Document:

Exhibit 10.5

LINN
ENERGY, LLC

LONG-TERM INCENTIVE PLAN

FORM OF EXECUTIVE RESTRICTED UNIT GRANT AGREEMENT

This Restricted Unit grant agreement (“Grant Agreement”) is made and entered
into effective as of [Grant Date], (the “Grant
Date”) by and between LINN ENERGY, LLC, a Delaware limited
liability company (together with its subsidiaries, the “Company”), and [Executive] (“Participant”).

WHEREAS, the Company considers it
to be in its best interest that Participant be given a proprietary interest in
the Company and an added incentive to advance the interests of the Company; and

WHEREAS, the Company desires to
accomplish such objectives by granting Participant Restricted Units pursuant to
the Employment Agreement and the Linn Energy, LLC Long-Term Incentive Plan,
which is attached hereto as Appendix A and incorporated by reference herein
(the “Plan”);

NOW, THEREFORE, in consideration of
the mutual agreements hereinafter set forth, the parties hereby agree as
follows:

1.             Grant of Restricted Units.  The Company hereby grants to Participant [         ]
Restricted Units, under and subject to the terms and conditions of this Grant
Agreement and the Plan.

2.             Vesting and Restricted Period.  Except as otherwise provided herein, the
Restricted Period with respect to one third (1/3) of the Restricted Units
granted hereby shall lapse on the first anniversary of the Grant Date, the
Restricted Period with respect to an additional one third (1/3) of the
Restricted Units granted hereby shall lapse on the second anniversary of the
Grant Date, and the Restricted Period with respect to the final one third (1/3)
of the Restricted Units granted hereby shall lapse on the third anniversary of
the Grant Date.  Upon the termination of
the Restricted Period with respect to a Restricted Unit, such Restricted Unit
shall vest in full and no longer be subject to forfeiture, and shall no longer
be deemed a Restricted Unit.

3.             General Restrictions.  The Restricted Units shall not be assignable
or transferable except as expressly provided in the Plan or by the Committee in
its sole discretion.

4.             Termination by Company other than
for Cause.  Upon the
termination by the Company of Participant’s service relationship with the
Company other than for Cause (as defined herein and as determined by the Committee
in its sole discretion), all Restricted Periods established hereunder shall
automatically and immediately terminate and all outstanding Restricted Units
granted hereby shall automatically and immediately vest in full.  “Cause”
shall mean (a) Participant’s conviction of, or plea of nolo contendere to, any felony, any crime
or offense causing substantial harm to the Company (whether or not for personal
gain) or involving acts of theft, fraud, embezzlement, moral turpitude or
similar conduct; (b) Participant’s repeated intoxication by alcohol or drugs
during the performance of his or her duties; (c) malfeasance in the conduct of
Participant’s duties, including, but not limited to, (i) willful and
intentional misuse

or diversion of any
Company funds, (ii) embezzlement or (iii) fraudulent or willful and material
misrepresentations or concealments on any written reports submitted to the
Company; (d) Participant’s material failure to perform the duties of
Participant’s employment or service relationship consistent with Participant’s
position or material failure to follow or comply with the reasonable and lawful
written directives of the Board of the Company; or (e) a material breach by
Participant of the written policies of the Company concerning employee discrimination
or harassment.

5.             Termination by Participant with
Good Reason.  Upon the
termination by Participant of Participant’s service relationship with the
Company with Good Reason (as defined herein), all Restricted Periods
established hereunder shall automatically and immediately terminate and all
outstanding Restricted Units granted hereby shall automatically and immediately
vest in full.  “Good
Reason” shall mean any of the following to which Participant
does not consent in writing: (a) a reduction in Participant’s base salary; (b)
a relocation of Participant’s primary place of employment to a location more
than 50 miles from [Houston, Texas]/[Pittsburgh, Pennsylvania]; or (c) any
material reduction in Participant’s title, authority or responsibilities as
[Title] of the Company.

6.             Death or Disability.  In the case of termination of Participant’s
service relationship with the Company due to death or Disability (as defined
herein), all Restricted Periods established hereunder shall automatically and immediately
terminate and all outstanding Restricted Units granted hereby shall
automatically and immediately vest in full. 
“Disability” shall mean the
determination by a physician selected by the Company that Participant has been
unable to perform substantially Participant’s usual and customary duties for a
period of at least one hundred twenty (120) consecutive days or a
non-consecutive period of one hundred eighty (180) days during any twelve-month
period as a result of incapacity due to mental or physical illness or disease.

7.             Change of  Control.  Notwithstanding anything in the Plan to the
contrary, in the event of a Change of Control (as defined in the Employment
Agreement), all Restricted Periods established hereunder shall automatically
and immediately terminate and all outstanding Restricted Units granted hereby
shall automatically and immediately vest in full.

8.             Termination by Company for Cause or
by Participant without Good Reason.  In the case of (a) termination by the Company
of Participant’s service relationship with the Company for Cause or (b)
termination by Participant of Participant’s service relationship with the
Company without Good Reason and other than due to Participant’s death or
Disability, all outstanding Restricted Units granted hereby shall be
automatically and immediately forfeited, and Participant hereby agrees to
undertake any action and execute any document, instrument or papers reasonably
requested by the Company to effect such forfeiture of Restricted Units
resulting from any such termination.

