Document:

EXHIBIT 10.2

VIVUS,
INC.

2001 STOCK OPTION PLAN

NOTICE OF GRANT OF
RESTRICTED STOCK UNITS

Unless otherwise defined
herein, the terms defined in the 2001 Stock Option Plan (the “Plan”) will have
the same defined meanings in this Notice of Grant of Restricted Stock Units (the
“Notice of Grant”).

Optionee:

Address:

You
have been granted the right to receive Restricted Stock Units, subject to the
terms and conditions of the Plan, this Notice of Grant and the Restricted Stock
Unit Agreement attached hereto as Exhibit A (the “Agreement”) as
follows:

	
  Grant Number

  	
   

  
	
  Date of Grant

  	
   

  
	
  Vesting
  Commencement Date

  	
   

  
	
  Total Number of
  Restricted Stock Units

  	
   

  

 

Vesting
Schedule:

The Restricted Stock
Units will vest and Shares will be issued to Optionee following the Vesting
Commencement Date, subject to Optionee Continuing to be a Service Provider
through each relevant vesting date, as follows: [Insert Vesting Schedule]

In the event Optionee
ceases to be a Service Provider for any or no reason before Optionee vests in
the right to acquire the Shares to be issued pursuant to the Restricted Stock
Unit, the Restricted Stock Unit and Optionee’s right to acquire any Shares
hereunder will immediately terminate.

By your signature and the
signature of the Company’s representative below, you and the Company agree that
this Award is granted under and governed by the terms and conditions of the
Plan and the Agreement, both of which are made a part of this document. You
further agree to execute the attached Agreement as a condition to receiving any
Restricted Stock Units under this Award.

	
  GRANTEE:

  	
   

  	
  VIVUS, INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Signature

  	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Print Name

  	
   

  	
  Title

  	
   

  

EXHIBIT A

RESTRICTED STOCK UNIT AGREEMENT

1.             Grant. The Company hereby
grants to Optionee under the Plan an Award of Restricted Stock Units, subject
to all of the terms and conditions in the Notice of Grant, this Agreement and
the Plan.

2.             Company’s Obligation to Pay.
Each Restricted Stock Unit represents the right to receive a Share on the date
it becomes vested. Unless and until the Restricted Stock Units will have vested
in the manner set forth in Sections 3 and 4, Optionee will have no right
to payment of any such Restricted Stock Units. Prior to actual payment of any
vested Restricted Stock Units, such Restricted Stock Unit will represent an
unsecured obligation of the Company, payable (if at all) only from the general
assets of the Company.

3.             Vesting Schedule. Subject to
Section 4, the Restricted Stock Units awarded by this Agreement will vest
in Optionee according to the vesting schedule set forth on the attached Notice
of Grant, subject to Optionee continuing to be a Service Provider through each
such date.

4.             Forfeiture upon Termination of Status
as a Service Provider. Notwithstanding any contrary provision of this Agreement,
if Optionee ceases to be a Service Provider for any or no reason, the
then-unvested Restricted Stock Units awarded by this Agreement will thereupon
be forfeited at no cost to the Company and Optionee will have no further rights
thereunder.

5.             Payment after Vesting. Any Restricted
Stock Units that vest in accordance with Section 3 will be paid to Optionee
(or in the event of Optionee’s death, to his or her estate) in whole Shares, subject
to Optionee satisfying any applicable tax withholding obligations as set forth
in Section 7.

6.             Payments after Death.
Any distribution or delivery to be made to Optionee under this Agreement will,
if Optionee is then deceased, be made to Optionee’s designated beneficiary, or
if no beneficiary survives Optionee, the administrator or executor of Optionee’s
estate. Any such transferee must furnish the Company with (a) written
notice of his or her status as transferee, and (b) evidence satisfactory
to the Company to establish the validity of the transfer and compliance with
any laws or regulations pertaining to said transfer.

7.             Withholding of Taxes. Notwithstanding
any contrary provision of this Agreement, no certificate representing the Shares
will be issued to Optionee, unless and until satisfactory arrangements (as
determined by the Administrator) will have been made by Optionee with respect
to the payment of income, employment and other taxes which the Company
determines must be withheld with respect to such Shares so issuable. The Administrator,
in its sole discretion and pursuant to such procedures as it may specify from
time to time, may permit Optionee to satisfy such tax withholding obligation,
in whole or in part by one or more of the following (without limitation): (a) paying
cash, (b) electing to have the Company withhold otherwise deliverable Shares
having a Fair Market Value equal to the amount required to be withheld, (c) delivering
to the Company already vested and owned Shares having a Fair Market Value equal
to the amount required to be withheld, or (d) selling a sufficient number
of such Shares otherwise deliverable to Optionee through such means as the
Company may determine in its sole discretion (whether through a broker or
otherwise) equal to the amount required to be 

withheld. If Optionee fails to make satisfactory
arrangements for the payment of any required tax withholding obligations hereunder
at the time any applicable Shares otherwise are scheduled to vest pursuant to Section 3,
Optionee will permanently forfeit such Shares and the Shares will be returned
to the Company at no cost to the Company.

9.             Rights as Stockholder. Neither
Optionee nor any person claiming under or through Optionee will have any of the
rights or privileges of a stockholder of the Company in respect of any Shares
deliverable hereunder unless and until certificates representing such Shares
will have been issued, recorded on the records of the Company or its transfer
agents or registrars, and delivered to Optionee.

10.           No Effect on Service. Optionee
acknowledges and agrees that the vesting of the Restricted Stock Units pursuant
to Section 3 hereof is earned only by Optionee continuing to be a Service
Provider through the applicable vesting dates (and not through the act of being
hired or acquiring Shares hereunder). Optionee further acknowledges and agrees
that this Agreement, the transactions contemplated hereunder and the vesting
schedule set forth herein do not constitute an express or implied promise of Optionee
continuing to be a Service Provider for the vesting period, for any period, or
at all, and will not interfere with the Optionee’s right or the right of the
Company (or the Parent or Subsidiary employing or retaining Optionee) to
terminate Optionee’s status as a Service Provider at any time, with or without
cause.

11.           Address for Notices. Any
notice to be given to the Company under the terms of this Agreement will be
addressed to the Company, in care of Stock Administration at Vivus, Inc., 1172
Castro Street, Mountain View, CA 94040, or at such other address as the Company
may hereafter designate in writing.

12.           Grant is Not Transferable. Except
to the limited extent provided in Section 6, this grant and the rights and
privileges conferred hereby will not be transferred, assigned, pledged or
hypothecated in any way (whether by operation of law or otherwise) and will not
be subject to sale under execution, attachment or similar process. Upon any
attempt to transfer, assign, pledge, hypothecate or otherwise dispose of this
grant, or any right or privilege conferred hereby, or upon any attempted sale
under any execution, attachment or similar process, this grant and the rights
and privileges conferred hereby immediately will become null and void.

13.           Binding Agreement. Subject to
the limitation on the transferability of this grant contained herein, this
Agreement will be binding upon and inure to the benefit of the heirs, legatees,
legal representatives, successors and assigns of the parties hereto.

