet the requirements of section 401(a)(4) or
410 of the Code; or

 

(c)           at
the election of the Employer, would meet the requirements of sections 401(a)(4) and
410 if it were considered together with the Plan and all other plans described
in subparagraphs (a) and (b) next above.

 

(10)         Required Aggregation Plan:  The term “Required Aggregation Plan” means

a plan described in Plan either subparagraph (a) or (b) of paragraph
(9).

 

(11)         Permissive Aggregation:  The term “Permissive Aggregation Plan” means
a plan described in Plan subparagraph (c) of paragraph (9).

 

(12)         Vesting: 
For any Plan Year during which the Plan is Top-Heavy, the Account
balances of each Affected Participant who has completed at least three Years of
Service shall be 100% vested. If the Plan ceases to be Top-Heavy for any Plan
Year, the provisions of 

 

A-3

 

this paragraph (12) shall continue to apply to any
Affected Participant who had completed at least 3 Years of Service prior to
such Plan Year.

 

(13)         EGTRRA Provisions:  The following provisions shall apply for
purposes of determining whether the Plan is Top-Heavy and whether the Plan
satisfies the minimum benefit requirements of section 416(c) of the
Code for such years. The provisions of this paragraph (13) shall supersede any
other provision of this Supplement A to the extent inconsistent herewith.

 

(a)           Key Employee. “Key Employee” means any
employee or former employee (including any deceased employee) who at any time
during the Plan Year that includes the determination date was an officer of any
Employer or Affiliate having annual compensation greater than $130,000 (as
adjusted under section 416(i)(1) of the Code for Plan Years beginning
after December 31, 2002), a 5-percent owner of any Employer or Affiliate,
or a 1-percent owner of any Employer or Affiliate having annual compensation of
more than $150,000. For this purpose, annual compensation means compensation
within the meaning of Section 415(c)(3) of the Code. The
determination of who is a Key Employee will be made in accordance with section 416(i)(1) of
the Code and the applicable regulations and other guidance of general
applicability issued thereunder.

 

(b)           Determination of present values and amounts. This
paragraph (13)(b) shall apply for purposes of determining the present
values of accrued benefits and the amounts of account balances of employees as
of the determination date.

 

(i)            Distributions during year ending on the determination
date. The present values of accrued benefits and the amounts of
account balances of an employee as of the determination date shall be increased
by the distributions made with respect to the employee under the Plan and any
plan aggregated with the Plan under section 416(g)(2) of the Code
during the 1-year period ending on the determination date. The preceding
sentence shall also apply to distributions under a terminated plan which, had
it not been terminated, would have been aggregated with the Plan under section 416(g)(2)(A)(i) of
the Code. In the case of a distribution made for a reason other than separation
from service, death, or disability, this provision shall be applied by
substituting “5-year period” for “1-year period.”

 

(ii)           Employees not performing services during year ending on
the determination date. The accrued benefits and accounts of any
individual who has not performed services for the employer during the 1-year
period ending on the determination date shall not be taken into account.

 

(iii)          Minimum Contributions. Notwithstanding the
provisions of paragraph (11) to the contrary, employer matching contributions
shall be taken into account for purposes of satisfying the minimum contribution
requirement of section 416(c)(2) of the Code and the Plan. The
preceding sentence 

 

A-4

 

shall apply with respect to matching contributions
under the Plan or, if the Plan provides that the minimum contribution
requirement shall be met in another plan, such other plan. Employer matching
contributions that are used to satisfy the minimum contribution requirements
shall be treated as matching contributions for purposes of the actual
contribution percentage test and other requirements of section 401(m) of
the Code.

 

(14)         Aggregate Benefit Limit:  For any Plan Year prior to January 1,
2000 during which the Plan is Top-Heavy, paragraphs (2)(B) and (3)(B) of
section 415(e) of the Code shall be applied by substituting “1.0” for
“1.25”.

 

A-5

 

SUPPLEMENT B

 

KRAFT FOODS
GLOBAL, INC. THRIFT PLAN

Special Benefit Schedule for Former Participants in the

H.F. Behrhorst & Son, Inc. Employees
Profit Sharing Plan

 

Pursuant to subsection 1.12, this Supplement B is
made a part of the Plan and supersedes any provisions thereof which are
not consistent with this Supplement B.

 

(1)           Participating Group:  Former employees of H. F. Behrhorst &
Son, Inc. who immediately prior to the Effective Date were participants in
the H. F. Behrhorst & Son, Inc. Employees Profit Sharing Plan (“Behrhorst
Participants”). These employees were employed by Kraft, Inc. on January 4,
1988.

 

(2)           Effective Date:  November 1, 1989.

 

(3)           Eligibility: 
As of the Effective Date, the employees described in paragraph 1 became
eligible to participate in the Plan subject to its normal terms, except as
provided in paragraph 4 of this Supplement B.

 

(4)           Account
Transfers. Account balances were transferred from the plan described in
paragraph (1) above into the Plan with respect to Behrhorst Participants.

 

B-1

 

SUPPLEMENT C

 

KRAFT FOODS
GLOBAL, INC. THRIFT PLAN

Special Benefit Schedule for Former Participants in the

Profit Sharing Plan for Mueller Foodservice Corp.

 

Pursuant to subsection 1.12, this Supplement C is
made a part of the Plan and supersedes any provisions thereof which are
not consistent with this Supplement C.

 

(1)           Participating Group:  Former employees of Mueller Foodservice Corp.
who immediately prior to the Effective Date were participants in the Profit
Sharing Plan for Mueller Foodservice Corp. and who had benefits transferred to
this Plan (“Mueller Participants”). These employees were employed by Kraft, Inc.
on December 21, 1988.

 

(2)           Effective Date:  April 13, 1990.

 

(3)           Eligibility: 
As of the Effective Date, the employees described in paragraph 1 became
eligible to participate in the Plan subject to its normal terms, except as
provided in paragraph 4 of this Schedule.

 

(4)           Special Provisions:  In the event a Mueller Participant terminates
employment with the Employers and Related Companies and becomes a participant
in a qualified retirement plan of another employer, the Trustee is authorized
to transfer the portion of a Mueller Participant’s Accounts attributable to
amounts transferred from the plan described in paragraph (1) above to such
other plan upon receiving written authorization from such other employer, the
Mueller Participant and the trustee of such other plan.

 

C-1

 

SUPPLEMENT D

 

KRAFT FOODS
GLOBAL, INC. THRIFT PLAN

Special Benefit Schedule for Former Participants in the

Tombstone Pizza Corporation Profit Sharing Plan

 

Pursuant to subsection 1.12, this Supplement D is
made a part of the Plan and supersedes any provisions thereof which are
not consistent with this Supplement D.

 

(1)           Participating Group:  Employees of Tombstone Pizza Corporation who
immediately prior to the Effective Date were participants in the Tombstone
Pizza Corporation Profit Sharing Plan and who had benefits transferred to this
Plan (“Tombstone Participants”).

 

(2)           Effective Date:  January 1, 1991.

 

(3)           Eligibility: 
As of the Effective Date, the employees described in paragraph 1 became
eligible to participate in the Plan subject to its normal terms, except as
provided in paragraph 4 of this Supplement D.

 

(4)           Special Provisions: The following special
provisions shall apply only with respect to that portion of a Tombstone
Participant’s benefit which is attributable to amounts transferred to this Plan
from the Tombstone Pizza Corporation Profit Sharing Plan:

 

(a)           Upon
attainment of age 55, a Tombstone Participant shall be 100% vested.

 

(b)           A
Tombstone Participant, in lieu of the installments described in clause
11.1(b)(ii), may elect to have his Account balance distributed in a series of
annual or more frequent installments, provided, however, that the amount to be
distributed each year must be at least an amount equal to the quotient obtained
by dividing the Tombstone Participant’s entire interest by the life expectancy
of the Tombstone Participant or joint and last survivor expectancy of the
Tombstone Participant and beneficiary. Life expectancy and joint and last
survivor expectancy are computed by the use of the return multiples contained
in Treasury Regulation Section 1.72-9. For purposes of this computation, a
Tombstone Participant’s (and his spouse’s) life expectancy may be
recalculated no more frequently than annually, but the life expectancy of a
nonspouse beneficiary must be calculated at the time payment first commences
without further recalculations.

 

(c)           Prior
to his severance from service, a Tombstone Participant at any time may request
a withdrawal of all or part of his account attributable to qualified
voluntary employee contributions.

 

(d)           Prior
to his severance from service, a Tombstone Participant may elect, pursuant
to rules promulgated by the Committee, on a form prescribed by and
filed with the Committee, to make a withdrawal of all or any portion of his
account attributable to his After-Tax Contributions.

 

D-1

 

SUPPLEMENT E

 

KRAFT FOODS
GLOBAL, INC. THRIFT PLAN

Special Benefit Schedule for Former Participants in the

Churny Company, Inc. Profit Sharing Plan

 

Pursuant to subsection 1.12, this Supplement E is
made a part of the Plan and supersedes any provisions thereof which are
not consistent with this Supplement E.

 

(1)           Participating Group:  Employees of Churny Company, Inc. who
immediately prior to the respective Effective Date were participants in the
Churny Company, Inc. Profit Sharing Plan, who were either (a) salaried
employees who had benefits transferred to this Plan as of January 1, 1989
or (b) hourly non-union employees at Weyawega, Waupaca and Wausau
locations, who had benefits transferred to this Plan as of January 1, 1992
(“Churny Participants”).

 

(2)           Effective Dates:                    (a) 
January 1, 1989

 

(b)  January 1,
1992

 

(3)           Eligibility: 
As of the respective Effective Date, the employees described in
paragraph 1 became eligible to participate in the Plan, subject to its normal
terms, except as provided in paragraph 4 of this Supplement E with respect to
transferred benefits.

 

E-1

 

SUPPLEMENT F

 

KRAFT FOODS
GLOBAL, INC. THRIFT PLAN

Special Benefit Schedule Applicable to Employees

of the California Vegetable Concentrates Division

 

Pursuant to subsection 1.12, this Supplement F is
made a part of the Plan as of the Effective Date set forth below and
supersedes any provisions of the Plan which are not consistent with this
Supplement F.

 

(1)           Participating Group:  This Supplement F is applicable to those
Participants in the Plan who were employees of the California Vegetable
Concentrates division of Kraft Food Ingredients Corp. and who became employees
of Basic Vegetable Products, L.P., pursuant to that certain Asset Purchase
Agreement entered into as of February 16, 1993 by and between Basic
Vegetable Products, L.P., and Kraft Food Ingredients Corp. (“Concentrates
Participants”).

 

(2)           Effective Date:  February 16, 1993.

 

(3)           Special Vesting Provisions:  A Concentrates Participant shall be 100%
vested in his sub-accounts attributable to Matching Contributions as of the
Effective Date.

 

(4)           Special Distribution and Withdrawal Provisions:

 

(a)           In
accordance with procedures established by the Committee, a Concentrates
Participant during the period commencing on the Effective Date and ending on March 31,
1993, may elect to withdraw all of his sub-account balances attributable
to his After-Tax Contributions, Rollover Contributions, and Matching
Contributions, and the earnings thereon.

 

(b)           Notwithstanding
any provisions of the Plan to the contrary, the Hardship withdrawal provisions
and the in-service withdrawal provisions of Section 10 of the Plan shall
continue to apply to a Concentrates Participant on and after the Effective Date
and for such time as the Concentrates Participant remains an employee of Basic
Vegetable Products, L.P., or its successors or affiliates (collectively
referred to as the “Successor Employer”). Notwithstanding any provisions of the
Plan to the contrary, for purposes of applying the post-employment termination
distribution provisions of Section 11 of the Plan to a Concentrates
Participant, such Concentrates Participant’s service shall not be considered to
be terminated (whether on account of retirement, permanent and total
disability, or for any other reason) until such time as said Participant has
had a separation from service with the Successor Employer.

 

F-1

 

SUPPLEMENT G

 

KRAFT FOODS
GLOBAL, INC. THRIFT PLAN

Special Benefit Schedule for Former Participants in the

Lender’s Bagel Bakery, Inc. Profit Sharing
Plan

 

Pursuant to subsection 1.12, this Supplement G is
made a part of the Plan as of the Effective Date set forth below and
supersedes any provisions of the Plan which are not consistent with this
Supplement G.

 

(1)           Participating Group:  This Supplement G modifies and supplements
the provisions of the Plan in connection with the participation in the Plan of
employees of the Lender’s Bagel Bakery operating unit of General Foods USA, and
in connection with the merger into the Plan of the Lender’s Bagel Bakery, Inc.
Profit Sharing Plan (the “Lender’s Plan”). For purposes of this Supplement G,
the term “Lender’s Participants” means those Participants in the Plan who
immediately prior to the Effective Date were participants in the Lender’s Plan
and who had benefits from such plan transferred to this Plan.

 

(2)           Effective Date:  January 1, 1993.

 

(3)           Eligibility: 
A Lender’s Participant shall become a Participant in the Plan on the
Effective Date. Any other employee of the Lender’s Bagel Bakery operating unit
of General Foods USA shall become eligible to participate in the Plan on the
later of the Effective Date or the date such employee would otherwise become
eligible to participate in accordance with the provisions of Section 2 of
the Plan.

 

(4)           Merger of Plans:  The Lender’s Plan shall be merged with and
into the Plan effective March 31, 1993, and the assets and liabilities of
the Lender’s Plan shall become the assets and liabilities of the Plan effective
with the merger, in accordance with Section 414(l) of the Code. Effective
with the date of the merger, the provisions of the Plan shall apply to the
transferred account balances from the Lender’s Plan, with the modifications set
forth below.

 

(5)           Vesting in Transferred Amounts:  A Lender’s Participant in this Participating
Group shall at all times be 100% vested in his sub-account balance attributable
to his transferred account balance from the Lender’s Plan.

 

G-1

 

SUPPLEMENT H

 

KRAFT FOODS
GLOBAL, INC. THRIFT PLAN

Special Benefit Schedule for Former Participants in the

Capri Sun, Inc. Retirement Savings Plan

 

Pursuant to subsection 1.12, this Supplement H is
made a part of the Plan as of the Effective Date set forth below and
supersedes any provisions of the Plan which are not consistent with this
Supplement H.

 

(1)           Participating Group:  This Supplement H modifies and supplements
the provisions of the Plan in connection with the participation in the Plan of
employees of Capri Sun, Inc., and in connection with the merger into the
Plan of the Capri Sun, Inc. Retirement Savings Plan (the “Capri Sun Plan”).
For purposes of this Supplement H, the term “Capri Sun Participants” means
those Participants in the Plan who immediately prior to the Effective Date were
participants in the Capri Sun Plan and who had benefits from such plan
transferred to this Plan.

 

(2)           Effective Date:  January 1, 1993.

 

(3)           Eligibility: 
A Capri Sun Participant shall become a Participant in the Plan on the
Effective Date. Any other employee of Capri Sun, Inc. shall become
eligible to participate in the Plan on the later of the Effective Date or the
date such employee would otherwise become eligible to participate in accordance
with the provisions of Section 2 of the Plan.

 

(4)           Merger of Plans:  The Capri Sun Plan shall be merged with and
into the Plan effective March 31, 1993, and the assets and liabilities of the
Capri Sun Plan shall become the assets and liabilities of the Plan effective
with the merger, in accordance with Section 414(l) of the Code. Effective
with the date of the merger, the provisions of the Plan shall apply to the
transferred account balances from the Capri Sun Plan, with the modifications
set forth below.

 

(5)           Vesting in Transferred Amounts:  A Capri Sun Participant shall at all times be
100% vested in his sub-account balance attributable to his transferred account
balance from the Capri Sun Plan.

 

H-1

 

SUPPLEMENT I

 

KRAFT FOODS
GLOBAL, INC. THRIFT PLAN

Special Benefit Schedule for Former Participants in the

Jack’s Frozen Pizza, Inc. 401(k)
Profit-Sharing Plan

 

Pursuant to subsection 1.12, this Supplement I is
made a part of the Plan and supersedes any provisions thereof which are
not consistent with this Supplement I.

 

(1)           Participating Group:  This Supplement I modifies and supplements
the provisions of the Plan in connection with the participation in the Plan of
employees of Jack’s Frozen Pizza, Inc., and in connection with the merger
into the Plan of the Jack’s Frozen Pizza, Inc. 401(k) Profit-Sharing Plan
(the “Jack’s Plan”). For purposes of this Supplement I, the term “Jack’s Pizza
Participants” means those Participants in the Plan who immediately prior to the
Effective Date were participants in the Jack’s Plan and who had benefits from
such plan transferred to this Plan.

 

(2)           Effective Date:  January 1, 1994.

 

(3)           Eligibility: 
As of the Effective Date, the employees described in paragraph 1 became
eligible to participate in the Plan subject to its normal terms, except as
provided in paragraph 5 of this Supplement I.

 

(4)           Merger of Plans:  The Jack’s Plan shall be merged with and into
the Plan effective April 1, 1994, and the assets and liabilities of the
Jack’s Plan shall become the assets and liabilities of the Plan effective with
the merger, in accordance with Section 414(l) of the Code. Effective with
the date of the merger, the provisions of the Plan shall apply to the
transferred account balances from the Jack’s Plan, with the modifications set
forth below.

 

(5)           Special Provision:  Upon retirement at or after attainment of age
55, a Jack’s Pizza Participant shall be 100% vested with respect to that
portion of a Jack’s Pizza Participant’s benefit which is attributable to
amounts transferred to this Plan from the Jack’s Plan.

 

I-1

 

SUPPLEMENT J

 

KRAFT FOODS
GLOBAL, INC. THRIFT PLAN

Special Benefit Schedule for Former Participants in the

Salary Reduction and Voluntary Investment Plan for

Salaried Employees of Oscar Mayer Foods
Corporation

 

Pursuant to subsection 1.12, this Supplement J is
made a part of the Plan and supersedes any provisions thereof which are
not consistent with this Supplement J.

 

(1)           Participating Group:  This Supplement J modifies and supplements
the provisions of the Plan in connection with the participation in the Plan of
employees of Oscar Mayer Foods Corporation, and in connection with the merger
into the Plan of the Salary Reduction and Voluntary Investment Plan for
Salaried Employees of Oscar Mayer Foods Corporation (the “Oscar Mayer Plan”). For
purposes of this Supplement J, the term “Oscar Mayer Participants” means those
Participants in the Plan who immediately prior to the Effective Date were
participants in the Oscar Mayer Plan and who had benefits from such plan
transferred to this Plan.

 

(2)           Effective Date:  January 1, 1994.

 

(3)           Eligibility: 
As of the Effective Date, the employees described in paragraph 1 became
eligible to participate in the Plan subject to its normal terms, except as
provided in paragraph 5 of this Supplement J.

 

(4)           Merger of Plans:  The Oscar Mayer Plan shall be merged with and
into the Plan effective April 1, 1994, and the assets and liabilities of
the Oscar Mayer Plan shall become the assets and liabilities of the Plan
effective with the merger, in accordance with Section 414(l) of the Code. Effective
with the date of the merger, the provisions of the Plan shall apply to the
transferred account balances from the Oscar Mayer Plan, with the modifications
set forth below.

 

(5)           Special Provisions:  The following special provisions shall apply
only with respect to that portion of an Oscar Mayer Participant’s benefit which
is attributable to amounts transferred to this Plan from the Oscar Mayer Plan:

 

(a)           In
addition to the withdrawal permitted under subsection 10.2 of the Plan, an
Oscar Mayer Participant whose Termination Date has not yet occurred may elect
to withdraw all or a part of his interest in his Accounts, as provided and
in the order set forth below:

 

(b)           Up
to 100% of the March 31, 1992 balance of his After-Tax Account and the
earnings thereon. Any such withdrawal shall be made first from the After-Tax
Contributions (excluding earnings thereon) made by the Oscar Mayer Participant
prior to January 1, 1987 and then from the balance of his March 31,
1992 After-Tax Account, and the earnings thereon.

 

J-1

 

SUPPLEMENT K

 

KRAFT FOODS
GLOBAL, INC. THRIFT PLAN

Special Benefit Schedule For Former Participants in the

RJR Nabisco Capital Investment Plan

 

Pursuant to subsection 1.12, this Supplement K is
made a part of the Plan as of the Effective Date set forth below and
supersedes any provisions of the Plan which are not consistent with this
Supplement K.

 

(1)           Participating Group:  This Special Benefit Schedule modifies
and supplements the provisions of the Plan in connection with the participation
in the Plan of Nabisco cereal business employees, and in connection with the
transfer to the Plan of account balances of such employees under the RJR
Nabisco Capital Investment Plan (the “Nabisco Plan”). For purposes of this
Special Benefit Schedule, the “Participating Group” means those Participants in
the Plan who immediately prior to the Effective Date were participants in the
Nabisco Plan and who had benefits from such plan transferred to this Plan.

 

(2)           Effective Date:  January 4, 1993.

 

(3)           Eligibility: 
Pursuant to an Asset Purchase Agreement dated as of November 13,
1992 between the Corporation and Nabisco, Inc. and Nabisco Cereals, Inc.,
the Corporation agreed to employ certain employees (identified as “Transferred
Employees” under the agreement) of the U.S. Ready-to-Eat Cold Cereal Business
of Nabisco, Inc. and Nabisco Cereals, Inc. Each Transferred Employee
who is a participant in the Nabisco Plan shall become a Participant in the Plan
on the Effective Date or, if later, the date such Transferred Employee becomes
employed by the Corporation.

 

(4)           Vesting in Transferred Amounts:  A Participant in this Participating Group
shall at all times be 100% vested in his sub-account balance attributable to
his transferred account balance from the Nabisco Plan.

 

(5)           Special Distribution and Withdrawal Provisions.
The distributions and withdrawal provisions of the Plan shall apply to the
transferred account balances from the Nabisco Plan, with the modifications set
forth below. The following provision of this paragraph 5 shall apply only to
that portion of a Participant’s benefit under the Plan which is attributable to
amounts transferred to this Plan from the Nabisco Plan. Prior to termination of
Service, Retirement, death or Permanent and Total Disability, and subject to
the provisions set forth below, a Participant in this Participating Group may elect
to withdraw all or part of the following portions of his account
attributable to the amounts transferred from the Nabisco Plan, in the following
order:

 

(a)           his
after-tax contributions, plus earnings with respect thereto;

 

(b)           his
company matching contributions (whether or not made in the form of
matching stock contributions) and rollover contributions, plus earnings with
respect thereto; and

 

K-1

 

(c)           upon
Permanent and Total Disability, his pre-tax contributions, plus earnings with
respect thereto.

 

K-2

 

SUPPLEMENT L

 

KRAFT FOODS
GLOBAL, INC. THRIFT PLAN

Special Benefit Schedule for Former Participants in the

Entenmann’s, Inc. Employee Savings Plan

 

Pursuant to subsection 1.12, this Supplement L is
made a part of the Plan as of the Effective Date set forth below and
supersedes any provisions of the Plan which are not consistent with this
Supplement L.

 

(1)           Participating Group:  This Supplement L modifies and supplements
the provisions of the Plan in connection with the participation in the Plan of
employees of Entenmann’s Inc., and in connection with the merger into the Plan
of the Entenmann’s, Inc. Employee Savings Plan (the “Entenmann’s Plan”). For
purposes of this Supplement L, the term “Entenmann’s Participants” means those
Participants in the Plan who immediately prior to the Effective Date were
participants in the Entenmann’s Plan and who had benefits from such plan
transferred to this Plan.

 

(2)           Effective Date:  January 1, 1995.

 

(3)           Eligibility: 
An Entenmann’s Participant shall become a Participant in the Plan on the
Effective Date. Any other employee of Entenmann’s, Inc. shall become
eligible to participate in the Plan on the later of the Effective Date or the
date such employee would otherwise become eligible to participate in accordance
with the provisions of Section 2 of the Plan.

 

(4)           Merger of Plans:  The Entenmann’s Plan shall be merged with and
into the Plan effective January 1, 1995, and the assets and liabilities of
the Entenmann’s Plan shall become the assets and liabilities of the Plan
effective with the merger, in accordance with Section 414(l) of the Code. Effective
with the date of the merger, the provisions of the Plan shall apply to the
transferred account balances from the Entenmann’s Plan, with the modifications
set forth below.

 

(5)           Vesting in Transferred Amounts:  An Entenmann’s Participant shall be vested in
amounts attributable to his transferred account balance from the Entenmann’s
Plan (his “Entenmann’s balance”) in accordance with the schedule set forth
in subsection 9.1, taking into account vesting service credited under the
Entenmann’s Plan prior to the Effective Date.

 

(6)           Special In-Service Withdrawal Provisions:  The provisions of this paragraph 6 shall
apply only with respect to an Entenmann’s Participant’s Entenmann’s balance.

 

(a)           Prior
to his Termination Date, a Participant may elect to withdraw all or a
portion of his Entenmann’s balance attributable to his after-tax supplemental
contributions (including the earnings and appreciation thereon). The minimum
amount which a Participant may elect to have distributed to him pursuant
to this subparagraph shall be the lesser of $500 or his Entenmann’s balance
attributable 

 

L-1

 

to his after-tax supplemental contributions (including
the earnings and appreciation thereon). A Participant who elects to receive a
distribution pursuant to this subparagraph shall continue his status as a
Participant in the Plan. Amounts withdrawn by a Participant pursuant to this
subparagraph shall be distributed to him in cash, except that he can elect
to have distributions from the Altria Group Stock Fund paid in whole shares of
Altria Group Common Stock.

 

(b)           Prior
to his Termination Date, a Participant who is not vested may elect to
withdraw all of his Entenmann’s balance attributable to his after-tax basic
contributions (including the earnings and appreciation thereon). Partial
withdrawals of a Participant’s after-tax basic contributions (including the
earnings and appreciation thereon) will not be permitted. Notwithstanding any
other provision of the Plan, any Participant who makes a total withdrawal of
his after-tax basic contributions pursuant to this subparagraph shall be
suspended from making After-Tax Contributions and may not resume such
contributions until the first day of any month which is at least 6 months after
the day on which he discontinued such contributions. Any Participant who makes
a withdrawal pursuant to this subparagraph shall forfeit the amount of any
corresponding post-December 31, 1985 Entenmann’s balance in his Matching
Account. Amounts withdrawn by a Participant pursuant to this subparagraph shall
be distributed to him in cash or in stock in accordance the preceding
subparagraph.

 

(c)           Prior
to his Termination Date, a Participant who is vested may elect to withdraw
that portion of his Entenmann’s balance attributable to after-tax basic
contributions and Company contributions (including the earnings and
appreciation thereon). Amounts withdrawn by a Participant pursuant to this
subparagraph shall be distributed to him in the following order and in
cash or in stock in accordance with the preceding subparagraphs:

 

(i)            All
or a portion of his Entenmann’s balance attributable to such after-tax basic
contributions. A Participant may make two withdrawals from his Entenmann’s
balance attributable to such after-tax basic contributions. The minimum amount
of any withdrawal is the lesser of $500 or his Entenmann’s balance attributable
to such after-tax basic contributions. However, a Participant’s second
withdrawal must be of his entire Entenmann’s balance (except for that part of
his Entenmann’s balance attributable to before-tax basic contributions). Notwithstanding
any other provision of the Plan, any Participant who makes a second withdrawal
of his after-tax basic contributions pursuant to this subsection shall be
suspended from making Before-Tax Contributions and After-Tax Contributions and may not
resume any such contributions until the first day of any month which is at
least 12 months after the day on which he discontinued such contributions.

 

(ii)           If
he has withdrawn the maximum amount permitted under (a), all or a portion of
his Entenmann’s balance attributable to such Company contributions provided,
however, that the minimum amount which a 

 

L-2

 

Participant may elect to have distributed to him
pursuant to this subparagraph shall be $1,000 or the balance in his Company
contribution account, whichever is less.

 

(d)           The
value of a Participant’s Entenmann’s balance distributed pursuant to this
paragraph shall be determined as of the Valuation Date next following receipt
by the Committee of notice of such election.

 

(e)           The
value of a Participant’s Entenmann’s balance in his Account which is forfeited
shall be applied to reduce Employer contributions.

 

(f)            At
any time during his employment, a Participant may withdraw the total value
of his Rollover Contributions and the earnings and appreciation thereon.

 

The Participant will not be required to discontinue
contributions to the Plan for any period of time on account of a withdrawal of
the value of Rollover Contributions.

 

L-3

 

SUPPLEMENT M

 

KRAFT FOODS
GLOBAL, INC. THRIFT PLAN

Special Benefit Schedule for Former Participants in the

Freihofer Savings and Profit Sharing Plan

 

Pursuant to subsection 1.12, this Supplement M is
made a part of the Plan as of the Effective Date set forth below and
supersedes any provisions of the Plan which are not consistent with this
Supplement M.

 

(1)           Participating Group:  This Supplement M modifies and supplements
the provisions of the Plan in connection with the participation in the Plan of
employees of the Charles Freihofer Baking Company, Inc. (Freihofer), and
in connection with the merger into the Plan of the Charles Freihofer Baking
Company, Inc. Savings and Profit Sharing Plan (the “Freihofer Plan”). For
purposes of this Supplement M, the term “Freihofer Participants” means those
Participants in the Plan who immediately prior to the Effective Date were
participants in the Freihofer Plan and who had benefits from such plan
transferred to this Plan.

 

(2)           Effective Date:  January 1, 1995.

 

(3)           Eligibility: 
A Freihofer Participant shall become a Participant in the Plan on the
Effective Date. Any other employee of Freihofer shall become eligible to
participate in the Plan on the later of the Effective Date or the date such
employee would otherwise become eligible to participate in accordance with the
provisions of Section 2 of the Plan.

 

(4)           Merger of Plans:  The Freihofer Plan shall be merged with and
into the Plan effective January 1, 1995, and the assets and liabilities of
the Freihofer Plan shall become the assets and liabilities of the Plan
effective with the merger, in accordance with Section 414(l) of the Code. Effective
with the date of the merger, the provisions of the Plan shall apply to the
transferred account balances from the Freihofer Plan, with the modifications
set forth below.

 

(5)           Vesting in Transferred Amounts:  A Freihofer Participant’s vested interested
in his sub-account balance attributable to his transferred account balance from
the Freihofer Plan shall be determined by applying the Plan’s vesting schedule under
subsection 9.1 to the vesting service credited under the Freihofer Plan
prior to the Effective Date, provided that a Freihofer Participant’s subaccount
balance shall be at least 50% vested at all times.

 

(6)           Special Withdrawal Provision:  The provisions of this paragraph 6 shall
apply only with respect to that portion of a Freihofer Participant’s benefit which
is attributable to amounts transferred to this Plan from the Freihofer Plan. Notwithstanding
the provisions of subsection 10.2, a Freihofer Participant may withdraw
any voluntary after-tax contributions made to the Freihofer Plan and any
earnings allocable thereto, until November 1, 1999 subject to a minimum
withdrawal of $300.

 

M-1

 

SUPPLEMENT N

 

KRAFT FOODS
GLOBAL, INC. THRIFT PLAN

Special Benefit Schedule for Former Participants in the

Balance Bar Company 401(k) Plan

 

Pursuant to subsection 1.12, this Supplement N is
made a part of the Plan as of the Effective Date set forth below and
supersedes any provisions of the Plan which are not consistent with this
Supplement N.

 

(1)           Participating Group:  This Supplement N modifies and supplements
the provisions of the Plan in connection with the participation in the Plan of
employees of the Balance Bar Company (Balance Bar), and in connection with the
merger into the Plan of the Balance Bar Company 401(k) Plan (the “Balance Par
Plan”). For purposes of this Supplement N, the term “Balance Bar Participant”
means a Participant in the Plan who, immediately prior to the Effective Date,
was a participant in the Balance Bar Plan and who had benefits from such plan
transferred to this Plan.

 

(2)           Effective Date:  January 1, 2001.

 

(3)           Eligibility. A Balance Bar Participant shall
become a Participant in the Plan on the Effective Date. Any other employee of
Balance Bar shall become eligible to participate in the Plan on the later of
the Effective Date or the date such employee would otherwise become eligible to
participate in accordance with the provisions of Section 2 of the Plan.

 

(4)           Merger of Plans:  Effective as of January 1, 2001, the
Balance Bar Plan shall be merged with and into the Plan, and the assets and
liabilities of the Balance Bar Plan shall become the assets and liabilities of
the Plan in accordance with Section 414(1) of the Code. Effective on
and after January 1, 2001, the provisions of the Plan shall apply to the
amounts transferred from the Balance Plan, with the modifications set forth
below.

 

(5)           Vesting in Transferred Amounts:  A Balance Bar Participant’s interest in his
sub-account balance attributable to amounts transferred from the Balance Bar
Plan shall be fully vested and nonforfeitable.

 

(6)           Rehired Participants. If a former participant
in the Balance Bar Plan who terminated from the employ of Balance Bar prior to
the Effective Date and before his Balance Bar Plan account balance was fully
vested is employed by the Company or a Related Company before such participant
incurs five consecutive one year breaks in service, the amount previously
forfeited (without adjustment for earnings or losses) shall be restored to a
sub-account established for the benefit of the Participant in accordance with
the provisions of subsection 11.4 of the Plan as though such forfeiture
had occurred under the Plan. Such sub-account balance shall thereafter be fully
vested and nonforfeitable. For purposes of this Supplement N. a Former Balance
Bar Participant shall incur five consecutive once year breaks-in-service on the
later of (i) the date he incurs five consecutive
One-Year-Breaks-in-Service as defined and determined under the Plan, or (ii) the
date he incurs five consecutive “1-year Break in Service” as defined and 

 

N-1

 

determined under the provisions of the Balance Bar
401(k) Plan as in effect immediately prior to the Effective Date. If a former
participant in the Balance Bar Plan is employed by the Company or a Related
Company after the date determined under the preceding sentence, no restoration
shall be made and his employment shall have no effect on the amount previously
forfeited under the Balance Bar Plan.

 

(7)           Initial Investment. Amounts transferred from
the Balance Bar Plan initially shall be invested in the Investment Funds in
accordance with such procedures as may be approved by the Committee. Thereafter,
Balance Bar Participants may elect to transfer prospectively an amount
invested in one Investment Fund to one or more other Investment Funds in
accordance with Section 6; provided, however, that the Committee may impose
such restrictions on transfer as it deems appropriate to accomplish the merger
of the Plans and the reconciliation of transferred account balances.

 

(8)           Loans. Any loans outstanding under the
Balance Bar Plan on the Effective Date shall be transferred to the Plan and
shall remain in effect in accordance with the provisions of the applicable loan
documents and the Balance Bar Loan Program. Any loans from the Plan to a
Balance Bar Participant made after the Effective Date shall be in accordance
with Section 10 of the Plan.