9.             Plan Controlling Document.  Unless otherwise defined herein, capitalized
terms shall have the meaning given such terms in the Plan.  Participant agrees that the Plan is the
controlling instrument and that to the extent there is any conflict between the
terms of the Plan and this Grant Agreement, the Plan shall control and be the
governing document.

 2
 

10.          Limited Liability Company Agreement.  Participant agrees to be bound by all
applicable provisions of the Company’s limited liability company agreement, as
it may be amended from time to time.

11.          Taxes.  The Company and any affiliate thereof are
authorized to withhold from any payment relating to the Restricted Units
granted hereby, or any payroll or other payment to Participant, amounts of
withholding and other taxes due or potentially payable in connection with the
Restricted Units granted hereby, and to take such other action as the Committee
may deem advisable to enable the Company, any affiliate, and Participant to
satisfy obligations for the payment of withholding taxes and other tax
obligations relating to the Restricted Units granted hereby.  This authority shall include authority to
withhold or receive Units or other property and to make cash payments in
respect thereof in satisfaction of Participant’s tax obligations, either on a
mandatory or elective basis in the discretion of the Committee.

12.          Issuance of Units.  The Company shall not be obligated to issue
any Restricted Units at any time when the Restricted Units have not been
registered under the Securities Act of 1933, as amended, and such other state
and federal laws, rules or regulations as the Company or the Committee deems
applicable and, in the opinion of legal counsel for the Company, there is no
exemption from the registration requirements of such laws, rules or regulations
available for the issuance of such Restricted Units.

13.          Notices.  Any notices given in connection with this
Grant Agreement shall, if issued to Participant, be delivered to Participant’s
current address on file with the Company, or if issued to the Company, be
delivered to the Company’s principal offices.

14.          Execution of Receipts and Releases.  Any payment of cash or any issuance or
transfer of Restricted Units or other property to Participant, or to
Participant’s legal representatives, heirs, legatees or distributees, in
accordance with the provisions hereof, shall, to the extent thereof, be in full
satisfaction of all claims of such persons hereunder.  The Company may require Participant or
Participant’s legal representatives, heirs, legatees or distributees, as a
condition precedent to such payment or issuance, to execute a release and
receipt therefor in such form as it shall determine.

15.          Successors.  This Grant Agreement shall be binding upon Participant,
Participant’s legal representatives, heirs, legatees and distributees, and upon
the Company, its successors and assigns.

[Remainder of this page intentionally left blank.]

 3

 

IN WITNESS WHEREOF, the parties hereto have executed this Grant
Agreement to be effective as of the day and year first above written.

	
  

  	
  LINN ENERGY, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name: 

  	
  [________________]

  	
   

  
	
   

  	
  Title:

  	
  [________________]

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PARTICIPANT:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

APPENDIX
A

LINN
ENERGY, LLC

LONG-TERM
INCENTIVE PLAN

(EFFECTIVE
AS OF JANUARY 12, 2006)Exhibit
10.1

EXECUTION
COPY

 

TRANSITION
SERVICES AGREEMENT

BY
AND BETWEEN

ALTRIA
CORPORATE SERVICES, INC.

AND

KRAFT
FOODS INC.

DATED
AS OF MARCH 30, 2007

 

TABLE
OF CONTENTS

	
  

  	
   

  	
  Page

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE I 

  	
  DEFINITIONS

  	
   

  	
  1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II 

  	
  SERVICES TO BE PROVIDED

  	
   

  	
  4

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.1. Exhibits

  	
   

  	
  4

  	
   

  
	
  2.2. Independent
  Contractors

  	
   

  	
  4

  	
   

  
	
  2.3. Standard of
  Care

  	
   

  	
  4

  	
   

  
	
  2.4. Records

  	
   

  	
  4

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III 

  	
  FEES

  	
   

  	
  5

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.1. General

  	
   

  	
  5

  	
   

  
	
  3.2. Payments

  	
   

  	
  5

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV 

  	
  REPRESENTATIVES

  	
   

  	
  5

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.1.
  Representatives

  	
   

  	
  5

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V 

  	
  THIRD PARTY AGREEMENTS

  	
   

  	
  5

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI 

  	
  AUTHORITY; INFORMATION;
  COOPERATION; CONSENTS

  	
   

  	
  6

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.1. Authority

  	
   

  	
  6

  	
   

  
	
  6.2. Information
  Regarding Transition Services

  	
   

  	
  6

  	
   

  
	
  6.3. Cooperation

  	
   

  	
  6

  	
   

  
	
  6.4. Further
  Assurances

  	
   

  	
  7

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII 

  	
  AUTHORITY AS AGENT

  	
   

  	
  7

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII 

  	
  CONFIDENTIAL INFORMATION

  	
   

  	
  7

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.1. Definition

  	
   

  	
  7

  	
   

  
	
  8.2.
  Nondisclosure

  	
   

  	
  7

  	
   