14.           Additional Conditions to Issuance
of Stock. If at any time the Company will determine, in its discretion,
that the listing, registration or qualification of the Shares upon any
securities exchange or under any state or federal law, or the consent or
approval of any governmental regulatory authority is necessary or desirable as a
condition to the issuance of shares to Optionee (or his estate), such issuance
will not occur unless and until such listing, registration, qualification,
consent or approval will have been effected or obtained free of any conditions
not acceptable to the Company. Where the Company determines that the delivery
of the payment of any Shares will violate federal securities laws or other
applicable laws, the Company will defer delivery until the earliest date at
which the Company reasonably anticipates that the delivery of Shares will no
longer cause such violation. The Company will make all

reasonable efforts to meet the requirements of any
such state or federal law or securities exchange and to obtain any such consent
or approval of any such governmental authority.

15.           Plan Governs. This Agreement
is subject to all terms and provisions of the Plan. In the event of a conflict
between one or more provisions of this Agreement and one or more provisions of
the Plan, the provisions of the Plan will govern.

16.           Administrator Authority. The
Administrator will have the power to interpret the Plan and this Agreement and
to adopt such rules for the administration, interpretation and application
of the Plan as are consistent therewith and to interpret or revoke any such rules (including,
but not limited to, the determination of whether or not any Restricted Stock
Units have vested). All actions taken and all interpretations and
determinations made by the Administrator in good faith will be final and
binding upon Optionee, the Company and all other interested persons. No member
of the Administrator will be personally liable for any action, determination or
interpretation made in good faith with respect to the Plan or this Agreement.

17.           Electronic Delivery. The
Company may, in its sole discretion, decide to deliver any documents related to
Restricted Stock Units awarded under the Plan or future Restricted Stock Units
that may be awarded under the Plan by electronic means or request Optionee’s
consent to participate in the Plan by electronic means. Optionee hereby
consents to receive such documents by electronic delivery and agrees to
participate in the Plan through an on-line or electronic system established and
maintained by the Company or another third party designated by the Company.

18.           Captions. Captions provided
herein are for convenience only and are not to serve as a basis for
interpretation or construction of this Agreement.

19.           Agreement Severable. In the
event that any provision in this Agreement will be held invalid or
unenforceable, such provision will be severable from, and such invalidity or
unenforceability will not be construed to have any effect on, the remaining
provisions of this Agreement.

20.           Governing Law. This Award
Agreement shall be governed by the laws of the State of California, without
giving effect to the conflict of law principles thereof. For purposes of
litigating any dispute that arises under this Award of Restricted Stock Units or
this Agreement, the parties hereby submit to and consent to the jurisdiction of
the State of California, and agree
that such litigation shall be conducted in the courts of Santa Clara County,
California, or the federal courts for the United
States for the Northern District of California, and no other courts, where this
Award of Restricted Stock Units is made and/or to be performed.EXHIBIT 10.1

EXECUTION
COPY

 

	
  AGREEMENT RELATING TO

  UNITED BISCUITS SOUTHERN EUROPE

   

  
	
  DATED 8 JULY 2006

  
	
  UNITED BISCUITS GROUP (INVESTMENTS) LIMITED

  DELUXESTAR LIMITED

  UB OVERSEAS LIMITED

  UB INVESTMENTS (NETHERLANDS) B.V.

  NABISCO
  EURO HOLDINGS LTD.

  and

  KRAFT
  FOODS INTERNATIONAL, INC.

   

   

   

   

  A L L E N  & 
  O V E R Y

  Allen &
  Overy LLP

   

  

 

  
  
 

  

CONTENTS

 

	
  Clause

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  Interpretation

  	
   

  	
  2

  
	
  2.

  	
   

  	
  Redemption

  	
   

  	
  2

  
	
  3.

  	
   

  	
  Conditions Precedent

  	
   

  	
  2

  
	
  4.

  	
   

  	
  Pre-Completion Covenants

  	
   

  	
  4

  
	
  5.

  	
   

  	
  Completion

  	
   

  	
  5

  
	
  6.

  	
   

  	
  Post-Completion Covenants

  	
   

  	
  6

  
	
  7.

  	
   

  	
  Loans And Guarantees

  	
   

  	
  6

  
	
  8.

  	
   

  	
  Wrong Pockets

  	
   

  	
  7

  
	
  9.

  	
   

  	
  Tax Matters

  	
   

  	
  8

  
	
  10.

  	
   

  	
  Warrants to subscribe for shares in UBGI

  	
   

  	
  9

  
	
  11.

  	
   

  	
  UB Warranties

  	
   

  	
  9

  
	
  12.

  	
   

  	
  Kraft Warranties

  	
   

  	
  11

  
	
  13.

  	
   

  	
  Locked Box

  	
   

  	
  12

  
	
  14.

  	
   

  	
  Inter-Company Debt

  	
   

  	
  13

  
	
  15.

  	
   

  	
  Guarantees

  	
   

  	
  14

  
	
  16.

  	
   

  	
  Announcements and Confidentiality

  	
   

  	
  15

  
	
  17.

  	
   

  	
  Notices

  	
   

  	
  18

  
	
  18.

  	
   

  	
  Assignment

  	
   

  	
  19

  
	
  19.

  	
   

  	
  Costs

  	
   

  	
  19

  
	
  20.

  	
   

  	
  General

  	
   

  	
  19

  
	
  21.

  	
   

  	
  No Rescission

  	
   

  	
  20

  
	
  22.

  	
   

  	
  Whole Agreement

  	
   

  	
  20

  
	
  23.

  	
   

  	
  Governing Law and Jurisdiction

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  UB Iberia

  	
   

  	
  21

  
	
  2.

  	
   

  	
  Reorganisation

  	
   

  	
  27

  
	
   

  	
   

  	
  Part 1

  	
  Reorganisation Steps Prior to Satisfaction of Bank Consent Condition

  	
   

  	
  27

  
	
   

  	
   

  	
  Part 2

  	
  Reorganisation Steps After Satisfaction of Bank
  Consent Condition

  	
   

  	
  27

  
	
  3.

  	
   

  	
  Pre-completion Warranties

  	
   

  	
  29

  
	
  4.

  	
   

  	
  Pre-completion Covenants

  	
   

  	
  31

  
	
  5.

  	
   

  	
  Claims

  	
   

  	
  33

  
	
  6.

  	
   

  	
  Completion

  	
   

  	
  34

  
	
   

  	
   

  	
  Part 1

  	
  UB Parties’ obligations

  	
   

  	
  34

  
	
   

  	
   

  	
  Part 2

  	
  NEH’s obligations

  	
   

  	
  36

  
	
   

  	
   

  	
  Part 3

  	
  Security Documents

  	
   

  	
  37

  
	
  7.

  	
   

  	
  Interpretation

  	
   

  	
  38

  
	
  8.