 

(9)           Special Rule for Payments to Beneficiaries.
The provisions of this paragraph 9 shall apply only with respect to that
portion of a Balance Bar Participant’s benefit which is attributable to amounts
transferred to this Plan from the Balance Bar Plan. Notwithstanding the
provisions of subsection 10.2(a) of the Plan (relating to distributions
to a Beneficiary other than a Participant’s spouse), a Beneficiary of a Balance
Bar Participant who is not such Participant’s spouse may elect payment in
the form of substantially equal monthly, quarterly, semi-annual or annual
installments over a period determined by the Participant or Beneficiary
(subject to subsection 11.5), provided that payments of such installments
begin as of an annuity starting date occurring before the earlier of (i) January 1,
2003, or (ii) the 90th day after the date that Balance Bar Participants
are furnished a summary of the merger amendment that eliminates this optional form of
payment with respect to such non-spouse Beneficiaries. Such summary shall
satisfy the requirements for a summary of material modifications under 29 CFR
2520.104b-3.

 

(10)         Recalculation of Life Expectancy. Life
expectancy of the Participant or his spouse shall not be recalculated under subsection 11.5,
except that life expectancy may be recalculated with respect to the
portion of a Balance Bar Participant’s account balance that is attributable to
amounts transferred to this Plan from the Balance Bar Plan, provided that
distribution of such portion of the account begins as of an annuity starting
date occurring before the earlier of (i) January 1, 2003, or (ii) the
90th day following the date that Balance Bar Participants are furnished a
summary of the merger amendment that eliminates this recalculation option. Such
summary shall satisfy the requirements for a summary of material modifications
under 29 CFR 2520.104b-3.

 

(11)         Beneficiary Designation. The beneficiary
designation filed and in effect under the Balance Bar Plan shall be given
effect under the Plan unless and until revoked by a new 

 

N-2

 

beneficiary designation filed under the Plan. Any such
new beneficiary designation shall be effective for the Participant’s entire
account balance, including any portion attributable to amounts transferred from
the Balance Bar Plan.

 

N-3

 

SUPPLEMENT O

 

KRAFT FOODS
GLOBAL, INC. THRIFT PLAN

Special Benefit Schedule for Former Participants in the

Long Term Savings Plan for Hourly Employees

 

Pursuant to subsection 1.12, this Supplement O is
made a part of the Plan as of the Effective Date set forth below and
supersedes any provisions of the Plan which are not consistent with this
Supplement O.

 

(1)           Participating Group:  This Supplement O modifies and supplements
the provisions of the Plan in connection with the merger into the Plan of the
Long Term Savings Plan for Hourly Employees (the “LOTS Plan”) and the
participation in the Plan of individuals who were formerly participants in the
LOTS Plan. For purposes of this Supplement O, the term “LOTS Participants”
means those Participants in the Plan who immediately prior to the Effective
Date were participants in the LOTS Plan and who had benefits from such plan
transferred to this Plan.

 

(2)           Effective Date:  October 1, 1998.

 

(3)           Eligibility: 
A LOTS Participant shall become a Participant in the Plan on the
Effective Date or the date such employee would otherwise become a Participant
in the Plan in accordance with the provisions of Section 2 of the Plan, if
earlier.

 

(4)           Merger of Plans:  The LOTS Plan shall be merged with and into
the Plan effective October 1, 1998, and the assets and liabilities of the
LOTS Plan shall become the assets and liabilities of the Plan effective with
the merger in accordance with section 414(l) of the Code. Effective with
the date of the merger, the provisions of the Plan shall apply to the
transferred account balances from the LOTS Plan, with the modifications set
forth below.

 

(5)           Vesting in Transferred Amounts:  A LOTS Participant’s vested interested in his
subaccount balance attributable to his transferred account balance from the
LOTS Plan shall be determined by applying the Plan’s vesting schedule under
subsection 9.1. A LOTS Participant’s vesting service under the Plan for
periods prior to the Effective Date shall not be less than the service, if any,
credited to such Participant for vesting purposes under the LOTS Plan for
periods prior to the Effective Date

 

O-1

 

SUPPLEMENT P

TO

KRAFT FOODS GLOBAL, INC. THRIFT PLAN

ESOP Fund Provisions

 

The effective date of this Supplement P and the ESOP
Fund to which it relates is December 15, 2001.

 

(1)           Purpose. The purpose of this Supplement P is
to set forth the provisions of the Plan applicable to the ESOP Fund and not set
forth elsewhere in the Plan.

 

(2)           Definitions. Unless the context clearly
implies or indicates the contrary, a word, term or phrase used or defined in
the plan is similarly used or defined for purposes of this Supplement P.

 

(3)           Diversification      .
Consistent with the diversification requirements of section 401(a)(28) of
the Code, a Participant may elect to diversify all or a portion of his
account which is invested in the ESOP Fund by filing an investment election
pursuant to subsection 6.3 of the Plan.

 

(4)           Put Options. If Employer Common Stock held
under the ESOP Fund is not readily tradeable on an established securities
market (within the meaning of section 409(h)(1)(B) of the Code), any
Participant or Beneficiary who is entitled to a distribution of such stock from
the Plan shall have a right to require the Employer to repurchase such shares
in accordance with section 409(h)(1)(B) of the Code.

 

(5)           ESOP Loan. Unless further amended to include
the applicable provisions of Treas. Reg. section 54.4975-7 and 11, the
Plan may not engage in an “Exempt Loan.” 
The term “Exempt Loan” means a loan made to the ESOP by a disqualified
person or a loan to the ESOP which is guaranteed by a disqualified person,
including a direct loan of cash, a purchase-money transaction, and an
assumption of the obligation of the ESOP. In addition, the ESOP shall not
obligate itself to acquire securities from a particular security holder at an
indefinite time determined upon the happening of an event such as the death of
the holder.

 

(6)           Appraiser. If at any time the Employer Common
Stock held by the Plan is not readily tradeable on an established securities
market, all valuations of such stock with respect to activities carried on by
the Plan will be made by an independent appraiser meeting the requirements of section 401(a)(28)
of the Code.

 

(7)           Voting Rights. Full and fractional shares of
Employer Common Stock invested in the ESOP Fund and allocated to any Account
shall be voted by the Trustee only in accordance with, and upon instructions
of, the Participant, Beneficiary or Alternate Payee, as the case may be,
to whose Account such shares (or units representing such shares) are allocated
on forms provided for that purpose. Such forms, together with all information
distributed to stockholders regarding the exercise of such rights, shall be
provided to each Participant, Beneficiary or Alternate Payee whose Accounts are
invested 

 

P-1

 

in the ESOP Fund (including both subparts thereof). Upon
timely receipt of instructions, the Trustee shall vote such shares as so
instructed. Shares of Employer Common Stock for which the Trustee has not
received voting instructions shall be voted in accordance with the terms of the
Trust Agreement.

 

P-2

 

SUPPLEMENT Q

 

KRAFT FOODS
GLOBAL, INC. THRIFT PLAN

Nabisco Participants

 

This Supplement Q to Kraft Foods Global, Inc.
Thrift Plan sets forth special provisions that are applicable as of January 1,
2003 with respect to the Participating Group described below and supercedes any
provisions of the Plan which are not consistent with this Supplement Q.

 

(1)           Participating Group:  This Supplement Q is applicable with respect
to each individual who, on December 31, 2002, (i) is a participant in
the Nabisco, Inc. Capital Investment Plan (the “Nabisco CIP”), (ii) has
satisfied the eligibility conditions for participation in the Nabisco CIP but
has not elected to participate, (iii) is a participant in the Nabisco, Inc.
Employee Savings Plan (the “Nabisco ESP”) (other than a participant who is a
current or former member of a collective bargaining unit to which participation
in the Nabisco ESP is extended), or (iv) has satisfied the eligibility
conditions for participation in the Nabisco ESP but has not elected to
participate (excluding any such individual who is a current or former member of
a collective bargaining unit to which participation in the Nabisco ESP is
extended). Each individual described in clause (ii) or (iv) above is
referred to as an “Eligible Nabisco Employee.”

 

(2)           Participation.
Each individual who, on December 31, 2002, is a participant in the Nabisco
CIP or Nabisco ESP (other than a participant who is a current or former member
of a collective bargaining unit) shall become a Participant in the Plan on January 1,
2003, subject to the terms and conditions of the Plan. Subject to the terms and
conditions of the Plan, each employee of an Employer who was not eligible to
participate in the Plan immediately prior to January 1, 2003 but who was
an Eligible Nabisco Employee, shall be eligible to participate in the Plan on January 1,
2003.

 

(3)           Transfer from the Nabisco ESP:  Effective January 1, 2003, assets and
liabilities of the Nabisco ESP attributable to current or former non-union
hourly employees are merged with and into the Plan. Amounts transferred from
the Nabisco ESP are subject to the provisions of the Plan, as modified by this
Supplement Q, for periods on and after January 1, 2003.

 

(4)           Transfer from the Nabisco CIP:  Effective January 1, 2003, all assets
and liabilities under the Nabisco CIP are merged with and into the Plan. Amounts
transferred from the Nabisco CIP are subject to the provisions of the Plan, as
modified by this Supplement Q, for periods on and January 1, 2003.

 

(5)           Credit for Vesting Service:  The service credited for vesting purposes
under the Plan with respect to a Participant for periods prior to January 1,
2003, shall not be less than the service, if any, credited for vesting purposes
under the Nabisco ESP or Nabisco CIP, as applicable, with respect to such
Participant for that period.

 

Q-1

 

(6)           Vesting in Transferred Amounts:  The portion of the account balances of a
Participant which are attributable to amounts transferred from the Nabisco ESP
or Nabisco CIP are fully vested and nonforfeitable.

 

(7)           Special Withdrawal Provisions:  A Participant shall be eligible to withdraw
amounts attributable to account balances transferred from the Nabisco ESP or
Nabisco CIP (including any earnings on such transferred account balances) at
the times and in the forms provided under the terms of the plan from which such
account balances were transferred as in effect on December 31, 2002.

 

(8)           Loans.
Any loan transferred from the Nabisco ESP or Nabisco CIP may be prepaid to
the extent provided by the terms of such loan and the Nabisco ESP or Nabisco
CIP, as applicable, and in the event that the Participant terminates employment
while such loan is still outstanding, such loan shall not automatically
accelerate but may continue to be repaid in accordance with its terms and
the provisions of the plan from which such loan was made.

 

Q-2

 

SUPPLEMENT R

 

KRAFT FOODS
GLOBAL, INC. THRIFT PLAN

Minimum Distribution Requirements After 2001

 

(1)           General Rules.

 

(a)           Effective Date. The provisions of this
Supplement R will apply for purposes of determining required minimum
distributions for Distribution Calendar Years beginning with the 2002 calendar
year.

 

(b)           Precedence. The requirements of this
Supplement R will take precedence over any inconsistent provisions of the Plan.

 

(c)           Requirements of Treasury Regulations Incorporated.
All distributions required under this Supplement R will be determined and made
in accordance with the Treasury regulations under section 401(a)(9) of
the Code.

 

(2)           Time and Manner of Distribution.

 

(a)           Required Beginning Date. The Participant’s
entire interest will be distributed, or begin to be distributed, to the
Participant no later than the Participant’s Required Beginning Date.

 

(b)           Death of Participant Before Distributions Begin.
If the Participant dies before distributions begin, the Participant’s entire
interest will be distributed, or begin to be distributed, no later than as
follows:

 

(i)            If
the Participant’s surviving spouse is the Participant’s sole designated
beneficiary, then distributions to the surviving spouse will begin by December 31
of the calendar year immediately following the calendar year in which the Participant
died, or by December 31 of the calendar year in which the Participant
would have attained the age of 701⁄2, if later.

 

(ii)           If
the Participant’s surviving spouse is not the Participant’s sole designated
beneficiary, then except as provided in paragraph 5 below distributions to the
designated beneficiary will begin by December 31 of the calendar year
immediately following the calendar year in which the Participant died.

 

(iii)          If
there is no designated beneficiary as of September 30 of the year following
the year of the Participant’s death, the Participant’s entire interest will be
distributed by December 31 of the calendar year containing the fifth
anniversary of the Participant’s death.

 

(iv)          If
the Participant’s surviving spouse is the Participant’s sole designated
beneficiary, and the surviving spouse dies after the Participant but before
distributions to the surviving spouse begin, this paragraph (2)(b), other 

 

R-1

 

than paragraph 2(b)(i), will apply as if the surviving
spouse were the Participant.

 

For purposes
of this paragraph 2(b) and paragraph (4), unless subparagraph (2)(b)(iv) applies,
distributions are considered to begin on the Participant’s Required Beginning
Date. If subparagraph (2)(b)(iv) applies, distributions are considered to
begin on the date distributions are required to begin to the surviving spouse
under subparagraph (2)(b)(i).

 

(c)           Forms of Distribution. Unless the Participant’s
interest is distributed in a single lump sum on or before the Required
Beginning Date, as of the first distribution calendar year, distributions will
be made in accordance with paragraphs (3) and (4) of this Supplement
R.

 

(3)           Required Minimum Distributions During Participant’s
Lifetime.

 

(a)           Amount of Required Minimum Distribution for Each
Distribution Calendar Year. During the Participant’s lifetime, the
minimum amount that will be distributed for each distribution calendar year is
the lesser of:

 

(i)            the
quotient obtained by dividing the Participant’s Account balance by the
distribution period in the Uniform Lifetime Table set forth in section 1.401(a)(9)-9
of the Treasury regulations, using the Participant’s age as of the Participant’s
birthday in the distribution calendar year; or

 

(ii)           if
the Participant’s sole designated beneficiary for the distribution calendar
year is the Participant’s spouse, the quotient obtained by dividing the
Participant’s Account balance by the number in the Joint and Last Survivor
Table set forth in section 1.401(a)(9)-9 of the Treasury regulations,
using the Participant’s and spouse’s attained ages as of the Participant’s and
spouse’s birthdays in the distribution calendar year.

 

(b)           Lifetime Required Minimum Distributions Continue Through
Year of Participant’s Death. Required minimum distributions will be
determined under this paragraph (3) beginning with the first distribution
calendar year and up to and including the distribution calendar year that
includes the Participant’s date of death.

 

(4)           Required Minimum Distributions After Participant’s Death.

 

(a)           Death On or After Distributions Begin.

 

(i)            Participant
Survived by Designated Beneficiary. If the Participant dies on or after the
date distributions begin and there is a designated beneficiary, the minimum
amount that will be distributed for each distribution calendar year after the
year of the Participant’s death is the quotient obtained by dividing the
Participant’s Account Balance by the longer of the remaining 

 

R-2

 

life expectancy of the Participant or the remaining
life expectancy of the Participant’s designated beneficiary, determined as
follows:

 

(A)          The
Participant’s remaining life expectancy is calculated using the age of the
Participant in the year of death, reduced by one for each subsequent year.

 

(B)           If
the Participant’s surviving spouse is the Participant’s sole designated
beneficiary, the remaining life expectancy of the surviving spouse is
calculated for each distribution calendar year after the year of the Participant’s
death using the surviving spouse’s age as of the spouse’s birthday in that year.
For distribution calendar years after the year of the surviving spouse’s death,
the remaining life expectancy of the surviving spouse is calculated using the
age of the surviving spouse as of the spouse’s birthday in the calendar year of
the spouse’s death, reduced by one for each subsequent calendar year.

 

(C)           If
the Participant’s surviving spouse is not the Participant’s sole designated
beneficiary, the designated beneficiary’s remaining life expectancy is
calculated using the age of the beneficiary in the year following the year of
the Participant’s death, reduced by one for each subsequent year.

 

(ii)           No Designated Beneficiary. If the Participant
dies on or after the date distributions begin and there is no designated
beneficiary as of September 30 of the year after the year of the
Participant’s death, the minimum amount that will be distributed for each
distribution calendar year after the year of the Participant’s death is the
quotient obtained by dividing the Participant’s Account Balance by the
Participant’s remaining life expectancy calculated using the age of the
Participant in the year of death, reduced by one for each subsequent year.

 

(b)           Death Before Date Distributions Begin.

 

(i)            Participant
Survived by Designated Beneficiary. Except as provided in paragraph 5
below, if the Participant dies before the date distributions begin and there is
a designated beneficiary, the minimum amount that will be distributed for each
distribution calendar year after the year of the Participant’s death is the
quotient obtained by dividing the Participant’s Account Balance by the
remaining life expectancy of the Participant’s designated beneficiary,
determined as provided in paragraph (4)(a).

 

(ii)           No
Designated Beneficiary. If the Participant dies before the date
distributions begin and there is no designated beneficiary as of September 30
of the year following the year of the Participant’s death, distribution of 

 

R-3

 

the Participant’s entire interest will be completed by
December 31 of the calendar year containing the fifth anniversary of the
Participant’s death.

 

(iii)          Death
of Surviving Spouse Before Distributions to Surviving Spouse are Required to
Begin. If the Participant dies before the date distributions begin, the
Participant’s surviving spouse is the Participant’s sole designated
beneficiary, and the surviving spouse dies before distributions are required to
begin to the surviving spouse under subparagraph (2)(b)(i), this paragraph (4)(b) will
apply as if the surviving spouse were the Participant.

 

(5)           Application of 5-Year Rule to Distributions to
Non-Spouse Beneficiaries. If the Participant dies before
distributions begin and there is a designated beneficiary who is not the
Participant’s surviving spouse, distribution to the designated beneficiary is
not required to begin by the date specified in paragraph (2)(b)(ii) of
this Supplement R, but the Participant’s entire interest will be distributed to
the designated beneficiary by December 31 of the calendar year containing
the fifth anniversary of the Participant’s death. The provisions of this
paragraph (5) shall not apply to distributions in the form described
in subsection 11.1(b) (relating to installments) with respect to
which the Annuity Starting Date has occurred prior to the Participant’s death.

 

(6)           Definitions.

 

(a)           “Designated
Beneficiary” means the individual who is designated as the beneficiary under section 11.6
of the Plan and is the designated beneficiary under section 401(a)(9) of
the Code and section 1.401(a)(9)-1, Q&A-4, of the Treasury
regulations.

 

(b)           “Distribution
Calendar Year” means a calendar year for which a minimum distribution is
required. For distributions beginning before the Participant’s death, the first
distribution calendar year is the calendar year immediately preceding the
calendar year which contains the Participant’s Required Beginning Date. For
distributions beginning after the Participant’s death, the first distribution
calendar year is the calendar year in which distributions are required to begin
under subparagraph (2)(b). The required minimum distribution for the
Participant’s first distribution calendar year will be made on or before the
Participant’s Required Beginning Date. The required minimum distribution for
other distribution calendar years, including the required minimum distribution
for the distribution calendar year in which the Participant’s Required
Beginning Date occurs, will be made on or before December 31 of that
distribution calendar year.

 

(c)           “Life
Expectancy” means life expectancy as computed by use of the Single Life Table
in Section 1.401(a)(9)-9 of the Treasury regulations.

 

(d)           “Participant’s
Account Balance” means the account balance as of the last valuation date in the
calendar year immediately preceding the distribution calendar year (valuation
calendar year) increased by the amount of any 

 

R-4

 

contributions made and allocated or forfeitures
allocated to the account balance as of dates in the valuation calendar year
after the valuation date and decreased by distributions made in the valuation
calendar year after the valuation date. The account balance for the valuation
calendar year includes any amounts rolled over or transferred to the Plan
either in the valuation calendar year or in the distribution calendar year if
distributed or transferred in the valuation calendar year.

 

(e)           “Required
Beginning Date” shall have the meaning set forth in subsection 11.5(c) of
the Plan.

 

R-5

 

SUPPLEMENT S

 

KRAFT FOODS
GLOBAL, INC. THRIFT PLAN

Special Benefit Schedule for Former Participants in the

Veryfine Products, Inc. Retirement Savings Plan

 

Pursuant to subsection 1.12, this Supplement S is
made a part of the Plan as of the effective date set forth below and
supersedes any provisions of the Plan which are not consistent with this
Supplement S.

 

(1)           Participant
Group:  This Supplement S modifies
and supplements the provisions of the Plan in connection with the participation
in the Plan of employees of the Employer employed in its Veryfine Products
business (“Veryfine Products Employees”), and in connection with the merger into
the Plan of the Veryfine Products, Inc. Retirement Savings Plan (the “Veryfine
Plan”). For purposes of this Supplement S, the term “Former Veryfine Plan
Participant” means a Participant in the Plan who, immediately prior to the
merger of the Veryfine Plan into this Plan, was a participant in the Veryfine
Plan and had an account balance under the Veryfine Plan transferred to this
Plan.

 

(2)           Effective
Date. The Effective Date of this Supplement S is July 1, 2004.

 

(3)           Eligibility.
Each Veryfine Products Employee shall be eligible to participate in the Plan on
the later of July 1, 2004 or the date such employee would otherwise become
eligible to participate in the Plan in accordance with the provisions of Section 2
of the Plan. Each Former Veryfine Plan Participant shall become a Participant
in the Plan effective upon the merger of the Veryfine Plan into the Plan if he
has not become a Participant before that date.

 

(4)           Merger
of Plans:  Effective as of December 31,
2004 (the “Merger Date”), the Veryfine Plan shall be merged with and into the
Plan, and the assets and liabilities of the Veryfine Plan shall become assets
and liabilities of the Plan in accordance with section 414(l) of the Code.
Effective for periods after December 31, 2004, the provisions of the Plan
shall govern the amounts transferred from the Veryfine Plan, with the
modifications set forth below.

 

(5)           Vesting
in Transferred Amounts:  A Former
Veryfine Plan Participant’s interest in his sub-account balance attributable to
amounts transferred from the Veryfine Plan shall be fully vested and
nonforfeitable at all times.

 

(6)           Initial
Investment:  Amounts transferred from
the Veryfine Plan initially shall be invested among the Investment Funds in
accordance with procedures approved by the Committee. Thereafter, Former
Veryfine Plan Participants may elect (but not retroactively) to transfer
amounts attributable to the Veryfine Plan among the Investment Funds in
accordance with Section 6 of the Plan; provided, however, that the
Committee may impose such temporary restrictions on transfer as it deems
appropriate to accomplish the merger of the Plans and the reconciliation of
transferred account balances.

 

S-1

 

(7)           Loans.
Any loans outstanding under the Veryfine Plan on the Merger Date shall be
transferred to the Plan, shall continue in effect and shall continue to be
governed by the terms and conditions of the applicable loan documents and the
Veryfine Plan Loan Program until repaid, subject to such de minimis
adjustments in the timing or amount of repayments as may be necessary to
coordinate payroll schedules or other administrative practices and to ensure
that the loan is repaid within its original term. Any loans made from the Plan
to a Former Veryfine Plan Participant after the Merger Date shall be made in
accordance with Section 10 of the Plan.

 

(8)           Special
Withdrawal Provisions. The provisions of this paragraph 8 shall apply
solely with respect to the portion of a Former Veryfine Participant’s Account attributable
to amounts transferred to the Plan from the Veryfine Plan. Notwithstanding the
provisions of subsection 10.2 of the Plan to the contrary, a Former
Veryfine Participant whose Termination Date has not occurred may elect to
withdraw all or part of his interest in his After-Tax Account and his
Rollover Account at any time, whether or not such Participant has incurred a
Hardship.

 

(9)           Special
Distribution Provisions. The following provisions shall apply (i) after
a Former Veryfine Plan Participant incurs a Termination Date and (ii) solely
with respect to the portion of his Plan benefit which is attributable to
amounts transferred to this Plan from the Veryfine Plan:

 

(a)           Such
Participant may elect to receive distribution through the purchase from an
insurance company of a single premium nontransferable annuity contract that
provides for any form of annuity provided under an insurance contract;
provided, however, that (i) distribution in the form of an annuity
contract shall be permitted only with respect to distributions having an
Annuity Starting Date before March 1, 2005 or, if later, the 90th
day after the date that Former Veryfine Plan Participants are furnished a
notice of the elimination of this form of distribution (including for
purposes of such 90-day period, any period prior to the Merger Date and after
such notice is issued under the Veryfine Plan), but in no event later than January 1, 2006,
and (ii) once an eligible Participant elects distribution in the form of
an annuity contract, that portion of the Participant’s account thereafter shall
be subject to the provisions of subsection 11.3 of the Plan (relating to
the automatic Joint and Survivor Annuity).

 

(b)           If
such Participant has not reached his Required Beginning Date, he may elect,
at any time prior to his Required Beginning Date, to receive a partial
distribution in the form of a lump sum.

 

(10)         Beneficiary
Designation. Any beneficiary designation filed and in effect under the
Veryfine Plan immediately before the Merger Date shall be given effect under
the Plan with respect to the Participant’s entire account balance unless and
until it is revoked by the Participant by filing a new beneficiary designation
under the Plan in accordance with subsection 11.6 or by filing a written
revocation of the prior beneficiary designation with the Committee. Any new
beneficiary designation or revocation of an existing beneficiary 

 

S-2

 

designation shall be effective with respect to the
Participant’s entire account balance, including any portion attributable to
amounts transferred from the Veryfine Plan.

 

(12)         Allocation
of Amounts Released from Escrow. Pursuant to the terms of an escrow
agreement entered into in connection with the sale of the stock of Veryfine
Products, Inc. to Kraft Foods Global, Inc., effective March 29,
2004, certain escrowed funds may be paid to the Trustee, as
successor-in-interest to the Trustee of the Veryfine Plan, over a seven-year
period ending in 2011. Any such amount received by the Trustee represents
proceeds from the sale of the Veryfine stock held in the employer stock
investment fund under the Veryfine Plan as of March 29, 2004, and,
accordingly, such amounts:

 

(a)           shall
be allocated among and credited to the accounts of Former Veryfine Plan
Participants (and any former participants in the Veryfine Plan who were
invested in the employer stock fund as of March 29, 2004 but who are not
Former Veryfine Plan Participants) in proportion to their respective interests
in the employer stock investment fund maintained under the Veryfine Plan as of March 29,
2004;

 

(b)           shall
not be considered contributions for purposes of the contribution provisions of Section 4
or 5 or the limitations of Section 8; and

 

(c)           shall
initially be invested in the stable value or similar fund maintained under the
Plan at the time such amounts are received by the Trustee, and thereafter shall
be subject to Participant investment direction in accordance with Section 6
until distributed or withdrawn in accordance with Section 10 or 11, as
applicable.

 

Solely to the extent necessary to carry out the
provisions of this paragraph (12), an account shall be established and
maintained under the Plan in the name of any former participant in the Veryfine
Plan who had an account balance in the employer stock investment fund under the
Veryfine Plan as of March 29, 2004, whether or not such individual is a
Former Veryfine Plan Participant.

 

S-3EXHIBIT 4.5

 

CONFORMED THROUGH

SECOND AMENDMENT

 

KRAFT FOODS GLOBAL, INC. TIP PLAN

 

(As Amended
and Restated

Effective As of January 1, 2003)

 

 

Mayer, Brown,
Rowe & Maw

Chicago

 

 

CERTIFICATE OF
ADOPTION

 

By virtue of the amending authority reserved
to the Management Committee for Employee Benefits (the “Committee”) in subsection 14.1
of the Kraft Foods North America, Inc. TIP Plan (the “Plan”), and pursuant
to the authority delegated to the undersigned by the Committee, the Plan is
hereby amended, restated, and continued, effective
as of January 1, 2003, in the form set forth herein. 

 

IN WITNESS WHEREOF, the
undersigned has executed this amendment and restatement this 31st day of
December, 2003.

 

	
   

  	
  By:

  	
   /s/ JILL K. YOUMAN

  
	
   

  	
  Its:

  	
  Vice-President, Human Resources, Benefits

  
	
   

  

 

 

TABLE OF
CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  SECTION 1

  	
  GENERAL

  	
  1

  
	
   

  	
   

  
	
  1.1.

  	
  History, Purpose and Effective Date

  	
  1

  
	
   

  	
   

  	
   

  
	
  1.2.

  	
  Related Companies and Employers

  	
  1

  
	
   

  	
   

  	
   

  
	
  1.3.

  	
  Plan Administration, Trust and Fiduciary Responsibility

  	
  1

  
	
   

  	
   

  	
   

  
	
  1.4.

  	
  Plan Year

  	
  2

  
	
   

  	
   

  	
   

  
	
  1.5.

  	
  Accounting Dates

  	
  2

  
	
   

  	
   

  	
   

  
	
  1.6.

  	
  Applicable Laws

  	
  2

  
	
   

  	
   

  	
   

  
	
  1.7.

  	
  Gender and Number

  	
  2

  
	
   

  	
   

  	
   

  
	
  1.8.

  	
  Notices

  	
  2

  
	
   

  	
   

  	
   

  
	
  1.9.

  	
  Form of Election and Signature

  	
  2

  
	
   

  	
   

  	
   

  
	
  1.10.

  	
  Evidence

  	
  3

  
	
   

  	
   

  	
   

  
	
  1.11.

  	
  Action by Employers

  	
  3

  
	
   

  	
   

  	
   

  
	
  1.12.

  	
  Plan Supplements

  	
  3

  
	
   

  	
   

  	
   

  
	
  1.13.

  	
  Defined Terms

  	
  3

  
	
   

  	
   

  	
   

  
	
  1.14.

  	
  Compliance With USERRA

  	
  3

  
	
   

  	
   

  	
   

  
	
  SECTION 2

  	
  PARTICIPATION IN PLAN

  	
  3

  
	
   

  	
   

  	
   

  
	
  2.1.

  	
  Eligibility for Participation

  	
  3

  
	
   

  	
   

  	
   

  
	
  2.2.

  	
  Commencement of Participation

  	
  4

  
	
   

  	
   

  	
   

  
	
  2.3.

  	
  Inactive Participation

  	
  4

  
	
   

  	
   

  	
   

  
	
  2.4.

  	
  Plan Not Contract of Employment

  	
  4

  
	
   

  	
   

  	
   

  
	
  2.5.

  	
  Leased Employees

  	
  4

  
	
   

  	
   

  	
   

  
	
  SECTION 3

  	
  SERVICE

  	
  5

  
	
   

  	
   

  	
   

  
	
  3.1.

  	
  Years of Service

  	
  5

  
	
   

  	
   

  	
   

  
	
  3.2.

  	
  Hour of Service

  	
  5

  
	
   

  	
   

  	
   

  
	
  3.3.

  	
  One Year Break in Service

  	
  6

  
	
   

  	
   

  	
   

  
	
  3.4.

  	
  Service With Altria Group Affiliates and Predecessor Employers

  	
  7

  
	
   

  	
   

  	
   

  
	
  3.5.

  	
  Qualified Military Service

  	
  7

  
	
   

  	
   

  	
   

  
	
  SECTION 4

  	
  BEFORE-TAX, AFTER-TAX AND
  ROLLOVER CONTRIBUTIONS

  	
  7

  
	
   

  	
   

  	
   

  
	
  4.1.

  	
  Before-Tax Contributions

  	
  7

  
	
   

  	
   

  	
   

  
	
  4.2.

  	
  After-Tax Contributions

  	
  8

  

 

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  4.3.

  	
  Total Before-Tax and After-Tax Contributions

  	
  8

  
	
   

  	
   

  	
   

  
	
  4.4.

  	
  Payment of Before-Tax and After-Tax Contributions

  	
  8

  
	
   

  	
   

  	
   

  
	
  4.5.

  	
  Modification, Discontinuance and Resumption of Before-Tax
  or After-Tax Contributions

  	
  8

  
	
   

  	
   

  	
   

  
	
  4.6.

  	
  Eligible Compensation

  	
  9

  
	
   

  	
   

  	
   

  
	
  4.7.

  	
  Limitation on Compensation Taken Into Account For Any Plan Year

  	
  9

  
	
   

  	
   

  	
   

  
	
  4.8.

  	
  Rollover Contributions

  	
  9

  
	
   

  	
   

  	
   

  
	
  SECTION 5

  	
  MATCHING CONTRIBUTIONS

  	
  9

  
	
   

  	
   

  	
   

  
	
  5.1.

  	
  Matching Contributions

  	
  9

  
	
   

  	
   

  	
   

  
	
  5.2.

  	
  Limitations on Amount of Employer Contributions

  	
  10

  
	
   

  	
   

  	
   

  
	
  5.3.

  	
  Payment of Employer Contributions

  	
  10

  
	
   

  	
   

  	
   

  
	
  SECTION 6

  	
  INVESTMENT OF THE TRUST FUND

  	
  10

  
	
   

  	
   

  	
   

  
	
  6.1.

  	
  Investment Funds and Loan Account

  	
  10

  
	
   

  	
   

  	
   

  
	
  6.2.

  	
  Loan Account and Investment Fund Accounting

  	
  11

  
	
   

  	
   

  	
   

  
	
  6.3.

  	
  Investment Fund Elections

  	
  11

  
	
   

  	
   

  	
   

  
	
  6.4.

  	
  Transfers Between Investment Funds

  	
  12

  
	
   

  	
   

  	
   

  
	
  6.5.

  	
  Automatic Transfers to the ESOP Fund

  	
  12

  
	
   

  	
   

  	
   

  
	
  6.6.

  	
  Independent Investment Advice

  	
  13

  
	
   

  	
   

  	
   

  
	
  SECTION 6A

  	
  INVESTMENT COMMITTEE

  	
  13

  
	
   

  	
   

  	
   

  
	
  6A.1.

  	
  Investment Committee Membership and Authority

  	
  13

  
	
   

  	
   

  	
   

  
	
  6A.2.

  	
  Allocation and Delegation of Investment Committee Responsibilities
  and Powers

  	
  14

  
	
   

  	
   

  	
   

  
	
  6A.3.

  	
  Exercise of Investment Committee’s Duties

  	
  14

  
	
   

  	
   

  	
   

  
	
  6A.4.

  	
  Remuneration and Expenses

  	
  15

  
	
   

  	
   

  	
   

  
	
  6A.5.

  	
  Indemnification of the Investment Committee

  	
  15

  
	
   

  	
   

  	
   

  
	
  6A.6.

  	
  Resignation of Investment Committee Member

  	
  15

  
	
   

  	
   

  	
   

  
	
  6A.7.

  	
  Removal of Investment Committee Member

  	
  15

  
	
   

  	
   

  	
   

  
	
  6A.8.

  	
  ERISA Section 404(c)

  	
  15

  
	
   

  	
   

  	
   

  
	
  SECTION 7

  	
  PLAN ACCOUNTING

  	
  16

  
	
   

  	
   

  	
   

  
	
  7.1.

  	
  Participants’ Accounts

  	
  16

  
	
   

  	
   

  	
   

  
	
  7.2.

  	
  Allocation of Fund Earnings and Changes in Value

  	
  16

  
	
   

  	
   

  	
   

  
	
  7.3.

  	
  Allocation and Crediting of Contributions

  	
  17

  

 

ii

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  7.4.

  	
  Correction of Error

  	
  17

  
	
   

  	
   

  	
   

  
	
  7.5.