  
	
  8.3. Permitted
  Disclosure

  	
   

  	
  7

  	
   

  
	
  8.4. Ownership
  of Confidential Information

  	
   

  	
  8

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX 

  	
  TERM AND TERMINATION

  	
   

  	
  8

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.1. Term

  	
   

  	
  8

  	
   

  
	
  9.2. Termination

  	
   

  	
  8

  	
   

  
	
  9.3. Termination
  Assistance Services

  	
   

  	
  8

  	
   

  

 

 i
 

 

	
  ARTICLE X 

  	
  LIMITATION OF LIABILITY;
  INDEMNIFICATION

  	
   

  	
  9

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.1. Limitation
  of Liability

  	
   

  	
  9

  	
   

  
	
  10.2.
  Indemnification

  	
   

  	
  9

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XI 

  	
  DISPUTE RESOLUTION

  	
   

  	
  9

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XII 

  	
  MISCELLANEOUS

  	
   

  	
  10

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12.1. Original
  Services Agreement

  	
   

  	
  10

  	
   

  
	
  12.2.
  Incorporation of Distribution Agreement Provisions

  	
   

  	
  10

  	
   

  
	
  12.3. Governing
  Law

  	
   

  	
  10

  	
   

  
	
  12.4. References

  	
   

  	
  10

  	
   

  
	
  12.5. Notices

  	
   

  	
  10

  	
   

  

 

 ii

TRANSITION
SERVICES AGREEMENT

THIS
TRANSITION SERVICES AGREEMENT, dated as of March 30, 2007 (as
amended and supplemented pursuant to the terms hereof, this “Agreement”), is
entered into by and between Altria Corporate Services, Inc., a New York
corporation (“ALCS”), and Kraft Foods Inc., a Virginia corporation (“Kraft”).

WITNESSETH:

WHEREAS,
ALCS currently provides certain services to Kraft and its wholly-owned
subsidiaries pursuant to a Services Agreement, dated as of January 1, 2001, as
amended (the “Original Services Agreement”); and

WHEREAS,
Altria Group Inc., a Virginia 
corporation (“Altria”), and Kraft, have entered into a Distribution
Agreement, dated as of January 31, 2007 (the “Distribution Agreement”),
providing for, among other things, the distribution by Altria of its entire
ownership interest in Kraft through a pro-rata distribution of all of the
outstanding shares of Class A Common Stock of Kraft owned by Altria on the
Distribution Date to the holders of Altria Common Stock pursuant to the terms
and subject to the conditions of the Distribution Agreement (the “Distribution”);
and

WHEREAS,
ALCS and Kraft desire to enter into this Agreement to supercede the Original
Service Agreement and to set forth the roles and responsibilities with regard
to services to be provided by ALCS to Kraft for certain transition periods not
to exceed twelve months  following the
Distribution.

NOW,
THEREFORE, the parties agree as follows:

ARTICLE I

DEFINITIONS

Affiliate:  with respect to any specified Person, a
Person that directly, or indirectly through one or more intermediaries,
controls, is controlled by, or is under common control with, such specified
Person; provided, however, that for purposes of this Agreement, no member of
either Group and no officer or director of any member of either Group shall be
deemed to be an Affiliate of any member of the other Group.

ALCS:  as defined in the preamble to this Agreement.

Altria:  as defined in the recitals to this Agreement.

Altria Common
Stock:  the common
stock, par value $0.33 1/3 per share, of Altria.

Altria Group:  Altria and the Subsidiaries of Altria other
than members of the Kraft Group.

Arbitration Act:  the United States Arbitration Act, 9 U.S.C.
§§ 1-16, as the same may be amended from time to time.

Business Day:  any day other than a Saturday, a Sunday or a
day on which banking institutions located in the Commonwealth of Virginia or
the State of New York are authorized or obligated by Law or executive order to
close.

Class A Common
Stock:  the Class A
common stock, no par value, of Kraft.

Class B Common
Stock:  the Class B
common stock, no par value, of Kraft.

Confidential
Information:  as
defined in Section 8.1 hereof.

Distribution:  as defined in the recitals to this Agreement.

Distribution
Agreement:  as defined
in the recitals to this Agreement.

Distribution Date:  the date on which the Distribution becomes
effective.

Employee Costs:  for each employee of ALCS performing the
Transition Services, the salaries, fringe benefits, executive compensation
benefits (if applicable) and depreciation/amortization of office equipment and
software (if applicable) attributable to the employee, based on the ratio of
ALCS’s estimate of the time spent by the employee on behalf of Kraft divided by
the total time spent by the employee.

Employee Matters
Agreement:  as defined
in Section 3.1 hereof.

Exhibits:  as defined in Section 2.1 hereof.

Fees:  as defined in Section 3.1 hereof.

Governmental
Authority:  any
federal, state, local, foreign or international court, government, department,
commission, board, bureau or agency, authority (including, but not limited to,
any central bank or taxing authority) or instrumentality (including, but not
limited to, any court, tribunal or grand jury) exercising executive,
prosecutorial, legislative, judicial, regulatory or administrative functions of
or pertaining to government or any other regulatory, administrative or
governmental authority, including the NYSE.