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Signatories

  	
   

  	
  45

  

 

  
  
 

  

Agreed Form Documents

1.                                       Data Room Index “A”

2.                                       Data Room Index “B”

3.                                       Director’s Resignation Letter

4.                                       Discounted Securities Extraordinary Resolution

5.                                       Diver Licence Agreement

6.                                       Filipinos Licence Agreement

7.                                       Form of Waiver Request Letter

8.                                       Hob-Nobs Licence Agreement

9.                                       Information Memorandum

10.                                 Intellectual Property Deed

11.                                 McVities Licence Agreement

12.                                 Press Releases

13.                                 Reorganisation Documents

14.                                 Supply Agreements

15.                                 Transitional Services Agreement

16.                                 Vendor Due Diligence Report

17.                                 Wheatsheaf Licence Agreement

 

  
  

 

 

THIS AGREEMENT is made on 8 July 2006

BETWEEN:

(1)                               UNITED BISCUITS GROUP (INVESTMENTS) LIMITED, (registered
number 3877866) whose registered office is at Hayes Park, Hayes End Road,
Hayes, Middlesex (UBGI);

(2)                                  DELUXESTAR LIMITED, (registered number 3922573) whose
registered office is at Hayes Park, Hayes End Road, Hayes, Middlesex (Deluxestar);

(3)                                  UB OVERSEAS LIMITED, (registered number 1496587) whose
registered office is at Hayes Park, Hayes End Road, Hayes, Middlesex (UB Overseas);

(4)                                  UB INVESTMENTS (NETHERLANDS) B.V., a company incorporated in
the Netherlands and having its principal offices at Westzijde 103, 1506GA
Zaandam, Netherlands (UB Investments);

(5)                                  NABISCO EURO HOLDINGS LTD., a company incorporated in the
Cayman Islands whose registered office is at Ugland House, PO Box 309, South
Church Street, George Town Grand, Cayman, Cayman Islands, B.V.I. (NEH); and

(6)                                  KRAFT FOODS INTERNATIONAL, INC., a company incorporated in
the State of Delaware and having its principal offices at Three Lakes Drive,
Northfield, Illinois, 60093, USA (KFI).

RECITALS:

(A)                              United
Biscuits Iberia S.L. is a private company incorporated in Spain with registered
number B-80662950 (UB Iberia).
Certain details of UB Iberia and the UBSE Subsidiaries are set out in Schedule
1.

(B)                                The
parties intend to effect the Reorganisation prior to Completion whereby UB
Iberia will become a subsidiary of New Iberia.

(C)                                NEH
wishes to acquire the shares in New Iberia in redemption of the Discounted
Securities on the terms and subject to the conditions set out in this agreement.
The parties intend that, following Completion, the UBSE Group will hold such
rights and assets as are necessary to conduct the Business and, as between the
UB Group and the UBSE Group, other than as set out in the Transaction
Documents, all rights to the Merola Marks.

(D)                               KFI
is the holding company of NEH and is willing to guarantee the obligations of
NEH under this agreement.

(E)                                 UBGI
is the holding company of Deluxestar, UB Overseas and UB Investments and is
willing to guarantee the obligations of those parties under this agreement.

 1
 

 

IT IS AGREED as follows:

1.                                   INTERPRETATION

1.1                                 In
addition to terms defined elsewhere in this agreement, the definitions and
other provisions in Schedule 7 apply throughout this agreement, unless the
contrary intention appears.

1.2                                 In
this agreement, unless the contrary intention appears, a reference to a clause,
sub-clause or Schedule is a reference to a clause, sub-clause or
Schedule of or to this agreement. The Schedules form part of this agreement.

1.3                                 The
headings in this agreement do not affect its interpretation.

2.                                      REDEMPTION

2.1                                 Subject
to the Conditions being satisfied, at Completion Deluxestar shall transfer the
New Iberia Shares to NEH in redemption of the Discounted Securities.

2.2                                 The
New Iberia Shares shall be transferred with full title guarantee free from
Encumbrances and together with all rights and benefits attaching to them.

3.                                   CONDITIONS PRECEDENT

3.1                              The
acquisition of the New Iberia Shares in redemption of the Discounted Securities
is conditional on:

(a)                                  the
UB Parties obtaining all of the consents requested in the Form of Waiver
Request Letter substantially in the Agreed Form (the Bank Consent
Condition); and

(b)                           completion
of the Reorganisation (the Reorganisation Condition).

3.2                                 The
UB Parties shall send the Form of Waiver Request Letter within 2 Business
Days following the date of this agreement and will use all reasonable
endeavours to procure (so far as they are able to procure) that the Bank
Consent Condition is satisfied on or before 8 September 2006 (the Long Stop Date) including, but not limited to, putting in
place and making use of a back-stop facility to replace non-consenting Lenders
accounting for up to one-third of the total amount outstanding under the Senior
Facilities Agreement.

3.3                              If
the Bank Consent Condition is not satisfied on or before the Long Stop Date:

(a)                                  except
for this sub-clause, clauses 1, 3.8, 15, 16, 17, 18, 19, 20, 22 and 23 and the
provisions of Schedule 7, all the provisions of this agreement shall lapse and
cease to have effect; and

(b)                                 neither
the lapsing of those provisions nor their ceasing to have effect shall affect
any accrued rights or liabilities of any party in respect of damages for
non-performance of any obligation falling due for performance prior to such
lapse and cessation.

3.4                                 Following
the date of this agreement, UBGI shall procure that the relevant members of the
UB Group and New Iberia shall observe and perform those provisions of Part 1
of Schedule 2 as are expressed to be observed and performed by them at the
times and on the terms set out in Part 1 of Schedule 2 provided that:

 2
 

 

(a)                                  in
the case of Step 2 in Part 1 of Schedule 2, KFI shall provide UBGI with
such assistance as UBGI may reasonably request; and

(b)                                 the
obligation on UBGI in respect of Step 4 in Part 1 of Schedule 2 will be to
use its best endeavours to procure that such step is observed and performed.

3.5                                 Subject
to the Bank Consent Condition being satisfied, UBGI shall procure that the
relevant members of the UB Group and New Iberia shall observe and perform
those provisions of Part 2 of  Schedule
2 as are expressed to be observed and performed by them following the
satisfaction of the Bank Consent Condition at the times and on the terms set
out in Part 2 of Schedule 2.

3.6                                 If
the New Iberia Loan Amount is not made available to New Iberia pursuant to the
Loan Facilities Commitment Letter or the definitive loan documentation entered
into as contemplated thereby (together, the Loan
Documentation), KFI shall procure that the New Iberia Loan Amount
shall be provided to New Iberia:

(a)                                  on
terms no more onerous (taken as a whole) to New Iberia than the Loan
Documentation; and

(b)                                 at
such time as may be necessary to allow the Reorganisation Condition to be
satisfied by no later than the date falling 10 Business Days after the later of
(i) the first Business Day on which each of Steps 1 to 4 set out in Part 1
of Schedule 2 have been satisfied or completed; and (ii) the first
Business Day on which the Bank Consent Condition is satisfied.

3.7                                 UBGI
shall procure that the UB Parties (including, for the purposes of this clause
3.7, New Iberia) take such actions and sign all such documents as may
reasonably be required to:

(a)                                  ensure
that the New Iberia Loan Amount is drawn down by New Iberia in accordance with
the terms set out in the Loan Documentation (or such other terms on which the
New Iberia Loan Amount may otherwise be provided pursuant to clause 3.6); and

(b)                                 allow
KFI to comply with its obligations under clause 3.6.

3.8                                 If
Completion does not take place, KFI undertakes to UBGI that it shall pay to
UBGI (as trustee for New Iberia) on a £ for £ after tax basis an amount in
respect of any costs, expenses or liabilities which may be incurred by New
Iberia pursuant to the Loan Documentation or any other documentation pursuant
to which the New Iberia Loan Amount may be made available to New Iberia
pursuant to clause 3.6, whether or not such funds are in fact drawn down,
provided that:

(a)                                  if
the funds have been drawn down, only to the extent that such costs, expenses or
liabilities exceed the New Iberia Loan Amount; and

(b)                                 KFI
shall have no liability under this clause 3.8 if Completion has not taken place
as a result of a breach by any UB Party or New Iberia of its obligations under
this agreement or if this agreement is terminated pursuant to clause 3.11.