  	
  Statement of Plan Interest

  	
  17

  
	
   

  	
   

  	
   

  
	
  SECTION 8

  	
  LIMITATIONS ON COMPENSATION,
  CONTRIBUTIONS AND ALLOCATIONS

  	
  18

  
	
   

  	
   

  	
   

  
	
  8.1.

  	
  Reduction of Contribution Rates

  	
  18

  
	
   

  	
   

  	
   

  
	
  8.2.

  	
  Compensation for Limitation/Testing Purposes

  	
  18

  
	
   

  	
   

  	
   

  
	
  8.3.

  	
  Limitations on Annual Additions

  	
  18

  
	
   

  	
   

  	
   

  
	
  8.4.

  	
  Excess Annual Additions

  	
  19

  
	
   

  	
   

  	
   

  
	
  8.5.

  	
  Annual Dollar Limitation

  	
  19

  
	
   

  	
   

  	
   

  
	
  8.6.

  	
  Section 401(k)(3) Testing

  	
  20

  
	
   

  	
   

  	
   

  
	
  8.7.

  	
  Correction Under Section 401(k) Test

  	
  21

  
	
   

  	
   

  	
   

  
	
  8.8.

  	
  Highly Compensated

  	
  21

  
	
   

  	
   

  	
   

  
	
  8.9.

  	
  Forfeiture of “Orphaned” Matching Contributions

  	
  21

  
	
   

  	
   

  	
   

  
	
  SECTION 9

  	
  VESTING SERVICE, VESTING AND
  TERMINATION DATES

  	
  22

  
	
   

  	
   

  	
   

  
	
  9.1.

  	
  Determination of Vesting Service and Vested Interest

  	
  22

  
	
   

  	
   

  	
   

  
	
  9.2.

  	
  Accelerated Vesting

  	
  23

  
	
   

  	
   

  	
   

  
	
  9.3.

  	
  Termination Date

  	
  23

  
	
   

  	
   

  	
   

  
	
  9.4.

  	
  Distribution of Before-Tax Account Only Upon Separation From Service

  	
  23

  
	
   

  	
   

  	
   

  
	
  SECTION 10

  	
  LOANS AND WITHDRAWALS OF
  CONTRIBUTIONS WHILE EMPLOYED

  	
  23

  
	
   

  	
   

  	
   

  
	
  10.1.

  	
  Loans to Participants

  	
  23

  
	
   

  	
   

  	
   

  
	
  10.2.

  	
  Hardship Withdrawals

  	
  26

  
	
   

  	
   

  	
   

  
	
  10.3.

  	
  Determination of Hardship

  	
  26

  
	
   

  	
   

  	
   

  
	
  10.4.

  	
  Age 591⁄2 Withdrawals

  	
  28

  
	
   

  	
   

  	
   

  
	
  10.5.

  	
  Withdrawals From 3/31/97 After-Tax and Matching Account Balances

  	
  28

  
	
   

  	
   

  	
   

  
	
  10.6.

  	
  Withdrawals of Dividends During and After Employment

  	
  28

  
	
   

  	
   

  	
   

  
	
  10.7.

  	
  Form of Withdrawals

  	
  28

  
	
   

  	
   

  	
   

  
	
  SECTION 11

  	
  DISTRIBUTIONS

  	
  29

  
	
   

  	
   

  	
   

  
	
  11.1.

  	
  Distributions to Participants After Termination of Employment

  	
  29

  
	
   

  	
   

  	
   

  
	
  11.2.

  	
  Distributions to Beneficiaries

  	
  30

  
	
   

  	
   

  	
   

  
	
  11.3.

  	
  Special Rules Governing Annuity Elections

  	
  31

  
	
   

  	
   

  	
   

  
	
  11.4.

  	
  Forfeitures and Restorations of Non-Vested Contributions

  	
  32

  

 

iii

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  11.5.

  	
  Limits on Commencement and Duration of Distributions

  	
  33

  
	
   

  	
   

  	
   

  
	
  11.6.

  	
  Beneficiary Designations

  	
  34

  
	
   

  	
   

  	
   

  
	
  11.7.

  	
  Form of Payment

  	
  35

  
	
   

  	
   

  	
   

  
	
  11.8.

  	
  Facility of Payment

  	
  36

  
	
   

  	
   

  	
   

  
	
  11.9.

  	
  Interests Not Transferable

  	
  36

  
	
   

  	
   

  	
   

  
	
  11.10.

  	
  Absence of Guaranty

  	
  36

  
	
   

  	
   

  	
   

  
	
  11.11.

  	
  Missing Participants or Beneficiaries

  	
  36

  
	
   

  	
   

  	
   

  
	
  11.12.

  	
  Direct Rollover Option

  	
  37

  
	
   

  	
   

  	
   

  
	
  11.13.

  	
  Distributions on Account of Permanent and Total Disability

  	
  37

  
	
   

  	
   

  	
   

  
	
  SECTION 12

  	
  NO REVERSION TO EMPLOYERS

  	
  37

  
	
   

  	
   

  	
   

  
	
  SECTION 13

  	
  ADMINISTRATION

  	
  38

  
	
   

  	
   

  	
   

  
	
  13.1.

  	
  Committee Membership and Authority

  	
  38

  
	
   

  	
   

  	
   

  
	
  13.2.

  	
  Allocation and Delegation of Committee Responsibilities and Powers

  	
  39

  
	
   

  	
   

  	
   

  
	
  13.3.

  	
  Uniform Rules

  	
  39

  
	
   

  	
   

  	
   

  
	
  13.4.

  	
  Information to be Furnished to Committee

  	
  39

  
	
   

  	
   

  	
   

  
	
  13.5.

  	
  Committee’s Decision Final

  	
  40

  
	
   

  	
   

  	
   

  
	
  13.6.

  	
  Exercise of Committees’ Duties

  	
  40

  
	
   

  	
   

  	
   

  
	
  13.7.

  	
  Remuneration and Expenses

  	
  40

  
	
   

  	
   

  	
   

  
	
  13.8.

  	
  Indemnification of the Committees

  	
  40

  
	
   

  	
   

  	
   

  
	
  13.9.

  	
  Resignation or Removal of Committee Member

  	
  40

  
	
   

  	
   

  	
   

  
	
  13.10.

  	
  Appointment of Successor Committee Members

  	
  40

  
	
   

  	
   

  	
   

  
	
  13.11.

  	
  Committee Discretion

  	
  41

  
	
   

  	
   

  	
   

  
	
  SECTION 14

  	
  AMENDMENT AND TERMINATION

  	
  41

  
	
   

  	
   

  	
   

  
	
  14.1.

  	
  Amendment

  	
  41

  
	
   

  	
   

  	
   

  
	
  14.2.

  	
  Termination

  	
  41

  
	
   

  	
   

  	
   

  
	
  14.3.

  	
  Merger and Consolidation of the Plan, Transfer of Plan Assets

  	
  41

  
	
   

  	
   

  	
   

  
	
  14.4.

  	
  Distribution on Termination and Partial Termination

  	
  42

  
	
   

  	
   

  	
   

  
	
  14.5.

  	
  Notice of Amendment, Termination or Partial Termination

  	
  42

  
	
   

  	
   

  	
   

  
	
  SECTION 15

  	
  CHANGE OF CONTROL PROVISIONS

  	
  42

  
	
   

  	
   

  	
   

  
	
  15.1.

  	
  Application

  	
  42

  
	
   

  	
   

  	
   

  
	
  15.2.

  	
  Definition of Change of Control

  	
  42

  

 

iv

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  15.3.

  	
  Contribution Requirement

  	
  44

  
	
   

  	
   

  	
   

  
	
  15.4.

  	
  Vesting

  	
  44

  
	
   

  	
   

  	
   

  
	
  15.5.

  	
  Enforcement Rights; Amendment Restrictions

  	
  44

  
	
   

  	
   

  	
   

  
	
  15.6.

  	
  Construction

  	
  45

  

 

v

 

	
  SUPPLEMENT A

  	
  California Vegetable
  Concentrates Division

  	
   

  	
  A-1

  
	
  SUPPLEMENT B

  	
  Naperville Hourly Employees

  	
   

  	
  B-1

  
	
  SUPPLEMENT C

  	
  South Edmeston Hourly
  Employees

  	
   

  	
  C-1

  
	
  SUPPLEMENT D

  	
  Farmdale Hourly Employees

  	
   

  	
  D-1

  
	
  SUPPLEMENT E

  	
  Madison Hourly Employees

  	
   

  	
  E-1

  
	
  SUPPLEMENT F

  	
  Woodstock Hourly Employees

  	
   

  	
  F-1

  
	
  SUPPLEMENT G

  	
  Avon Hourly Employees

  	
   

  	
  G-1

  
	
  SUPPLEMENT H

  	
  Coshocton Hourly Employees

  	
   

  	
  H-1

  
	
  SUPPLEMENT I

  	
  Nashville Hourly Employees

  	
   

  	
  P-1

  
	
  SUPPLEMENT J

  	
  Sherman Hourly Employees

  	
   

  	
  J-1

  
	
  SUPPLEMENT K

  	
  Sandusky and Chicago Hourly
  Employees

  	
   

  	
  K-1

  
	
  SUPPLEMENT L

  	
  ESOP Fund Provisions

  	
   

  	
  L-1

  
	
  SUPPLEMENT M

  	
  Walton Hourly Employees

  	
   

  	
  M-1

  
	
  SUPPLEMENT N

  	
  Davenport Hourly Employees

  	
   

  	
  N-1

  
	
  SUPPLEMENT O

  	
  Fullerton Hourly Employees

  	
   

  	
  O-1

  
	
  SUPPLEMENT P

  	
  Nabisco Hourly Employees

  	
   

  	
  P-1

  
	
  SUPPLEMENT Q

  	
  Minimum Distribution
  Requirements After 2001

  	
   

  	
  Q-1

  
	
  SUPPLEMENT R

  	
  Ontario Hourly Employees

  	
   

  	
  R-1

  

 

vi

 

INDEX OF DEFINED TERMS

 

	
  Section

  	
   

  	
  Defined
  Term

  
	
  1.9

  	
   

  	
  Access System

  
	
  1.5

  	
   

  	
  Accounting Date

  
	
  7.1

  	
   

  	
  Accounts

  
	
  7.1(c)

  	
   

  	
  After-Tax Account

  
	
  4.2

  	
   

  	
  After-Tax Contribution

  
	
  6.1

  	
   

  	
  Altria Group

  
	
  6.1

  	
   

  	
  Altria Group Common Stock

  
	
  6.1

  	
   

  	
  Altria Group Stock Fund

  
	
  8.3

  	
   

  	
  Annual Additions

  
	
  7.1(b)

  	
   

  	
  Before-Tax Account

  
	
  4.1

  	
   

  	
  Before-Tax Contribution

  
	
  11.6

  	
   

  	
  Beneficiary

  
	
  15.2(c)

  	
   

  	
  Business Combination

  
	
  15.2

  	
   

  	
  Change of Control

  
	
  1.1

  	
   

  	
  Code

  
	
  1.2

  	
   

  	
  Committee

  
	
  1.3

  	
   

  	
  Committees

  
	
  6.1(c)

  	
   

  	
  Common Stock

  
	
  1.1

  	
   

  	
  Company

  
	
  8.2

  	
   

  	
  Compensation

  
	
  3.1(b)

  	
   

  	
  Computation Period

  
	
  8.9

  	
   

  	
  Contribution Percentage

  
	
  15.5(b)

  	
   

  	
  Control Date

  
	
  15.3

  	
   

  	
  Control Period

  
	
  8.7

  	
   

  	
  Deferral Percentage

  
	
  11.1(c)

  	
   

  	
  Distribution Date

  
	
  1.1

  	
   

  	
  Effective Date

  
	
  4.6

  	
   

  	
  Eligible Compensation

  
	
  1.2

  	
   

  	
  Employer

  
	
  6.1

  	
   

  	
  Employer Common Stock

  
	
  1.3

  	
   

  	
  ERISA

  
	
  1.3

  	
   

  	
  ESOP Fund

  
	
  8.8

  	
   

  	
  Excess Contributions

  
	
  6.5

  	
   

  	
  Ex-dividend Date

  
	
  1.3

  	
   

  	
  Fund

  
	
  10.3

  	
   

  	
  Hardship

  
	
  8.9

  	
   

  	
  Highly Compensated

  
	
  8.7

  	
   

  	
  Highly Compensated Group

  
	
  8.7

  	
   

  	
  Highly Compensated Group

  
	
   

  	
   

  	
  Deferral Percentage

  
	
  3.2

  	
   

  	
  Hour of Service

  
	
  15.2(b)

  	
   

  	
  Incumbent Board

  
	
  1.3

  	
   

  	
  Investment Committee

  

 

vii

 

	
  6.1

  	
   

  	
  Investment Funds

  
	
  11.3(a)

  	
   

  	
  Joint and Survivor Annuity

  
	
  6.1

  	
   

  	
  Kraft Foods Common Stock

  
	
  6.1

  	
   

  	
  Kraft Foods Stock Fund

  
	
  2.5

  	
   

  	
  Leased Employee

  
	
  6.2(e)

  	
   

  	
  Loan Fund

  
	
  7.1(a)

  	
   

  	
  Matching Account

  
	
  5.1

  	
   

  	
  Matching Contribution

  
	
  3.3

  	
   

  	
  Maternity or Paternity Absence

  
	
  8.7

  	
   

  	
  Non-highly Compensated Group

  
	
   

  	
   

  	
  Deferral Percentage

  
	
  3.3

  	
   

  	
  One Year Break in Service

  
	
  15.2(a)

  	
   

  	
  Outstanding Parent Voting Securities

  
	
  2.1

  	
   

  	
  Participant

  
	
  1.1

  	
   

  	
  Plan

  
	
  1.4

  	
   

  	
  Plan Year

  
	
  3.4

  	
   

  	
  Predecessor Employer

  
	
  7.1(a)(ii)

  	
   

  	
  Prior ESOP

  
	
  1.3

  	
   

  	
  Profit Sharing Fund

  
	
  1.2

  	
   

  	
  Related Company

  
	
  11.5(b)

  	
   

  	
  Required Beginning Date

  
	
  7.1(d)

  	
   

  	
  Rollover Account

  
	
  4.8

  	
   

  	
  Rollover Contribution

  
	
  8.3

  	
   

  	
  Section 415 Affiliate

  
	
  11.3

  	
   

  	
  Spouse

  
	
  3.4

  	
   

  	
  Subsidiary

  
	
  9.3

  	
   

  	
  Termination Date

  
	
  1.3

  	
   

  	
  Trust

  
	
  1.3

  	
   

  	
  Trust Agreement

  
	
  1.3

  	
   

  	
  Trustee

  
	
  3.1, 9.1

  	
   

  	
  Year of Service

  

 

viii

 

KRAFT FOODS
GLOBAL, INC. TIP PLAN

 

(As Amended and Restated

Effective As of January 1, 2003)

 

SECTION 1

General

 

1.1.                              History,
Purpose and Effective Date. Kraft Foods Global, Inc. (known as Kraft
Foods North America, Inc. prior to March 19, 2004) (the “Company”), a Delaware corporation
maintains the Kraft Foods Global, Inc. TIP Plan (formerly known as the
Kraft Foods North America, Inc. TIP Plan and before that known as the
Kraft Foods North America, Inc. Thrift Investment Plan (the “Plan”)) to encourage eligible
employees to save a portion of their earnings on a regular basis and to
accumulate capital for their future economic security. The Plan, which was
originally adopted effective as of October 1, 1966, as a profit sharing
plan, is qualified under section 401(a) of the Internal Revenue Code
of 1986, as amended (the “Code”) and includes a cash or deferred arrangement qualified
under section 401(k) of the Code. Effective on and after December 15,
2001, the Plan is comprised of two portions: 
one portion continues to be a profit sharing plan (including a cash or
deferred arrangement) intended to meet the requirements of sections 401(a) and
401(k) of the Code; the other portion of the Plan consists of a stock bonus
plan that is an employee stock ownership plan intended to meet the requirements
of sections 401(a) and 4975(e)(7) of the Code. The following
provisions constitute an amendment, restatement and continuation of the Plan as
in effect immediately prior to January 1, 2003, the “Effective Date” of the Plan as
set forth herein.

 

1.2.                              Related
Companies and Employers. The term “Related Company” means any corporation or trade or
business during any period during which it is, along with the Company, a member
of a controlled group of corporations or a controlled group of trades or
businesses, as described in sections 414(b) and 414(c), respectively, of
the Code. The Company and each Related Company which adopts the Plan with the
consent of the Management Committee for Employee Benefits (the “Committee”)
are referred to below collectively as the “Employers” and individually as an “Employer”.

 

1.3.                              Plan
Administration, Trust and Fiduciary Responsibility. The authority to
control and manage the non-investment operations of the Plan is vested in the
Committee, as more fully described in subsection 13.1. Except as otherwise
expressly provided herein, the Committee shall have the rights, duties and
obligations of an “administrator” as that term is defined in section 3(16)(A) of
the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) and of a “plan
administrator” as that term is defined in section 414(g) of the Code.
The authority to control and manage the investment operations of the Plan is
vested in the Benefits Investment Committee (the “Investment Committee”), as more fully described
in Section 6A. The Committee and the Investment Committee are collectively
referred to as the “Committees”. The Company and the
Committees shall be “named fiduciaries”, as described in

 

1

 

section 402
of ERISA, with respect to their authority under the Plan. All assets of the
Plan will be held, managed and controlled by one or more trustees (the “Trustee”) acting under a “Trust” established pursuant to a
“Trust Agreement” which forms a part of
the Plan. As of the Effective Date, the assets of the Plan are held under the
Kraft Foods Master Defined Contribution Trust established pursuant to the
Master Savings Plan Trust Agreement by and among the Corporate Employee Plans
Investment Committee of Philip Morris Companies Inc., the Compensation and Governance
Committee of Kraft Food Inc., Philip Morris Companies Inc., Kraft Foods Inc.
and Bankers Trust Company, Trustee, dated as of November 1, 2001, as the
same may be amended from time to time. The Trust fund established under
the Trust Agreement (the “Fund”)
is comprised of the “Profit
Sharing Fund” and the “ESOP Fund”  The Profit
Sharing Fund consists of all the Investment Funds described in subsection 6.1
of the Plan, except the Subparts thereof which are designated as the ESOP Fund.
The ESOP Fund consists of the Subparts of those Investment Funds described in
subsection 6.1 which are designated therein as the ESOP Fund. No
contributions to the Plan of any kind shall be made to the ESOP Fund; provided,
however, that intraplan transfers to the ESOP Fund shall be made in accordance
with the provisions of subsection 6.5. The Altria Group Stock Fund and the
Kraft Foods Stock Fund described in subsection 6.1 of the Plan (including
the Subparts thereof designated as the ESOP Fund) are designed to invest solely
in qualifying employer securities (within the meaning of section 409(l)
and 4975(e)(8) of the Code), except for cash reserves for the purposes set
forth in subsection 6.1. For this purpose, the term “qualifying employer
securities” means common stock of the Employer or a Related Company which is
readily tradeable on an established securities market.

 

1.4.                              Plan
Year. The term “Plan
Year” means
the twelve-consecutive-month period beginning on each January 1 and
ending on the following December 31.

 

1.5.                              Accounting
Dates. The term “Accounting
Date” means
each business day as determined by the Committee in its sole discretion.

 

1.6.                              Applicable
Laws. The Plan shall be construed and administered in accordance with the
internal laws of the State of Illinois to the extent that such laws are not
preempted by the laws of the United States of America.

 

1.7.                              Gender
and Number. Where the context permits, words in any gender shall
include any other gender, words in the singular shall include the plural and
the plural shall include the singular.

 

1.8.                              Notices.
Any notice or document required to be filed with the Committee under the Plan
will be properly filed if delivered or mailed by registered mail, postage
prepaid, to the Committee (or its delegate), in care of the Company, at its
principal executive offices. Any notice required under the Plan may be
waived by the person entitled to notice.

 

1.9.                              Form of
Election and Signature. Unless otherwise specified herein, any election or
consent permitted or required to be made or given by any Participant or other
person entitled to benefits under the Plan, and any permitted modification or
revocation thereof, shall be made in writing or shall be given by means of such
telephone voice response system as the Committee may designate from time
to time as the vehicle(s) for executing regular transactions under the

 

2

 

Plan (referred to
generally herein as the “Access System”).
Each Participant shall have a password for purposes of executing transactions
through the Access System and shall be required to complete a signature
authorization form, and entry by a Participant of his password shall constitute
his valid signature for purposes of any transaction the Committee determines
should be executed by means of the Access System, including but not limited to
enrolling in the Plan, electing contribution rates, making investment choices,
executing loan documents, and consenting to a withdrawal or distribution. Any
election made through the Access System shall be considered submitted to the
Committee on the date it is electronically transmitted.

 

1.10.                        Evidence.
Evidence required of anyone under the Plan may be by certificate,
affidavit, document or other information which the person acting on it
considers pertinent and reliable, and signed, made or presented by the proper
party or parties.

 

1.11.                        Action
by Employers. Any action required or permitted to be taken by any Employer
which is a corporation shall be by resolution of its Board of Directors or a
duly authorized committee thereof, or by a duly authorized officer of the
Employer. Any action required or permitted to be taken by any Employer which is
a partnership shall be by a general partner of such partnership or by a duly
authorized officer thereof.

 

1.12.                        Plan
Supplements. The provisions of the Plan as applied to any Employer or any
group of employees of any Employer may be modified or supplemented from
time to time by the Committee by the adoption of one or more Supplements. Each
Supplement shall form a part of the Plan as of the Supplement’s
effective date. In the event of any inconsistency between a Supplement and the
Plan document, the terms of the Supplement shall govern.

 

1.13.                        Defined
Terms. Terms used frequently with the same meaning are defined throughout
the Plan in boldface. The Index of Defined Terms contains an alphabetical
listing of all such terms and the subsections in which they are defined.

 

1.14.                        Compliance
With USERRA. Notwithstanding any provisions of the Plan to the contrary,
contributions and benefits with respect to qualified military service will be
provided in accordance with section 414(u) of the Code.

 

SECTION 2

Participation in Plan

 

2.1.                              Eligibility
for Participation. Participation in the Plan is entirely voluntary. An
eligible employee who elects to participate (a “Participant”) shall commence participation on the date determined
under subsection 2.2. Subject to the conditions and limitations of the
Plan, each individual who was a Participant in the Plan immediately prior
to the Effective Date will continue as such on and after that date, and each
other employee of an Employer who was not a Participant immediately prior to
the Effective Date will be eligible to participate in the Plan upon meeting the
following eligibility requirements:

 

(a)                                  he
has completed one Year of Service (as defined in subsection 3.1);

 

3

 

(b)                                 contributions
are not being made on his behalf to another defined contribution plan intended
to be qualified under section 401(a) of the Code that is sponsored by
an Employer or a Related Company;

 

(c)                                  he
is a member of a collective bargaining unit as to which retirement benefits
have been the subject of good faith bargaining, and the Plan has been extended
to the collective bargaining unit under a currently effective collective
bargaining agreement; and

 

(d)                                 he
does not perform services for an Employer under a contract, agreement or
arrangement that purports to treat him as either an independent contractor or
the employee of a leasing organization, agency, vendor or any other
third-party, even if he is subsequently determined (by judicial action or
otherwise) to have instead been a common law employee of such Employer.

 

Notwithstanding the
foregoing provisions of this subsection 2.1, if an individual is employed
or reemployed by an Employer on or after the date on which he first completes
one Year of Service, he shall be eligible to become a Participant in the Plan
on the first day on which he meets the requirements of paragraphs (b) and (c) of
this subsection 2.1.

 

2.2.                              Commencement
of Participation. Each employee eligible to participate in the Plan is
required to make an election to participate prior to his commencement of
participation in the Plan. An eligible employee may elect to commence
participation in the Plan on the first day following the date he has satisfied
the eligibility requirements set forth in subsection 2.1, and if an
eligible employee does not properly elect to commence participation on such
date, he may commence his participation on any day thereafter.

 

2.3.                              Inactive
Participation. If an individual ceases to meet the eligibility requirements
of subsection 2.1, such individual shall be considered an inactive
Participant in the Plan as long as any amount is credited to his Account under
the Plan, and:

 

(a)                                  no
contributions shall be made by or for him under Section 4 or Section 5;

 

(b)                                 he
may not make a withdrawal under Section 10 after he ceases to be an
employee of an Employer or a Related Company.

 

2.4.                              Plan
Not Contract of Employment. The Plan does not constitute a contract of
employment, and participation in the Plan will not give any employee or
Participant the right to be retained in the employ of any Employer nor any
right or claim to any benefit under the Plan, unless such right or claim has
specifically accrued under the terms of the Plan.

 

2.5.                              Leased Employees. If a person satisfies the
requirements of section 414(n) of the Code and applicable Treasury
regulations for treatment as a “Leased Employee”,
such Leased Employee shall not be eligible to participate in this Plan but, to
the extent required by section 414(n) of the Code and applicable Treasury
regulations, such person shall be treated as if the services performed by him
in such capacity were performed by him as an employee of a Related Company
which has not adopted the Plan; provided, however, that no such service shall
be credited for any period during which not more than 20% of the non-Highly
Compensated

 

4

 

workforce of the
Employers and the Related Companies consists of Leased Employees and the Leased
Employee is a participant in a money purchase pension plan maintained by the
leasing organization which (i) provides for a non-integrated employer
contribution of at least 10 percent of compensation, (ii) provides for
full and immediate vesting, and (iii) covers all employees of the leasing
organization (beginning with the date they become employees), other than those
employees excluded under section 414(n)(5) of the Code. For purposes
of this subsection 2.5, “Highly Compensated” shall have the meaning set
forth in subsection 8.8.

 

SECTION 3

Service

 

3.1.                              Years
of Service. For purposes of Section 2, an employee’s “Years of Service” means:

 

(a)                                  With
respect to any full-time employee, the aggregate of all time periods commencing
on the employee’s first day of employment or reemployment and ending on the day
he commences a One Year Break in Service (as defined in subsection 3.3). An
employee’s first day of employment or reemployment is the first day for which
he is credited with an Hour of Service (as defined in subsection 3.2).

 

(b)                                 With
respect to any part-time or seasonal employee, each Computation Period (as
defined in the next sentence) during which he completes at least 1,000 Hours of
Service. A “Computation
Period” is the
initial 12-consecutive-month period commencing on the date an employee is first
credited with an Hour of Service, and each Plan Year commencing with the first
Plan Year which begins on or after the date he is first credited with an Hour
of Service. An individual who completes at least 1,000 Hours of Service during
his first Computation Period will be eligible to begin participating in the
Plan on the day following the end of such Computation Period; an individual who
first completes 1,000 Hours of Service in a subsequent Computation Period will
be eligible to begin participating in the Plan on the day following the day in
which he worked his 1,000th Hour of Service.

 

For purposes of this Section 3,
a “full-time employee” is an employee who is regularly scheduled to work at
least 1,000 hours in a calendar year, and a “part-time or seasonal employee” is
an employee who is scheduled to work for fewer than 1,000 hours in a calendar
year.

 

3.2.                              Hour
of Service. The term “Hour of Service”
means, with respect to any employee, each hour for which he is paid or
entitled to payment for the performance of duties for an Employer or a Related
Company or for which back pay, irrespective of mitigation of damages, has been
awarded to the employee or agreed to by an Employer or a Related Company,
subject to the following:

 

5

 

(a)                                  An
employee or Participant shall be credited with the number of regularly
scheduled working hours included in the time period on the basis of which
payment to the Employee is calculated (or, if the number of such hours is not
determinable, 8 Hours of Service per day (to a maximum of 40 Hours of Service
per week)) for any period during which he performs no duties for an Employer or
a Related Company (irrespective of whether the employment relationship has
terminated) by reason of a vacation, holiday, illness, incapacity (including
disability), layoff, jury duty, military duty, or leave of absence but for
which he is directly or indirectly paid or entitled to payment by an Employer
or a Related Company. Payments considered for purposes of the foregoing
sentence shall include payments unrelated to the length of the period during
which no duties are performed but shall not include payments made solely as
reimbursement for medically related expenses or solely for the purpose of
complying with applicable workmen’s compensation, unemployment compensation or
disability insurance laws.

 

(b)                                 Hours
of Service shall be calculated and credited pursuant to Department of Labor
Regulation section 2530.200b-2, which is incorporated herein by reference.

 

3.3.                              One
Year Break in Service. Except with respect to an employee whose absence
from employment constitutes a Maternity or Paternity Absence, an approved leave
of absence, qualified military service, or compensable physical disability
incurred during employment service, the term “One Year Break in Service” means the
12-consecutive-month period commencing on the earlier of

 

(a)                                  the
day an employee’s employment with the Employers and Related Companies is
terminated for any reason, or

 

(b)                                 in
the event an employee remains absent from service with the Employers and
Related Companies for any reason other than a quit, retirement, discharge or
death, the first anniversary of the first day of such period of absence,

 

if he is not paid or
entitled to payment for the performance of duties for an Employer or a Related
Company during that 12-consecutive-month period.       An employee or Participant who is absent on an approved leave
of absence for a period shorter than 12 months will commence a One Year Break
in Service on the date of his scheduled return to work if he does not in fact
return to work at the expiration of such leave. An employee or Participant who
is absent on an approved leave of absence for a period of 12 months or more
will commence a One Year Break in Service on the first anniversary of the first
day of such leave if he does not return to work at the scheduled expiration of
such leave. An individual who is absent because of service in the U.S. Armed
Forces will begin a One Year Break in Service on the 91st day following his
discharge from military service, if he does not return to work within 90 days
of such discharge. With respect to an individual whose absence from employment
constitutes a Maternity or Paternity Absence, a One Year Break in Service will
commence on the second anniversary of the first day of such absence, and the
period between the first and second anniversaries of the first day of a
Maternity or Paternity Absence shall not constitute a Year of Service. The term
“Maternity or
Paternity Absence” means an employee’s or Participant’s absence from
active

 

6

 

employment with an
Employer or Related Company by reason of the employee’s pregnancy, the birth of
a child of the employee, the placement of a child with the employee in
connection with the employee’s adoption of such child, or for purposes of
caring for such child immediately after its birth or placement. The Committee may require
the employee or Participant to furnish such information as it considers
necessary to establish that such individual’s absence was a Maternity or Paternity
Absence. With respect to an individual whose absence from employment is on
account of a compensable physical disability incurred during employment
service, each year of such absence shall not constitute a One Year Break in
Service if such individual recommences employment service within 30 days after
the termination of the period for which statutory compensation for such
disability was payable, or if such individual attains age 65 while on paid
disability leave.

 

3.4.                              Service
With Altria Group Affiliates and Predecessor Employers. For purposes of Section 3
and subsection 9.1, service with a Subsidiary or a Predecessor Employer
shall be counted in the same manner as if such entity were a Related Company. A
“Subsidiary”
is any corporation in which Altria Group Inc. (known as Philip Morris Companies
Inc. prior to January 27, 2003) owns (directly or indirectly) more
than 50% of the outstanding voting stock. “Predecessor Employer” means a corporation or
business which has been merged into or consolidated with, or all or
substantially all of its assets acquired by, a Related Company or a Subsidiary.

 

3.5.                              Qualified
Military Service. Notwithstanding any provision of this Plan to the
contrary, contributions, benefits and service credit with respect to qualified
military service will be provided in accordance with section 414(u) of the
Code.

 

SECTION 4

Before-Tax, After-Tax and Rollover Contributions

 

4.1.                              Before-Tax
Contributions. Subject to the terms and conditions of the Plan, each
Participant may elect as follows:

 

(a)                                  Subject
to the limitations set forth in subsections 4.3 and 4.7 and Section 8 and
such additional rules as the Committee may establish on a uniform and
nondiscriminatory basis, for any payroll period, a Participant may elect
to have his salary or wages from his Employer reduced by a whole percentage,
and a corresponding amount contributed on his behalf to the Profit Sharing Fund
by his Employer as a “Before-Tax
Contribution.”  Such amount
shall not be less than 1 percent nor more than 10 percent of his Eligible
Compensation (as defined in subsection 4.6), but shall be limited to 6%
with respect to Eligible Compensation in excess of $15,000. Any election made
pursuant to this subsection 4.1 shall be effective as soon as practicable
after the Participant has made his election in accordance with applicable
Access System procedures or other procedure approved by the Committee.

 

7

 

(b)                                 Each
Participant who is eligible to make Before-Tax Contributions under this Plan
for any Plan Year pursuant to paragraph (a) next above and who has
attained age 50 before the close of such Plan Year shall be eligible to make,
in addition to the Before-Tax Contributions described in paragraph (a) next
above, “catch-up” Before-Tax Contributions in accordance with, and subject to
the limitations of, section 414(v) of the Code and such additional rules as
the Company may establish on a uniform and nondiscriminatory basis. Such
catch-up Before-Tax Contributions shall not be taken into account for purposes
of the limitations on Before-Tax Contributions described in paragraph (a) next
above, subsection 4.3 or any Supplement or for purposes of the provisions
of the Plan implementing the required limitations of sections 402(g) and 415
of the Code. The Plan shall not be treated as failing to satisfy the provisions
of the Plan implementing the requirements of sections 401(k)(3), 410(b), or 416
of the Code, as applicable, by reason of the making of such catch-up Before-Tax
Contributions.

 

4.2.                              After-Tax
Contributions. Subject to the limitations set forth in subsections 4.3 and
4.7 and Section 8 and such additional rules as the Committee may establish
on a uniform and nondiscriminatory basis, for any payroll period a
Participant may elect to make “After-Tax Contributions” to the Profit Sharing Fund through
payroll deduction in a whole percentage that is not less than 1 percent nor
more than 10 percent of his Eligible Compensation (as defined in subsection 4.6),
but shall be limited to 6% with respect to Eligible Compensation in excess of
$15,000. Any election pursuant to this subsection 4.2 shall be entered
into the Access System or filed in accordance with other procedures approved by
the Committee prior to the time it is to take effect.

 

4.3.                              Total
Before-Tax and After-Tax Contributions. Notwithstanding the foregoing
provisions of this Section 4, Before-Tax Contributions made on behalf of a
Participant pursuant to subsection 4.1 and After-Tax Contributions made by
such Participant pursuant to subsection 4.2 may not together exceed
the maximum amount permitted under either such subsection.

 

4.4.                              Payment
of Before-Tax and After-Tax Contributions. Before-Tax Contributions and
After-Tax Contributions shall be made through periodic payroll deductions and
shall be paid to the Trustee by the Employer for deposit in the Profit Sharing
Fund on the earliest date on which such contributions can reasonably be
segregated from the Employer’s general assets, but not later than the 15th
business day of the month following the month in which such amounts would
otherwise have been payable to the Participant. For Participants on a
semi-monthly payroll, deductions shall be made from each payroll payment and
for Participants on a weekly payroll, deductions shall be made 48 times during
the Plan Year, but not more than 4 times during any calendar month.