Group:  the Altria Group or the Kraft Group, as the
context requires.

Kraft:  as defined in the preamble to this Agreement.

Kraft Group:  Kraft and the Kraft Subsidiaries.

Law:
any federal, state or local statute, ordinance, regulation, code, license,
permit, authorization, approval, consent, common law, legal doctrine, order,
judgment, decree, injunction or requirement of any Governmental Authority or
any order or award of any arbitrator, now or hereafter in effect.

 2
 

Liabilities:  means any and all claims, debts, liabilities,
assessments, guarantees, assurances, commitments, obligations, fines,
penalties, damages (whether compensatory, punitive, consequential, multiple or
other), losses, disgorgements and obligations, of any kind, character or
description (whether absolute, contingent, matured, not matured, liquidated,
unliquidated, accrued, known, unknown, direct, indirect, derivative or
otherwise) whenever arising, including, but not limited to, those arising under
or in connection with any Law, and those arising under any contract, guarantee,
commitment or undertaking, whether sought to be imposed by any Governmental
Authority or arbitrator, whether based in contract, tort, implied or express
warranty, strict liability, criminal or civil statute, or otherwise, and
including all costs, expenses and interest relating thereto (including, but not
limited to, all expenses of investigation, all attorneys’ fees and all
out-of-pocket expenses in connection with any Action or threatened Action).

Losses:  with respect to any Person, all losses,
Liabilities, damages, claims, demands, judgments or settlements of any nature
or kind, known or unknown, fixed, accrued, absolute or contingent, liquidated
or unliquidated, including all costs and expenses (legal, accounting or
otherwise as such costs are incurred) relating
thereto, including punitive damages and criminal fines and penalties, but
excluding damages in respect of actual or alleged lost profits, suffered by
such Person, regardless of whether any such losses, Liabilities, damages,
claims, demands, judgments, settlements, costs, expenses, fines and penalties
relate to or arise out of such Person’s own alleged or actual negligent,
grossly negligent, reckless or intentional misconduct.

Original Services Agreement:  as defined in the preamble to this Agreement.

Parties:  ALCS and Kraft (Party means either ALCS or
Kraft).

Person:  an individual, a partnership, a joint
venture, a corporation, a trust, a limited liability company, an unincorporated
organization, or a government or any department or agency thereof.

Records:  as defined in Section 2.4 hereof.

Representatives:  as defined in Section 4.1 hereof.

Subsidiary:  with respect to any specified Person, any
corporation or other legal entity of which such Person or any of its
Subsidiaries controls or owns, directly or indirectly, more than 50% of the stock
or other equity interest entitled to vote on the election of members to the
board of directors or similar governing body; provided, however, that for
purposes of this Agreement, (1) the
Kraft Subsidiaries shall be deemed to be Subsidiaries of Kraft and (2) no member of the Kraft Group
shall be deemed to be a Subsidiary of any member of the Altria Group.

Transition Services (or “Services”):  as defined in Section 2.1 hereof.

Transition Period:  as defined for each Service in the
appropriate Exhibit.

 3
 

ARTICLE
II

SERVICES TO BE PROVIDED

2.1.         Exhibits.

(a)           Exhibits 1
through 6 (collectively, the “Exhibits”) attached to and made a part of this
Agreement describe the services to be provided by ALCS to Kraft and one or more
members of the Kraft Group, as designated from time to time by Kraft (the “Transition
Services” or “Services”).  The Parties
have made a good faith effort as of the date hereof to identify each Transition
Service and to complete the content of the Exhibits accurately.  It is anticipated that the Parties will
modify the Transition Services from time to time.  In that case or to the extent that any
Exhibit is incomplete, the Parties will use good faith efforts to modify the
Exhibits.  There are certain terms that
are specifically addressed in the Exhibits attached hereto that may differ from
the terms provided hereunder.  In those
cases, the specific terms described in the Exhibits shall govern that
Transition Service.

(b)           The Parties may also
identify additional Services that they wish to incorporate into this
Agreement.  The Parties will create
additional Exhibits setting forth the description of such Services, the Fees
for such Services and any other applicable terms.

2.2.         Independent Contractors.

ALCS will provide the
Transition Services either through its own resources, through the resources of
its subsidiaries or Affiliates, or by contracting with independent contractors
as agreed hereunder.  To the extent that
ALCS decides to provide a Transition Service through an independent contractor
in the future, ALCS shall consult with and obtain the prior approval of Kraft,
which approval shall not be unreasonably withheld.

2.3.         Standard of Care.

In providing the
Transition Services hereunder, ALCS will exercise the same degree of care as it
has historically exercised in providing such Transition Services to its
Affiliates prior to the date hereof, including at least the same level of
quality, responsiveness and timeliness as has been exercised by ALCS with
respect to such Transition Services.

2.4.         Records.

ALCS shall keep full and
detailed records dealing with all aspects of the Transition Services performed
by it hereunder (the “Records”) and:

(a)           shall provide access
to the Records to Kraft at all reasonable times; and

(b)           shall maintain the
Records in accordance with good record management practices and with at least
the same degree of completeness and care as it maintains for its other similar
business interests.