3.9                                 Without
prejudice to the general provisions of Schedule 3 and except with the prior
written consent of KFI, UBGI will ensure that no member of the Wider UB Group
takes any action which is inconsistent with, or which might prevent or delay,
implementation of the Reorganisation.

 3
 

 

3.10                           If
the Reorganisation Condition is not satisfied within 10 Business Days following
the later of: (i) the first BusinessDay on which each of Steps 1 to 4 set
out in Part 1 of Schedule 2 have been satisfied or completed; and (ii) the
first Business Day on which the Bank Consent Condition is satisfied:

(a)                                  except
for this sub-clause, clauses 1, 3.8, 15, 16, 17, 18, 19, 20, 22 and 23 and the
provisions of Schedule 7, all the provisions of this agreement shall lapse and
cease to have effect; and

(b)                                 neither
the lapsing of those provisions nor their ceasing to have effect shall affect
any accrued rights or liabilities of any party in respect of damages for
non-performance of any obligation falling due for performance prior to such
lapse and cessation.

3.11                           The
UB Parties warrant to the Kraft Parties that the Pre-Completion Warranties are
true, accurate and not misleading at the date of this agreement. KFI may
terminate this agreement by notice in writing to UBGI if, at any time between
the date of this agreement and Completion, the Kraft Parties become aware of a
fact or circumstance (other than a Disclosed Fact) which:

(a)                                  would,
or might reasonably be expected to, cause any of the Pre-Completion Warranties
to be untrue, inaccurate or misleading; and

(b)                                 individually
or combined with any other fact or circumstance to which paragraph (a) above
applies, would reduce:

(i)                                     the
EBITDA of the Business by £5 million on an annualised basis; or

(ii)                                  the
net assets of the UBSE Group as a whole at the date of this agreement (as
derived from the accounting records of the UBSE Group) by £50 million or more.

3.12                           Termination
of the agreement shall be the sole remedy of the Kraft Parties in relation to
the Pre-Completion Warranties. Nothing in the previous sentence limits or
excludes any liability for fraud.

3.13                           If
KFI terminates this agreement pursuant to clause 3.11, all the provisions of
this agreement shall lapse and cease to have effect except for this sub-clause,
clauses 1, 3.8, 15, 16, 17, 18, 19, 20, 22 and 23 and the provisions of
Schedule 7.

3.14                           If,
at any time, any UB Party or any Kraft Party becomes aware of a fact or
circumstance that would or might reasonably be expected to prevent a Condition
being satisfied, or cause or constitute a breach of the Pre-Completion
Warranties, it shall immediately inform KFI or UBGI (as the case may be).

3.15                           For
the purposes of clause 3.11 a Disclosed Fact
means a fact or circumstance fully and fairly disclosed in Data Room “A”
or in Data Room “B” prior to 4.30 a.m. on 8 July 2006, or in the
Vendor Due Diligence Report or the Information Memorandum, with sufficient
specificity to enable KFI reasonably to conclude that it would, or might
reasonably be expected to, cause any of the Pre-Completion Warranties to be
untrue, inaccurate or misleading.

4.                                      PRE-COMPLETION COVENANTS

4.1                                 From
the date of this agreement until Completion UBGI undertakes to KFI that it
shall, to the extent permitted by law, exercise all rights and powers available
to it so as to procure that, 

 4
 

 

except with the written
consent of KFI or as required to implement the Reorganisation, each UBSE Group
Company complies with Schedule 4.

4.2                                 From
the date of this agreement until Completion, UBGI undertakes to KFI that it
shall:

(a)                                  procure
that KFI is given a copy of any monthly management reports prepared in relation
to any UBSE Group Company or to the Business (but only to the extent such
report relates to the Business);

(b)                                 to
the extent permitted by law and at KFI’s cost, procure that, during normal
business hours on any Business Day and on reasonable notice to UBGI, KFI and
its professional advisers are given reasonable access to (including taking
copies of) the books and records of the UBSE Group Companies and to the
employees and consultants of the Wider UB Group solely for the purpose of
preparing the UBSE Group Companies for the introduction of the Kraft Group’s
normal working procedures in readiness for Completion and for the transfer of
customer, distributor and supplier relationships.

5.                                   COMPLETION

5.1                                 Completion
shall take place at the offices of KFI’s Solicitors in Madrid immediately
following the satisfaction of the Reorganisation Condition.

5.2                                 At
Completion:

(a)                                  UBGI
shall procure that the relevant members of the UB Group shall observe and
perform the provisions of Part 1 of Schedule 6; and

(b)                                 KFI
shall procure that the relevant members of the Kraft Group shall observe and
perform the provisions of Part 2 of Schedule 6.

5.3          NEH
shall not be obliged to complete the acquisition of any of the New Iberia
Shares unless:

(a)                                  the
relevant UB Parties comply with each of their obligations under Part 1 of
Schedule 6 (other than paragraphs (b)(v) and (d)); and

(b)                                 the
acquisition of all the New Iberia Shares is completed simultaneously.

5.4                                 Deluxestar
shall not be obliged to complete the transfer of any of the New Iberia Shares
to NEH unless the relevant members of the Kraft Group comply with each of their
obligations under Part 2 of Schedule 6.

5.5                                 If
for any reason the provisions of Part 1 of Schedule 6 (Completion) (other
than paragraphs (b)(v) and (d)) are not fully observed and performed
as contemplated by sub-clause 5.2(a), KFI may elect by giving notice to UBGI
to:

(a)                                  proceed
to Completion to the extent reasonably practicable;

(b)                                 postpone
Completion to a date not more than 5 Business Days after Completion was
originally scheduled to take place (in which case the provisions of this
agreement apply as if that later date were the date of Completion); or

(c)                                  terminate
this agreement.

 5
 

 

5.6                                 If
for any reason the provisions of Part 2 of Schedule 6 (Completion) are not
fully observed and performed as contemplated by sub-clause 5.2(b), UBGI may
elect by giving notice to KFI to:

(a)                                  proceed
to Completion to the extent reasonably practicable;

(b)                                 postpone
Completion to a date not more than 5 Business Days after Completion was
originally scheduled to take place (in which case the provisions of this
agreement apply as if that later date were the date of Completion); or

(c)                                  terminate
this agreement.

5.7                                 If
KFI elects to terminate this agreement pursuant to clause 5.5(c) or if
UBGI elects to terminate this agreement pursuant to Clause 5.6(c):

(a)                                  except
for this sub-clause, clauses 1, 3.8, 15, 16, 17, 18, 19, 20, 22 and 23 and the
provisions of Schedule 7, all the provisions of this agreement shall lapse
and cease to have effect; and

(b)                                 neither
the lapsing of those provisions nor their ceasing to have effect shall affect
any accrued rights or liabilities of any party in respect of damages for
non-performance of any obligation falling due for performance prior to such
lapse and cessation.

6.                                   POST-COMPLETION COVENANTS

6.1                                 As
soon as reasonably practicable (and, in any event, within 15 Business Days)
after Completion, NEH shall file with the relevant commercial registry a
notarial deed of change of corporate name in respect of the change of name of
each of UB Iberia, Galletas UB and Postres UB (and shall file with the relevant
authority or commercial registry in Portugal any similar document applicable to
Portugal in respect of the change of name of UB Portugal) to a name which does
not include the word “United Biscuits”, “UB” or any name, which is the same as
or similar to, or is likely to be confused or associated with, the name of a
member of the UB Group. NEH shall provide a copy of the notarial deeds of
change of corporate name to UB’s Solicitors at the same time that such deeds
are filed with the relevant commercial registry (or similar authority in
Portugal) and will notify UB’s Solicitors following the registration of each
change of name.