 

4.5.                              Modification,
Discontinuance and Resumption of Before-Tax or After-Tax Contributions.
Subject to such rules and restrictions as the Committee may establish
on a uniform and nondiscriminatory basis, a Participant may adjust
his Before-Tax and/or After-Tax Contributions prospectively by entering into
the Access System, prior to the time such change is to be effective, an
election to make any of the changes listed below:

 

8

 

(a)                                  change
his Before-Tax and/or After-Tax Contribution rates within the limits specified
above.

 

(b)                                 discontinue
making Before-Tax and/or After-Tax Contributions; or

 

(c)                                  resume
making Before-Tax and/or After-Tax Contributions.

 

4.6.                              Eligible
Compensation. A Participant’s “Eligible Compensation” for any Plan Year shall
mean his annual base wage or salary rate of pay as in effect on September 30
of the preceding Plan Year, plus any amounts contributed by an Employer
pursuant to a salary reduction agreement and which are not includable in gross
income under section 125, 402(e)(3), 402(h) or 132(f)(4) of the
Code, but it shall not include shift differentials, overtime or other premium
pay, or bonus, incentive or other extra compensation.

 

4.7.                              Limitation
on Compensation Taken Into Account For Any Plan Year. Notwithstanding any
other provision of the Plan to the contrary except subsection 4.1(b), the
amount of Eligible Compensation that may be taken into account under the
Plan for any Plan Year for purposes of applying the limitations of this Section 4
and Section 5 shall not exceed the maximum amount permitted for the Plan
Year under section 401(a)(17) of the Code.

 

4.8.                              Rollover
Contributions. A Participant or an employee who meets the eligibility
requirements of subsection 2.1 (without regard to paragraph (a) thereof)
may make a Rollover Contribution (as defined below) to the Profit Sharing
Fund, subject to the determination of the Committee that such rollover
satisfies the requirements of this subsection 4.8. Before approving a
rollover, the Committee may request from the Participant or employee any
documents or opinion of counsel which the Committee, in its discretion, deems
necessary. The term “Rollover Contribution”
means a rollover contribution to the Profit Sharing Fund of all or part of
a distribution which, under applicable provisions of the Code, is permitted to
be rolled over to a qualified plan, except that, in no event shall the Plan
accept a Rollover Contribution of amounts that would otherwise be excludible
from a Participant’s gross income. If an employee who is not otherwise a
Participant makes a Rollover Contribution to the Plan, he shall be treated as a
Participant only with respect to his Rollover Account (defined in subsection 7.1)
until he has met all of the requirements for Plan participation set forth in
subsections 2.1 and 2.2.

 

SECTION 5

Matching Contributions

 

5.1.                              Matching
Contributions. Subject to the conditions and limitations of subsection 4.7
and Section 8 and the terms of any applicable Supplement, for each payroll
period during a Plan Year, an Employer shall contribute to the Profit Sharing
Fund on behalf of each Participant employed by such Employer an amount equal to
45 percent of the Before-Tax and After-Tax Contributions made by and on behalf
of the Participant. Any contribution made pursuant to this subsection 5.1
shall be referred to hereinafter as a “Matching Contribution”. Matching Contributions
shall not be made with respect to catch-up Before-Tax Contributions.

 

9

 

5.2.                              Limitations
on Amount of Employer Contributions. Except as otherwise specifically
provided in Section 12, in no event shall the sum of any Before-Tax Contributions
and Matching Contributions made by an Employer for any Plan Year exceed the
limitations imposed by section 404 of the Code on the maximum amount
deductible on account thereof by the Employer for that year.

 

5.3.                              Payment
of Employer Contributions. Matching Contributions to the Profit Sharing
Fund for any Plan Year shall be paid to the Trustee for deposit in the Profit
Sharing Fund, without interest, no later than the time prescribed by law for
filing the Employer’s federal income tax return, including any extensions
thereof.

 

SECTION 6

Investment of the Trust Fund

 

6.1.                              Investment Funds and Loan Account. The Investment
Committee shall establish and cause the Trustee to maintain a Loan Account to
reflect any loans to Participants pursuant to subsection 10.1 and the
following “Investment
Funds” for
the investment of Participants’ Accounts in the Fund:

 

(a)                                  an
“Altria Group Stock Fund” (known
as the Philip Morris Stock Fund
prior to January 27, 2003)  consisting of two
Subparts:  a fund forming part of
the Profit Sharing Fund and invested in common stock of Altria Group, Inc.
(known as Philip Morris Companies Inc. prior to January 27, 2003) (“Altria Group Common Stock”);
and a fund designated as forming part of the ESOP Fund and invested in
Altria Group Common Stock, a qualifying employer security within the meaning of
sections 4975(e)(8) and 409(l) of the Code. The Altria Group Stock Fund
shall be invested solely in Altria Group Common Stock, except for cash reserves
held solely as needed for administrative purposes. Altria Group Common Stock
for either Subpart may be purchased at its then fair market value on
the open market or by private purchase, including purchases from Altria Group, Inc.
(known as Philip Morris Companies Inc. prior to January 27, 2003) (“Altria Group”). Prior to December 15,
2001, the Philip Morris Stock Fund was a single fund primarily invested in the
common stock of Philip Morris Companies Inc.

 

(b)                                 a
“Kraft Foods Stock
Fund” consisting of two Subparts: 
a fund forming part of the Profit Sharing Fund and invested in Class A
common stock of Kraft Foods Inc. (“Kraft Foods Common Stock”); and a fund designated as forming
part of the ESOP Fund and invested in Kraft Foods Common Stock, a
qualifying employer security within the meaning of sections 4975(e)(8) and
409(l) of the Code. The Kraft Foods Stock Fund shall be invested solely in
Kraft Foods Common Stock, except for cash reserves held solely as needed for
administrative purposes. Kraft Foods Common Stock for either Subpart may be
purchased at its then fair market value on the open market or by private
purchase (other than from

 

10

 

Kraft Foods Inc.). Prior
to December 15, 2001 and after its introduction on November 1,
2001, the Kraft Foods Stock Fund was a single fund primarily invested in Kraft
Foods Common Stock.

 

(c)                                  three
or more other Investment Funds designated by the Investment Committee and
forming part of the Profit Sharing Fund.

 

Altria Group Common Stock
or Kraft Foods Common Stock (collectively referred to as “Employer Common Stock”) sold to
the trustee for purposes of the Plan may be reacquired. The Trustee shall
purchase shares of Employer Common Stock invested in the Altria Group Stock
Fund or the Kraft Foods Stock Fund pursuant to a non-discretionary purchasing
program pursuant to the terms of the Trust Agreement and may retain such
Employer Common Stock, regardless of market fluctuation and, in the normal
course, shall sell such shares of Employer Common Stock only upon the direction
of Participants or Beneficiaries or to otherwise meet the administrative and
distribution requirements of the Plan. Subject to the provisions of this subsection 6.1,
the Investment Committee in its discretion may add additional Investment
Funds, may delete any Investment Fund or may change the investment
strategy of any Investment Fund without prior notice to Participants; provided,
however, that no Investment Fund or Subpart thereof shall be designated as
forming a part of the ESOP Fund unless it is invested solely in qualifying
employer securities (within the meaning of sections 409(l) and 4975(e)(8) of
the Code), except for cash reserves held solely as needed for administrative
purposes and pending the distribution from that Subpart of dividends (but
not any earnings thereon) from shares of Employer Common Stock to those
Participants and Beneficiaries who have elected to have the dividend paid to
them rather than reinvested in additional shares of such Employer Common Stock
(or in units representing such shares). Any earnings on the investment of such
dividends shall be allocated to the Accounts of Participants or Beneficiaries
based on the Account’s share of such dividends and shall be invested in
additional shares of Employer Common Stock (or in units representing such
shares) to be held in the applicable Subpart designated as forming part of
the ESOP Fund. The Investment Committee (or an “investment manager” as that
term is defined in section 3(38) of ERISA (“Investment Manager”)) may, in its sole discretion, keep any
portion of an Investment Fund (or a Subpart thereof), other than the
Altria Group Stock Fund and the Kraft Foods Stock Fund, in cash or short-term
investments (including a commingled fund of the Trustee) for liquidity
purposes, pending the selection and purchase of permanent investments for such
Investment Fund (or Subpart thereof). 

 

6.2.                              Loan Account and Investment Fund Accounting. The
Committee shall maintain or cause to be maintained separate subaccounts for
each Participant in each of the Investment Funds (or Subpart thereof) and
in the Loan Account to separately reflect his interests in each such fund or
Subpart or in the Loan Account and the portion thereof that is
attributable to each of his Accounts.

 

6.3.                              Investment Fund Elections. At the time that a
Participant enrolls in the Plan he may specify the percentage of
contributions subsequently credited to his Accounts that are to be initially
invested in each of the Investment Funds in the Profit Sharing Fund (but not in
the ESOP Fund) in accordance with uniform rules established by the
Committee from time to time. Any such investment direction shall be deemed to
be a continuing direction until changed. During any period in which no such
direction has been given in accordance with rules 

 

11

 

established by the Committee, contributions credited
to a Participant shall be invested in the Investment Funds in the Profit
Sharing Fund as determined by the Committee. A Participant may modify his
investment direction prospectively by entering into the Access System his
election to do so prior to the effective time of the change in accordance with
uniform rules established by the Committee; provided, however, that a
Participant shall not be permitted to direct the initial investment of future
contributions in the ESOP Fund.

 

6.4.                              Transfers Between Investment Funds. Subject to uniform rules established
by the Committee from time to time, each Participant may elect to transfer
prospectively the value of his Accounts held in any Investment Fund forming part of
the Profit Sharing Fund to any other Investment Fund forming part of the
Profit Sharing Fund then made available to such Participant. Subject to such
uniform rules, each Participant may elect to transfer prospectively
the value of his Accounts held in any Subpart of an Investment Fund
designated as forming part of the ESOP Fund to any Investment Fund (or Subpart thereof)
forming part of the Profit Sharing Fund; provided, however, that a Participant
may not transfer the value of his Accounts held in the Subpart of an
Investment Fund designated as forming a part of the ESOP Fund to the Subpart of
such Investment Fund forming part of the Profit Sharing Fund. Any such
election shall be made by entering it into the Access System prior to the time
it is to be effective in accordance with uniform rules established by the
Committee. Notwithstanding the foregoing, if a Participant terminates
employment before he is fully vested in his Accounts, and forfeiture of the
non-vested portion of his Accounts is delayed pending distribution of the
vested portion, such non-vested portion shall be invested in accordance with rules established
by the Committee to minimize the risk of loss, and shall not be subject to the
investment direction of the Participant.

 

6.5.                              Automatic
Transfers to the ESOP Fund. Notwithstanding the foregoing provisions of
this Section 6, the following provisions shall apply:

 

(a)                                  In
accordance with procedures established by the Committee, all shares of Employer
Common Stock (and all units representing such shares) held in the Subpart of
either the Altria Group Stock Fund or the Kraft Foods Stock Fund forming part of
the Profit-Sharing Fund shall be transferred to that Subpart of each such fund
designated as forming part of the ESOP Fund as of the business day
immediately preceding each applicable Ex-dividend Date (as defined below) or at
such other time or times as the Committee, in its sole discretion, shall
determine in order for Participants and Beneficiaries to make the election
described in subsection 10.5 with respect to any dividends payable with
respect to all shares of Employer Common Stock (and units representing such
shares) invested in such funds.

 

(b)                                 The
term “Ex-dividend
Date” means
the first date on which a purchaser of shares of Employer Common Stock is not
entitled to receive a dividend that has been previously declared by the
applicable Board of Directors. Under current industry practice, the Ex-dividend
Date is three days prior to the date on which the identity of shareholders
entitled to receive a dividend that has been declared is ascertained (the
record date).

 

12

 

6.6.                              Independent
Investment Advice. The Company, as a named fiduciary, shall be allocated
the fiduciary responsibility to offer investment advice to Participants
(including inactive Participants), Beneficiaries and alternate payees with
respect to investment of their Accounts under the Plan. The Company shall designate
an Investment Manager to render such investment advice, which Investment
Manager shall acknowledge in writing to the Company that it is a fiduciary with
respect to the Plan. The Investment Manager shall render such investment advice
to any Participant, Beneficiary or alternate payee who requests it and who
furnishes to the Investment Manager such information as it may reasonably
request.

 

SECTION 6A

 

Investment Committee

 

6A.1.                    Investment
Committee Membership and Authority. The Investment Committee referred to in
subsection 1.3 is hereby established under the Plan and shall consist of
the following positions of Kraft Foods Inc. or its subsidiaries, effective as
of January 27, 2004:  Executive Vice
President, Chief Financial Officer; Executive Vice President, Global Human
Resources;  Executive Vice President,
General Counsel & Corporate Secretary; and Senior Vice President &
Controller. Each member of the Investment Committee shall acknowledge in
writing to the Company that he or she is a fiduciary with respect to the Plan. Except
as otherwise specifically provided in this subsection 6A.1, the Investment
Committee shall act by a majority of its then members, by meeting or by writing
filed without meeting, and shall have the following discretionary authority,
powers, rights and duties in addition to those vested in it elsewhere in the
Plan or Trust Agreement:

 

(a)                                  to
select, appoint or remove one or more Trustees, custodians, Investment Managers
and insurance companies to handle Plan assets, and to allocate Plan assets to
each of them;

 

(b)                                 to
direct a Trustee with respect to the investment of an Investment Fund;

 

(c)                                  to
select and appoint one or more successor Trustees and to enter into and amend a
Trust Agreement with a Trustee or any successor Trustee on behalf of the
Employer;

 

(d)                                 to
determine the advisability of establishing or modifying the description of any
Investment Fund (as defined in subsection 6.1) made available under the
Plan;

 

(e)                                  to
establish investment guidelines, proxy voting policies and securities trading
procedures;

 

(f)                                    to
monitor the investment performance of each of the Investment Funds under the
Plan and the fiduciaries responsible for the investment of Plan assets;

 

(g)                                 to
adopt such rules of procedure and regulations as, in its opinion, may be
necessary to carry out its duties under the Plan and that are consistent with
the provisions of the Plan;

 

13

 

(h)                                 to
maintain and keep adequate records concerning its proceedings and acts in such form and
detail as the Investment Committee may decide;

 

(i)                                     to
employ agents, attorneys, investment advisors or other persons (who may also
be employed by or represent the Employers) for such purposes as the Investment
Committee considers necessary or desirable to discharge its duties;

 

(j)                                     to
furnish the Employers, the Committee and the Trustee with such information with
respect to the Plan and the Trust as may be required by them for tax or
other administrative or similar purposes;

 

(k)                                  to
coordinate with the Committee on establishing procedures to ensure the
confidentiality of information relating to the purchase, holding and sale of
interests in the Altria Group Stock Fund (including
both Subparts thereof) and the Kraft Foods
Stock Fund (including both Subparts thereof) and on the
exercise of voting, tender and similar rights by Participants, inactive
Participants and Beneficiaries; and

 

(l)                                     to
coordinate with the Committee and the Company (1) on providing and making
available sufficient information to enable Participants, inactive Participants
and Beneficiaries to make informed investment decisions, and (2) on
performing any and all acts necessary to obtain the relief offered by section 404(c) of
ERISA.

 

The certificate of a
majority of the members of the Investment Committee that the Investment
Committee has taken or authorized any action shall be conclusive in favor of
any person relying on the certificate.

 

6A.2.                    Allocation
and Delegation of Investment Committee Responsibilities and Powers. In
exercising its authority to control and manage the assets of the Plan the
Investment Committee may allocate all or any part of its
responsibilities and powers to any one or more of its members and may delegate
all or any part of its responsibilities and powers to any person or
persons selected by it. Any such allocation or delegation may be revoked
at any time. Any member or delegate exercising Investment Committee
responsibilities and powers under this subsection shall periodically
report to the Investment Committee on its exercise thereof and the discharge of
such responsibilities. The Investment Committee, and any member or delegate
exercising Investment Committee responsibilities and powers under this subsection 6A.2,
shall have no duty to report to the Company or its Board of Directors, or any
Related Company or its Board of Directors, which in turn shall have no duty or
authority to monitor the Investment Committee or any member or delegate
exercising Investment Committee responsibilities and powers under this subsection 6A.2  Neither the Company nor its Board of
Directors shall have any duty or authority to remove any member of the
Investment Committee, except insofar as it amends this Section 6A in its
settlor capacity.

 

6A.3.                    Exercise
of Investment Committee’s Duties. Notwithstanding any other provisions of
the Plan, the Investment Committee shall discharge its duties hereunder solely
in the interests of the Participants and other persons entitled to benefits
under the Plan, and:

 

14

 

(a)                                  for
the exclusive purpose of providing benefits to Participants and other persons
entitled to benefits under the Plan; and

 

(b)                                 with
the care, skill, prudence and diligence under the circumstances then prevailing
that a prudent man acting in a like capacity and familiar with such matters
would use in the conduct of an enterprise of a like character and with like
aims.

 

6A.4.                    Remuneration
and Expenses. No remuneration shall be paid from the Plan to a member of
the Investment Committee who is an employee of any Employer or Related Company.

 

6A.5.                    Indemnification
of the Investment Committee. To the extent not reimbursed by any applicable
insurance policy, the Investment Committee, the individual members thereof and
the secretary (if any) of the Investment Committee shall be indemnified by the
Employers against any and all liabilities, losses, costs and expenses
(including legal fees and expenses) of whatsoever kind and nature which may be
imposed on, incurred by or asserted against any of them by reason of the
performance of the Investment Committee’s functions if the Investment Committee
or such members or secretary did not act dishonestly or in willful violation of
the law or regulation under which such liability, loss, cost or expense arises.

 

6A.6.                    Resignation
of Investment Committee Member. A member of the Investment Committee may resign
at any time by resigning from the position designated in subsection 6A.1
hereof that makes him a member, or by requesting that the Company amend the
Plan to remove that position from the list of Investment Committee members, in
either case by giving ten days’ advance written notice to the Company, the
Trustee and the other Investment Committee members.

 

6A.7.                    Removal
of Investment Committee Member. The Company may, solely in its settlor
capacity, add or remove Investment Committee members, temporarily or
indefinitely, by amending the Plan to add to or remove from the list of
positions that make up the Investment Committee members, and by giving advance
written notice to any new members (who shall acknowledge their fiduciary status
as provided above), to any members whose position is removed, to the Trustee,
and to the other Investment Committee members. If there is a vacancy in any of
the positions that make up the Investment Committee, the remaining Investment
Committee members shall have the same powers as the full Investment Committee
until the vacancy is filled.

 

6A.8.                    ERISA
Section 404(c). The Plan is intended to comply with the provisions of section 404(c) of
ERISA and the Department of Labor regulation section 2550.404c-1. Accordingly,
each Participant and inactive Participant (and Beneficiary) shall have the
right to exercise control over the balance in his Accounts, including the
power:

 

(a)                                  to
direct the investment of the balance in his Accounts (and future contributions
to such Accounts) among the Investment Funds not less frequently than
quarterly; and

 

15

 

(b)                                 to
exercise voting, tender and similar rights with respect to the full and
fractional shares of Employer Common Stock allocated to his Accounts and held
in the Altria Group Stock Fund (including
both Subparts thereof) and the Kraft Foods
Stock Fund (including both Subparts thereof) in accordance
with Supplement P (7) to the Plan.

 

SECTION 7

 

Plan Accounting

 

7.1.                              Participants’
Accounts. The Committee shall maintain the following “Accounts” in the name of each Participant:

 

(a)                                  a
“Matching Account,”
which shall reflect:

 

(i)                                     Matching
Contributions, if any, made on his behalf and the income, losses, appreciation
and depreciation attributable thereto; and

 

(ii)                                  any
amounts transferred to the Profit Sharing Fund from the General Foods Employee
Stock Ownership Plan (the “Prior ESOP”)
upon termination of the Prior ESOP in September 1988 and the income,
losses, appreciation and depreciation attributable thereto;

 

(b)                                 a
“Before-Tax Account,”
which shall reflect Before-Tax Contributions, if any, made on his behalf to the
Profit Sharing Fund and the income, losses, appreciation and depreciation
attributable thereto;

 

(c)                                  an
“After-Tax Account,”
which shall reflect After-Tax contributions, if any, made by the Participant to
the Profit Sharing Fund and the income, losses, appreciation and depreciation
attributable thereto; and

 

(d)                                 a
“Rollover Account,”
which shall reflect Rollover Contributions, if any, made by him to the Profit
Sharing Fund and the income, losses, appreciation and depreciation attributable
thereto.

 

In addition, the
Committee may maintain subaccounts within any of a Participant’s Accounts
to reflect portions of the Account that are held in the ESOP Fund, portions of
the Account that are subject to special withdrawal or distribution rights or
are otherwise subject to special rules. The Accounts and subaccounts provided
for in this subsection 7.1 shall be for accounting purposes only, and
there shall be no segregation of assets within the Investment Funds or the Loan
Account among the separate Accounts. Reference to the “balance” in a Participant’s
Accounts means the aggregate of the balances in the subaccount maintained in
the Investment Funds and Loan Account attributable to those Accounts.

 

7.2.                              Allocation
of Fund Earnings and Changes in Value. Subject to the last sentence of this
subsection, as of each Accounting Date, interest, dividends and changes in
value in each

 

16

 

Investment Fund
since the preceding Account Date shall be allocated to each Participant’s
subaccount invested in such Investment Fund by adjusting upward or downward the
balance of his subaccount invested in such Investment Fund in the ratio which
the subaccount of such Participant invested in such Investment Fund bears to
the total of the subaccount of all Participants invested in such Investment
Fund as of such Accounting Date, excluding therefrom, for purposes of this
allocation only, all Before-Tax, After-Tax, Matching and Rollover Contributions
to the Profit Sharing Fund received since the preceding Accounting Date, so that
the total of the subaccounts of all Participants in each Investment Fund (or
Subpart thereof) shall equal the total value of such fund (or Subpart thereof)
(exclusive of such contributions) in accordance with uniform procedures
consistently applied. Notwithstanding the fact that the Plan shall use a daily
valuation system, which generally means that Participants’ Accounts will be
updated each Accounting Date to reflect activity for that day, such as new
contributions to the Profit Sharing Fund received by the Trustee, changes in
Participants’ investment elections, and changes in the unit value of the
Investments Funds, events may occur that cause an interruption in the
process affecting a single Participant or a group of Participants. Neither the
Employers, the Trustee nor the Plan guarantee that any given transaction will
be processed on the anticipated day. The Investment Committee, in its
discretion, may establish special rules for valuing any Investment
Fund invested solely in Employer Common Stock (except for cash reserves for the
purposes set forth in Section 6.1 hereof) to address the possibility of
unusually high trading volume or a temporary suspension of trading in such
stock. Such rules may set forth the circumstances under which
transfers out of such Investment Fund will be valued using either the closing
price on the applicable day on the New York Stock Exchange, a composite price
listed in the Wall Street Journal, or a weighted average selling price.

 

7.3.                              Allocation
and Crediting of Contributions. Subject to the provisions of Section 8,
Before-Tax, After-Tax, Matching and Rollover Contributions made on behalf of a
Participant to the Profit Sharing Fund for any payroll period shall be credited
to that Participant’s appropriate Accounts as of the Accounting Date coinciding
with or immediately following the last day of such payroll period. Notwithstanding
the foregoing, unless the Committee establishes uniform rules to the
contrary, contributions made to the Profit Sharing Fund shall share in the gains
and losses of the Investment Funds only when actually made to the Trustee.

 

7.4.                              Correction
of Error. In the event of an error in the adjustment of a Participant’s
Accounts, the Committee, in its sole discretion, may correct such error by
either crediting or charging the adjustment required to make such correction to
or against income and expenses of the Trust for the Plan Year in which the
correction is made or the Employer may make an additional contribution to
permit correction of the error. Except as provided in this subsection 7.4,
the Accounts of other Participants shall not be readjusted on account of such
error.

 

7.5.                              Statement
of Plan Interest. As soon as practicable after the last day of each Plan
Year and at such other intervals as the Committee may determine, the
Committee shall provide each Participant with a statement reflecting the
balances of his Accounts. Each Participant is responsible for reviewing his
statement and any Participant who discovers an error shall bring it to the
attention of the Committee within 90 days of receipt of the statement. If a
Participant does not bring errors in his statement to the attention of the
Committee within 90 days of receipt of his statement, the Participant will be
deemed to have confirmed the accuracy of the statement.

 

17

 

SECTION 8

 

Limitations on Compensation, Contributions and Allocations

 

8.1.                              Reduction
of Contribution Rates. To conform the operation of the Plan to
sections 401(a)(4), 401(k)(3), 402(g) and 415(c) of the Code, the
Committee may establish limits on the Before-Tax and After-Tax
Contribution rates that may be elected by Participants, may unilaterally
modify or revoke any Before-Tax or After-Tax Contribution election made by a
Participant pursuant to subsections 4.1 and 4.2, and may reduce the level
of Matching Contributions (even to zero) allocable to any Participant pursuant
to subsection 5.l.

 

8.2.                              Compensation
for Limitation/Testing Purposes. “Compensation”
for purposes of this Section 8 shall mean:

 

(a)                                  the
Participant’s wages, salary, commissions, bonuses and other amounts received
(in cash or kind) during the Plan Year from any Employer or Related Company for
personal services actually rendered in the course of employment and includable
in gross income, including taxable fringe and welfare benefits, non-qualified
stock options taxable in the year of grant, amounts taxable under a section 83(b) election
and nondeductible moving expenses, but excluding distributions from any
deferred compensation plan (qualified or non-qualified), amounts realized from
the exercise of (or disposition of stock acquired under) any non-qualified
stock option or other benefits given special tax treatment and lump sum
severance pay, all as defined in Treas. Reg. § 1.415-2(d)(2), plus,

 

(b)                                 any
amounts contributed on the Participant’s behalf for the Plan Year to a plan
sponsored by an Employer or Related Company pursuant to a salary reduction
agreement which are not includable in gross income pursuant to section 125,
402(e)(3), 402(h) or 132(f),

 

up to the maximum limit
for that Plan Year under Code section 401(a)(17).

 

8.3.                              Limitations
on Annual Additions. Notwithstanding any other provisions of the Plan to
the contrary, and except to the extent permitted under subsection 4.1(b) of
the Plan and section 414(v) of the Code, a Participant’s Annual
Additions (as defined below) for any Plan Year shall not exceed an amount equal
to the lesser of:

 

(a)                                  $40,000
(indexed for cost-of-living increases in accordance with regulations under section 415(d) of
the Code); or

 

(b)                                 100
percent of the Participant’s Compensation for that Plan Year calculated as if
each Section 415 Affiliate (defined below) were a Related Company,

 

reduced by any Annual
Additions for the Participant for the Plan Year under any other defined
contribution plan of an Employer or a Related Company or Section 415
Affiliate, provided that, if any other such plan has a similar provision, the
reduction shall be pro rata. The term “Annual Additions” means, with
respect to any Participant for any Plan Year, the sum of all contributions
allocated to a Participant’s Accounts under the Profit Sharing Fund for such
year, excluding any

 

18

 

Before-Tax Contributions
to the Profit Sharing Fund that are distributed as excess deferrals in
accordance with subsection 8.5, but including any Before-Tax Contributions
treated as excess contributions under subsection 8.7. The term Annual
Additions shall also include, solely with respect to the dollar limit in (a) above,
employer contributions allocated for a Plan Year to any individual medical
account (as defined in section 415(1) of the Code) of a Participant
and any amount allocated for a Plan Year to the separate account of a Participant
for payment of post-retirement medical benefits under a funded welfare benefit
plan (as described in section 419A(d)(2) of the Code), which is
maintained by an Employer or a Related Company or Section 415 Affiliate;
provided, however, that the compensation limit referred to in paragraph (b) next
above shall not apply to any contribution for medical benefits after separation
from service (within the meaning of section 401(h) or section 419(f)(2) of
the Code) which is otherwise treated as an Annual Addition. “Section 415
Affiliate” means any entity that would be a Related Company if the
ownership test of section 414 of the Code was “more than 50%” rather than “at
least 80%”.

 

8.4.                              Excess
Annual Additions. If, as a result of a reasonable error in estimating
a Participant’s Compensation, a reasonable error in determining the amount of
Before-Tax Contributions that may be made with respect to a Participant
under the limits of section 415 of the Code or such other mitigating
circumstances as the Commissioner of Internal Revenue shall prescribe, the
Annual Additions for a Participant for a Plan Year exceed the limitations set
forth in subsection 8.3, the excess amounts shall be treated, as
necessary, in accordance with Treas. Reg. § 1.415-6(b)(6)(ii), after any
After-Tax Contributions, and then any Before-Tax Contributions, and any income,
losses, appreciation or depreciation attributable to the foregoing, are first
returned to the Participant to reduce the excess amount.

 

8.5.                              Annual
Dollar Limitation. In no event shall the Before-Tax Contributions for a
Participant to the Profit Sharing Fund and any other elective deferrals (as
defined in section 402(g)(3) of the Code) under any other
cash-or-deferred arrangement maintained by an Employer or a Related Company for
any taxable year exceed the amount permitted under section 402(g) of
the Code. If during any taxable year a Participant is also a participant
in any other cash-or-deferred arrangement, and if his elective deferrals made
under such other arrangements together with his Before-Tax Contributions made
to the Profit Sharing Fund exceed the maximum amount permitted for the
Participant for that year under section 402(g) of the Code, the
Participant, not later than March 1 following the close of such taxable year,
may request the Committee to direct the Trustee to distribute all or a
portion of such excess to him, with any gains or losses allocable thereto for
that Plan Year determined in accordance with any reasonable method adopted by
the Committee for that Plan Year that either (i) conforms to the
accounting provisions of Section 7 and is consistently applied to the
distribution of excess contributions under this subsection 8.5 and subsection 8.7
to all affected Participants, or (ii) satisfies any alternative method set
forth in applicable Treasury regulations. Any such request shall be in writing
and shall include adequate proof of the existence of such excess, as determined
by the Committee in its sole discretion. If the Committee is so notified, such
excess amount shall be distributed to the Participant no later than the April 15
following the close of the Participant’s taxable year. In addition, if the
applicable limitation for a Plan Year is exceeded with respect to this Plan
alone, or this Plan and another plan or plans of the Employers and Related
Companies, the Committee shall direct such excess Before-Tax Contributions
(with allocable gains or losses) to be distributed to the Participant as soon
as practicable after the Committee is notified of the

 

19

 

excess deferrals
by the Company, an Employer or the Participant, or otherwise discovers the
error (but no later than the April 15 following the close of the
Participant’s taxable year). Notwithstanding the foregoing provisions of this
subsection 8.5, the dollar amount of any distribution due hereunder shall
be reduced by the dollar amount of any Before-Tax Contributions previously
distributed to the same Participant pursuant to subsection 8.7, provided,
however, that for purposes of subsections 8.3 and 8.6, the correction
under this subsection 8.5 shall be deemed to have occurred before the
correction under subsection 8.7.

 

8.6.                              Section 401(k)(3) Testing.
For any Plan Year, the amount by which the average of the Deferral
Percentages (as defined below) for the Plan Year for the group of eligible
employees who are Highly Compensated (the “Highly Compensated Group Deferral
Percentage”)
exceeds the average of the Deferral Percentages for the same Plan Year for
the group of eligible employees who are not Highly Compensated (the “Non-highly Compensated
Group Deferral Percentage”),
shall be less than or equal to either (i) a factor of 1.25 or (ii) both
a factor of 2 and a difference of 2. The “Deferral Percentage” for any eligible employee
for a Plan Year shall be determined by dividing his Before-Tax Contributions
for that Plan Year by his Compensation for that Plan Year, subject to the
following special rules:

 

(a)                                  any
employee eligible to participate in the Plan at any time during a Plan Year in
accordance with subsection 2.1 (without regard to any suspension imposed
by any other provision hereunder) shall be counted, whether or not any
Before-Tax Contributions are made on his behalf for the year;

 

(b)                                 the
Deferral Percentage for any Highly Compensated Participant who is eligible to
participate in the Plan and who is also eligible to make elective deferrals
under one or more other arrangements described in section 401(k) of the
Code that are maintained by an Employer or a Related Company for a plan year
that ends with or within the same calendar year as the Plan Year (other than a
plan subject to mandatory disaggregation under applicable Treasury regulations)
shall be determined as if all of such elective deferrals were made on his
behalf under the Plan;

 

(c)                                  excess
Before-Tax Contributions distributed to a Participant under subsection 8.5
shall be counted in determining such Participant’s Deferral Percentage, except
in the case of a distribution to a non-Highly Compensated Participant required
to comply with section 401(a)(30) of the Code; and

 

(d)                                 all
collective bargaining units shall be treated as a single collective bargaining
unit, and separate testing of each collective bargaining unit shall not be
required under this subsection 8.6.

 

Application of the
provisions of this subsection 8.7 shall be made in accordance with the
requirements of section 401(k)(3) of the Code and applicable
regulations thereunder. The provisions of Code section 401(k)(3) and
Treas. Reg. section 1.401(k)-1(b) are herein incorporated by
reference.

 

20

 

 

8.7.                              Correction
Under Section 401(k) Test. In the event that the Highly Compensated
Group Deferral Percentage for any Plan Year does not initially satisfy one of
the tests referred to in subsection 8.6, the Committee shall direct the
Trustee to distribute the Excess Contributions (as defined below) for such
year, with any gains or losses allocable thereto for that Plan Year. The “Excess Contributions” for any Plan Year shall
mean the excess of the aggregate amount of Before-Tax Contributions taken into
account in computing the Deferral Percentages of Highly Compensated
Participants for such year over the maximum amount of Before-Tax Contributions
permitted under the test set forth in subsection 8.6. Distribution of the
Excess Contributions for a Plan Year shall be made to Highly Compensated
Participants on the basis of the amount of contributions made on behalf of each
such Participant for such year beginning with those Highly Compensated
Participants making the largest dollar amount of contributions, in the manner
required under section 401(k)(8)(B) of the Code. The gain or loss
allocable to Excess Contributions shall be determined in accordance with any
reasonable method adopted by the Committee for that Plan Year that either (i) conforms
to the accounting provisions of Section 7 and is consistently applied to
making corrective distributions under this subsection 8.7 and
subsections 8.5, 8.9 and 8.10 to all affected Participants or (ii) satisfies
any alternative method set forth in applicable Treasury regulations. The
amounts to be distributed to any Participant pursuant to this subsection 8.7
shall be reduced by the amount of any Before-Tax Contributions distributed to
him for the taxable year ending with or within such Plan Year pursuant to subsection 8.5.
The Committee shall take such actions and cause any distribution to be made no
later than the close of the Plan Year following the Plan Year for which the
Excess Contributions were made.