 4
 

ARTICLE
III

FEES

3.1.         General.

Kraft will pay to ALCS a
fixed fee for each Transition Service as set forth in the attached Exhibits
(collectively, the “Fees”).  The Fees
constitute full compensation to ALCS for all charges, costs and expenses
incurred by ALCS on behalf of Kraft in providing the Services, unless otherwise
specifically provided in the Exhibits. 
Notwithstanding the terms of any of the Exhibits, the Fees for each
Transition Service shall be reduced by any amounts Kraft is required to pay
pursuant to Section 3.1(e) of the Employee Matters Agreement (the “Employee
Matters Agreement”), dated as of even date herewith, between Kraft and Altria,
with respect to any person who provides Services under this Agreement and
thereafter becomes a Kraft Transferee (as defined in the Employee Matters
Agreement).  Except as specifically
provided herein or in the Exhibits, or as subsequently agreed by Kraft and
ALCS, Kraft will not be responsible to ALCS or any independent contractor
retained by ALCS, for any additional fees, charges, costs or expenses relating
to the Services, unless such additional fees, charges, costs or expenses are a
direct result of Kraft’s unilateral deviation from the scope of the services
defined in the Exhibits.

3.2.         Payments.

ALCS will deliver to Kraft, no later than five days
following the last day of each month, an invoice for the aggregate Fees
incurred for that month.  Kraft will pay
to ALCS monthly no later than the third Wednesday of the following month, the
aggregate Fees incurred during the previous month.

ARTICLE
IV

REPRESENTATIVES

4.1.         Representatives.

(a)           The Controller of
Altria and the Controller of Kraft will serve as administrative representatives
(“Representative(s)”) of ALCS and Kraft, respectively, to facilitate day-to-day
communications and performance under this Agreement.  Each Party may treat an act of a
Representative of the other Party as being authorized by such other Party.  Each Party may replace its Representative by
giving written notice of the replacement to the other Party.

(b)           No additional
Exhibits, modifications to existing Exhibits, or amendments to this Agreement
shall be effective unless and until executed by the Representatives of each of
ALCS and Kraft.

ARTICLE V

THIRD PARTY AGREEMENTS

To the extent that it is
not practicable to have Kraft as the contracting Party for a third party obligation,
ALCS, with respect to all Services supplied by ALCS or contracted for by ALCS
on behalf of Kraft, shall use commercially reasonable efforts to cause all such
third party 

 5
 

contracts to
extend to and be enforceable by Kraft, or to assign such contracts to
Kraft.  In the event that such contracts
are not extendable or assignable, ALCS shall act as agent for Kraft in the
pursuit of any claims, issues, demands or actions against such third party
provider at Kraft’s expense.  Kraft will
indemnify ALCS for any liability under third party contracts arising directly
out of the acts or omissions of Kraft.

ARTICLE
VI

AUTHORITY; INFORMATION; COOPERATION; CONSENTS

6.1.         Authority.

Each Party represents to
the other Party that:

(a)           it has the requisite
corporate authority to enter into and perform this Agreement;

(b)           its execution,
delivery and performance of this Agreement have been duly authorized by all
requisite corporate action on its behalf;

(c)           this Agreement is
enforceable against it; and

(d)           it has obtained all
consents or approvals of Governmental Authorities and other Persons that are
conditions to its entering into this Agreement.

6.2.         Information Regarding Transition
Services.

Each Party shall make
available to the other Party any information required or reasonably requested
by that other Party regarding the performance of any Service and shall be
responsible for timely providing that information and for ensuring the accuracy
and completeness of that information; provided, however, that a
Party shall not be liable for not providing any information that is subject to
a confidentiality obligation owed by it to a Person other than an Affiliate of
it or the other Party.  ALCS shall not be
liable for any impairment of any Service caused by ALCS not receiving information
from Kraft, either timely or at all, or by its receiving inaccurate or
incomplete information from Kraft, in each case that is required or reasonably
requested regarding that Service.

6.3.         Cooperation.

The Parties will
use good faith efforts to cooperate with each other in all matters relating to
the provision and receipt of Services. 
Such good faith cooperation will include providing electronic access to
systems used in connection with Services and using commercially reasonable
efforts to obtain all consents, licenses, sublicenses or approvals necessary to
permit each Party to perform its obligations. 
The Parties will cooperate with each other in making such information
available as needed in the event of any and all internal or external audits,
whether in the United States or any other country.  If this Agreement is terminated in whole or
in part, the Parties will cooperate with each other in all reasonable respects
in order to effect an efficient transition and to minimize the disruption to the
business of both Parties, including the assignment or transfer of the rights
and obligations under any contracts.

 6
 

6.4.         Further Assurances.

Each Party shall
take such actions, upon request of the other Party and in addition to the
actions specified in this Agreement, as may be necessary or reasonably
appropriate to implement or give effect to this Agreement.