6.2                                 With
effect from Completion, NEH shall procure that, save as expressly provided in
the Transitional Services Agreement, the Supply Agreements, the Intellectual
Property Deed and the Licence Agreements, no UBSE Group Company and no member
of the Kraft Group:

(a)                                  after
the expiry of 12 months from the date of Completion uses or displays (including
on or in its business stationery, documents, signs, promotional materials or
website) any name, mark or logo which is the same as or similar to, or is
likely to be confused or associated with, any name, mark or logo of a member of
the UB Group; or

(b)                                 represents
that the UB Parties or any other member of the UB Group retains any connection
with the UBSE Group Companies or any other member of the Kraft Group.

7.                                   LOANS AND GUARANTEES

7.1                                 Deluxestar
shall procure that on Completion all indebtedness owing immediately before
Completion from any member of the UB Group to any UBSE Group Company (other
than 

 6
 

 

amounts payable pursuant
to normal arm’s length commercial transactions in the ordinary course of
trading consistent with historic practice for the supply of goods or services
which are invoiced and settled in cash in the ordinary course) is or has been
satisfied in full.

7.2                                 NEH
shall procure that on Completion all indebtedness owing immediately before
Completion from any UBSE Group Company to any member of the UB Group  (other than amounts payable pursuant to
normal arm’s length commercial transactions in the ordinary course of trading
consistent with historic practice for the supply of goods or services which are
invoiced and settled in cash in the ordinary course) is satisfied in full.

7.3                                 Deluxestar
shall procure that on Completion each UBSE Group Company is released from all
guarantees, mortgages and indemnities which have been given by that UBSE Group
Company in respect of any liability or obligation of any member of the UB Group
and pending such release, Deluxestar shall indemnify that UBSE Group Company
against all liabilities under those guarantees and indemnities.

7.4                                 Sub-clause
7.3 may be enforced by each relevant member of the UBSE Group, with NEH’s
consent, against Deluxestar under the Contracts (Rights of Third Parties) Act
1999. The provisions of sub-clause 7.3 may be varied by agreement between
Deluxestar and NEH (and NEH may also release or compromise in whole or in part
any liability in respect of rights or claims contemplated by sub-clause 7.3)
without the consent of any other member of the UBSE Group.

8.                                   WRONG POCKETS

8.1                              In
this clause 8:

(a)                                  UB Group means UBGI and each of its subsidiaries at
Completion and each of its subsidiaries from time to time (other than the UBSE Group
Companies);

(b)                                 Required Asset means an asset which relates primarily to the
business of a member of the UB Group; and

(c)                                  Missing Asset means any asset which relates primarily to the
Business other than any tangible assets of, or employees engaged in, the
business of the UB Group which consists of export sales of products by members
of the UB Group which do not form part of the United Biscuits Southern Europe
business unit.

8.2                                 Without
prejudice to the terms of the Intellectual Property Deed or the Licence
Agreements, if after Completion any UBSE Group Company holds or owns any
Required Asset, NEH shall be deemed to hold the Required Asset(s) on trust
and as bailee for UBGI (for itself or on behalf of the relevant member of the
UB Group) and NEH shall, at UBGI’s request, as soon as practicable and on terms
that no consideration is provided by any person for such transfer, use all
reasonable endeavours to:

(a)                                  execute
all such deeds or documents as may be necessary for the purpose of transferring
(free of any lien, charge or encumbrance created after Completion) the relevant
interest in such Required Asset(s) to UBGI or as it may direct; and

(b)                                 do
or procure to be done at UBGI’s cost all such further reasonable acts or things
and procure the execution of all such other documents as UBGI (for itself or on
behalf of any member(s) of the UB Group) may reasonably request in order
to and for the 

 7
 

 

purpose of vesting the
relevant interest in such Required Asset(s) in UBGI or relevant member of
the UB Group.

8.3                              NEH
shall notify UBGI promptly upon it coming to NEH’s attention that:

(a)                            any
Required Asset(s) are in the possession or control of NEH or any UBSE
Group Company; or

(b)                           any
Missing Asset(s) are in the possession or control of a member of the UB
Group.

8.4                                 Without
prejudice to the terms of the Intellectual Property Deed or the Licence
Agreements, if after Completion any member of the UB Group holds or owns any
Missing Asset, UBGI or that member of the UB Group as the case may be shall be
deemed to hold the Missing Asset(s) on trust and as bailee for NEH (for
itself and as trustee on behalf of the relevant UBSE Group Company), and UBGI
or that member of the UB Group as the case may be shall, at NEH’s request, as
soon as practicable and on terms that no consideration is provided by any
person for such transfer, use all reasonable endeavours to:

(a)                               execute
all such deeds or documents as may be necessary for the purpose of transferring
(free of any lien, charge or encumbrance) the relevant interest in the Missing
Asset(s) to NEH or as it may direct; and

(b)                              do
or procure to be done at NEH’s cost all such further reasonable acts or things
and procure the execution of all such other documents as NEH (for itself and/or
on behalf of the relevant UBSE Group Company) may reasonably request in order
to and for the purpose of vesting the relevant interest in the Missing Asset(s) in
NEH or as NEH may direct.

8.5                              UBGI
shall notify NEH promptly upon it coming to UBGI’s  attention that:

(a)                            any
Missing Asset(s) are in the possession or control of a member of the UB
Group; or

(b)                           any
Required Asset(s) are in the possession or control of a UBSE Group
Company.

9.                                   TAX MATTERS

9.1                                 The
transfer of the New Iberia Shares in redemption of the Discounted Securities
pursuant to this agreement will be treated as a distribution in liquidation of
NEH’s partnership interest in Deluxestar, within the meaning of Section 732(b) of
the United States Internal Revenue Code of 1986, as amended, for all United
States federal income tax purposes.

9.2                                 With
effect from the date of this agreement, UBGI shall procure that if any of the
shares in any member of the UB Group are to be sold or otherwise
transferred for United States federal income tax purposes prior to 31 December 2006,
all reasonable steps will be taken in consultation with, for a reasonable
period of time and provided such consultation does not prejudice the sale or
transfer of any such shares, and at the reasonable out of pocket expense of,
KFI with the objective that such sale or transfer is treated as a sale or
transfer of the assets of such member or will not result in any taxable gain
for a member of the Kraft Group for United States Federal income tax purposes.

 

 8

 

10.                               WARRANTS TO SUBSCRIBE FOR SHARES IN UBGI

10.1                           KFI warrants to UBGI that:

(a)                                  it is the legal and beneficial owner of the Warrants;

(b)                                 it is the only person who is entitled to exercise or enforce any
subscription rights or any other rights which the Warrant Instrument provides
may be exercised or enforced by a holder of Warrants; and

(c)                                  it has not assigned, disposed of or otherwise transferred to any person
any of its Warrants or any interest in any of the Warrants or any rights
arising under or in relation to the Warrants or the Warrant Instrument.

10.2                           Each of the warranties contained in clause 10.1 will be deemed to be
repeated immediately before Completion.