 

8.8.                              Highly
Compensated. An active employee (that is, an employee who performs services
for the Employer or any Related Company during the year in question) or
Participant shall be “Highly
Compensated” for
any Plan Year if:

 

(a)                                  he
was at any time during that Plan Year or the preceding Plan Year a 5 percent
owner of an Employer or a Related Company; or

 

(b)                                 he
received Compensation for the preceding Plan Year in excess of $80,000 (indexed
for cost-of-living adjustments under section 415(d) of the Code).

 

A former employee (that
is, any employee who separated from service, or was deemed to have separated,
prior to the year in question and who performs no services for the Employers
and Related Companies during the year) shall be “Highly Compensated” if he was a Highly
Compensated active employee for either the separation year or any Plan Year
ending on or after his 55th birthday. Notwithstanding the foregoing provisions
of this subsection 8.8, for any Plan Year the Committee may use any
alternative definition of highly compensated permitted under section 414(q)
of the Code and applicable regulations thereunder.

 

8.9.                              Forfeiture of “Orphaned” Matching Contributions. If Before-Tax
Contributions are returned to a Highly Compensated Participant to satisfy the
contribution limits of section 415(c) of the Code, the deferral
limits of section 402(g) of the Code or the nondiscrimination
requirements of section 401(k)(3) of the Code, any Matching
Contributions allocable thereto shall be forfeited and used to reduce the
amount of Employer contributions otherwise required to be made to the Plan.

 

21

 

SECTION 9

 

Vesting Service, Vesting and Termination Dates

 

9.1.                              Determination
of Vesting Service and Vested Interest. A Participant at all times shall
have a fully vested, nonforfeitable interest in his Before-Tax Account,
After-Tax Account and Rollover Account. A Participant shall become vested in
his Matching Account in accordance with the following schedule:

 

	
  Completed Years of Service

  	
   

  	
  Percent Vested

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Less than 2

  	
   

  	
  0

  	
  %

  	
   

  
	
  2

  	
   

  	
  25

  	
  %

  	
   

  
	
  3

  	
   

  	
  50

  	
  %

  	
   

  
	
  4

  	
   

  	
  75

  	
  %

  	
   

  
	
  5

  	
   

  	
  100

  	
  %

  	
   

  

 

Notwithstanding the
foregoing, a Participant shall be 100% vested in the amount of any dividend
payable on or after December 15, 2001 with respect to shares of Employer
Common Stock (or with respect to units representing such shares) that are
allocated to his Account and held under the ESOP Fund, regardless of whether
such dividend is distributed in cash pursuant to subsection 10.6 or
reinvested in the Participant’s Account. For purposes of this subsection 9.1,
a Participant’s “Years of Service” will be computed in accordance with
paragraph 3.1(a) and subsection 3.4 regardless of whether he is a
full-time employee or a part-time or seasonal employee, provided that no
part-time or seasonal employee shall have fewer Years of Service for purposes
of this subsection 9.1 as of December 31, 1997 than he would have had
under the method of computing vesting service applicable to him under the terms
of the Plan as in effect on May 11, 1997. Notwithstanding the foregoing
provisions of this subsection 9.1, if an employee or Participant
terminates employment with the Employers and Related Companies when he does not
have a vested right to any portion of his Matching Account under this subsection 9.1,
and if the number of his consecutive One Year Breaks in Service equals or
exceeds the greater of five (5) or the aggregate number of his Years of
Service prior to the first such One Year Break in Service, then his Years of
Service prior to such break shall be disregarded and, if he is later employed or
reemployed by an Employer or a Related Company, he shall be considered a new
employee for purposes of this subsection 9.1.

 

9.2.                              Accelerated
Vesting. Notwithstanding the foregoing provisions of this Section 9, a
Participant shall have a fully vested, nonforfeitable interest in all his
Accounts when he attains age 55, dies or becomes permanently and totally
disabled (as defined below) while employed by an Employer or a Related Company.
In addition, in the event of the Plan’s termination (in accordance with subsection 14.2)
or partial termination (as determined under applicable law and regulations), or
the complete discontinuance of Employer contributions to the Plan, each
affected Participant shall be fully vested in all his Accounts. The Committee
in its discretion may also determine that the Accounts of Participants
affected by a divestiture, plant closing or termination of an operation shall
be fully vested, even though such event does not constitute a partial
termination. For purposes of this subsection 9.2, a Participant will be
considered “permanently and totally disabled” if either (i) the
Participant has been determined to be permanently and totally disabled under
the terms of an Employer’s long term disability plan in which the

 

22

 

Participant
participates, or (ii) the Participant has received a determination of
disability by the Social Security Administration.

 

9.3.                              Termination
Date. If a Participant is terminated for any reason, his “Termination Date” generally will be the
last day for which he is paid wages or salary for services performed for an
Employer, unless he is terminated while on an unpaid leave of absence, in which
case his Termination Date will be the day as of which he is notified of his termination
or resigns (whichever is applicable).

 

9.4.                              Distribution
of Before-Tax Account Only Upon Separation From Service. Notwithstanding
any other provision of the Plan to the contrary, a Participant may not
commence distribution of the portion of his Account attributable to his
Before-Tax Contributions prior to the date he attains age 591⁄2, even though his
employment with the Employers and Related Companies has terminated and he is
otherwise eligible for a distribution under Section 11, unless or until he
also has a “separation from service” within the meaning of section 401(k)(2)(B) of
the Code. The foregoing restriction shall not apply, however, if the
Participant’s termination of employment occurs in connection with the sale by
an Employer or a Related Company to an unrelated corporation of at least 85% of
the assets of a trade or business or the disposition of its interest in a
subsidiary to an unrelated entity that meets the requirements for distribution
under applicable Treasury regulations. Notwithstanding the foregoing, effective
for distributions in Plan Years beginning after December 31, 2001, and
subject to the other provisions of the Plan regarding distribution,
distribution shall not be prohibited by reason of this subsection 9.4 as
of any date after December 31, 2001 with respect to a Participant who has
severed from employment (within the meaning of section 401(k)(2) of
the Code) as of such date, regardless of when the severance from employment
occurred.

 

SECTION 10

 

Loans and Withdrawals of Contributions While Employed

 

10.1.                        Loans
to Participants. The Committee, upon request by a Participant who is an
employee of an Employer or a Related Company (excluding any employee on layoff
or a leave of absence without pay) or who is a “party in interest” with respect
to the Plan (as such term is defined in section 3(14) of ERISA) may authorize
a loan to be made to the Participant from his vested interest in the Trust
Fund, subject to the following:

 

(a)                                  The
minimum loan amount is $1,000. No loan shall be made to a Participant if,
immediately after such loan, the sum of the outstanding balances (including
principal and interest) of all loans made to him under this Plan and under any
other qualified retirement plans maintained by the Related Companies would
exceed the lesser of:

 

(i)                                     $50,000,
reduced by the excess, if any, of:

 

23

 

(A)                              the
highest outstanding balance of all loans to the Participant from the plans
during the one-year period ending on the day immediately before the date on
which the loan is made; over

 

(B)                                the
outstanding balance of loans from the plans to the Participant on the date on
which such loan is made; or

 

(ii)                                  the
combined values of the Participant’s After-Tax, Before-Tax and Rollover
Accounts;

 

and no loan
shall be made to a Participant from the Plan in an amount that would exceed
one-half of the total vested balance of the Participant’s Accounts under the
Plan as of the date the loan is made. Notwithstanding the foregoing, if the amount
described in clause (ii) above declines because of investment losses
between the date the loan is requested and the Accounting Date as of which it
is made, the difference may be taken from the vested portion of his
Matching Account (so long as the loan does not exceed one-half of the total
vested balance of his Accounts).

 

(b)                                 Each
loan to a Participant shall be charged against the Participant’s Accounts in
the order and manner determined by the Committee, and shall be charged pro rata
against each Investment Fund in which such Accounts are invested.

 

(c)                                  Each
loan shall be evidenced by a written note providing for:

 

(i)                                     a
repayment period of 12 through 60 months, inclusive;

 

(ii)                                  a
reasonable rate of interest (as determined below);

 

(iii)                               substantially
equal payments of principal and interest over the term of the loan no less
frequently than quarterly; and

 

(iv)                              such
other terms and conditions as the Committee shall determine.

 

The interest
rate shall provide the Plan with a return commensurate with the interest rates
charged by persons in the business of lending money for loans which would be
made under similar circumstances and shall be a fixed rate for the life of the
loan, except to the extent that a reduction in the interest rate is required by
Federal law during a period of military service. The interest rate which
applies to a loan shall be the rate in effect on the date that the loan
application is made by the Participant.

 

(d)                                 A
loan shall be the borrowing Participant’s individual investment within the Loan
Account.

 

(e)                                  Payments
of principal and interest to the Trustee with respect to any loan to a
Participant:

 

(i)                                     shall
reduce the outstanding balance with respect to that loan;

 

24

 

(ii)                                  shall
reduce the balance of the Loan Account holding the promissory note reflecting
that loan;

 

(iii)                               shall
be credited to the Participant’s Accounts in the reverse order in which they
were charged; and

 

(iv)                              shall
be invested in the Investment Funds in accordance with his current investment
directions with respect to such Accounts.

 

(f)                                    A
Participant’s obligation to repay a loan (or loans) from the Plan shall be
secured by the Participant’s vested interest in the Plan. The note evidencing
the loan, the security agreement and the payroll deduction authorization shall
each be executed by the Participant by entry of his password into the Access
System. Endorsement of the loan check shall constitute the Participant’s
affirmation of the note, security agreement and payroll deduction authorization
set forth in the written confirmation sent to the Participant after he made his
loan request.

 

(g)                                 Generally,
loan repayments will be made by automatic payroll deductions. However, during
any period when payroll deduction is not possible or is not permitted under
applicable law, repayment will be made by check or money order and shall be
sent to the Plan’s service center. The obligation to repay a loan shall be
suspended during periods of military service to the extent permitted under section 414(u)(4) of
the Code and the regulations thereunder. A Participant’s loan repayment
obligation shall not be suspended on account of the Participant’s filing of a
bankruptcy petition under the United States Bankruptcy Code, notwithstanding
that the Participant voluntarily or involuntarily ceases loan repayments by
payroll deduction or otherwise.

 

(h)                                 The
loan may be prepaid in full, without penalty, at any time after it has
been outstanding for 12 months. In the event of early repayment of the loan,
the Participant may not apply for a new loan until at least 30 days after
the prior loan’s repayment.

 

(i)                                     A
loan to a Participant shall become immediately due and payable without notice
of any kind upon his Termination Date. Notwithstanding any other provision of
the Plan to the contrary, if the outstanding balance of principal and interest
on any loan is not paid within the grace period established by the Committee
for a delinquent payment (not later than the end of the calendar quarter
following the quarter in which it is due) or within 90 days after acceleration
in accordance with the preceding sentence, a default shall occur and the
Trustee shall apply all or a portion of the Participant’s vested interest in
the Plan in satisfaction of such outstanding obligation, but only to the extent
such vested interest (or portion thereof) is then distributable under
applicable provisions of the Code. If necessary to satisfy the entire
outstanding obligation, such application of the Participant’s vested interest may be
executed in a series of actions as amounts credited to the Participant’s
Accounts become distributable. Any partial payments shall be applied first to
the payment of accrued interest and thereafter to

 

25

 

the payment of
outstanding principal. During any period that an active Participant has a
defaulted loan outstanding with respect to which amounts are not distributable
as described in this subsection 10.1(i), interest shall continue to accrue
on the outstanding balance of the loan at the rate determined under paragraph (c) next
above. While he remains an active employee, such Participant may elect to
repay the outstanding loan balance (including any accrued interest) in
accordance with uniform procedures established by the Committee. Any loan
repayments made in accordance with the preceding sentence shall be allocated to
the Participant’s After-Tax Account.

 

(j)                                     If
distribution is to be made to a Beneficiary in accordance with subsection 11.2,
any outstanding promissory note of the Participant shall be canceled and the
unpaid balance of the loan, together with any accrued interest thereon, shall
be treated as a distribution to or on behalf of the Participant immediately
prior to commencement of distribution to the Beneficiary.

 

(k)                                  The
Committee shall establish uniform procedures for applying for a loan,
evaluating loan applications, setting reasonable rates of interest, and loan
fees, which shall be communicated to Participants in writing or in such other
manner as may be permitted by Federal law. A Participant may have
only one loan outstanding at any time under the Plan and, for this purpose,
loans outstanding under any plan of the Employers or any Related Company shall
be considered a loan under the Plan. If a Participant has any loan outstanding
under any defined contribution plan sponsored by the Employers or any Related
Company, any such loan must be repaid in full before the Participant may obtain
a loan from the Plan.

 

10.2.                        Hardship
Withdrawals. Subject to the provisions of this subsection 10.2 and of
paragraph 10.3(c), a Participant who has not attained age 591⁄2, whose
Termination Date has not yet occurred, and who incurs a Hardship (as defined in
subsection 10.3) may elect to withdraw all or part of his
interest in the following Accounts, as provided and in the order set forth
below:

 

(a)                                  up
to 100% of his After-Tax Account, and the earnings thereon;

 

(b)                                 up
to 100% of his Rollover Account; and

 

(c)                                  up
to 100% of the Before-Tax Contributions credited to his Before-Tax Account and
any earnings credited to such account as of December 31, 1988.

 

Any such Hardship
withdrawal is subject to a minimum amount of $500. A Participant who does not
have at least $500 in the Accounts listed above is ineligible for a Hardship
withdrawal. A Participant who is eligible to make a withdrawal under subsection 10.5
and/or subsection 10.6 must withdraw the full amount available to him
under both such subsections before he makes a Hardship withdrawal under this
subsection 10.2.

 

10.3.                        Determination
of Hardship. A withdrawal will not be considered to be made on account of “Hardship” unless the following
requirements are met:

 

26

 

(a)                                  The
withdrawal is requested because of an immediate and heavy financial need of the
Participant, and will be so deemed if the Participant represents that the
withdrawal is made on account of:

 

(i)                                     uninsured
expenses for medical care described in section 213(d) of the Code
incurred by the Participant, a parent of the Participant, the Participant’s
spouse or any dependent of the Participant (as defined in section 152 of
the Code) or necessary for such persons to obtain such medical care;

 

(ii)                                  the
purchase (excluding mortgage payments) of a principal residence of the
Participant;

 

(iii)                               payment
of tuition and related educational fees for the next 12 months of
post-secondary education for the Participant, or his spouse, children or
dependents;

 

(iv)                              the
need to prevent the eviction of the Participant from his principal residence or
foreclosure on the mortgage of the Participant’s principal residence; or

 

(v)                                 funeral
expenses of a family member, past due taxes, past due child support, other past
due obligations, cash settlements due in a divorce, the cost of repairs to the
Participant’s home as a result of major damage or to a major appliance, or
repairs to or purchase of a car needed to commute to work.

 

(b)                                 The
withdrawal must also be necessary to satisfy an immediate and heavy financial
need of the Participant. It will be considered necessary if the Committee
determines that the amount of the withdrawal does not exceed the amount
required to relieve the financial need (taking into account any applicable
income or penalty taxes resulting from the withdrawal) and if the need cannot
be satisfied from other resources that are reasonably available to the
Participant. In making this determination, the Committee may reasonably
rely on the Participant’s written representation that the need cannot be
relieved:

 

(i)                                     through
reimbursement or compensation by insurance or otherwise;

 

(ii)                                  by
reasonable liquidation of the Participant’s assets, to the extent such
liquidation would not itself give rise to an immediate and heavy financial
need;

 

(iii)                               by
ceasing to make Before-Tax or After-Tax Contributions to the Plan (or any other
plan of the Employer permitting deferral of compensation); or

 

(iv)                              by a
loan pursuant to subsection 10.1 or by borrowing from commercial sources
on reasonable commercial terms.

 

27

 

(c)                                  The
withdrawal must be made pursuant to a written request to the Committee, which
request shall include any representation required by this subsection 10.3
and adequate proof thereof, as determined by the Committee in its sole
discretion.

 

10.4.                        Age
591⁄2 Withdrawals. Once a Participant attains age 591⁄2, he may withdraw
all or any portion of his entire vested Account balance regardless of whether
he has a Hardship.

 

10.5.                        Withdrawals
From 3/31/97 After-Tax and Matching Account Balances. A Participant who was
participating in the Plan prior to April 1, 1997 and whose Termination
Date has not yet occurred may elect to withdraw all or a portion of his March 31,
1997 After-Tax Account and Matching Account balances, as provided and in the
order set forth below:

 

(a)                                  that
portion of his After-Tax Account attributable to After-Tax Contributions made
prior to April 1, 1997, and any earnings thereon; and

 

(b)                                 that
portion of his Matching Account attributable to Matching contributions made
prior to April 1, 1997, and any earnings thereon.

 

Until November 1,
1999, any withdrawal under this subsection 10.5 is subject to a minimum
amount of $500 or the total amount that may be withdrawn pursuant to this
subsection, whichever is less.

 

10.6.                        Withdrawals
of Dividends During and After Employment. Subject to such rules and
conditions as the Committee shall prescribe on a uniform, consistent and
nondiscriminatory basis, a Participant or Beneficiary may elect to have
any cash dividend payable with respect to shares of Employer Common Stock (or
with respect to units representing such shares) allocated to his Account and
held under the ESOP Fund distributed to the Participant or Beneficiary in cash
not later than ninety (90) days after the close of the Plan Year in which the
dividend was paid. If a Participant or Beneficiary shall fail to make an
election, any such dividends shall be paid to the applicable Subpart and
reinvested in Employer Common Stock (or in additional units representing such shares)
to be allocated to the Participant’s or Beneficiary’s Account.

 

10.7.                        Form of
Withdrawals. Any loan or withdrawal from any Account pursuant to this Section 10
shall be made proportionately from each of the Investment Funds in which such
Account is invested. All loan proceeds shall be paid solely in cash. All
Hardship withdrawals and, except as provided in the following sentence, all
withdrawals under subsections 10.4 and 10.5, shall be made solely in cash. Withdrawals
under subsections 10.4 and 10.5 from the portion of a Participant’s Accounts
that is invested in the Altria Group Stock Fund or the Kraft Foods Stock Fund
(other than dividend withdrawals described in subsection 10.6) shall be
made in cash, except to the extent the Participant elects to receive whole
shares of Altria Group Common Stock or Kraft Foods Common Stock, respectively
(with cash in lieu of any fractional share) and withdrawals from the other
Investment Funds shall be paid solely in cash. Withdrawals under subsection 10.6
shall be made in cash.

 

28

 

SECTION 11

 

Distributions

 

11.1.                        Distributions
to Participants After Termination of Employment. If a Participant’s
Termination Date occurs (for a reason other than his death), the vested portions
of his Accounts shall be distributed in accordance with the following
provisions of this subsection 11.1, subject to the provisions of
subsections 9.4 and 11.5:

 

(a)                                  If
the value of the vested portions of such Participant’s Accounts (including any
loans outstanding on his Termination Date) does not exceed $5,000 ($1,000 in
the case of distributions on and after March 23, 2005), determined as soon
as practicable following his Termination Date, such vested portions, less any
outstanding loan balance distributable in accordance with paragraph 10.1(i),
shall be distributed to him as soon as practicable following notification, in a
lump sum payment; provided, however, that the distribution shall not commence
earlier than 30 days after the Participant is given the direct rollover notice
required under section 402(f) of the Code unless the Participant has
been informed of his right to a period of at least 30 days to consider the
decision of whether or not to elect a direct rollover, and the Participant, after
receiving such notice, affirmatively elects the distribution.

 

(b)                                 If
a Participant is not cashed out under the provisions of the foregoing paragraph
(a), the vested portions of the Participant’s Account, less any outstanding
loan balance distributable in accordance with subsection 10.1(i), shall be
distributed (or shall begin to be distributed) to the Participant on (or as
soon as practicable after) the Distribution Date (as defined in paragraph (c) below)
he elects, by one of the following methods chosen by the Participant:

 

(i)                                     by
payment in a lump sum; or

 

(ii)                                  by
payment in a series of monthly, quarterly, semi-annual or annual
installments for a period selected by the Participant that complies with subsection 11.5
(the amount of each installment as of each applicable Accounting Date shall be
equal to the product of the Participant’s then Account balances multiplied by a
fraction, the numerator of which is one and the denominator of which is the
difference between the number of installments selected and the number of
installments previously paid); provided, however, that a Participant may elect
payments in the form of a fixed amount option under which the Participant
will receive a specified dollar amount payable at specified intervals (monthly,
quarterly, semiannually or annually) until his account is completely
liquidated, and a Participant may elect to change the fixed amount
(without changing the frequency of the payments) subject to uniform rules established
by the Committee; and provided further that the Participant may elect to
accelerate any installment payments and to have his remaining vested Account
balance distributed to him in a lump sum payment as soon as

 

29

 

practicable after the
Accounting Date coincident with or next following the date his acceleration
election is submitted to the Committee; or

 

(iii)                               by
purchase from an insurance company and distribution to him of an annuity
contract providing for periodic distributions to him for his life (with or
without a period certain) or to him and his beneficiary for their joint lives,
subject to the provisions of subsection 11.3; provided, however, that
distribution in the form of an annuity contract pursuant to this
subparagraph (iii) shall not be permitted for any distribution with an
Annuity Starting Date after December 31, 2002 or, if later, the 90th
day after the date that Participants are furnished a notice of the elimination
of this form of distribution which satisfies the requirements of 29 CFR
2520.104b-3 (relating to a summary of material modifications) for pension
plans, but not later than January 1, 2004.

 

Notwithstanding
the foregoing, unless a Participant elects otherwise, distribution of the
portion, if any, of his Account invested in the ESOP Fund shall be made in a
single payment.

 

(c)                                  A
Participant’s “Distribution
Date” shall
mean the Accounting Date as of which a payment in any form is made to him
pursuant to this Section 11, without regard to any reasonable
administrative delay; provided, however, that in the event of an election of an
annuity under clause (b)(iii) above, the Distribution Date shall be no
later than the date payment is irrevocably made on behalf of the Participant to
the insurance company issuing the annuity contract. A Participant may elect
that his Distribution Date occur as of any Accounting Date occurring on or
after his Termination Date (but not retroactively and not later than the date
on which he attains age 701⁄2), provided that no election of a Distribution Date
will be valid if it is made more than 90 days prior to such date and further
provided that the distribution shall not commence earlier than 30 days after
the Participant is given the direct rollover notice required under section 402(f) of
the Code and the notice required under Treasury regulation section 1.411(a)-11(c) unless
the Participant has been informed of his right to a period of at least 30 days
to consider the decision of whether or not to elect a direct rollover and
whether or not to elect a distribution, and the Participant, after receiving
such notices, affirmatively elects the distribution.

 

11.2.                        Distributions
to Beneficiaries. Subject to subsection 11.5, the following rules shall
apply if a Participant dies while any vested portion of his Accounts remains
undistributed:

 

(a)                                  If
the Participant dies before benefit payments to him have commenced, the vested
balance of his Accounts, less any outstanding loan balance distributable in
accordance with paragraph 10.1(j), shall be distributed as follows:

 

(i)                                     If
the value of the vested portion of the Participant’s Accounts (less the
outstanding loan balance) does not exceed $5,000 ($1,000 in the case of
distributions on and after March 23, 2005), determined as soon as

 

30

 

practicable following his
date of death, or, if the Beneficiary is not the Participant’s surviving
spouse, such vested portion (less the outstanding loan balance) shall be
distributed to his Beneficiary as soon as practicable after his death, in a
lump sum payment.

 

(ii)                                  If
the value of the vested portion of the Participant’s Accounts (less the
outstanding loan balance) exceeds $5,000 ($1,000 in the case of distributions
on and after March 23, 2005), determined as soon as practicable following
his date of death and the Beneficiary is the Participant’s surviving spouse,
such vested portion (less the outstanding loan balance) shall be distributed to
his Beneficiary as of any Accounting Date following the date of his death
selected by the Beneficiary (in accordance with subsection 11.5), in one
of the methods described at paragraph 11.1(b) as chosen by the
Beneficiary.

 

(b)                                 If
a Participant dies after benefit payments to him have commenced, the vested
balance, if any, of his Accounts shall continue to be distributed to his
Beneficiary in accordance with the method of distribution selected by the
Participant; provided, however, that the Beneficiary may elect to
accelerate the payments and to have such remaining vested balances distributed
in a lump sum payment as soon as practicable after the Accounting Date next
following the date the Beneficiary’s acceleration election is filed with the
Committee.

 

11.3.                        Special
Rules Governing Annuity Elections. If a married Participant elects
distribution in the form of an annuity pursuant to clause 11.1(b)(iii),
the following rules shall apply and shall supersede any other provision of
the Plan to the contrary:

 

(a)                                  The
vested portions of the Participant’s Accounts, less any outstanding loan
balance distributable in accordance with paragraph 10.1(i), shall be used to
purchase a nontransferable “Joint and
Survivor Annuity” (that is, an annuity that commences immediately
and is payable for the life of the Participant with a survivor annuity payable
for the life of his spouse which survivor annuity is not less than 50% of the
amount of the annuity payable during the joint lives of the Participant and
spouse), unless he elects another form of annuity and, if applicable, a
Beneficiary other than his spouse, with the consent of his spouse to such form and
Beneficiary, during the 90-day period immediately preceding his Distribution
Date. The Participant’s Distribution Date shall be no earlier than 30 days
after the Participant is given the notice required under Treasury regulation section 1.411(a)-11(c),(including
a written explanation of the terms and conditions of the Joint and Survivor
Annuity and the effect of an election of a different annuity form), unless the
Participant has been informed of his right to a period of at least 30 days to
consider the decision of whether or not to elect a distribution and a
particular distribution option, and the Participant, after receiving such
notice, affirmatively elects the distribution.

 

(b)                                 No
consent by the spouse to the election of a form of annuity other than the
Joint and Survivor Annuity and, if applicable, Beneficiary other than the
spouse shall

 

31

 

be effective unless it is
in writing, acknowledges the effect of such consent and is witnessed by a Plan
representative or a notary public (unless the Committee determines that there
is no spouse, that the spouse cannot be located, that the Participant and his
spouse are legally separated, that the Participant has been abandoned (under
applicable state law) and the Participant has a court order to that effect, or
that consent may be waived because of such other circumstances as
regulations or rulings under Code section 417 set forth).

 

(c)                                  During
the period between his election of an annuity and his Distribution Date, no
loan may be made to a Participant pursuant to subsection 10.1, no
amount may be withdrawn by the Participant pursuant to Section 10 and
no amount may be distributed to the Participant pursuant to subsection 11.1,
in any form other than a Joint and Survivor Annuity, without the written
consent of the spouse as provided in paragraph (b) of this subsection 11.3.

 

(d)                                 Subject
to paragraph (e) below, if the Participant dies during the period between
his election of an annuity and his Distribution Date, the vested portions of
his Accounts (less any amounts credited to the Loan Fund, which shall be
distributed in accordance with paragraph 10.1(j)) shall be paid to his spouse
in the form of a life annuity as of the Accounting Date next following the
date the Participant would have attained age 65 or, if the spouse so elects, as
soon as practicable after any earlier Accounting Date next following his death;
provided, however, that a spouse to whom payment is due under this paragraph (d) may elect
to have such vested portions, if any, distributed in the form of a lump
sum payment.

 

(e)                                  The
provisions of paragraph (d) above shall not apply, and distribution upon
the death of the Participant shall be made in accordance with subsection 11.2,
if the spouse consents to the designation of a Beneficiary other than the
spouse in accordance with subsection 11.6 during the period between the
Participant’s election of an annuity and his death, and acknowledges that such
consent to the Participant’s designation of such Beneficiary constitutes the
spouse’s consent to the Participant’s waiver of a qualified pre-retirement
survivor annuity payable to the spouse in accordance with section 417 of
the Code.

 

(f)                                    A
Participant may revoke his election pursuant to this subsection 11.3,
and may make a new election of any form of distribution permitted
under paragraph 11.1(b), at any time during the 90-day period immediately
preceding his Distribution Date; provided, however, that if the effect of such
revocation is to select a distribution form other than a Joint and
Survivor Annuity, it shall be ineffective without the written consent of his
spouse in accordance with paragraph (b) of this subsection 11.3 to
the new form of distribution and, if applicable, a Beneficiary other than
the spouse.

 

11.4.                        Forfeitures
and Restorations of Non-Vested Contributions. If a Termination Date occurs
with respect to a Participant who is not fully vested in his Accounts (as
determined under Section 9), the following rules shall apply:

 

32

 

(a)                                  The
non-vested portion of his Accounts shall be forfeited as of the earlier of the
date as of which the vested portion of his Accounts is distributed to him or
the date the Participant incurs five consecutive One Year Breaks in Service.

 

(b)                                 If
a forfeiture occurs due to the distribution of the vested portion of the
Participant’s Accounts, and the Participant is reemployed by an Employer or a
Related Company before he incurs five consecutive One Year Breaks in Service,
the amount forfeited under paragraph (a) above shall be restored, as
adjusted for earnings in accordance with uniform rules established by
the Committee, as soon as practicable after his reemployment.

 

(c)                                  If
a forfeiture occurs due to the distribution of the vested portion of the
Participant’s Accounts, and the Participant is reemployed by an Employer or
Related Company after he incurs five consecutive One Year Breaks in Service,
such reemployment shall have no effect on the forfeiture under paragraph (a) above.

 

(d)                                 The
restoration referred to in paragraph (b) above shall be made first from
current forfeitures, if any, under the Plan and then, if necessary, from a
special Employer contribution to the Plan.

 

(e)                                  A
restoration pursuant to paragraph (b) above shall not be considered an
annual addition for purposes of subsection 8.3.

 

(f)                                    If
a Participant who is reemployed by an Employer or Related Company prior to
incurring five consecutive One Year Breaks in Service received a distribution
of the vested portion of his Matching Account, the amount restored under
paragraph (b) above shall be maintained in a separate subaccount within
the Participant’s Matching Account and his vested interest in each subaccount
shall be determined in accordance with the rules set forth in Treas. Reg. § 411(a)-7(d)(5)(iii)(A).

 

(g)                                 During
the period between the Participant’s Termination Date and the date he is either
reemployed by an Employer or Related Company or the date the non-vested portion
of his Matching Account is forfeited such non-vested portion shall be credited
to a forfeiture subaccount and invested in accordance with rules established
by the Committee to minimize the risk of loss, and shall not be subject to the
investment direction of the Participant.

 

(h)                                 All
forfeitures under this subsection 11.4 shall be used to reduce Matching
Contributions under Section 5, except to the extent needed to restore
prior forfeitures under paragraph (b) above.

 

11.5.                        Limits
on Commencement and Duration of Distributions. The following
distribution rules are intended to conform distributions under the
Plan to the requirements of sections 401(a)(9) and 401(a)(14) of the Code
and applicable regulations thereunder, including the minimum distribution
incidental benefit requirement of section 401(a)(9)(G) of the Code,
and

 

33

 

with respect to
any portion of an Account invested in the ESOP Fund, to section 409(o) of
the Code, and such provisions of law shall supersede any other provision of the
Plan to the contrary:

 

(a)                                  Unless
the Participant elects otherwise, distribution shall commence no later than 60
days after the close of the Plan Year in which the latest of the following
events occurs:  the Participant’s attainment
of age 65; the 10th anniversary of the year in which the Participant began
participating in the Plan; or the Participant’s Termination Date. The failure
of a Participant to consent to a distribution is deemed to be an election to
defer commencement of payment for purposes of the preceding sentence.

 

(b)                                 Solely
in the case of that portion of an Account invested in the ESOP Fund, the
Participant may elect that distribution commence to be made not later than
one year after the close of the Plan Year:

 

(i)                                     in
which the Participant separates from service by reason of attaining the age of
sixty-five (65), death or disability; or

 

(ii)                                  which
is the fifth Plan Year following the Plan Year in which the Participant
otherwise separates from service (except that this clause shall not apply if
the Participant is reemployed by a Related Company before distribution is
required to begin under this clause (ii)).

 

(c)                                  Notwithstanding
any other provision herein to the contrary, distribution of a Participant’s
Accounts shall commence to be made to him (or on his behalf) once he has
attained age 701⁄2 in the form of a lump sum distribution or, if elected by
the Participant, in any other form permitted by paragraph 11.1(b), on or
before his Required Beginning Date (as defined below) and each December 31
thereafter. (In the event an annuity or lump sum has been elected, each
additional payment shall consist of a lump sum payment of all amounts then
credited to his Accounts.)  A Participant’s
“Required Beginning
Date” shall
mean the April 1 of the calendar year following the later of (i) the
calendar year in which he attains age 701⁄2, or (ii) the calendar year in
which the Participant’s Termination Date occurs; provided, however, that clause
(ii) shall not apply to any Participant who is a 5-percent owner of any
Employer or Related Company (as defined in section 416 of the Code).

 

(d)                                 Required
minimum distributions for calendar years after 2001 shall be governed by
Supplement Q to the Plan.

 

11.6.                        Beneficiary
Designations. The term “Beneficiary”
shall mean the Participant’s surviving spouse, except as otherwise
provided below in this subsection 11.6:

 

(a)                                  If
a Participant is not married at his death, or if the Participant is married but
his spouse has consented (as provided below) to the designation of a person
other than the spouse, the term Beneficiary shall mean such person or persons
as the Participant designates to receive the vested portions of his Accounts
upon his

 

34

 

death. Such a designation may be made, revoked or
changed (without the consent of any previously-designated Beneficiary except
his spouse) only by an instrument signed by the Participant and filed with the
Committee prior to his death.

 

(b)                                 A
spouse’s consent to the designation of a Beneficiary other than the spouse
shall be in writing, shall acknowledge the effect of such designation, shall be
witnessed by a Plan representative or a notary public and shall be effective
only with respect to such consenting spouse; provided, however, that no spousal
consent to the designation of a person other than, or in addition to, the
spouse as Beneficiary shall be required if (i) the Participant and his
spouse are legally separated or the Participant has been abandoned (under applicable
state law) and the Participant has a court order to that effect, or (ii) it
is established to the satisfaction of the Committee that the spouse’s consent
cannot be obtained because there is no spouse, because the spouse cannot be
located or because of such other circumstances as may be prescribed in
applicable Treasury regulations. Foi purposes of the Plan, the term “spouse”
means the person to whom the Participant is legally married at the relevant
time.

 

(c)                                  If
a Participant dies after December 31, 2002, with no surviving Beneficiary
designated by him and no surviving spouse, his Beneficiary shall be his
surviving children (in equal shares) or, if he has no living child, his estate.
If a Participant dies on or before December 31, 2002, his Beneficiary
shall be determined under the provisions of the Plan as in effect on the date
of his death.