ARTICLE
VII

AUTHORITY AS AGENT

ALCS is hereby authorized
to act as agent for Kraft for the purpose of performing Services hereunder and
as is necessary or desirable to perform such Services.  Kraft will execute and deliver or cause the
appropriate member of the Kraft Group to execute and deliver to ALCS any
document or other evidence which may be reasonably required by ALCS to
demonstrate to third parties the authority of ALCS described in this Article VII.

ARTICLE
VIII

CONFIDENTIAL INFORMATION

8.1.         Definition.

For the purposes of this Agreement, “Confidential
Information” means non-public information about the disclosing Party’s or any
of its Affiliates’ business or activities that is proprietary and confidential,
which shall include, without limitation, all business, financial, technical and
other information, including software (source and object code) and programming
code, of a Party or its Affiliates marked or designated “confidential” or “proprietary”
or by its nature or the circumstances surrounding its disclosure should
reasonably be regarded as confidential. 
Confidential Information includes not only written or other tangible
information, but also information transferred orally, visually or
electronically or by any other means. 
Confidential Information will not include information that (i) is
in or enters the public domain without breach of this Agreement, or (ii) the
receiving Party lawfully receives from a third party without restriction on
disclosure and, to the receiving Party’s knowledge without breach of a
nondisclosure obligation.

8.2.         Nondisclosure.

Each of ALCS and Kraft
agree that (i) it will not disclose to any third party or use any Confidential
Information disclosed to it by the other except as expressly permitted in this
Agreement, and (ii) it will take all reasonable measures to maintain the
confidentiality of all Confidential Information of the other Party in its
possession or control, which will in no event be less than the measures it uses
to maintain the confidentiality of its own information of similar type and
importance.

8.3.         Permitted Disclosure.

Notwithstanding the
foregoing, each Party may disclose Confidential Information (i) to the
extent required by a court of competent jurisdiction or other Governmental
Authority or otherwise as required by Law, including without limitation
disclosure obligations imposed under the federal securities laws, provided that
such Party has given the other Party prior notice of such 

 7
 

requirement when
legally permissible to permit the other Party to take such legal action to
prevent the disclosure as it deems reasonable, appropriate or necessary, or
(ii) on a “need-to-know” basis under an obligation of confidentiality to its
consultants, legal counsel, Affiliates, accountants, banks and other financing
sources and their advisors.

8.4.         Ownership of Confidential
Information.

All Confidential
Information supplied or developed by either Party shall be and remain the sole
and exclusive property of the Party who supplied or developed it.

ARTICLE
IX

TERM AND TERMINATION

9.1.         Term.

This Agreement shall remain in effect until such time
as it has been terminated as to all Transition Services in accordance with Section 9.2
hereof.

9.2.         Termination.

Either Party may terminate this Agreement without
cause with respect to one or more Services under this Agreement by providing
three months’ written notice to the other Party or as otherwise agreed between
the Parties hereto; provided that the Services set forth in Exhibit 5 hereto
shall not terminate before December 31, 2007.

9.3.         Termination Assistance Services.

ALCS agrees that, upon termination of this Agreement
or any of the Services set forth in the Exhibits, ALCS will cooperate in good
faith with Kraft to provide Kraft (or its designee) with reasonable assistance
to make an orderly transition from ALCS to another supplier of the
Services.  Transition assistance services
shall include the following:

(a)           developing a
transition plan with assistance from Kraft or its designee;

(b)           providing training
to Kraft personnel or its designee’s personnel to perform Services; and

(c)           organizing and
delivering to Kraft records and documents necessary to allow continuation of
the Services, including delivering such materials in electronic forms and
versions as requested by Kraft.

 8
 

ARTICLE X

LIMITATION OF LIABILITY; INDEMNIFICATION

10.1.       Limitation of Liability.

Except as may be provided
in Section 10.2 below and Article V above, ALCS and its
Affiliates (each, an “ALCS Party”) shall not be liable to any member of the
Kraft Group and its respective Affiliates (each, a “Kraft Party”) and each
Kraft Party shall not be liable to any ALCS Party, in each case, for any Losses
of a Kraft Party or an ALCS Party arising in connection with this Agreement and
the Services provided hereunder.

10.2.       Indemnification.

(a)           ALCS shall
indemnify, defend and hold harmless each of the Kraft Parties from and against
all Losses, of any kind or nature, (i) incurred by a Kraft Party or (ii) of
third parties unrelated to any Kraft Party, in each case caused by or arising
in connection with the gross negligence or willful misconduct of any employee
of ALCS in connection with the performance of the Services, except to the
extent that the Losses were caused directly or indirectly by acts or omissions
of any Kraft Party.  Notwithstanding the
foregoing, ALCS shall not be liable for any special, indirect, incidental, or
consequential damages relating to such claims. 
Any Liability incurred by ALCS pursuant to this Agreement on or after
the Distribution Date shall be deemed to be an Altria Group Liability for
purposes of Article III of the Distribution Agreement.