10.3                           With effect from Completion KFI:

(a)                                  agrees that any and all subscription rights which it has or may have
pursuant to the Warrants or the Warrant Instrument shall lapse;

(b)                                 agrees that it shall not retain any rights to enforce any subscription
rights under the Warrants;

(c)                                  agrees that UBGI and every other member of the UB Group is irrevocably
released from any and all obligations and liabilities it has or may have to it
or any other member of the Kraft Group under the Warrants or the Warrant
Instrument; and

(d)                                 irrevocably waives, releases and discharges, to the fullest extent
permitted by law, any and all claims (including, without limitation,
cross-claims, counterclaims, rights of set-off and recoupment), causes of
action, demands, suits, costs, expenses and damages that it has or may have
arising under or relating to the Warrants or the Warrant Instrument against
UBGI, or any other member of the UB Group, or any of their respective
directors, officers, employees or advisers.

10.4                           If any provision of the Warrant Instrument conflicts with the provisions
of this clause, this clause shall prevail.

11.                               UB WARRANTIES

11.1                           Each of the UB Parties warrants to the Kraft Parties that:

(a)                                  it has the requisite power and authority to execute and deliver, and to
perform its obligations under, this agreement and each of the other Transaction
Documents to which it is a party, and has taken all action necessary to
authorise such execution and delivery and the performance of such obligations;

(b)                                 this agreement constitutes its legal, valid and binding obligations in
accordance with its terms;

(c)                                  subject to satisfaction of the Bank Consent Condition, the execution and
delivery by it of this agreement and the performance of its obligations under
it do not and will not conflict with or constitute a default under any
provision of:

 9
 

 

(i)                                     any agreement or instrument to which it is a party; or

(ii)                                  its constitutional documents; or

(iii)                               any law, lien, lease, order, judgment, award, injunction, decree,
ordinance or regulation or any other restriction of any kind or character by
which it is bound; and

(d)                                 all authorisations from, and notices or filings with, any governmental
or other authority that are necessary to enable it to execute, deliver and
perform its obligations under this agreement have been obtained or made (as the
case may be) and are in full force and effect and all conditions of each such
authorisation have been complied with.

11.2                           UB Investments warrants to NEH at the date of this agreement that:

(a)                                  it is the full owner of the UB Iberia Shares;

(b)                                 it is entitled to transfer or procure the transfer of the full ownership
in the UB Iberia Shares to New Iberia in accordance with the Reorganisation;

(c)                                  the UB Iberia Shares constitute the whole of the share capital of UB
Iberia and are fully paid up;

(d)                                 UB Iberia, or another UBSE Group Company, is the full owner of the whole
share capital of each of the UBSE Subsidiaries and all the shares in the UBSE
Subsidiaries are fully paid up;

(e)                                  no person is entitled to require any UBSE Group Company to allot, issue,
transfer, redeem or repay any share capital; and

(f)                                    save for the Encumbrances created pursuant to the security documents
described in Part 3 of Schedule 6, there is no Encumbrance on, over or
affecting any of the UB Iberia Shares or any of the shares in the UBSE
Subsidiaries.

11.3                           Deluxestar warrants to NEH that, subject to the satisfaction of the
Reorganisation Condition, at Completion:

(a)                                  it will be the full owner of the New Iberia Shares;

(b)                                 it will be entitled to transfer or procure the transfer of the full
ownership in the New Iberia Shares on the terms and subject to the conditions
set out in this agreement;

(c)                                  the New Iberia Shares will constitute the whole of the share capital of
New Iberia and will be fully paid up; and

(d)                                 New Iberia will be the full owner of the whole share capital of UB
Iberia and UB Iberia (or another UBSE Group Company) is the full owner of the
whole of the share capital of the UBSE Subsidiaries;

(e)                                  no person will be entitled to require New Iberia to allot, issue,
transfer, redeem or repay any share capital; and

 10
 

 

(f)                                    save for the Encumbrances created pursuant to the security documents
described in Part 3 of Schedule 6, there is no Encumbrance on, over or
affecting any of the New Iberia Shares or any of the shares in UB Iberia or the
UBSE Subsidiaries.

11.4                           Each of the Title Warranties will be deemed to be repeated immediately
before Completion.

11.5                           The Title Warranties and any Title Warranty Claim shall be subject to
the limitations and other provisions set out in Schedule 5.

11.6                           Nothing in Schedule 5 limits or excludes any liability for fraud.

12.                               KRAFT WARRANTIES

12.1                           Each of the Kraft Parties warrants to the UB Parties that:

(a)                                  it has the requisite power and authority to execute and deliver, and to
perform its obligations under, this agreement and each of the other Transaction
Documents to which it is a party, and has taken all action necessary to
authorise such execution and delivery and the performance of such obligations;

(b)                                 this agreement constitutes legal, valid and binding obligations of it in
accordance with its terms;

(c)                                  subject to the satisfaction of the Bank Consent Condition, the execution
and delivery by it of this agreement and the performance of its obligations
under it do not and will not conflict with or constitute a default under any
provision of:

(i)                                     any agreement or instrument to which it is a party; or

(ii)                                  its constitutional documents; or

(iii)                               any law, lien, lease, order, judgment, award, injunction, decree,
ordinance or regulation or any other restriction of any kind or character by
which it is bound;

(d)                                 all authorisations from, and notices or filings with, any governmental
or other authority that are necessary to enable it to execute, deliver and
perform its obligations under this agreement have been obtained or made (as the
case may be) and are in full force and effect and all conditions of each such
authorisation have been complied with; and

(e)                                  NEH is acquiring the New Iberia Shares for itself beneficially and there
is no agreement, arrangement or understanding (whether or not of a legally
binding nature) for the New Iberia Shares or any of the shares in the other
UBSE Group Companies, or any interest in the New Iberia Shares or in any of the
shares in the other UBSE Group Companies, to be sold, transferred or otherwise
disposed to, or held for the benefit of, any person other than NEH or another
member of the Kraft Group.

12.2                           Each of the warranties contained in clause 12.1 will be deemed to be
repeated immediately before Completion.

 11
 

 

13.                               LOCKED BOX

13.1                           UBGI warrants to NEH that the Balance Sheet has been prepared applying
accounting policies and procedures consistent with those employed in preparing
the Management Accounts (in the form set out in Data Room “A”) which are
consistent with those adopted in the audited accounts at 31 December 2005.

13.2                           UBGI warrants to NEH (for itself and as trustee for and on behalf of
each UBSE Group Company) that between the Accounts Date and the date of this
agreement (other than in respect of Permitted Leakage):

(a)                                  no management charge or fee has been levied by any member of the UB
Group against any UBSE Group Company and there has been no payment of any
management charges, consulting, service or other fees or compensation from any
UBSE Group Company to any member of the UB Group;

(b)                                 no dividend or distribution of profits or assets (including without
limitation any distribution as defined in Part VI Income and Corporation
Taxes Act 1988 (ICTA) and extended by section 418
ICTA), or any bonus or other payment of any nature has been paid or declared or
made by any UBSE Group Company to or in favour of any member of the UB Group;

(c)                                  no UB Transaction Costs have been paid or incurred, or have been agreed
to be paid or incurred, by any UBSE Group Company;

(d)                                 no share or loan capital of any UBSE Group Company has been created,
issued, redeemed, purchased or repaid; and

(e)                                  no member of the UBSE Group has changed its practices as to collection
of trade debtors or payment of trade creditors, there has been no acceleration
of payments or accruals for Intra-Group Trading Amounts

in
each case, whether effected by way of a repayment of Inter-Company Debt or
otherwise; and

(f)                                    no UB Group Company has made or entered into any agreement or
arrangement to give effect to any of the matters referred to in (a) to (e) above.