 

(d)                                 Notwithstanding
the foregoing provisions of this subsection 11.6, if (i) a
Participant designates his spouse as beneficiary under the Plan in a
beneficiary designation form filed with the Committee and not revoked
prior to his death, and (ii) the Participant and such spouse are divorced
after the date on which such beneficiary designation form is filed with
the Committee and they are not married to each other on the date of the
Participant’s death, then such former spouse shall be deemed to have
predeceased the Participant for purposes of determining the Participant’s
Beneficiary under the Plan; provided, however, that the provisions of this
paragraph (d) shall not apply to the extent that (iii) the
Participant designates the former spouse as beneficiary in a beneficiary
designation form filed with the Committee after the date of dissolution of
the Participant’s marriage to such former spouse, or (iv) a qualified
domestic relations order provides that the former spouse shall be treated as
the Participant’s surviving spouse for purposes of the Plan or otherwise
assigns all or a portion of the Participant’s interest in the Plan to the
former spouse as alternate payee. The provisions of this paragraph (d) shall
apply only with respect to a Participant who dies after December 31, 2003.

 

11.7.                        Form of
Payment. Distributions to or on behalf of a Participant or Beneficiary
shall be made proportionately from each of the Investment Funds in which the
Participant’s Accounts are invested and, except as provided otherwise in the
following sentence, shall be paid solely in cash. Distributions from the
portion of a Participant’s Accounts, if any, that is invested in the Altria Group
Stock Fund or the Kraft Foods Stock Fund shall be made in cash, except to

 

35

 

the extent the
Participant or Beneficiary elects, solely with respect to distributions to be
made in the form of a lump sum or installments (and not with respect to
any distribution to be made in the form of an annuity), to receive whole
shares of Altria Group Common Stock or Kraft Foods Common Stock, respectively
(with cash distributed in lieu of any fractional share).

 

11.8.                        Facility
of Payment. Notwithstanding the provisions of subsections 11.1 and
11.2, if, in the Committee’s opinion, a Participant or other person entitled to
benefits under the Plan is under a legal disability or is in any way
incapacitated so as to be unable to manage his financial affairs, the Committee
may direct the Trustee to make payment to a relative or friend of such
person for his benefit until claim is made by a conservator or other person
legally charged with the care of his person or his estate. Thereafter, any
benefits under the Plan to which such Participant or other person is entitled
shall be paid to such conservator or other person legally charged with the care
of his person or his estate.

 

11.9.                        Interests
Not Transferable. The interests of Participants and other persons
entitled to benefits under the Plan are not subject to the claims of their
creditors and may not be voluntarily or involuntarily assigned, alienated
or encumbered, except in the case of qualified domestic relations orders that
relate to the provision of child support, alimony or marital rights of a
spouse, child or other dependent and which meet such other requirements as may be
imposed by section 414(p) of the Code or regulations issued thereunder. Notwithstanding
any other provision of the Plan to the contrary, distribution of the entire
portion of the Account balance of a Participant awarded to his alternate payee may be
made in a lump sum payment, as soon as practicable after the Committee
determines that such order is qualified, without regard to whether the
Participant would himself be entitled under the terms of the Plan to withdraw
or receive a distribution of such amount at that time, but only if the terms of
the order provide for such immediate distribution either specifically or by
general reference to any manner of distribution permitted under the Plan.

 

11.10.                  Absence
of Guaranty. None of the Committee, the Trustee, or the Employers in any
way guarantee the assets of the Plan from loss or depreciation. The Employers do
not guarantee any payment to any person. The liability of the Trustee to make
any payment is limited to the available assets of the Plan held under the
Trust.

 

11.11.                  Missing
Participants or Beneficiaries. Each Participant and each designated
Beneficiary must file with the Committee from time to time in writing his post
office address and each change of post office address. Any communication,
statement or notice addressed to a Participant or designated Beneficiary at his
last post office address filed with the Committee, or, in the case of a
Participant, if no address is filed with the Committee, then at his last post
office address as shown on the Employers’ records, will be binding on the
Participant and his designated Beneficiary for all purposes of the Plan. None
of the Committee, the Employers, or the Trustee will be required to search for
or locate a Participant or designated Beneficiary. In the event that a benefit
which has become payable remains unclaimed after a reasonable period
(determined by the Committee in accordance with uniform procedures
established by it), such benefit shall be forfeited; provided, however, that
any such benefit shall be reinstated if a claim is made for such benefit by the
Participant or beneficiary entitled to it. The amount of any benefit so
forfeited shall be retained in the trust and applied in accordance with subsection 11.4.

 

36

 

11.12.                  Direct
Rollover Option. In accordance with uniform rules established by
the Committee, each Participant, surviving spouse of a Participant or alternate
payee under a qualified domestic relations order within the meaning of section 414(p)
of the Code who is due to receive an eligible rollover distribution from the
Plan may direct the Committee to transfer all or a portion of such
distribution directly to another eligible retirement plan. For purposes of this
subsection, the terms “eligible rollover distribution” and “eligible retirement
plan” as applied to any such individual shall have the meaning accorded such
terms under section 401(a)(31) of the Code (or any successor provision
thereto) and applicable regulations thereunder. Effective for distributions in
Plan Years beginning after December 31, 2001:  (i) any amount that is distributed on
account of hardship shall not be an eligible rollover distribution and the
distributee may not elect to have any portion of such a distribution paid
directly to an eligible retirement plan; (ii) a portion of a distribution
shall not fail to be an eligible rollover distribution merely because the
portion consists of after-tax employee contributions which are not includible
in gross income, except that any such portion may be transferred only to
an individual retirement account or annuity described in section 408(a) or
(b) of the Code, or to a qualified defined contribution retirement plan
described in section 401(a) or 403(a) of the Code that agrees to
separately account for amounts so transferred, including separately accounting
for the portion of such distribution which is includible in gross income and
the portion of such distribution which is not so includible; (iii) an “eligible
retirement plan” includes an individual retirement account described in section 408(a) of
the Code, an individual retirement annuity described in section 408(b) of
the Code, an annuity plan described in section 403(a) of the Code or
a qualified trust described in section 401(a) of the Code, that
accepts the distributee’s eligible rollover distribution; and (iv) an
eligible retirement plan shall also include an annuity contract described in section 403(b) of
the Code and an eligible plan under section 457(b) of the Code which
is maintained by a state, political subdivision of a state, or any agency or
instrumentality of a state or political subdivision of a state and which agrees
to separately account for amounts transferred into such plan from the Plan. The
definition of eligible retirement plan shall also apply in the case of a
distribution to a surviving spouse or to a spouse or former spouse who is the
alternate payee under a qualified domestic relations order, as defined in section 414(p).

 

11.13.                  Distributions
on Account of Permanent and Total Disability. For purposes of this Section 11,
a Participant will be considered to have terminated employment and will be
entitled to a distribution of his vested Account balances when he is determined
by the Committee to be permanently and totally disabled (as defined in subsection 9.2).

 

SECTION 12

 

No Reversion to Employers

 

No part of the
corpus or income of the Trust shall revert to the Employers or be used for, or
diverted to, purposes other than the exclusive benefit of Participants and
Beneficiaries, subject to the following:

 

(a)                                  Each
contribution made by an Employer under the Plan shall be conditioned upon its
deductibility under section 404 of the Code, unless (1) prior to the
due date

 

37

 

(including extensions) of
the Federal income tax return of Altria Group, Inc. for any year, the Chief
Financial Officer of Kraft Foods Inc. (or his delegate) determines in writing
that all or a portion of the contributions for that Plan Year are not
conditioned on the deductibility of the contributions for that Plan Year, and (2) either
such officer (or his delegate), in consultation with the Chief Financial
Officer of Altria Group, Inc., determines in writing by such tax return
due date that such contributions, in combination with contributions to any
other plan qualified under section 401(a) of the Code by the Company
or any Related Company for such Plan Year will not result in the imposition of
excise tax under Code section 4972 or the Company or one or more Related
Companies pays any such excise tax. To the extent that the deduction of a
contribution made by an Employer and conditioned upon deductibility is
disallowed, the nondeductible amount shall be returned to the affected Employer
within one (1) year after the deduction is disallowed.

 

(b)                                 If
a contribution or any portion thereof is made by an Employer by a mistake of
fact, the Trustee shall, upon written request of that Employer, return the
amount of such contribution or portion, reduced by the amount of any losses
thereon, to that Employer within one year after the date of payment.

 

(c)                                  If,
upon termination of the Plan, any amounts are held under the Plan in a suspense
account pursuant to Treas. Reg. § 1.415-6(b)(6)(ii) and such
amounts may not be credited to the Accounts of Participants, such amount
will be returned to the Employers as soon as practicable after the termination
of the Plan.

 

SECTION 13

 

Administration

 

13.1.                        Committee
Membership and Authority. The Committee referred to in subsection 1.3
shall consist of one or more members appointed by the Company. Except as
otherwise specifically provided in this Section 13, the Committee shall
act by a majority of its then members, by meeting or by writing filed without
meeting, and shall have the following discretionary authority, powers, rights
and duties in addition to those vested in it elsewhere in the Plan or Trust
Agreement:

 

(a)                                  to
adopt such rules of procedure and regulations as, in its opinion, may be
necessary for the proper and efficient administration of the Plan and as are
consistent with the provisions of the Plan;

 

(b)                                 to
enforce the Plan in accordance with its terms and with such applicable rules and
regulations as may be adopted by the Committee;

 

(c)                                  to
determine conclusively all questions arising under the Plan, including the
power to determine the eligibility of employees and the rights of Participants
and other persons entitled to benefits under the Plan and their respective
benefits, to 

 

38

 

make factual
findings and to remedy ambiguities, inconsistencies or omissions of whatever
kind;

 

(d)                                 to
maintain and keep adequate records concerning the Plan and concerning its
proceedings and acts in such form and detail as the Committee may decide;

 

(e)                                  to
direct all payments of benefits under the Plan;

 

(f)                                    to
perform the functions of a “plan administrator”, as defined in section 414(g) of
the Code, for all purposes of the Plan, including for purposes of establishing
and implementing procedures to determine the qualified status of domestic
relations orders (in accordance with the requirements of section 414(p) of
the Code) and to administer distributions under such qualified orders;

 

(g)                                 to
employ agents, attorneys, accountants or other persons (who may also be
employed by or represent the Employers) for such purposes as the Committee considers
necessary or desirable to discharge its duties;

 

(h)                                 to
establish a claims procedure in accordance with section 503 of ERISA; and

 

(i)                                     to
furnish the Employers, the Investment Committee and the Trustee with such
information with respect to the Plan as may be required by them for tax or
other purposes.

 

The certificate of a
majority of the members of the Committee that the Committee has taken or
authorized any action shall be conclusive in favor of any person relying on the
certificate.

 

13.2.                        Allocation
and Delegation of Committee Responsibilities and Powers. In exercising its
authority to control and manage the operation and administration of the Plan,
the Committee may allocate all or any part of its responsibilities
and powers to any one or more of its members and may delegate all or any part of
its responsibilities and powers to any person or persons selected by it. Any
such allocation or delegation may be revoked at any time. Any member or
delegate exercising Committee responsibilities and powers under this subsection shall
periodically report to the Committee on its exercise thereof and the discharge
of such responsibilities.

 

13.3.                        Uniform Rules.
In managing the Plan, the Committee shall uniformly apply rules and
regulations adopted by it to all persons similarly situated.

 

13.4.                        Information
to be Furnished to Committee. The Employers and Related Companies shall
furnish the Committee such data and information as may be required for it
to discharge its duties. The records of the Employers and Related Companies as
to an employee’s or Participant’s period of employment, termination of
employment and the reason therefor, leave of absence, reemployment and
Compensation shall be conclusive on all persons unless determined to be
incorrect. Participants and other persons entitled to benefits under the Plan
must furnish to the Committee such evidence, data or information as the
Committee considers desirable to carry out the Plan.

 

39

 

13.5.                        Committee’s
Decision Final. Any interpretation of the Plan and any decision on any
matter within the discretion of the Committee made by the Committee shall be
binding on all persons. A misstatement or other mistake of fact shall be
corrected when it becomes known, and the Committee shall make such adjustment
on account thereof as it considers equitable and practicable.

 

13.6.                        Exercise
of Committees’ Duties. Notwithstanding any other provisions of the
Plan, the Committees shall discharge their duties hereunder solely in the interests
of the Participants and other persons entitled to benefits under the Plan, and:

 

(a)                                  for
the exclusive purpose of providing benefits to Participants and other persons
entitled to benefits under the Plan; and

 

(b)                                 with
the care, skill, prudence and diligence under the circumstances then prevailing
that a prudent man acting in a like capacity and familiar with such matters
would use in the conduct of an enterprise of a like character and with like
aims.

 

13.7.                        Remuneration
and Expenses. No remuneration shall be paid from the Plan to a
member of any of the Committees who is an employee of any Employer or Related
Company. Except as otherwise determined by the Committee, the reasonable
expenses of administering the Plan and the fees and expenses incurred in
connection with the collection, administration, management, investment,
protection and distribution of the Plan assets under the Trust shall be paid
directly by the Trust out of Plan assets or, if paid by one or more Employers,
reimbursed by the Trust to the maximum extent permitted by law.

 

13.8.                        Indemnification
of the Committees. To the extent not reimbursed by any applicable insurance
policy, the Committees, the individual members thereof and the secretary
(if any) of each of the Committees shall be indemnified by the Employers
against any and all liabilities, losses, costs and expenses (including legal
fees and expenses) of whatsoever kind and nature which may be imposed on,
incurred by or asserted against any of them by reason of the performance of the
Committees’ functions if the Committees or such members or secretary did not
act dishonestly or in willful violation of the law or regulation under which
such liability, loss, cost or expense arises.

 

13.9.                        Resignation
or Removal of Committee Member. A Committee member may resign at any
time by giving ten days’ advance written notice to the Company, the Trustee and
the other Committee members. The Company may remove a Committee member by
giving advance written notice to him and the other Committee members.

 

13.10.                  Appointment
of Successor Committee Members. The Company may fill any vacancy in
the membership of the Committee and shall give prompt written notice thereof to
the other Committee members. While there is a vacancy in the membership of the
Committee, the remaining Committee members shall have the same powers as the
full Committee until the vacancy is filled.

 

40

 

13.11.                  Committee Discretion. Benefits under this
Plan will be paid only if the Committee decides, in its discretion, that the
Participant is entitled to them under the terms of the Plan.

 

SECTION 14

 

Amendment and Termination

 

14.1.                        Amendment.
While it is expected that the Plan will be continued, either the Company or the
Committee nevertheless may terminate the Plan or amend it from time to
time, except that no amendment will reduce a Participant’s interest in the Plan
to less than an amount equal to the amount he would have been entitled to
receive if he had resigned from the employ of the Employers and the Related
Companies on the day of the amendment, and no amendment will eliminate an
optional form of benefit with respect to a Participant or Beneficiary
except as otherwise permitted by law.

 

14.2.                        Termination.
The Plan will terminate as to all of the Employers on any day specified by
the Company upon advance written notice of the termination given to the
Employers. Employees of an Employer shall cease active participation in the
Plan (and will be treated as inactive Participants in accordance with subsection 2.3)
on the first to occur of the following:

 

(a)                                  the
date on which that Employer ceases to be a contributing sponsor of the Plan, by
appropriate action taken by the Company or by such Employer;

 

(b)                                 the
date that Employer is judicially declared bankrupt or insolvent; or

 

(c)                                  the
dissolution, merger, consolidation, reorganization or sale of that Employer, or
the sale of all or substantially all of the assets of an Employer, except that,
subject to the provisions of subsection 14.3, with the consent of the
Company or the Committee, in any such event arrangements may be made
whereby the Plan will be continued by any successor to that Employer or any
purchaser of all or substantially all of that Employer’s assets, in which case
the successor or purchaser will be substituted for the Employer under the Plan.

 

14.3.                        Merger
and Consolidation of the Plan, Transfer of Plan Assets. The Committee
in its discretion may direct the Trustee to transfer all or a portion of
the assets of this Plan to another defined contribution plan of the Employers
or Related Companies which is qualified under section 401(a) of the
Code or, in the event of the sale of stock of an Employer or all or a portion
of the assets of an Employer, to a qualified plan of an employer which is not a
Related Company, or to accept a transfer of assets and liabilities to this Plan
from another defined contribution plan that is qualified under section 401(a) of
the Code. In the case of any such merger, or transfer of assets and
liabilities, provision shall be made so that each affected Participant in the
Plan on the date thereof would receive a benefit immediately after the merger,
consolidation or transfer which is equal to the benefit he would have been
entitled to receive immediately prior to the merger or transfer. The Committee may adopt
such amendment or

 

41

 

Supplement to the
Plan as may be necessary to preserve the protected rights that may not
be changed or eliminated by reason of such transfer or merger under section 411
of the Code; pending such amendment or adoption of such Supplement, the
applicable provisions of the merged or transferee plan describing such section 411
protected rights shall be incorporated herein by reference.

 

14.4.                        Distribution
on Termination and Partial Termination. Upon termination or partial
termination of the Plan, all benefits under the Plan shall continue to be paid
in accordance with Sections 10 and 11 as those sections may be amended
from time to time.

 

14.5.                        Notice
of Amendment, Termination or Partial Termination. Affected Participants
will be notified of an amendment, termination or partial termination of the
Plan as required by law.

 

SECTION 15

 

Change of Control Provisions

 

15.1.                        Application.
In the event of a Change of Control (as defined in subsection 15.2), the
provisions of this Section 15 shall apply, notwithstanding any other
provision in the Plan to the contrary.

 

15.2.                        Definition
of Change of Control. For purposes of the Plan, a “Change of Control” means the happening of
any of the following events:

 

(a)                                  The
acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or
14(d)(2) of the Securities Exchange Act of 1934, as amended (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 (i) the then outstanding shares of common stock of
Altria Group (the “Parent”) (such stock hereinafter referred to as the “Outstanding Parent Common
Stock”) or (ii) the
combined voting power of the then outstanding voting securities of the Parent
entitled to vote generally in the election of directors (the “Outstanding Parent Voting
Securities”);
provided, however, that the following acquisitions shall not constitute a
Change of Control:  (i) any
acquisition directly from the Parent, (ii) any acquisition by the Parent, (iii) any
acquisition by any employee benefit plan (or related trust) sponsored or
maintained by the Parent or any corporation controlled by the Parent or (iv) any
acquisition by any corporation pursuant to a transaction described in clauses
(i), (ii) and (iii) of paragraph (c) of this subsection 15.2;
or

 

(b)                                 Individuals
who, as of November 1, 1989, constitute the Board of Directors of the
Parent (the “Incumbent
Board”) cease
for any reason to constitute at least a majority of such Board; provided,
however, that any individual becoming a director subsequent to November 1,
1989 whose election, or nomination for election by the Parent’s shareholders,
was approved by a vote of at least a

 

42

 

majority of the directors
then comprising the Incumbent Board shall be considered as though such
individual were a member of the Incumbent Board, but excluding, for this
purpose, any such individual whose initial assumption of office occurs as a
result of 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 Incumbent Board; or

 

(c)                                  Approval
by the shareholders of the Parent of a reorganization, merger, share exchange
or consolidation (a “Business
Combination”), in
each case, unless, following such Business Combination, (i) all or
substantially all of the individuals and entities who were the beneficial
owners, respectively, of the Outstanding Parent Common Stock and Outstanding
Parent Voting Securities immediately prior to such Business Combination
beneficially own, directly or indirectly, more than 80% of, respectively, the
then 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
Business Combination (including, without limitation, a corporation which as a
result of such transaction owns the Parent through one or more subsidiaries) in
substantially the same proportions as their ownership, immediately prior to
such Business Combination, of the Outstanding Parent Common Stock and
Outstanding Parent Voting Securities, as the case may be, (ii) no
Person (excluding any employee benefit plan (or related trust) of the Parent or
such corporation resulting from such Business Combination) beneficially owns,
directly or indirectly, 20% or more of, respectively, the then outstanding
shares of common stock of the combined voting power of the then outstanding
voting securities of such corporation except to the extent that such ownership
existed prior to the Business Combination and (iii) at least a majority of
the members of the board of directors of the corporation resulting from such
Business Combination were members of the Incumbent Board at the time of the
execution of the initial agreement, or of the action of the Incumbent Board,
providing for such Business Combination; or

 

(d)                                 Approval
by the shareholders of the Parent of (i) a complete liquidation or
dissolution of the Parent or (ii) the sale or other disposition of all or
substantially all of the assets of the Parent, other than to a corporation,
with respect to which following such sale or other disposition, (A) more
than 80% of, respectively, the then outstanding shares of common stock of such
corporation and the combined voting power of the then outstanding voting
securities of such corporation entitled to vote generally in the election of
directors is then beneficially owned, directly or indirectly, by all or
substantially all of the individuals and entities who were the beneficial
owners, respectively, of the Outstanding Parent Common Stock and Outstanding
Parent Voting Securities immediately prior to such sale or other disposition in
substantially the same proportion as their ownership, immediately prior to such
sale or other disposition, of the Outstanding Parent Common Stock and
Outstanding Parent Voting Securities, as the case may be, (B) less
than 20% of, respectively, the then outstanding shares of common stock of such
corporation

 

43

 

and the combined voting
power of the then outstanding voting securities of such corporation entitled to
vote generally in the election of directors is then beneficially owned,
directly or indirectly, by any Person (excluding any employee benefit plan (or
related trust) of the Parent or such corporation), except to the extent that
such Person owned 20% or more of the Outstanding Parent Common Stock or
Outstanding Parent Voting Securities prior to the sale or disposition and (C) at
least a majority of the members of the board of directors of such corporation were
members of the Incumbent Board at the time of the execution of the initial
agreement, or of the action of the Incumbent Board, providing for such sale or
other disposition of assets of the Parent or were elected, appointed or
nominated by the Incumbent Board.

 

15.3.                        Contribution
Requirement. Subject to the conditions and limitations of Section 8
(after taking into account the effect thereon of the last sentence of this subsection 15.3)
and of the next sentence, upon the occurrence of a Change of Control, for the
year in which the Change of Control occurs and for each of the two years
following the year in which the Change of Control occurs the “Control Period”, each Employer shall make
a “Matching
Contribution”
to the Profit Sharing Fund on behalf of each Participant employed by such
Employer who has made Before-Tax or After-Tax Contributions to the Profit
Sharing Fund for that year in an amount equal to the greater of:

 

(a)                                  $.30
for each $1.00 contributed to the Profit Sharing Fund by the Participants for
each year in the Control Period, or

 

(b)                                 the
average rate of the Matching Contributions for the two Plan Years prior to the
Plan Year in which the Change of Control occurs.

 

Except as otherwise
specifically provided in Section 12, in no event shall the sum of the
Before-Tax Contributions and any Matching Contributions made by an Employer for
any Plan Year exceed the limitations imposed by section 404 of the Code on
the maximum amount deductible on account thereof by the Employer for that year.
Each Employer’s Matching Contributions for any Plan Year shall be paid to the
Trustee for deposit in the Profit Sharing Fund, without interest, no later than
the time prescribed by law for filing the Federal corporate income tax return
of Altria Group, or its successors, as applicable, including any extensions
thereof. The Matching Contributions made on behalf of a Participant pursuant to
this Section 14 shall be allocated to the Participant’s Matching Account.

 

15.4.                        Vesting.
Upon and after a Change of Control, a Participant’s vested percentage in all
his Accounts under the Plan shall be 100%.

 

15.5.                        Enforcement
Rights; Amendment Restrictions.

 

(a)                                  In
addition to all other rights under the Plan and applicable law, any individual
who shall be a Participant or Beneficiary at the date on which the Change of
Control occurs (the “Control
Date”) shall
from and after such date have the right to bring an action, either individually
or on behalf of all Participants and Beneficiaries, to enforce the provisions
of this Section 15 by seeking injunctive

 

44

 

relief or damages, or
both, and the Company shall be obligated to pay or reimburse such Participant
or Beneficiary who shall prevail, in whole or in substantial part, for all
reasonable expenses, including attorney’s fees, in connection with such action.

 

(b)                                 Anything
in the Plan to the contrary notwithstanding, on and after the Control Date none
of the provisions of this Section 15 shall be amended unless within sixty
days after the date of the action taken to amend such provisions at least
two-thirds of the individuals who were Participants at the date of such action
shall have given their written approval of such action based on full and
complete information provided to them regarding the actual and potential
effects of such action on them.

 

15.6.                        Construction.
The foregoing provisions of this Section 15 shall be construed liberally
to the end that its purposes shall be fully implemented.

 

45

 

SUPPLEMENT A

 

KRAFT FOODS GLOBAL, INC.
TIP PLAN

 

California Vegetable Concentrates Division

 

This Supplement A to
the Kraft Foods Global, Inc. TIP Plan sets forth special provisions that
first became effective February 16, 1993 and continue to be applicable to
the Participating Group described below on and after May 12, 1997 and
supersedes any provisions of the Plan which are not consistent with this Supplement A.

 

1.                                       Participating
Group:  This Supplement A is
applicable to those Participants in the Plan who were employees of the
California Vegetable Concentrates division of Kraft Food Ingredients Corp. and
who became employees of Basic Vegetable Products, L.P., pursuant to that
certain Asset Purchase Agreement entered into as of February 16, 1993 by
and between Basic Vegetable Products, L.P., and Kraft Food Ingredients Corp.

 

2.                                       Special
Vesting Provisions:  On and after February 16,
1993, a Participant in this Participating Group shall be 100% vested in his
Matching Account.

 

3.                                       Special Withdrawal Provisions:

 

Notwithstanding any provisions of the Plan to
the contrary, the provisions of Section 10 relating to hardship
withdrawals and in-service withdrawals of After-Tax and Matching Contributions
shall continue to apply to a Participant in the Participating Group for such
time as said Participant remains an employee of Basic Vegetable Products, L.P.,
or its successors or affiliates (collectively referred to as the “Successor
Employer”). Notwithstanding any provisions of the Plan to the contrary, for
purposes of applying the post-employment termination distribution provisions of
Section 11 of the Plan to a Participant in the Participating Group, such
Participant’s employment shall not be considered to have terminated (whether on
account of retirement, permanent and total disability, or for any other reason)
until such time as said Participant has terminated employment with the
Successor Employer.

 

A-1

 

SUPPLEMENT B

 

KRAFT FOODS GLOBAL, INC.
TIP PLAN

 

Naperville Hourly Employees

 

This Supplement B to
Kraft Foods Global, Inc. TIP Plan sets forth special provisions that first
became effective January 4, 1993 and that continue to be applicable on and
after May 12, 1997 with respect to the Participating Group described below
and supersedes any provisions of the Plan which are not consistent with this
Supplement B.

 

1.                                       Participating
Group:  This Supplement B is
applicable to hourly employees covered by a collective bargaining contract at
the Kraft Foods facility (formerly a Nabisco cereal plant) in Naperville,
Illinois.

 

2.                                       Special
Service Provisions:  For purposes of Section 3
and subsection 9.1 of the Plan, service with Nabisco Brands, Inc. and
those companies treated as a single employer under sections 414(b) and (c) of
the Code prior to January 4, 1993, shall be treated as service under the
Plan for this Participating Group.

 

3.                                       Special
Contribution Provisions. The following provisions shall apply in lieu of
subsections 4.1, 4.2, 4.3, 4.6 and 5.1 of the Plan, except that subsection 4.1(b) of
the Plan relating to “catch-up” Before-Tax Contributions shall still apply to
the Participating Group:

 

(a)                                  Before-Tax Contributions. Subject to the limitations set forth in paragraph (c) below
and subsection 4.7 and Section 8 of the Plan, and such additional rules as
the Committee may establish on a uniform and nondiscriminatory basis,
for any payroll period, a Participant in this Participating Group may elect
to have his salary or wages from his Employer reduced by a whole percentage,
and a corresponding amount contributed on his behalf to the Profit Sharing Fund
by his Employer as a “Before-Tax Contribution”, which amount shall not be less
than 1 percent nor more than 16 percent of his Eligible Compensation (as
defined in paragraph (d) below), for that payroll period. Any election
made pursuant to this paragraph (a) shall be effective as soon as
practicable after the Participant has made his election in accordance with
applicable Access System procedures.

 

(b)                                 After-Tax Contributions. Subject to the limitations set forth in paragraph (c) below
and subsection 4.7 and Section 8 of the Plan, and such additional rules as
the Committee may establish on a uniform and nondiscriminatory basis,
for any payroll period, a Participant in this Participating Group may elect
to make “After-Tax Contributions” to the Profit Sharing Fund through payroll
deduction in a whole percentage that is not less than 1 percent nor more than
16 percent of his Eligible Compensation (as defined in paragraph (d) below)
for that payroll period. Any election made pursuant to this paragraph (b) shall
be effective as soon as practicable after the Participant has made his election
in accordance with applicable Access System procedures.

 

B-1

 

(c)                                  Total Before-Tax and After-Tax Contributions. Notwithstanding the foregoing provisions of this paragraph 4
of Supplement B to the Kraft Foods Global, Inc. TIP Plan, for any payroll period, the Before-Tax Contributions made on
behalf of a Participant in this Participating Group and After-Tax Contributions
made by such Participant may not together exceed 16 percent of the
Participant’s Eligible Compensation (as defined in paragraph (d) below)
for such payroll period.

 

(d)                                 Eligible Compensation.
With respect to Participants in this Participating Group, “Eligible
Compensation” means wages, overtime, shift differential pay, vacation pay, sick
pay, holiday pay and other forms of cash compensation that are includible on
the Participant’s Federal income tax form W-2 with respect to the
Participant’s periods of active participation in the Plan, plus any amounts
contributed by an Employer pursuant to a salary reduction agreement and which
is not includable in gross income under sections 125, 402(e)(3), 402(h), 403(b) or,
for Plan Years after 2000, section 132(f)(4) of the Code, and
excluding any bonus payments.

 

(e)                                  Matching Contributions.
Subject to the conditions and limitations of subsection 4.7 and Section 8
of the Plan, for each payroll period during a Plan Year, an Employer shall
contribute to the Profit Sharing Fund on behalf of each Participant in this
Participating Group employed by such Employer a Matching Contribution amount
equal to 35 percent (25 percent for periods prior to September 1, 2003 for
Participants who are members of American Federation of Grain Millers, Local
Union 343 or International Association of Machinist and Aerospace Workers,
Local Union No. 1202, and 25 percent for periods prior to November 1,
2003 for Participants who are members of International Union of Operating
Engineers, Local Union No. 399) of the Before-Tax and After-Tax
Contributions made by and on behalf of the Participant that do not exceed 6
percent of such Participant’s Eligible Compensation for such payroll period. Match-eligible
Before-Tax and After-Tax Contributions from the first 6 percent of a
Participant’s Eligible Compensation are sometimes referred to as “Basic
Contributions”, and unmatched contributions in excess of the first 6 percent of
Eligible Compensation are sometimes referred to as “Supplemental Contributions”.

 

4.                                       Special
Accounting Provisions. The After-Tax Account maintained under the Plan for
each Participant in the Participating Group shall include the after-tax
contribution balances for such Participant, if any, that were transferred to
the Plan from the Nabisco Brands Employee Savings Plan. The Matching Account
maintained under the Plan for each Participant in the Participating Group shall
include the company contribution account balances for such Participant, if any,
that were transferred to the Plan from the Nabisco Brands Employee Savings
Plan, and all of such transferred balances shall be 100% vested.

 

5.                                       Special
Vesting Provisions. In addition to the vesting provisions of subsections
9.1 and 9.2 of the Plan, each individual who is a Participant in this
Participating Group on March 31, 1997 will have a fully vested,
nonforfeitable interest in his Matching Account upon the completion of 24
months of employment after his initial enrollment date in the Plan.

 

B-2

 

6.                                       Special
In-Service Withdrawal Provisions. The last sentence of subsection 10.5
of the Plan shall not apply to the Participants in this Participating Group and
accordingly no minimum withdrawal amount shall apply to such Participants.

 

B-3

 

SUPPLEMENT C

 

KRAFT FOODS GLOBAL, INC.
TIP PLAN

 

South Edmeston Hourly Employees

 

This Supplement C to
Kraft Foods Global, Inc. TIP Plan sets forth special provisions that are
applicable as of September 1, 2000 with respect to the Participating Group
described below and supersedes any provisions of the Plan which are not
consistent with this Supplement C.

 

1.                                       Participating Group:  This Supplement C is applicable to hourly
employees covered by a collective bargaining agreement between Kraft Foods
(South Edmeston, New York) and Local 182, International Brotherhood of
Teamsters (a “South Edmeston Participant”).

 

2.                                       Special Contribution Provisions:  The following provisions shall apply in lieu
of subsections 4.1, 4.2, 4.3, 4.6 and 5.1 of the Plan, except that subsection 4.1(b) of
the Plan relating to “catch-up” Before-Tax Contributions shall still apply to
the Participating Group:

 

(a)                                  Before-Tax Contributions. Subject to the
limitations set forth in paragraph (c) below and subsection 4.7 and Section 8
of the Plan, and such additional rules as the Committee may establish
on a uniform and nondiscriminatory basis, for any payroll period, a South
Edmeston Participant may elect to have his salary or wages from his
Employer reduced by a whole percentage, and a corresponding amount contributed
on his behalf to the Profit Sharing Fund by his
Employer as a “Before-Tax Contribution,” which amount shall not be less than 1
percent nor more than 16 percent of his Eligible Compensation (as defined in
paragraph (d) below), for that payroll period. Any election made pursuant
to this paragraph (a) shall be effective as soon as practicable after the
South Edmeston Participant has made his election in accordance with applicable
Access System procedures or other procedure approved by the Committee.

 

(b)                                 After-Tax Contributions. Subject to the
limitations set forth in paragraph (c) below and subsection 4.7 and Section 8
of the Plan, and such additional rules as the Committee may establish
on a uniform and nondiscriminatory basis, for any payroll period, a South
Edmeston Participant may elect to make “After-Tax Contributions” to the Profit Sharing Fund through payroll deduction in a
whole percentage that is not less than 1 percent nor more than 16 percent of
his Eligible Compensation (as defined in paragraph (d) below) for that payroll
period. Any election made pursuant to this paragraph (b) shall be
effective as soon as practicable after the South Edmeston Participant has made
his election in accordance with applicable Access System procedures or other
procedure approved by the Committee.

 

(c)                                  Total Before-Tax and After-Tax Contributions.
Notwithstanding the foregoing provisions of this paragraph 2 of Supplement C,
for any payroll period, the Before-Tax Contributions made on behalf of a South
Edmeston Participant and After-Tax Contributions made by such Participant may not
together exceed 16

 

C-1

 

percent of the
Participant’s Eligible Compensation (as defined in paragraph (d) below)
for such payroll period.