(b)           Kraft shall
indemnify, defend and hold harmless each of the ALCS Parties from and against
all Losses of any kind or nature, (i) incurred by an ALCS Party or (ii) of
third parties unrelated to any ALCS Party, in each case caused by or arising in
connection with the gross negligence or willful misconduct of any employee of
Kraft in connection with Kraft’s performance under this Agreement, except to
the extent that Losses were caused directly or indirectly by acts or omissions
of any ALCS Party.  Notwithstanding the
foregoing, Kraft shall not be liable for any special, indirect, incidental, or
consequential damages relating to such claims. 
Any Liability incurred by Kraft pursuant to this Agreement on or after
the Distribution Date shall be deemed to be a Kraft Group Liability for
purposes of Article III of the Distribution Agreement.

ARTICLE
XI

DISPUTE RESOLUTION

The Parties, or if the
Parties are unable to resolve any service or performance issues or if there is
a material breach of this Agreement that has not been corrected within thirty
(30) days of receipt of notice of such breach, the Controller and CFO of Kraft,
on behalf of Kraft, and the Treasurer and Controller of Altria, on behalf of
ALCS, will meet promptly to review and resolve those issues in good faith.

 9
 

ARTICLE
XII

MISCELLANEOUS

12.1.       Original Services Agreement.

This Agreement terminates
and supersedes the Original Services Agreement, which shall have no further
force and effect following the effectiveness of this Agreement.

12.2.       Incorporation of Distribution
Agreement Provisions.

The following provisions
of the Distribution Agreement are hereby incorporated herein by reference, and
unless otherwise expressly specified herein, such provisions shall apply as if
fully set forth herein (references in this Section 12.2 to an “Article”
or “Section” shall mean Articles and Sections of the Distribution Agreement,
and except as expressly set forth below, references in the material
incorporated herein by reference shall be references to the Distribution
Agreement):  Article III (relating to
Mutual Releases and Indemnification); Article IV (relating to certain
Additional Covenants); Article V (relating to Access to Information); and
Article IX (relating to Miscellaneous).

12.3.       Governing Law.

To the extent not
preempted by applicable federal law, this Agreement shall be governed by,
construed and interpreted in accordance with the laws of the Commonwealth of
Virginia (other than the laws regarding the choice of laws and conflict of laws
as to all matters), including matters of validity, construction, effect,
performance and remedies provided, however, that the
Arbitration Act shall govern the matters described in Article X.

12.4.       References.

Except as provided in Section 12.2 hereof all
references to Sections, Articles or Exhibits 
contained herein mean Sections, Articles or Exhibits of or to this
Agreement, as the case may be, unless otherwise stated.

12.5.       Notices.

All communications,
notices and disclosures required or permitted by this Agreement shall be in
writing and shall be deemed to have been given one day after being delivered
personally or by messenger or being received via telecopy, telex or other
electronic transmission, or two days after being sent by overnight delivery
service, in all cases addressed to the person for whom it is intended at the addresses
as follows:

If to ALCS:

Controller, Altria
Group, Inc.

120 Park Avenue

New York, NY 10017

 10
 

If to Kraft:

Controller, Kraft
Foods Inc.

Three Lakes Drive

Northfield, IL 60093

or to such other
address as a Party shall have designated by notice in writing to the other
Party in the manner provided by this Section 12.5.

 11
 

IN
WITNESS WHEREOF, the Parties have signed this Agreement on
the date first set forth above.

	
  

   

  	
  ALTRIA
  CORPORATE SERVICES, INC.

  
	
   

  	
  By:

  	
  /s/ Michael A.
  Wright

  
	
   

  	
  Name: Michael A.
  Wright

  
	
   

  	
  Title: President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  KRAFT
  FOODS INC.

   

  
	
   

  	
  By:

  	
  /s/ Irene B.
  Rosenfeld

  
	
   

  	
  Name: Irene B.
  Rosenfeld

  
	
   

  	
  Title: Chief
  Executive Officer

  

 

 12

EXHIBIT
1

CORPORATE
AFFAIRS SERVICES

I               SPECIFIC TRANSITION SERVICES

A.            GOVERNMENT AFFAIRS

·                  Lease of office space for Government
Affairs in the Washington DC location for no more than twelve months from March
30, 2007.

II             SERVICE FEES

·                  The
Fee payable for corporate affairs transition services shall include the monthly
rent of $69,610.00, based upon the ratio of the number of Kraft employees
utilizing the leased space divided by total occupants of the leased space times
the monthly rent and expenses.

 1.1

EXHIBIT 2

TREASURY SERVICES

I               SPECIFIC TRANSITION SERVICES

A.            RISK MANAGEMENT

·                  Consultation,
as requested by Kraft, on insurance renewals through November 1, 2007.

·                  Maintenance
of and access to insurance claims data in connection with the agreement between
CS STARS LLC and ALCS, originally executed October 1, 2001.  The estimated completion date for such
services is no later than October 1, 2007.

B.            BENEFIT INVESTMENTS

·                  Consultation,
as requested by Kraft, on administration of benefit trusts for a period of up
to six months after spin-off date.

II             SERVICE FEES

The Fee payable for the treasury transition services
for 2007 is based on the following:

Risk Management & Benefits Investments.  The Fee will include: (i) the relevant
Employee Costs associated with consultation time when requested; (ii) a
management fee equal to 5% of the aggregate amount calculated pursuant to (i);
and (iii) third-party expenses, including travel and entertainment and
consulting fees incurred on behalf of Kraft by ALCS.