13.3                           UBGI undertakes to NEH (for itself and as trustee for and on behalf of
NEH and each UBSE Group Company) that between the date of this agreement and
Completion no UBSE Group Company will (other than in respect of Permitted
Leakage):

(a)                                  pay, or agree or commit to pay, management charges, consulting, service
or other fees or compensation to any member of the UB Group or to any Affiliate
of any member of the UB Group;

(b)                                 declare, pay or make any dividend of distribution of profits or assets
(including without limitation any distribution defined in Part VI ICTA and
extended by section 418 ICTA) to or in favour of any UB Group Company;

(c)                                  make or agree to make or pay any bonus, service fee or other payment or
compensation to any member of the UB Group Company;

(d)                                 pay or incur, or agree to pay or incur, any UB Transaction Costs;

 12
 

 

(e)                                  redeem, purchase or repay, or agree to redeem, purchase or repay, any
share or loan capital of a UBSE Group Company to or in favour of any member of
the UB Group Company; or

(f)                                    change its practices as to collection of trade debtors or payment of
trade creditors.

13.4                           UBGI undertakes to NEH to notify NEH in writing promptly after becoming
aware of the same of any receipt by any member of the UB Group of any of the
payments referred to in clauses 13.2 or 13.3 above or otherwise of any payment
described in such clauses.

13.5                           UBGI warrants to NEH that as at the Accounts Date the UBSE Group had in
aggregate Cash of £11.7 million on the Balance Sheet.

13.6                           UBGI warrants to NEH that as at the Accounts Date the UBSE Group had in
aggregate Indebtedness of £0.1 million on the Balance Sheet.

13.7                           UBGI undertakes to NEH that it shall pay to New Iberia (for itself and
as trustee for and on behalf of each UBSE Group Company) on a £ for £ after tax
basis in respect of any breach of any of the warranties and undertakings set
out in clauses 13.2, 13.3, 13.5 and 13.6.

13.8                           For the purposes of this clause 13, UB Group means
the UB Group and any Affiliate of any member of the UB Group.

14.                               INTER-COMPANY DEBT

14.1                           UBGI warrants to NEH (for itself and as trustee for and on behalf of
each UBSE Group Company) that between the Accounts Date and the date of this
agreement (other than in respect of Permitted Leakage and the P6 Adjustment
Payment):

(a)                                  there has been no increase in Inter-Company Debt;

(b)                                 there has been no repayment or capitalisation of Inter-Company Debt
other than the Delacre Adjustment;

(c)                                  there has been no change to the terms of Inter-Company Debt;

(d)                                 no Intra-Group Trading Amounts have been reclassified as Inter-Company
Debt; and

(e)                                  there have been no Intra-Group Receivables.

14.2                           UBGI warrants to NEH (for itself and as trustee for and on behalf of NEH
and each UBSE Group Company) that:

(a)                                  the aggregate amount of Inter-Company Debt on the Balance Sheet as at
the Accounts Date was £24.8 million and the interest on the Inter-Company Debt
will cease to accrue after the Accounts Date; and

(b)                                 the aggregate amount of Intra-Group Receivables was nil as at the
Accounts Date.

14.3                           UBGI undertakes to NEH (for itself and as trustee for and on behalf of
each UBSE Group Company) that between the date of this agreement and Completion
(other than in respect of Permitted Leakage):

 13
 

 

(a)                                  there will be no increase in Inter-Company Debt or Intra-Group
Receivables and no interest will accrue on the Inter-Company Debt;

(b)                                 there will be no repayment or capitalisation of Inter-Company Debt other
than pursuant to clause 7;

(c)                                  there will be no change to the terms of the Inter-Company Debt; and

(d)                                 no Intra-Group Trading Amounts will be reclassified as Inter-Company
Debt or Intra-Group Receivables.

14.4                           UBGI undertakes to NEH that it shall pay to New Iberia (for itself and
as trustee for and on behalf of each UBSE Group Company) on a £ for £ after tax
basis in respect of any breach of any of the warranties and undertakings set
out in clauses 14.1, 14.2 and 14.3.

14.5                           For the purposes of this clause 14 UB Group
includes United Biscuits (Equity) Limited.

14.6                           For the avoidance of doubt, the Delacre Adjustment and the P6 Adjustment
Payment occurred post 31 May 2006 and have been taken into consideration
in the Inter-Company Debt of £24.8 million and the Cash of £11.7 million.

15.                               GUARANTEES

15.1                           KFI, as primary obligor, unconditionally and irrevocably guarantees, by
way of continuing guarantee to the UB Parties, the payment and performance by
NEH, when due, of all amounts and obligations under this agreement. This
guarantee shall remain in full force and effect until all such amounts and
obligations have been irrevocably paid and discharged in full.

15.2                           KFI’s obligations under this clause:

(a)                                  constitute direct, primary and unconditional obligations to pay on
demand by the UB Parties any sum which NEH is liable to pay under this
agreement and to perform on demand any obligation of NEH under this agreement
without requiring the UB Parties first to take any steps against NEH or any
other person; and

(b)                                 shall not be affected by any matter or thing which but for this
provision might operate to affect or prejudice those obligations, including:

(i)                                     any time or indulgence granted to, or composition with, NEH or any other
person; or

(ii)                                  any amendment of this agreement; or

(iii)                               the taking, variation, renewal or release of, or refusal or neglect to
perfect or enforce, any right, remedy or security against NEH or any other
person; or

(iv)                              any legal limitation, disability or other circumstance relating to NEH
or any unenforceability or invalidity of any obligation of NEH under this
agreement.

15.3                           UBGI, as primary obligor, unconditionally and irrevocably guarantees, by
way of continuing guarantee to the Kraft Parties, the payment and performance
by the Deluxestar, UB Investments and UB Overseas (together, the UBGI Subsidiaries), when due, of all amounts 

 14
 

 

and obligations under this agreement. This guarantee
shall remain in full force and effect until all such amounts and obligations
have been irrevocably paid and discharged in full.

15.4                           UBGI’s obligations under this clause:

(a)                                  constitute direct, primary and unconditional obligations to pay on
demand by the Kraft Parties any sum which the UBGI Subsidiaries are liable to
pay under this agreement and to perform on demand any obligation of the UBGI
Subsidiaries under this agreement without requiring the Kraft Parties first to
take any steps against the UBGI Subsidiaries or any other person; and

(b)                                 shall not be affected by any matter or thing which but for this
provision might operate to affect or prejudice those obligations, including:

(i)                                     any time or indulgence granted to, or composition with, the UBGI
Subsidiaries or any other person; or

(ii)                                  any amendment of this agreement; or

(iii)                               the taking, variation, renewal or release of, or refusal or neglect to
perfect or enforce, any right, remedy or security against the UBGI Subsidiaries
or any other person; or

(iv)                              any legal limitation, disability or other circumstance relating to the
UBGI Subsidiaries or any unenforceability or invalidity of any obligation of
the UBGI Subsidiaries under this agreement.

16.                               ANNOUNCEMENTS AND CONFIDENTIALITY

16.1                           Subject to sub-clause 16.2, none of the UB Parties nor the Kraft Parties
shall make (or permit any of their respective Affiliates to make) any
announcement concerning this agreement or any ancillary matter before, on or
after Completion, except for the Press Releases.