 

(d)                                 Eligible Compensation. With respect to a
South Edmeston Participant, “Eligible Compensation” means wages, overtime,
shift differential pay, vacation pay, sick pay, holiday pay and other forms of
cash compensation that are includible on the Participant’s Federal income tax form W-2
with respect to the South Edmeston Participant’s periods of active
participation in the Plan, plus any amounts contributed by an Employer pursuant
to a salary reduction agreement and which are not includable in gross income
under section 125, 402(e)(3), 402(h), 403(b) or, for Plan Years after
2000, section 132(f)(4) of the Code, and excluding any bonus
payments.

 

(e)                                  Matching Contributions. Subject to the
conditions and limitations of subsection 4.7 and Section 8 of the
Plan, for each payroll period during a Plan Year, an Employer shall contribute
to the Profit Sharing Fund on behalf of each
South Edmeston Participant employed by such Employer a Matching Contribution in
an amount equal to 25 percent of the Before-Tax and After-Tax Contributions
made by and on behalf of the Participant that do not exceed 6 percent of such
Participant’s Eligible Compensation for such payroll period. Match-eligible
Before-Tax and After-Tax contributions from the first 6 percent of a South
Edmeston Participant’s Eligible Compensation are sometimes referred to as “Basic
Contributions,” and unmatched contributions in excess of the first 6 percent of
Eligible Compensation are sometimes referred to as “Supplemental Contributions.”

 

C-2

 

 

SUPPLEMENT D

 

KRAFT FOODS GLOBAL, INC.
TIP PLAN

 

Farmdale Hourly
Employees

 

This Supplement D to Kraft Foods Global, Inc. TIP
Plan sets forth special provisions that are applicable as of January 1,
2001 with respect to the Participating Group described below and supersedes any
provisions of the Plan which are not consistent with this Supplement D.

 

1.                                       Participating Group:  This Supplement D is applicable to hourly
employees covered by a collective bargaining agreement between Kraft Foods
(Farmdale, Ohio) and Local 261, International Brotherhood of Teamsters (a “Farmdale
Participant”).

 

2.                                       Special Contribution Provisions:  The following provisions shall apply in lieu
of subsections 4.1, 4.2, 4.3, 4.6 and 5.1 of the Plan, except that subsection 4.1(b) of
the Plan relating to “catch-up” Before-Tax Contributions shall still apply to
the Participating Group:

 

(a)                                  Before-Tax Contributions. Subject to the
limitations set forth in paragraph (c) below and subsection 4.7 and Section 8
of the Plan, and such additional rules as the Committee may establish
on a uniform and nondiscriminatory basis, for any payroll period, a
Farmdale Participant may elect to have his salary or wages from his
Employer reduced by a whole percentage, and a corresponding amount contributed
on his behalf to the Profit Sharing Fund by his
Employer as a “Before-Tax Contribution,” which amount shall not be less than 1
percent nor more than 16 percent of his Eligible Compensation (as defined in
paragraph (d) below), for that payroll period. Any election made pursuant
to this paragraph (a) shall be effective as soon as practicable after the
Farmdale Participant has made his election in accordance with applicable Access
System procedures or other procedure approved by the Committee.

 

(b)                                 After-Tax Contributions. Subject to the
limitations set forth in paragraph (c) below and subsection 4.7 and Section 8
of the Plan, and such additional rules as the Committee may establish
on a uniform and nondiscriminatory basis, for any payroll period, Farmdale
Participant may elect to make “After-Tax Contributions” to the Profit Sharing Fund through payroll deduction in a
whole percentage that is not less than 1 percent nor more than 16 percent of
his Eligible Compensation (as defined in paragraph (d) below) for that payroll
period. Any election made pursuant to this paragraph (b) shall be
effective as soon as practicable after the Farmdale Participant has made his
election in accordance with applicable Access System procedures or other
procedure approved by the Committee.

 

(c)                                  Total Before-Tax and After-Tax Contributions.
For any payroll period, the Before-Tax Contributions made on behalf of a
Farmdale Participant and After-Tax Contributions made by such Participant may not
together exceed 16 percent of the Farmdale Participant’s Eligible Compensation
(as defined in paragraph (d) below) for such payroll period.

 

D-1

 

(d)                                 Eligible Compensation. With respect to
Farmdale Participants, “Eligible Compensation” means wages, overtime, shift
differential pay, vacation pay, sick pay, holiday pay and other forms of cash
compensation that are includible on the Farmdale Participant’s Federal income
tax form W-2 with respect to the Participant’s periods of active
participation in the Plan, plus any amounts contributed by an Employer pursuant
to a salary reduction agreement and which are not includable in gross income
under section 125, 402(e)(3), 402(h), 403(b) or, for Plan Years after
2000, section 132(f)(4) of the Code, and excluding any bonus
payments.

 

(e)                                  Matching Contributions. Subject to the
conditions and limitations of subsection 4.7 and Section 8 of the
Plan, for each payroll period during a Plan Year, each Employer shall
contribute to the Profit Sharing Fund on behalf
of each Farmdale Participant employed by such Employer a Matching Contribution
in an amount equal to 15 percent of the Before-Tax and After-Tax Contributions
made by and on behalf of the Farmdale Participant that do not exceed 6 percent
of such Participant’s Eligible Compensation for such payroll period. Match-eligible
Before-Tax and After-Tax contributions from the first 6 percent of a Farmdale
Participant’s Eligible Compensation are sometimes referred to as “Basic
Contributions,” and unmatched contributions in excess of the first 6 percent of
Eligible Compensation are sometimes referred to as “Supplemental Contributions.”

 

3.                                       Transfer
from LOTS Plan. Effective as of January 1, 2001, assets and
liabilities under the Long Term Savings Plan for Union Employees (the “LOTS
Plan”) attributable to Farmdale Participants are transferred to the Plan
(within the meaning of section 414(l) of the Code), and are subject to the
provisions of the Plan for periods on and after that date.

 

4.                                       Special Accounting Provisions. The Before-Tax
account maintained under the Plan for each Farmdale Participant shall include
the before-tax contribution balances for such Participant, if any, that were
transferred to the Plan from the LOTS Plan. The After Tax-Account maintained
under the Plan for each Farmdale Participant shall include the after-tax
contribution balances for such Participant, if any, that were transferred to
the Plan from the LOTS Plan. The Matching Account maintained under the Plan for
each Farmdale Participant shall include the company contribution account
balances for such Participant, if any, that were transferred to the Plan from
the LOTS Plan.

 

5.                                       Credit for Vesting Service. The service
credited under the Plan for vesting purposes with respect to a Farmdale
Participant for periods prior to January 1, 2001, shall not be less than
the service, if any, credited to such Participant for vesting purposes under
the LOTS Plan for that period.

 

6.                                       Vesting
in Transferred Amounts. A Farmdale Participant’s vested interest in the
portion of his Plan account balance attributable to amounts transferred from
the LOTS Plan shall be determined in accordance with the provisions of Section 9
of the Plan, taking into account the provisions of paragraph 5 next above.

 

D-2

 

SUPPLEMENT E

 

KRAFT FOODS GLOBAL, INC.
TIP PLAN

 

Madison Hourly
Employees

 

This Supplement E to Kraft Foods Global, Inc. TIP
Plan sets forth special provisions that are applicable as of January 1,
2001 with respect to the Participating Group described below and supersedes any
provisions of the Plan which are not consistent with this Supplement E.

 

1.                                       Participating Group:  This Supplement E is applicable to hourly
employees covered by a collective bargaining agreement between Kraft Foods
(Madison, Wisconsin) and Local 538, United Food and Commercial Workers
International Union, AFL-CIO (“Madison Participants”).

 

2.                                       Special Contribution Provisions:  The following provisions shall apply in lieu
of subsections 4.1, 4.2, 4.3, 4.6 and 5.1 of the Plan, except that subsection 4.1(b) of
the Plan relating to “catch-up” Before-Tax Contributions shall still apply to
the Participating Group:

 

(a)                                  Before-Tax Contributions. Subject to the
limitations set forth in paragraph (c) below and subsection 4.7 and Section 8
of the Plan, and such additional rules as the Committee may establish
on a uniform and nondiscriminatory basis, for any payroll period, a
Madison Participant may elect to have his salary or wages from his
Employer reduced by a whole percentage, and a corresponding amount contributed
on his behalf to the Profit Sharing Fund by his
Employer as a “Before-Tax Contribution,” which amount shall not be less than 1
percent nor more than 16 percent of his Eligible Compensation (as defined in
paragraph (d) below), for that payroll period. Any election made pursuant
to this paragraph (a) shall be effective as soon as practicable after the
Madison Participant has made his election in accordance with applicable Access
System procedures or other procedure approved by the Committee.

 

(b)                                 After-Tax Contributions. Subject to the
limitations set forth in paragraph (c) below and subsection 4.7 and Section 8
of the Plan, and such additional rules as the Committee may establish
on a uniform and nondiscriminatory basis, for any payroll period, a
Madison Participant may elect to make “After-Tax Contributions” to the Profit Sharing Fund through payroll deduction in a
whole percentage that is not less than 1 percent nor more than 16 percent of
his Eligible Compensation (as defined in paragraph (d) below) for that
payroll period. Any election made pursuant to this paragraph (b) shall be
effective as soon as practicable after the Madison Participant has made his
election in accordance with applicable Access System procedures or other
procedure approved by the Committee.

 

(c)                                  Total Before-Tax and After-Tax Contributions.
For any payroll period, the Before-Tax Contributions made on behalf of a
Madison Participant and After-Tax Contributions made by such Participant may not
together exceed 16 percent of the

 

E-1

 

Participant’s Eligible Compensation (as defined in
paragraph (d) below) for such payroll period.

 

(d)                                 Eligible Compensation. With respect to
Madison Participants, “Eligible Compensation” means wages, overtime, shift
differential pay, vacation pay, sick pay, holiday pay and other forms of cash
compensation that are that are includible on the Participant’s Federal income
tax form W-2 with respect to the Participant’s periods of active
participation in the Plan, plus any amounts contributed by an Employer pursuant
to a salary reduction agreement and which are not includable in gross income
under section 125, 402(e)(3), 402(h), 403(b) or, for Plan Years after
2000, section 132(f)(4) of the Code, and excluding any bonus
payments.

 

(e)                                  Matching Contributions. Subject to the
conditions and limitations of subsection 4.7 and Section 8 of the
Plan, for each payroll period during a Plan Year, an Employer shall contribute
to the Profit Sharing Fund on behalf of each
Madison Participant employed by such Employer a Matching Contribution in an
amount equal to 25 percent of the Before-Tax and After-Tax Contributions made
by and on behalf of the Participant that do not exceed 6 percent of such
Participant’s Eligible Compensation for such payroll period. Match-eligible
Before-Tax and After-Tax contributions from the first 6 percent of a Madison
Participant’s Eligible Compensation are sometimes referred to as “Basic
Contributions,” and unmatched contributions in excess of the first 6 percent of
Eligible Compensation are sometimes referred to as “Supplemental Contributions.”

 

3.                                       Transfer
from LOTS Plan. Effective as of January 1, 2001, assets and
liabilities under the LOTS Plan attributable to Madison Participants are
transferred to the Plan (within the meaning of section 414(l) of the Code)
and are subject to the provisions of this Plan for periods on and after that
date.

 

4.                                       Special Accounting Provisions. The Before-Tax
account maintained under the Plan for each Madison Participant shall include
the before-tax contribution balances for such Participant, if any, that were
transferred to the Plan from the LOTS Plan. The After Tax-Account maintained
under the Plan for each Madison Participant shall include the after-tax
contribution balances for such Participant, if any, that were transferred to
the Plan from the LOTS Plan. The Matching Account maintained under the Plan for
each Madison Participant shall include the company contribution account balances
for such Participant, if any, that were transferred to the Plan from the LOTS
Plan.

 

5.                                       Credit for Vesting Service. The service
credited for vesting purposes under the Plan with respect to a Madison
Participant for periods prior to January 1, 2001, shall not be less than
the service, if any, credited for vesting purposes under the LOTS Plan with
respect to such Participant for that period.

 

6.                                       Vesting
in Transferred Amounts. A Madison Participant’s vested interest in the
portion of his Plan account balances attributable to amounts transferred on his
behalf from the LOTS Plan shall be determined in accordance with the provisions
of Section 9 of the Plan taking into account the provisions of paragraph 5
next above.

 

E-2

 

SUPPLEMENT F

 

KRAFT FOODS GLOBAL, INC.
TIP PLAN

 

Woodstock Hourly
Employees

 

This Supplement F to Kraft Foods Global, Inc. TIP
Plan sets forth special provisions that are applicable as of January 1,
2001 with respect to the Participating Group described below and supersedes any
provisions of the Plan which are not consistent with this Supplement F.

 

1.                                       Participating Group:  This Supplement F is applicable to hourly
employees covered by a collective bargaining agreement between Kraft Foods (Woodstock,
Illinois) and Local 738, International Brotherhood of Teamsters (“Woodstock
Participants”).

 

2.                                       Special Contribution Provisions:  The following provisions shall apply in lieu
of subsections 4.1, 4.2, 4.3, 4.6 and 5.1 of the Plan, except that subsection 4.1(b) of
the Plan relating to “catch-up” Before-Tax Contributions shall still apply to
the Participating Group:

 

(a)                                  Before-Tax Contributions. Subject to the
limitations set forth in paragraph (c) below and subsection 4.7 and Section 8
of the Plan, and such additional rules as the Committee may establish
on a uniform and nondiscriminatory basis, for any payroll period, a
Woodstock Participant may elect to have his salary or wages from his
Employer reduced by a whole percentage, and a corresponding amount contributed
on his behalf to the Profit Sharing Fund by his
Employer as a “Before-Tax Contribution,” which amount shall not be less than 1
percent nor more than 16 percent of his Eligible Compensation (as defined in
paragraph (d) below), for that payroll period. Any election made pursuant
to this paragraph (a) shall be effective as soon as practicable after the
Woodstock Participant has made his election in accordance with applicable
Access System procedures or other procedure approved by the Committee.

 

(b)                                 After-Tax Contributions. Subject to the
limitations set forth in paragraph (c) below and subsection 4.7 and Section 8
of the Plan, and such additional rules as the Committee may establish
on a uniform and nondiscriminatory basis, for any payroll period, a
Woodstock Participant may elect to make “After-Tax Contributions” to the Profit Sharing Fund through payroll deduction in a
whole percentage that is not less than 1 percent nor more than 16 percent of
his Eligible Compensation (as defined in paragraph (d) below) for that
payroll period. Any election made pursuant to this paragraph (b) shall be
effective as soon as practicable after the Woodstock Participant has made his
election in accordance with applicable Access System procedures or other
procedure approved by the Committee.

 

(c)                                  Total Before-Tax and After-Tax Contributions.
For any payroll period, the Before-Tax Contributions made on behalf of a
Woodstock Participant and After-Tax Contributions made by such Participant may not
together exceed 16 percent

 

F-1

 

of the Participant’s Eligible Compensation (as defined
in paragraph (d) below) for such payroll period.

 

(d)                                 Eligible Compensation. With respect to
Woodstock Participants, “Eligible Compensation” means wages, overtime, shift
differential pay, vacation pay, sick pay, holiday pay and other forms of cash
compensation that are that are includible on the Participant’s Federal income
tax form W-2 with respect to the Participant’s periods of active participation
in the Plan, plus any amounts contributed by an Employer pursuant to a salary
reduction agreement and which are not includable in gross income under section 125,
402(e)(3), 402(h), 403(b) or, for Plan Years after 2000, section 132(f)(4) 
of the Code, and excluding any bonus payments.

 

(e)                                  Matching Contributions. Subject to the
conditions and limitations of subsection 4.7 and Section 8 of the
Plan, for each payroll period during a Plan Year, an Employer shall contribute
to the Profit Sharing Fund on behalf of each
Woodstock Participant employed by such Employer a Matching Contribution in an
amount equal to 15 percent of the Before-Tax and After-Tax Contributions made
by and on behalf of the Woodstock Participant that do not exceed 6 percent of
such Participant’s Eligible Compensation for such payroll period. Match-eligible
Before-Tax and After-Tax contributions from the first 6 percent of a Woodstock
Participant’s Eligible Compensation are sometimes referred to as “Basic
Contributions,” and unmatched contributions in excess of the first 6 percent of
Eligible Compensation are sometimes referred to as “Supplemental Contributions.”

 

3.                                       Transfer
from LOTS Plan. Effective as of January 1, 2001, assets and
liabilities under the LOTS Plan attributable to Woodstock Participants are
transferred to the Plan (within the meaning of section 414(l) of the Code)
and are subject to the provisions of this Plan for periods on and after that
date.

 

4.                                       Special Accounting Provisions. The Before-Tax account
maintained under the Plan for each Woodstock Participant shall include the
before-tax contribution balances for such Participant, if any, that were
transferred to the Plan from the LOTS Plan. The After Tax-Account maintained
under the Plan for each Woodstock Participant shall include the after-tax
contribution balances for such Participant, if any, that were transferred to
the Plan from the LOTS Plan. The Matching Account maintained under the Plan for
each Woodstock Participant shall include the company contribution account
balances for such Participant, if any, that were transferred to the Plan from
the LOTS Plan.

 

5.                                       Credit for Vesting Service. The service credited for
vesting purposes under the Plan with respect to a Woodstock Participant for
periods prior to January 1, 2001, shall not be less than the service, if
any, credited for vesting purposes under the LOTS Plan with respect to such
Participant for that period.

 

6.                                       Vesting
in Transferred Amounts. A Woodstock Participant’s vested interest in the
portion of his Plan accounts attributable to amounts transferred on his behalf
from the LOTS Plan shall be determined in accordance with the provisions of Section 9
of the Plan.

 

F-2

 

SUPPLEMENT G

 

KRAFT FOODS GLOBAL, INC.
TIP PLAN

 

Avon Hourly
Employees

 

This Supplement G to Kraft Foods Global, Inc. TIP
Plan sets forth special provisions that are applicable as of May 1, 2001
with respect to the Participating Group described below and supersedes any
provisions of the Plan which are not consistent with this Supplement G.

 

1.                                       Participating Group:  This Supplement G is applicable to hourly
employees covered by a collective bargaining agreement between Kraft Foods
(Avon, New York) and Local 791, International Brotherhood of Teamsters (an “Avon
Participant”).

 

2.                                       Special Contribution Provisions:  The following provisions shall apply in lieu
of subsections 4.1, 4.2, 4.3, 4.6 and 5.1 of the Plan, except that subsection 4.1(b) of
the Plan relating to “catch-up” Before-Tax Contributions shall still apply to
the Participating Group:

 

(a)                                  Before-Tax Contributions. Subject to the
limitations set forth in paragraph (c) below and subsection 4.7 and Section 8
of the Plan, and such additional rules as the Committee may establish
on a uniform and nondiscriminatory basis, for any payroll period, an Avon
Participant may elect to have his salary or wages from his Employer
reduced by a whole percentage, and a corresponding amount contributed on his
behalf to the Profit Sharing Fund by his Employer
as a “Before-Tax Contribution,” which amount shall not be less than 1 percent
nor more than 16 percent of his Eligible Compensation (as defined in paragraph (d) below),
for that payroll period. Any election made pursuant to this paragraph (a) shall
be effective as soon as practicable after the Avon Participant has made his
election in accordance with applicable Access System procedures or other
procedure approved by the Committee.

 

(b)                                 After-Tax Contributions. Subject to the
limitations set forth in paragraph (c) below and subsection 4.7 and Section 8
of the Plan, and such additional rules as the Committee may establish
on a uniform and nondiscriminatory basis, for any payroll period, an Avon
Participant may elect to make “After-Tax Contributions” to the Profit Sharing Fund through payroll deduction in a
whole percentage that is not less than 1 percent nor more than 16 percent of
his Eligible Compensation (as defined in paragraph (d) below) for that
payroll period. Any election made pursuant to this paragraph (b) shall be
effective as soon as practicable after the Avon Participant has made his
election in accordance with applicable Access System procedures or other
procedure approved by the Committee.

 

(c)                                  Total Before-Tax and After-Tax Contributions.
For any payroll period, the Before-Tax Contributions made on behalf of an Avon
Participant and After-Tax Contributions made by such Participant may not
together exceed 16 percent of the Participant’s Eligible Compensation (as
defined in paragraph (d) below) for such payroll period.

 

G-1

 

(d)                                 Eligible Compensation. With respect to Avon
Participants, “Eligible Compensation” means wages, overtime, shift differential
pay, vacation pay, sick pay, holiday pay and other forms of cash compensation
that are that are includible on the Participant’s Federal income tax form W-2
with respect to the Participant’s periods of active participation in the Plan,
plus any amounts contributed by an Employer pursuant to a salary reduction agreement
and which are not includable in gross income under section 125, 402(e)(3),
402(h), 403(b) or, for Plan Years after 2000, section 132(f)(4) of
the Code, and excluding any bonus payments.

 

(e)                                  Matching Contributions. Subject to the
conditions and limitations of subsection 4.7 and Section 8 of the
Plan, for each payroll period during a Plan Year, an Employer shall contribute
to the Profit Sharing Fund on behalf of each Avon
Participant employed by such Employer a Matching Contribution in an amount
equal to 25 percent of the Before-Tax and After-Tax Contributions made by and
on behalf of the Participant that do not exceed 6 percent of such Participant’s
Eligible Compensation for such payroll period. Match-eligible Before-Tax and
After-Tax contributions from the first 6 percent of an Avon Participant’s
Eligible Compensation are sometimes referred to as “Basic Contributions,” and
unmatched contributions in excess of the first 6 percent of Eligible
Compensation are sometimes referred to as “Supplemental Contributions.”

 

3.                                       Transfer
from LOTS Plan. Effective as of May 1, 2001, assets and liabilities
under the LOTS Plan attributable to Avon Participants are transferred (within
the meaning of section 414(l) of the Code) to the Plan and are subject to
the provisions of this Plan for periods on and after that date.

 

4.                                       Special Accounting Provisions. The Before-Tax
account maintained under the Plan for each Avon Participant shall include the
before-tax contribution balances for such Participant, if any, that were transferred
to the Plan from the LOTS Plan. The After Tax-Account maintained under the Plan
for each Avon Participant shall include the after-tax contribution balances for
such Participant, if any, that were transferred to the Plan from the LOTS Plan.
The Matching Account maintained under the Plan for each Avon Participant shall
include the company contribution account balances for such Participant, if any,
that were transferred to the Plan from the LOTS Plan.

 

5.                                       Credit for Vesting Service. The service credited for
vesting purposes under the Plan with respect to an Avon Participant for periods
prior to May 1, 2001, shall not be less than the service, if any, credited
for vesting purposes under the LOTS Plan with respect to such Participant for
that period.

 

6.                                       Vesting
in Transferred Amounts. An Avon Participant’s vested interest in the
portion of his Plan account attributable to amounts transferred on his behalf
from the LOTS Plan shall be determined in accordance with the provisions of Section 9
of the Plan, taking into account the provisions of paragraph 6.

 

G-2

 

SUPPLEMENT H

 

KRAFT FOODS GLOBAL, INC.
TIP PLAN

 

Coshocton Hourly
Employees

 

This Supplement H to Kraft Foods Global, Inc. TIP
Plan sets forth special provisions that are applicable as of May 1, 2001
with respect to the Participating Group described below and supersedes any
provisions of the Plan which are not consistent with this Supplement H.

 

1.                                       Participating Group:  This Supplement H is applicable to hourly
employees covered by a collective bargaining agreement between Kraft Foods
(Coshocton, Ohio) and Local No. 17A, United Food and Commercial Workers
International Union, AFL-CIO (a “Coshocton Participant”).

 

2.                                       Special Contribution Provisions:  The following provisions shall apply in lieu
of subsections 4.1, 4.2, 4.3, 4.6 and 5.1 of the Plan, except that subsection 4.1(b) of
the Plan relating to “catch-up” Before-Tax Contributions shall still apply to
the Participating Group:

 

(a)                                  Before-Tax Contributions. Subject to the
limitations set forth in paragraph (c) below and subsection 4.7 and Section 8
of the Plan, and such additional rules as the Committee may establish
on a uniform and nondiscriminatory basis, for any payroll period, a
Coshocton Participant may elect to have his salary or wages from his
Employer reduced by a whole percentage, and a corresponding amount contributed
on his behalf to the Profit Sharing Fund by his
Employer as a “Before-Tax Contribution,” which amount shall not be less than 1
percent nor more than 16 percent of his Eligible Compensation (as defined in
paragraph (d) below), for that payroll period. Any election made pursuant
to this paragraph (a) shall be effective as soon as practicable after the
Coshocton Participant has made his election in accordance with applicable
Access System procedures or other procedure approved by the Committee.

 

(b)                                 After-Tax Contributions. Subject to the
limitations set forth in paragraph (c) below and subsection 4.7 and Section 8
of the Plan, and such additional rules as the Committee may establish
on a uniform and nondiscriminatory basis, for any payroll period, a
Coshocton Participant may elect to make “After-Tax Contributions” to the Profit Sharing Fund through payroll deduction in a
whole percentage that is not less than 1 percent nor more than 16 percent of
his Eligible Compensation (as defined in paragraph (d) below) for that
payroll period. Any election made pursuant to this paragraph (b) shall be
effective as soon as practicable after the Coshocton Participant has made his
election in accordance with applicable Access System procedures or other
procedure approved by the Committee.

 

(c)                                  Total Before-Tax and After-Tax Contributions.
Notwithstanding the foregoing provisions of this paragraph 4 of Supplement H to
the Kraft Foods Global, Inc. TIP Plan, for any payroll period, the
Before-Tax Contributions made on behalf of

 

H-1

 

a Coshocton Participant and After-Tax Contributions
made by such Participant may not together exceed 16 percent of the
Participant’s Eligible Compensation (as defined in paragraph (d) below)
for such payroll period.

 

(d)                                 Eligible Compensation. With respect to
Coshocton Participants, “Eligible Compensation” means wages, overtime, shift
differential pay, vacation pay, sick pay, holiday pay and other forms of cash
compensation that are that are includible on the Participant’s Federal income
tax form W-2 with respect to the Participant’s periods of active
participation in the Plan, plus any amounts contributed by an Employer pursuant
to a salary reduction agreement and which are not includable in gross income
under section 125, 402(e)(3), 402(h), 403(b) or, for Plan Years after
2000, section 132(f) of the Code, and excluding any bonus payments.

 

(e)                                  Matching Contributions. Subject to the
conditions and limitations of subsection 4.7 and Section 8 of the
Plan, for each payroll period during a Plan Year, an Employer shall contribute
to the Profit Sharing Fund on behalf of each
Coshocton Participant employed by such Employer a Matching Contribution amount
equal to 35 percent of the Before-Tax and After-Tax Contributions made by and
on behalf of the Coshocton Participant that do not exceed 6 percent of such
Participant’s Eligible Compensation for such payroll period. Match-eligible
Before-Tax and After-Tax contributions from the first 6 percent of a Coshocton
Participant’s Eligible Compensation are sometimes referred to as “Basic
Contributions,” and unmatched contributions in excess of the first 6 percent of
Eligible Compensation are sometimes referred to as “Supplemental Contributions.”

 

3.                                       Transfer
from LOTS Plan. Effective as of May 1, 2001, assets and liabilities
under the LOTS Plan attributable to Coshocton Participants are transferred (within
the meaning of section 414(l) of the Code) to the Plan and are subject to
the provisions of this Plan for periods on and after that date.

 

4.                                       Special Accounting Provisions. The Before-Tax
account maintained under the Plan for each Coshocton Participant shall include
the before-tax contribution balances for such Participant, if any, that were
transferred to the Plan from the LOTS Plan. The After Tax-Account maintained
under the Plan for each Coshocton Participant shall include the after-tax
contribution balances for such Participant, if any, that were transferred to
the Plan from the LOTS Plan. The Matching Account maintained under the Plan for
each Coshocton Participant shall include the company contribution account
balances for such Participant, if any, that were transferred to the Plan from
the LOTS Plan.

 

5.                                       Credit for Vesting Service. The service
credited for vesting purposes under the Plan with respect to a Coshocton
Participant for periods prior to May 1, 2001, shall not be less than the
service, if any, credited for vesting purposes under the LOTS Plan with respect
to such Participant for that period.

 

6.                                       Vesting
in Transferred Amounts. A Coshocton Participant’s vested interest in the
portion of his Plan account balances attributable to amounts transferred on his
behalf from the LOTS Plan shall be determined in accordance with the provisions
of Section 9 of the Plan.

 

H-2

 

SUPPLEMENT I

 

KRAFT FOODS GLOBAL, INC.
TIP PLAN

 

Nashville Hourly
Employees

 

This Supplement I to Kraft Foods Global, Inc. TIP
Plan sets forth special provisions that are applicable as of May 1, 2001
with respect to the Participating Group described below and supersedes any
provisions of the Plan which are not consistent with this Supplement I.

 

1.                                       Participating Group:  This Supplement I is applicable with respect
to the account balances of individuals who were previously employed at the
Oscar Mayer plant at Nashville, Tennessee and who were in the collective
bargaining unit represented by Local 405 of the United Food and Commercial
Workers International Union, AFL-CIO (“Nashville Participants”).

 

2.                                       Transfer
from LOTS Plan. Effective as of May 1, 2001, assets and liabilities
under the LOTS Plan attributable to Nashville Participants are transferred
(within the meaning of section 414(l) of the Code) to the Plan and are
subject to the provisions of this Plan, as modified below, for periods on and
after that date.

 

3.                                       Special Accounting Provisions. The Before-Tax
account maintained under the Plan for each Nashville Participant shall include
the before-tax contribution balances for such Participant, if any, that were
transferred to the Plan from the LOTS Plan. The After Tax-Account maintained
under the Plan for each Nashville Participant shall include the after-tax
contribution balances for such Participant, if any, that were transferred to
the Plan from the LOTS Plan. The Matching Account maintained under the Plan for
each Nashville Participant shall include the company contribution account balances
for such Participant, if any, that were transferred to the Plan from the LOTS
Plan.

 

4.                                       Credit for Vesting Service. The service
credited for vesting purposes under the Plan with respect to a Nashville
Participant for periods prior to May 1, 2001, shall not be less than the
service, if any, credited for vesting purposes under the LOTS Plan with respect
to such Participant for that period.

 

5.                                       Vesting
in Transferred Amounts. A Nashville Participant’s vested interest in
amounts attributable to his account balance transferred from the LOTS Plan
shall be determined in accordance with the provisions of Section 9 of the
Plan taking into account the provisions of paragraph 4 next above.

 

I-1

 

SUPPLEMENT J

 

KRAFT FOODS GLOBAL, INC.
TIP PLAN

 

Sherman Hourly
Employees

 

This Supplement J to Kraft Foods Global, Inc. TIP
Plan sets forth special provisions that are applicable as of May 1, 2001
with respect to the Participating Group described below and supersedes any
provisions of the Plan which are not consistent with this Supplement J.

 

1.                                       Participating Group:  This Supplement J is applicable to the
account balances of individuals who were formerly employed as hourly employees
at the Oscar Mayer Foods plant in Sherman, Texas and who were covered by the
collective bargaining agreement between Oscar Mayer Foods and Local 540, United
Food and Commercial Workers International Union, AFL-CIO (the “Sherman
Participants”).

 

2.                                       Transfer
from LOTS Plan. Effective as of May 1, 2001, assets and liabilities
under the LOTS Plan attributable to Sherman Participants are transferred
(within the meaning of section 414(l) of the Code) to the Plan and are
subject to the provisions of this Plan, as modified below, for periods on and
after that date.

 

3.                                       Special Accounting Provisions. The Before-Tax
account maintained under the Plan for each Sherman Participant shall include
the before-tax contribution balances for such Participant, if any, that were
transferred to the Plan from the LOTS Plan. The After Tax-Account maintained
under the Plan for each Sherman Participant shall include the after-tax
contribution balances for such Participant, if any, that were transferred to
the Plan from the LOTS Plan. The Matching Account maintained under the Plan for
each Sherman Participant shall include the company contribution account
balances for such Participant, if any, that were transferred to the Plan from
the LOTS Plan.

 

4.                                       Credit for Vesting Service. The service
credited for vesting purposes under the Plan with respect to a Sherman
Participant for periods prior to May 1, 2001, shall not be less than the
service, if any, credited for vesting purposes under the LOTS Plan with respect
to such Participant for that period.

 

5.                                       Vesting
in Transferred Amounts. A Sherman Participant’s vested interest in his Plan
accounts attributable to his account balance transferred from the LOTS Plan
shall be determined in accordance with the provisions of Section 9 of the
Plan taking into account the provisions of paragraph 4 next above.

 

J-1

 

SUPPLEMENT K

 

KRAFT FOODS GLOBAL, INC.
TIP PLAN

 

Sandusky and
Chicago Hourly Employees

 

This Supplement K to Kraft Foods Global, Inc. TIP
Plan sets forth special provisions that are applicable as of May 1, 2001
with respect to the Participating Group described below and supersedes any
provisions of the Plan which are not consistent with this Supplement K.

 

1.                                       Participating Group:  This Supplement K is applicable to hourly
employees covered by a collective bargaining agreement at the Kraft Foods
facilities in either Sandusky, Ohio or Chicago, Illinois (an “Affected
Participant”).

 

2.                                       Transfer
from LOTS Plan. Effective as of May 1, 2001, assets and liabilities
under the LOTS Plan attributable to Affected Participants are transferred
(within the meaning of section 414(l) of the Code) to the Plan and are
subject to the provisions of this Plan, as modified below, for periods on and
after that date.

 

3.                                       Special Accounting Provisions. The Before-Tax
account maintained under the Plan for each Affected Participant shall include
the before-tax contribution balances for such Participant, if any, that were
transferred to the Plan from the LOTS Plan. The After Tax-Account maintained
under the Plan for each Affected Participant shall include the after-tax
contribution balances for such Participant, if any, that were transferred to
the Plan from the LOTS Plan. The Matching Account maintained under the Plan for
each Affected Participant shall include the company contribution account
balances for such Affected Participant, if any, that were transferred to the
Plan from the LOTS Plan.

 

4.                                       Credit for Vesting Service. The service
credited for vesting purposes under the Plan with respect to an Affected Participant
for periods prior to May 1, 2001, shall not be less than the service, if
any, credited for vesting purposes under the LOTS Plan with respect to such
Participant for that period.

 

5.                                       Vesting
in Transferred Amounts. An Affected Participant’s vested interest in the
portion of his Plan accounts attributable to amounts transferred from the LOTS
Plan on his behalf shall be determined in accordance with the provisions of Section 9
of the Plan taking into account the provisions of paragraph 4 next above

 

K-1

 

SUPPLEMENT L

 

KRAFT FOODS GLOBAL, INC.
TIP PLAN

 

ESOP FUND
Provisions

 

1.                                       Effective Date:  The effective date of this Supplement L and
the ESOP Fund to which it relates is December 15, 2001.