 2.1

EXHIBIT 3

FINANCIAL CONSOLIDATIONS & REPORTING

I               SPECIFIC TRANSITION SERVICES

A.                                   FINANCIAL
CONSOLIDATIONS AND REPORTING

·                  Review,
as requested by Kraft prior to filing, any Kraft SEC filings in progress at the
Distribution Date.

II             SERVICE FEES

The Fee payable for the financial consolidations and
reporting transition services for 2007 shall include: (i) the relevant Employee
Costs associated with consultation time when requested; (ii) a management fee
equal to 5% of the aggregate amount calculated pursuant to (i); and (iii)
third-party expenses, including travel and entertainment, consulting fees and
printing costs incurred on behalf of Kraft by ALCS.

 3.1

EXHIBIT 4

INTERNAL AUDIT SERVICES

I               SPECIFIC TRANSITION SERVICES

·                  Lease of office space in the United
Kingdom (5 Thameside Centre, Kew Bridge Road, London, TW8 0HF) until the
completion of Kraft’s move to Zurich, Switzerland, estimated by June 30, 2007.

II             SERVICE FEES

The Fee payable for the
internal audit transition services for 2007 shall include: (i) the pro rata
amount of annual rent of $504,700 (GBP 272,800), based upon the number of
months Kraft employees occupy the London office space; (ii) the pro rata amount
of building services costs of $263,700 (GBP 142,500), based upon the number of
months Kraft employees occupy the London office space; and (iii) lease breakage
fee, if any.

 4.1

EXHIBIT 5

INFORMATION
TECHNOLOGY SERVICES

I               SPECIFIC TRANSITION SERVICES

A.                                   Global
applications required by Kraft for business continuity (i.e. Global Treasury
and Global Network Services) will continue normal operations and provide
current services until the completion of Kraft’s migration to EDS. The
estimated completion date for all services is no later than December 31, 2007.

B.                                     Separation
of global applications, as identified in the current Business Restructure of
Systems and Services (“Project BRASS”) that have been agreed by ALCS and Kraft,
will incur costs until the full completion of Project BRASS, which will be
refined by ALCS and Kraft to ensure that the appropriate priorities are
established to achieve a completion date by December 31, 2007.

C.                             ALCS
Contracts Consulting services related to negotiation of separate enterprise
contracts between Kraft and major information technology vendors, including but
not limited to AT&T, IBM, Oracle, Microsoft and SAP, including the
following actions:

—           Continue to communicate
to suppliers Altria’s intent to separate global contracts and subsequently
receive written consents from the suppliers.

—           Track progress and
inform Kraft management of any potential service issues, cost impact or major
contractual challenges.

—           Ensure written closure,
including contractual sign-off with suppliers.

In the event that Altria and Kraft do not complete all
required negotiations by December 31, 2007 and Kraft is still operating certain
software under an ALCS licensee, any third party fee incurred by Altria for
this continuation of service will be passed on to Kraft for appropriate
settlement.

 5.1
 

II             SERVICE FEES

The Fee payable for the
information technology transition services for 2007 shall be based on the
following:

Global
Applications & Network Services.  The
Fee will include: (i) the relevant Employee Costs; (ii) a management fee equal
to 5% of the aggregate amount calculated pursuant to (i); and (iii) third-party
expenses, including travel and entertainment and printing costs, incurred on
behalf of Kraft by ALCS. Direct pass through on any direct charge, i.e.;
circuit charges, routers or monitoring that is currently provided by ALCS or
its contracted third party. This would also include any maintenance and
licensee fee required to maintain Kraft operations until appropriate separation
can be achieved.

Information Technology Contracts
Consulting. The Fee shall include: (i) Kraft’s charges under
each information technology contract (primarily AT&T, IBM, Oracle,
Microsoft and SAP contracts), (collectively, the “IT Contracts”), allocated by
usage under the IT Contracts as provided by the service provider; (ii) the
relevant Employee Costs; (iii) a management fee of 5% of the aggregate amount
calculated pursuant to (ii); and (iv) third-party expenses, including travel
and entertainment and printing costs, incurred on behalf of Kraft by ALCS.

 5.2

EXHIBIT 6

MISCELLANEOUS
SERVICES

I.              SPECIFIC TRANSITION SERVICES

·                          COMPLIANCE

—           Continued operations
under outstanding ALCS agreements with helpline service vendors until no later
than May 15, 2007.

—           ALCS Contracts
Consulting services, if requested by Kraft, related to negotiation of separate
contracts between Kraft and helpline service vendors.

II.            SERVICE FEES

·                          The
Fee payable for compliance transition services for 2007 shall include:  (i) Kraft’s charge under each helpline
services contract (if paid by ALCS); (ii) the relevant Employee Costs, if any;
(iii) a management fee of 5% of the aggregate amount calculated pursuant to
(ii); and (iv) any third-party expenses, incurred on behalf of Kraft by ALCS.

 6.1

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