 

2.                                       Purpose: 
The purpose of this Supplement L is to set forth the provisions of the
Plan applicable to the ESOP Fund and not set forth elsewhere in the Plan.

 

3.                                       Definitions: 
Unless the context clearly implies or indicates the contrary, a word,
term or phrase used or defined in the plan is similarly used or defined for
purposes of this Supplement L.

 

4.                                       Diversification:  Consistent with the diversification
requirements of section 401(a)(28) of the Code, a Participant may elect
to diversify all or a portion of his account which is invested in the ESOP Fund
by filing an investment election pursuant to subsection 6.3 of the Plan.

 

5.                                       Put Options: 
If Employer Common Stock held under the ESOP Fund is not readily
tradeable on an established securities market, any Participant or Beneficiary
who is entitled to a distribution of such stock from the Plan shall have a
right to require the Employer to repurchase such shares under a fair valuation
formula. Such right may be exercised for a period of 60 days following the
date of distribution and, if the put option is not exercised within such 60-day
period, such right may be exercised for an additional period of 60 days in
the next following Plan Year. If such shares are repurchased as part of a
total distribution, unless the Participant or Beneficiary elects otherwise, the
amount to be paid for such shares shall be paid in substantially equal periodic
payments (not less frequently than annually) over a period beginning not later
than 30 days after the exercise of the put option and not exceeding 5 years,
with reasonable interest paid and adequate security provided on the unpaid
shares. If the repurchase of shares is part of an installment
distribution, the amount to be paid for the shares shall be paid not later than
30 days after the exercise of the put option described in this subsection 5
of Supplement L.

 

6.                                       ESOP Loan: 
Unless further amended to include the applicable provisions of Treas.
Reg. section 54.4975-7 and 11, the Plan may not engage in an “Exempt
Loan.”  The term “Exempt Loan” means a
loan made to the ESOP by a disqualified person or a loan to the ESOP which is
guaranteed by a disqualified person, including a direct loan of cash, a
purchase-money transaction, and an assumption of the obligation of the ESOP. In
addition, the ESOP shall not obligate itself to acquire securities from a
particular security holder at an indefinite time determined upon the happening
of an event such as the death of the holder.

 

7.                                       Appraiser: 
If at any time the Employer Common Stock held by the Plan is not readily
tradeable on an established securities market, all valuations of such stock
with respect to

 

L-1

 

activities carried on by the Plan will be made by an
independent appraiser meeting the requirements of section 401(a)(28) of
the Code.

 

8.                                       Voting
Rights:  Full and fractional shares
of Employer Common Stock invested in the ESOP Fund and allocated to any Account
shall be voted by the Trustee only in accordance with, and upon instructions of,
the Participant, Beneficiary or Alternate Payee, as the case may be, to
whose Account such shares (or units representing such shares) are allocated on
forms provided for that purpose. Such forms, together with all information
distributed to stockholders regarding the exercise of such rights, shall be
provided to each Participant, Beneficiary or Alternate Payee whose Accounts are
invested in the ESOP Fund (including both subparts thereof). Upon timely
receipt of instructions, the Trustee shall vote such shares as so instructed. Shares
of Employer Common Stock for which the Trustee has not received voting
instructions shall be voted in accordance with the terms of the Trust
Agreement.

 

L-2

 

SUPPLEMENT M

 

KRAFT FOODS GLOBAL, INC.
TIP PLAN

 

Walton Hourly
Employees

 

This Supplement M to Kraft Foods Global, Inc. TIP
Plan sets forth special provisions that are applicable as of January 1,
2002 with respect to the Participating Group described below and supersedes any
provisions of the Plan which are not consistent with this Supplement M.

 

1.                                       Participating Group:  This Supplement M is applicable to hourly
employees working at Kraft Foods in Walton, New York covered by a collective
bargaining agreement between an Employer and United Food and Commercial Workers
International, Local One (a “Walton Participant”).

 

2.                                       Special Contribution Provisions:  The following provisions shall apply in lieu
of subsections 4.1, 4.2, 4.3, 4.6 and 5.1 of the Plan, except that subsection 4.1(b) of
the Plan relating to “catch-up” Before-Tax Contributions shall still apply to
the Participating Group:

 

(a)                                  Before-Tax Contributions. Subject to the
limitations set forth in paragraph (c) below and subsection 4.7 and Section 8
of the Plan, and such additional rules as the Committee may establish
on a uniform and nondiscriminatory basis, for any payroll period, a Walton
Participant may elect to have his salary or wages from his Employer
reduced by a whole percentage, and a corresponding amount contributed on his
behalf to the Profit Sharing Fund by his Employer
as a “Before-Tax Contribution,” which amount shall not be less than 1 percent
nor more than 16 percent of his Eligible Compensation (as defined in paragraph (d) below),
for that payroll period. Any election made pursuant to this paragraph (a) shall
be effective as soon as practicable after the Walton Participant has made his
election in accordance with applicable Access System procedures or other
procedure approved by the Committee.

 

(b)                                 After-Tax Contributions. Subject to the
limitations set forth in paragraph (c) below and subsection 4.7 and Section 8
of the Plan, and such additional rules as the Committee may establish
on a uniform and nondiscriminatory basis, for any payroll period, a Walton
Participant may elect to make “After-Tax Contributions” to the Profit Sharing Fund through payroll deduction in a
whole percentage that is not less than 1 percent nor more than 16 percent of
his Eligible Compensation (as defined in paragraph (d) below) for that
payroll period. Any election made pursuant to this paragraph (b) shall be
effective as soon as practicable after the Walton Participant has made his
election in accordance with applicable Access System procedures or other
procedure approved by the Committee.

 

(c)                                  Total Before-Tax and After-Tax Contributions.
Notwithstanding the foregoing provisions of this paragraph 2 of Supplement M,
for any payroll period, the Before-Tax Contributions made on behalf of a Walton
Participant and After-Tax Contributions made by such Participant may not
together exceed 16 percent of the

 

M-1

 

Participant’s Eligible Compensation (as defined in
paragraph (d) below) for such payroll period.

 

(d)                                 Eligible Compensation. With respect to a
Walton Participant, “Eligible Compensation” means wages, overtime, shift
differential pay, vacation pay, sick pay, holiday pay and other forms of cash
compensation that are includible on the Participant’s Federal income tax form W-2
with respect to the Walton Participant’s periods of active participation in the
Plan, plus any amounts contributed by an Employer pursuant to a salary
reduction agreement and which are not includable in gross income under section 125,
402(e)(3), 402(h), 403(b) or section 132(f)(4) of the Code, and
excluding any bonus payments.

 

(e)                                  Matching Contributions. Subject to the
conditions and limitations of subsection 4.7 and Section 8 of the
Plan, for each payroll period during a Plan Year, an Employer shall contribute
to the Profit Sharing Fund on behalf of each
Walton Participant employed by such Employer a Matching Contribution in an
amount equal to 25 percent of the Before-Tax and After-Tax Contributions made
by and on behalf of the Participant that do not exceed 6 percent of such
Participant’s Eligible Compensation for such payroll period. Match-eligible
Before-Tax and After-Tax contributions from the first 6 percent of a Walton
Participant’s Eligible Compensation are sometimes referred to as “Basic
Contributions,” and unmatched contributions in excess of the first 6 percent of
Eligible Compensation are sometimes referred to as “Supplemental Contributions.”

 

M-2

 

SUPPLEMENT N

 

KRAFT FOODS GLOBAL, INC.
TIP PLAN

 

Davenport Hourly
Employees

 

This Supplement N to Kraft Foods Global, Inc. TIP
Plan sets forth special provisions that are applicable as of August 1,
2002 with respect to the Participating Group described below and supersedes any
provisions of the Plan which are not consistent with this Supplement N.

 

1.                                       Participating Group:  This Supplement N is applicable to hourly
employees working at Kraft Foods in Davenport, Iowa covered by a collective
bargaining agreement between an Employer and United Food and Commercial Workers
International, Local 431 (a “Davenport Participant”).

 

2.                                       Special Contribution Provisions:  The following provisions shall apply in lieu
of subsections 4.1, 4.2, 4.3, 4.6 and 5.1 of the Plan, except that subsection 4.1(b) of
the Plan relating to “catch-up” Before-Tax Contributions shall still apply to
the Participating Group:

 

(a)                                  Before-Tax Contributions. Subject to the
limitations set forth in paragraph (c) below and subsection 4.7 and Section 8
of the Plan, and such additional rules as the Committee may establish
on a uniform and nondiscriminatory basis, for any payroll period, a
Davenport Participant may elect to have his salary or wages from his
Employer reduced by a whole percentage, and a corresponding amount contributed
on his behalf to the Profit Sharing Fund by his
Employer as a “Before-Tax Contribution,” which amount shall not be less than 1
percent nor more than 16 percent of his Eligible Compensation (as defined in
paragraph (d) below), for that payroll period. Any election made pursuant
to this paragraph (a) shall be effective as soon as practicable after the
Davenport Participant has made his election in accordance with applicable
Access System procedures or other procedure approved by the Committee.

 

(b)                                 After-Tax Contributions. Subject to the limitations
set forth in paragraph (c) below and subsection 4.7 and Section 8
of the Plan, and such additional rules as the Committee may establish
on a uniform and nondiscriminatory basis, for any payroll period, a
Davenport Participant may elect to make “After-Tax Contributions” to the Profit Sharing Fund through payroll deduction in a
whole percentage that is not less than 1 percent nor more than 16 percent of
his Eligible Compensation (as defined in paragraph (d) below) for that
payroll period. Any election made pursuant to this paragraph (b) shall be
effective as soon as practicable after the Davenport Participant has made his
election in accordance with applicable Access System procedures or other
procedure approved by the Committee.

 

(c)                                  Total Before-Tax and After-Tax Contributions.
Notwithstanding the foregoing provisions of this paragraph 2 of Supplement N,
for any payroll period, the Before-Tax Contributions made on behalf of a
Davenport Participant and After-

 

N-1

 

Tax Contributions made by such Participant may not
together exceed 16 percent of the Participant’s Eligible Compensation (as
defined in paragraph (d) below) for such payroll period.

 

(d)                                 Eligible Compensation. With respect to
Davenport Participants, “Eligible Compensation” means wages, overtime, shift
differential pay, vacation pay, sick pay, holiday pay and other forms of cash
compensation that are that are includible on the Participant’s Federal income
tax form W-2 with respect to the Participant’s periods of active
participation in the Plan, plus any amounts contributed by an Employer pursuant
to a salary reduction agreement and which are not includable in gross income
under section 125, 402(e)(3), 402(h), 403(b) or section 132(f) of
the Code, and excluding any bonus payments.

 

3.                                       Matching Contributions. Subject to the
conditions and limitations of subsection 4.7 and Section 8 of the
Plan, for each payroll period during a Plan Year, an Employer shall contribute
to the Profit Sharing Fund on behalf of each
Davenport Participant employed by such Employer a Matching Contribution amount
equal to 40 percent of the Before-Tax and After-Tax Contributions made by and
on behalf of the Davenport Participant that do not exceed 6 percent of such
Participant’s Eligible Compensation for such payroll period. Match-eligible
Before-Tax and After-Tax contributions from the first 6 percent of a Davenport
Participant’s Eligible Compensation are sometimes referred to as “Basic
Contributions,” and unmatched contributions in excess of the first 6 percent of
Eligible Compensation are sometimes referred to as “Supplemental Contributions.”

 

4.                                       Transfer
from LOTS Plan. Effective as of August 1, 2002, assets and liabilities
under the LOTS Plan attributable to Davenport Participants are transferred
(within the meaning of section 414(l) of the Code) to the Plan and are
subject to the provisions of this Plan, as modified by this Supplement N, for
periods on and after that date.

 

5.                                       Special Accounting Provisions. The Before-Tax
account maintained under the Plan for each Davenport Participant shall include
the before-tax contribution balances for such Participant, if any, that were
transferred to the Plan from the LOTS Plan. The After Tax-Account maintained
under the Plan for each Davenport Participant shall include the after-tax
contribution balances for such Participant, if any, that were transferred to
the Plan from the LOTS Plan. The Matching Account maintained under the Plan for
each Davenport Participant shall include the company contribution account
balances for such Participant, if any, that were transferred to the Plan from
the LOTS Plan.

 

6.                                       Credit for Vesting Service. The service
credited for vesting purposes under the Plan with respect to a Davenport
Participant for periods prior to August 1, 2002, shall not be less than
the service, if any, credited for vesting purposes under the LOTS Plan with
respect to such Participant for that period.

 

7.                                       Vesting
in Transferred Amounts. A Davenport Participant’s vested interest in his
Plan accounts attributable to his account balance transferred from the LOTS
Plan shall be determined in accordance with the provisions of Section 9 of
the Plan taking into account the provisions of paragraph 8 next above.

 

N-2

 

SUPPLEMENT O

 

KRAFT FOODS GLOBAL, INC.
TIP PLAN

 

Fullerton Hourly
Employees

 

This Supplement O to Kraft Foods Global, Inc. TIP
Plan sets forth special provisions that are applicable as of July 1, 2002
with respect to the Participating Group described below and supersedes any
provisions of the Plan which are not consistent with this Supplement O.

 

1.                                       Participating Group:  This Supplement O is applicable to hourly
employees working at Kraft Foods in Fullerton, California who are covered by a
collective bargaining agreement between an Employer and the International
Brotherhood of Teamsters, Local 952 (a “Fullerton Participant”).

 

2.                                       Special Contribution Provisions:  The following provisions shall apply in lieu
of subsections 4.1, 4.2, 4.3, 4.6 and 5.1 of the Plan, except that subsection 4.1(b) of
the Plan relating to “catch-up” Before-Tax Contributions shall still apply to
the Participating Group:

 

(a)                                  Before-Tax Contributions. Subject to the
limitations set forth in paragraph (c) below and subsection 4.7 and Section 8
of the Plan, and such additional rules as the Committee may establish
on a uniform and nondiscriminatory basis, for any payroll period, a
Fullerton Participant may elect to have his salary or wages from his
Employer reduced by a whole percentage, and a corresponding amount contributed
on his behalf to the Profit Sharing Fund by his
Employer as a “Before-Tax Contribution,” which amount shall not be less than 1
percent nor more than 16 percent of his Eligible Compensation (as defined in
paragraph (d) below), for that payroll period. Any election made pursuant
to this paragraph (a) shall be effective as soon as practicable after the
Fullerton Participant has made his election in accordance with applicable
Access System procedures or other procedure approved by the Committee.

 

(b)                                 After-Tax Contributions. Subject to the
limitations set forth in paragraph (c) below and subsection 4.7 and Section 8
of the Plan, and such additional rules as the Committee may establish
on a uniform and nondiscriminatory basis, for any payroll period, a
Fullerton Participant may elect to make “After-Tax Contributions” to the Profit Sharing Fund through payroll deduction in a
whole percentage that is not less than 1 percent nor more than 16 percent of his
Eligible Compensation (as defined in paragraph (d) below) for that payroll
period. Any election made pursuant to this paragraph (b) shall be
effective as soon as practicable after the Fullerton Participant has made his
election in accordance with applicable Access System procedures or other
procedure approved by the Committee.

 

(c)                                  Total Before-Tax and After-Tax Contributions.
Notwithstanding the foregoing provisions of this paragraph 2, for any payroll
period, the Before-Tax Contributions made on behalf of a Fullerton Participant
and After-Tax

 

O-1

 

Contributions made by such Participant may not
together exceed 16 percent of the Participant’s Eligible Compensation (as
defined in paragraph (d) below) for such payroll period.

 

(d)                                 Eligible Compensation. With respect to
Fullerton Participants, “Eligible Compensation” means wages, overtime, shift
differential pay, vacation pay, sick pay, holiday pay and other forms of cash
compensation that are that are includible on the Participant’s Federal income
tax form W-2 with respect to the Participant’s periods of active
participation in the Plan, plus any amounts contributed by an Employer pursuant
to a salary reduction agreement and which are not includable in gross income
under section 125, 402(e)(3), 402(h), 403(b) or, for Plan Years after
2000, section 132(f) of the Code, and excluding any bonus payments.

 

3.                                       Matching Contributions. Subject to the
conditions and limitations of subsection 4.7 and Section 8 of the Plan,
for each payroll period during a Plan Year, an Employer shall contribute to the
Profit Sharing Fund on behalf of each Fullerton
Participant employed by such Employer a Matching Contribution amount equal to
15 percent of the Before-Tax and After-Tax Contributions made by and on behalf
of the Fullerton Participant that do not exceed 6 percent of such Participant’s
Eligible Compensation for such payroll period. Match-eligible Before-Tax and
After-Tax contributions from the first 6 percent of a Fullerton Participant’s
Eligible Compensation are sometimes referred to as “Basic Contributions,” and
unmatched contributions in excess of the first 6 percent of Eligible
Compensation are sometimes referred to as “Supplemental Contributions.”

 

4.                                       Transfer
from LOTS Plan. Effective as of August 1, 2002, assets and liabilities
under the LOTS Plan attributable to Fullerton Participants are transferred
(within the meaning of section 414(l) of the Code) to the Plan and are
subject to the provisions of this Plan, as modified by this Supplement O, for
periods on and after that date.

 

5.                                       Special Accounting Provisions. The Before-Tax
account maintained under the Plan for each Fullerton Participant shall include
the before-tax contribution balances for such Participant, if any, that were
transferred to the Plan from the LOTS Plan. The After-Tax Account maintained
under the Plan for each Fullerton Participant shall include the after-tax
contribution balances for such Participant, if any, that were transferred to
the Plan from the LOTS Plan. The Matching Account maintained under the Plan for
each Fullerton Participant shall include the company contribution account
balances for such Participant, if any, that were transferred to the Plan from
the LOTS Plan.

 

6.                                       Credit for Vesting Service. The service
credited for vesting purposes under the Plan with respect to a Fullerton
Participant for periods prior to August 1, 2002, shall not be less than
the service, if any, credited for vesting purposes under the LOTS Plan with
respect to such Participant for that period.

 

7.                                       Vesting
in Transferred Amounts. A Fullerton Participant’s vested interest in his
Plan accounts attributable to his account balance transferred from the LOTS
Plan shall be determined in accordance with the provisions of Section 9 of
the Plan taking into account the provisions of paragraph 6 next above.

 

O-2

 

SUPPLEMENT P

 

KRAFT FOODS GLOBAL, INC.
TIP PLAN

 

Nabisco Hourly
Employees

 

This Supplement P to Kraft Foods Global, Inc. TIP
Plan sets forth special provisions that are applicable as of January 1,
2003 with respect to the Participating Group described below and supersedes any
provisions of the Plan which are not consistent with this Supplement P.

 

1.                                       Participating Group. This Supplement
P is applicable to each individual who, on December 31, 2002, meets either
of the following requirements:  (i) he
is a participant in the Nabisco, Inc. Employee Savings Plan (the “Nabisco
ESP”) and is or was employed as a member of a collective bargaining unit to
which participation in the Nabisco ESP is extended (a “Nabisco Participant”);
or (ii) he is employed as a member of a collective bargaining unit to
which participation in the Nabisco ESP is extended and has otherwise satisfied
the eligibility conditions for participation in the Nabisco ESP but has not
elected to participate (an “Eligible Nabisco Employee.”).

 

2.                                       Participation.
Each Nabisco Participant shall become a Participant in the Plan on January 1,
2003, subject to the terms and conditions of the Plan. Subject to the terms and
conditions of the Plan, each employee of an Employer who was not eligible to
participate in the Plan immediately prior to January 1, 2003, but who
was an Eligible Nabisco Employee and is a member of a collective bargaining
unit to which participation in the Plan is extended, shall be eligible to
participate in the Plan on January 1, 2003.

 

3.                                       Matching Contributions. Subject to the
conditions and limitations of subsection 4.7 and Section 8 of the
Plan, for each payroll period during a Plan Year, an Employer shall contribute
to the Profit Sharing Fund on behalf of each
Nabisco Participant employed by such Employer a Matching Contribution amount
determined under the collective bargaining agreement pursuant to which such
Nabisco Participant is employed. Match-eligible Before-Tax and After-Tax
contributions from the first 6 percent of a Nabisco Participant’s Eligible
Compensation are sometimes referred to as “Basic Contributions,” and unmatched
contributions in excess of the first 6 percent of Eligible Compensation are
sometimes referred to as “Supplemental Contributions.”

 

4.                                       Transfer
from the Nabisco ESP. Effective January 1, 2003, assets and
liabilities under the Nabisco ESP attributable to the account balances (including
any outstanding loans) of participants who are current or former union
employees shall be merged with and into the Plan and shall be subject to the
provisions of this Plan, as modified by this Supplement P, for periods on and
after that date.

 

5.                                       Credit for Vesting Service. The service
credited for vesting purposes under the Plan with respect to a Nabisco
Participant for periods prior to January 1, 2003, shall not be less than
the service, if any, credited for vesting purposes under the Nabisco ESP Plan
with respect to such Nabisco Participant for that period.

 

P-1

 

6.                                       Vesting
in Transferred Amounts. The portion of the account balances of a Nabisco
Participant which are attributable to amounts transferred from the Nabisco ESP
are fully vested and nonforfeitable.

 

7.                                       Special
Withdrawal Provisions. A Participant shall be eligible to withdraw amounts
attributable to account balances transferred from the Nabisco ESP (including
any earnings on such transferred account balances) as provided under the
Nabisco ESP as in effect on December 31, 2002.

 

8.                                       Loans.
Any loan transferred to the Plan from the Nabisco ESP may be prepaid to
the extent provided by the terms of such loan and the Nabisco ESP and, in the
event that the Participant terminates employment while such loan is still
outstanding, such loan shall not automatically be accelerated upon such
termination, but may continue to be repaid in accordance with its terms
and the provisions of the Nabisco ESP.

 

P-2

 

SUPPLEMENT Q

 

KRAFT FOODS GLOBAL, INC.
TIP PLAN

 

Minimum
Distribution Requirements After 2001

 

1.                                       General
Rules:

 

(a)                                  Effective
Date. The provisions of this Supplement R will apply for purposes of
determining required minimum distributions for Distribution Calendar Years
beginning with the 2002 calendar year.

 

(b)                                 Precedence.
The requirements of this Supplement Q will take precedence over any
inconsistent provisions of the Plan.

 

(c)                                  Requirements
of Treasury Regulations Incorporated. All distributions required under this
Supplement Q will be determined and made in accordance with the Treasury
regulations under section 401(a)(9) of the Code.

 

2.                                       Time and Manner of Distribution:

 

(a)                                  Required
Beginning Date. The Participant’s entire interest will be distributed, or
begin to be distributed, to the Participant no later than the Participant’s
Required Beginning Date.

 

(b)                                 Death
of Participant Before Distributions Begin. If the Participant dies before
distributions begin, the Participant’s entire interest will be distributed, or
begin to be distributed, no later than as follows:

 

(1)                                  If
the Participant’s surviving spouse is the Participant’s sole designated
beneficiary, then distributions to the surviving spouse will begin by December 31
of the calendar year immediately following the calendar year in which the
Participant died, or by December 31 of the calendar year in which the
Participant would have attained the age of 701⁄2, if later.

 

(2)                                  If
the Participant’s surviving spouse is not the Participant’s sole designated
beneficiary, then except as provided in paragraph 5 below distributions to the
designated beneficiary will begin by December 31 of the calendar year
immediately following the calendar year in which the Participant died.

 

(3)                                  If
there is no designated beneficiary as of September 30 of the year
following the year of the Participant’s death, the Participant’s entire
interest will be distributed by December 31 of the calendar year
containing the fifth anniversary of the Participant’s death.

 

(4)                                  If
the Participant’s surviving spouse is the Participant’s sole designated
beneficiary, and the surviving spouse dies after the Participant but before
distributions to the surviving spouse begin, this paragraph 2(b), other than
paragraph 2(b)(1), will apply as if the surviving spouse were the Participant.

 

Q-1

 

For
purposes of this paragraph 2(b) and paragraph 4, unless subparagraph 2(b)(4) applies,
distributions are considered to begin on the Participant’s Required Beginning
Date. If subparagraph (2)(b)(4) applies, distributions are considered to
begin on the date distributions are required to begin to the surviving spouse
under subparagraph (2)(b)(1).

 

(c)                                  Forms
of Distribution. Unless the Participant’s interest is distributed in a
single lump sum on or before the Required Beginning Date, as of the first
distribution calendar year, distributions will be made in accordance with
paragraphs 3 and 4 of this Supplement Q.

 

3.                                       Required
Minimum Distributions During Participant’s Lifetime.

 

(a)                                  Amount
of Required Minimum Distribution for Each Distribution Calendar Year. During
the Participant’s lifetime, the minimum amount that will be distributed for
each distribution calendar year is the lesser of:

 

(1)                                  the
quotient obtained by dividing the Participant’s Account balance by the
distribution period in the Uniform Lifetime Table set forth in section 1.401(a)(9)-9
of the Treasury regulations, using the Participant’s age as of the Participant’s
birthday in the distribution calendar year; or

 

(2)                                  if
the Participant’s sole designated beneficiary for the distribution calendar
year is the Participant’s spouse, the quotient obtained by dividing the
Participant’s Account balance by the number in the Joint and Last Survivor
Table set forth in section 1.401(a)(9)-9 of the Treasury regulations,
using the Participant’s and spouse’s attained ages as of the Participant’s and
spouse’s birthdays in the distribution calendar year.

 

(b)                                 Lifetime
Required Minimum Distributions Continue Through Year of Participant’s Death.
Required minimum distributions will be determined under this paragraph 3
beginning with the first distribution calendar year and up to and including the
distribution calendar year that includes the Participant’s date of death.

 

4.                                       Required
Minimum Distributions After Participant’s Death.

 

(a)                                  Death
On or After Distributions Begin.

 

(1)                                  Participant
Survived by Designated Beneficiary. If the Participant dies on or after the
date distributions begin and there is a designated beneficiary, the minimum
amount that will be distributed for each distribution calendar year after the
year of the Participant’s death is the quotient obtained by dividing the
Participant’s Account Balance by the longer of the remaining life expectancy of
the Participant or the remaining life expectancy of the Participant’s
designated beneficiary, determined as follows:

 

a.                                       The
Participant’s remaining life expectancy is calculated using the age of the
Participant in the year of death, reduced by one for each subsequent year.

 

Q-2

 

b.                                      If
the Participant’s surviving spouse is the Participant’s sole designated
beneficiary, the remaining life expectancy of the surviving spouse is calculated
for each distribution calendar year after the year of the Participant’s death
using the surviving spouse’s age as of the spouse’s birthday in that year. For
distribution calendar years after the year of the surviving spouse’s death, the
remaining life expectancy of the surviving spouse is calculated using the age
of the surviving spouse as of the spouse’s birthday in the calendar year of the
spouse’s death, reduced by one for each subsequent calendar year.

 

c.                                       If
the Participant’s surviving spouse is not the Participant’s sole designated
beneficiary, the designated beneficiary’s remaining life expectancy is
calculated using the age of the beneficiary in the year following the year of
the Participant’s death, reduced by one for each subsequent year.

 

(2)                                  No
Designated Beneficiary. If the Participant dies on or after the date
distributions begin and there is no designated beneficiary as of September 30
of the year after the year of the Participant’s death, the minimum amount that
will be distributed for each distribution calendar year after the year of the
Participant’s death is the quotient obtained by dividing the Participant’s
Account Balance by the Participant’s remaining life expectancy calculated using
the age of the Participant in the year of death, reduced by one for each
subsequent year.

 

(b)                                 Death
Before Date Distributions Begin.

 

(1)                                  Participant
Survived by Designated Beneficiary. Except as provided in paragraph 5
below, if the Participant dies before the date distributions begin and there is
a designated beneficiary, the minimum amount that will be distributed for each
distribution calendar year after the year of the Participant’s death is the
quotient obtained by dividing the Participant’s Account Balance by the
remaining life expectancy of the Participant’s designated beneficiary,
determined as provided in paragraph 4(a).

 

(2)                                  No
Designated Beneficiary. If the Participant dies before the date
distributions begin and there is no designated beneficiary as of September 30
of the year following the year of the Participant’s death, distribution of the
Participant’s entire interest will be completed by December 31 of the
calendar year containing the fifth anniversary of the Participant’s death.

 

(3)                                  Death
of Surviving Spouse Before Distributions to Surviving Spouse are Required to
Begin. If the Participant dies before the date distributions begin, the
Participant’s surviving spouse is the Participant’s sole designated
beneficiary, and the surviving spouse dies before distributions are required to
begin to the surviving spouse under subparagraph 2(b)(1), this paragraph 4(b) will
apply as if the surviving spouse were the Participant.

 

Q-3

 

5.                                       Application
of 5-Year Rule to Distributions to Non-Spouse Beneficiaries. If the
Participant dies before distributions begin and there is a designated
beneficiary who is not the Participant’s surviving spouse, distribution to the
designated beneficiary is not required to begin by the date specified in
paragraph 2(b)(2) of this Supplement Q, but the Participant’s entire
interest will be distributed to the designated beneficiary by December 31
of the calendar year containing the fifth anniversary of the Participant’s
death. The provisions of this paragraph 5 shall not apply to distributions in
the form described in subsection 11.1(b) (relating to
installments) with respect to which the Annuity Starting Date has occurred
prior to the Participant’s death.

 

6.                                       Definitions.

 

(a)                                  “Designated
Beneficiary” means the individual who is designated as the beneficiary under section 11.6
of the Plan and is the designated beneficiary under section 401(a)(9) of
the Code and section 1.401(a)(9)-1, Q&A-4, of the Treasury
regulations.

 

(b)                                 “Distribution
Calendar Year” means a calendar year for which a minimum distribution is
required. For distributions beginning before the Participant’s death, the first
distribution calendar year is the calendar year immediately preceding the
calendar year which contains the Participant’s Required Beginning Date. For
distributions beginning after the Participant’s death, the first distribution
calendar year is the calendar year in which distributions are required to begin
under subparagraph 2(b). The required minimum distribution for the Participant’s
first distribution calendar year will be made on or before the Participant’s
Required Beginning Date. The required minimum distribution for other
distribution calendar years, including the required minimum distribution for
the distribution calendar year in which the Participant’s Required Beginning
Date occurs, will be made on or before December 31 of that distribution
calendar year.

 

(c)                                  “Life
Expectancy” means life expectancy as computed by use of the Single Life Table
in Section 1.401(a)(9)-9 of the Treasury regulations.

 

(d)                                 “Participant’s
Account Balance” means the account balance as of the last valuation date in the
calendar year immediately preceding the distribution calendar year (valuation
calendar year) increased by the amount of any contributions made and allocated
or forfeitures allocated to the account balance as of dates in the valuation
calendar year after the valuation date and decreased by distributions made in
the valuation calendar year after the valuation date. The account balance for
the valuation calendar year includes any amounts rolled over or transferred to
the Plan either in the valuation calendar year or in the distribution calendar
year if distributed or transferred in the valuation calendar year.

 

(e)                                  “Required
Beginning Date” shall have the meaning set forth in subsection 11.5(c) of
the Plan.

 

Q-4

 

SUPPLEMENT R

 

KRAFT FOODS GLOBAL, INC.
TIP PLAN

 

Ontario Hourly Employees

 

This Supplement R to Kraft Foods Global, Inc. TIP
Plan sets forth special provisions that are applicable as of March 1, 2004
with respect to the Participating Group described below and supersedes any
provisions of the Plan which are not consistent with this Supplement R.

 

1.                                       Participating
Group:  This Supplement R is applicable
to hourly employees covered by a collective bargaining agreement between Kraft
Foods (Ontario, California) and Local 63, International Brotherhood of
Teamsters (an “Ontario Participant”).

 

2.                                       Special
Contribution Provisions:  The
following provisions shall apply in lieu of subsections 4.1, 4.2, 4.3, 4.6 and
5.1 of the Plan, except that subsection 4.1(b) of the Plan relating
to “catch-up” Before-Tax Contributions shall still apply to the Participating
Group:

 

(a)                                  Before-Tax
Contributions. Subject to the limitations set forth in paragraph (c) below
and subsection 4.7 and Section 8 of the Plan, and such additional rules as
the Committee may establish on a uniform and nondiscriminatory basis,
for any payroll period, an Ontario Participant may elect to have his
salary or wages from his Employer reduced by a whole percentage, and a
corresponding amount contributed on his behalf to the Profit Sharing Fund by
his Employer as a “Before-Tax Contribution,” which amount shall not be less
than 1 percent nor more than 16 percent of his Eligible Compensation (as
defined in paragraph (d) below), for that payroll period. Any election
made pursuant to this paragraph (a) shall be effective as soon as
practicable after the Ontario Participant has made his election in accordance
with applicable Access System procedures or other procedure approved by the
Committee.

 

(b)                                   After-Tax
Contributions. Subject to the limitations set forth in paragraph (c) below
and subsection 4.7 and Section 8 of the Plan, and such additional rules as
the Committee may establish on a uniform and nondiscriminatory basis,
for any payroll period, an Ontario Participant may elect to make “After-Tax
Contributions” to the Profit Sharing Fund through payroll deduction in a whole
percentage that is not less than 1 percent nor more than 16 percent of his
Eligible Compensation (as defined in paragraph (d) below) for that payroll
period. Any election made pursuant to this paragraph (b) shall be
effective as soon as practicable after the Ontario Participant has made his
election in accordance with applicable Access System procedures or other
procedure approved by the Committee.

 

(c)                                  Total
Before-Tax and After-Tax Contributions. Notwithstanding the foregoing
provisions of this paragraph 2 of Supplement R, for any payroll period, the
Before-Tax Contributions made on behalf of an Ontario Participant and After-Tax
Contributions made by such Participant may not together exceed 16 percent
of the

 

R-1

 

Participant’s Eligible Compensation (as defined in
paragraph (d) below) for such payroll period.

 

(d)                                   Eligible
Compensation. With respect to an Ontario Participant, “Eligible
Compensation” means wages, overtime, shift differential pay, vacation pay, sick
pay, holiday pay and other forms of cash compensation that are includible on
the Participant’s Federal income tax form W-2 with respect to the Ontario
Participant’s periods of active participation in the Plan, plus any amounts
contributed by an Employer pursuant to a salary reduction agreement and which
are not includable in gross income under section 125, 402(e)(3), 402(h),
403(b) or section 132(f)(4) of the Code, and excluding any bonus
payments.

 

3.                                       Matching
Contributions. Notwithstanding any provision of the Plan to the contrary,
the Ontario Participants shall not be entitled to any Matching Contributions.

 

R-2

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