16.2                           The UB Parties and KFI shall each be entitled to make any announcement
that contains only those matters set out in the Press Releases.

16.3                           KFI:

(a)                                  shall, and shall procure that each other member of the Kraft Group from
time to time shall, keep confidential all information provided to any member of
the Kraft Group by or on behalf of the UB Parties or any other member of the UB
Group or otherwise obtained by any member of the Kraft Group in connection with
the transactions contemplated by this agreement which relates to the UB Parties
or any other member of the UB Group; and

(b)                                 shall procure that, if after Completion any UBSE Group Company holds
confidential information relating to the UB Parties or any other member of the
UB Group, that UBSE Group Company shall after Completion keep that information
confidential and, to the extent reasonably practicable and to the extent not
required to perform its obligations under the relevant Transaction Documents,
shall deliver that information to UBGI or destroy it, in each case without
retaining copies.

 

 15

 

16.4                           UBGI:

(a)                                  shall, and shall procure that each other member of the UB Group from
time to time shall, keep confidential all information provided to any member of
the UB Group by or on behalf of the Kraft Parties or any other member of the
Kraft Group or otherwise obtained by any member of the UB Group in connection
with the transactions contemplated by this agreement which relates to any
member of the Kraft Group; and

(b)                                 shall procure that if after Completion any member of the UB Group holds
confidential information relating to the UBSE Group Companies or the Kraft
Group, that member of the UB Group shall after Completion keep that information
confidential and, to the extent reasonably practicable and to the extent not
required to perform its obligations under the relevant Transaction Documents,
shall deliver that information to NEH or destroy it, in each case without
retaining copies.

16.5                           Nothing in this clause prevents any announcement being made or any
confidential information being disclosed:

(a)                                  which at the time of supply is in the public domain or which
subsequently comes into the public domain except through breach of the
undertakings set out in this clause 16;

(b)                                 where such announcement contains only information consistent with the
Press Releases;

(c)                                  with the written approval of the other parties, which in the case of any
announcement shall not be unreasonably withheld or delayed;

(d)                                 to the extent required by law or any competent regulatory body, but a
party required to disclose any confidential information shall promptly notify
the other parties, where practicable and lawful to do so, before the
announcement is made or disclosure occurs (as the case may be) and shall
consult with the other parties regarding the timing and content of such announcement
or disclosure (as the case may be) or any action which the other parties may
reasonably elect to take to challenge the validity of such requirement;

(e)                                  to the professional advisers, agents and representatives of a party or
its Affiliates;

(f)                                    to any general partner, limited partner, trustee, nominee, custodian,
manager or Affiliate of, or adviser to, a shareholder in the ultimate parent
company of Deluxestar, or any investor or potential investor in any such
shareholder, provided that this shall not apply to any confidential information
relating to the Kraft Group (including, after Completion, the UBSE Group, the
Business and the Merola Marks) other than the business relationship between the
UB Group and the Kraft Group pursuant to the Transaction Documents; or

(g)                                 subject to customary confidentiality undertakings, to a potential
purchaser of United Biscuits (Equity) Limited, or UBGI, or all or substantially
all of the assets of the UB Group, provided that this shall not apply to any
confidential information relating to the Kraft Group (including, after
Completion, the UBSE Group, the Business and the Merola Marks) other than the
Transaction Documents and information relating to the business relationship
between the UB Group and the Kraft Group pursuant to the Transaction Documents.

 16
 

 

16.6                           For the purposes of clause 16.5 approval or notification shall be deemed
given to or by:

(a)                                  all the Kraft Parties if it is given to or by KFI; and

(b)                                 all the UB Parties if it is given to or by UBGI.

16.7                           Nothing in this clause prevents disclosure of confidential information
by any party:

(a)                                  to the extent that the information is in or comes into the public domain
other than as a result of a breach of any undertaking or duty of
confidentiality by that party or any Affiliate of that party; or

(b)                                 to that party’s professional advisers, auditors or bankers but, before
any disclosure to any such person, the relevant party shall procure that such
person is made aware of the terms of this clause and shall use its best
endeavours to procure that such person adheres to those terms as if such person
were bound by the provisions of this clause.

16.8                           UBGI shall, as soon as practicable following a written request by KFI
following Completion, and subject to KFI first having indemnified UBGI against
all liabilities, charges, costs and expenses which it may properly incur in
taking such action:

(a)                                  enforce such rights as the UB Group has in respect of confidentiality or
non-disclosure agreements entered into by any other potential purchaser of the
UB Group or the New Iberia Shares or any element of the Business or any
interest in the Merola Marks prior to the date of this agreement (each a Potential Purchaser); and

(b)                                 subject to and in accordance with the terms of any confidentiality or non-disclosure
agreement entered into with a Potential Purchaser, request that a Potential
Purchaser returns all confidential information relating to any UBSE Group
Company to UBGI or, to the extent reasonably practicable, destroys it, and UBGI
shall forward any confidential information it receives from a Potential
Purchaser to KFI (or as it may direct).

16.9                           This clause 16 supersedes and replaces the letters entered into between
KFI and UBGI on 2 December 2005, 3 May 2006, and 23 June 2006.

16.10                     For
a period of ten years after Completion, KFI will procure that all books,
records, documents and electronic data which relate to the UBSE Group Companies
are made available for inspection by representatives of the UB Group (or a
shareholder in a member of the UB Group or in the ultimate parent company of
UBGI) at all reasonable times during business hours on reasonable advance
notice being given provided that such inspection is necessary for the sole
purpose of producing tax returns and/or responding to tax audits for a member
of the UB Group (or an Affiliate of or a shareholder in a member of the UB
Group) or making any related filings. KFI will procure that representatives of
the UB Group (or of an Affiliate of or a shareholder in a member of the UB
Group) are allowed to take copies of any of such books, records and documents
of the UBSE Group Companies reasonably required by them.

16.11                     For
a period of ten years after Completion, the UB Parties shall procure that all
books, records, documents and electronic data of the UB Group which relate to
the UBSE Group Companies are made available for inspection by representatives
of KFI at all reasonable times during business hours on reasonable advance
notice being given provided that such inspection is necessary for the sole
purpose of producing tax returns and/or responding to tax audits for a 

 17
 

 

member of the UBSE Group (or an Affiliate of or a
shareholder in a member of the UBSE Group) or making any related filings. The
UB Parties shall procure that representatives of KFI are allowed to take copies
of any such books, records and documents relating to the UBSE Group Companies
reasonably required by them.

17.                               NOTICES

17.1                           Any notice or other communication to be given under this agreement must
be in writing (which includes fax, but not email) and must be delivered or sent
by post to the party to whom it is to be given as follows:

(a)           to
any of the UB Parties at:

United Biscuits Group (Investments) Limited

Hayes Park

Hayes End Road, Hayes

Middlesex

UB4 8EE, England

United Kingdom

Fax: +44 20 8234 5797

 marked for the
attention of Mark Oldham / Jeff van der Eems,

with a copy to Allen & Overy LLP (Fax:
+44 20 7330 9999) marked for the attention of

David Wootton / Gordon Milne; and

(b)                                 to any of the
Kraft Parties at:

Three Lakes Drive

Northfield

Illinois 60093

U.S.A.

Fax:
+1 847 646 8466

marked
for the attention of Gerhard Pleuhs,

with
a copy to Clifford Chance LLP marked for the attention of Sarah Jones / Robert
Crothers,

or
at any such other address or fax number of which it shall have given notice for
this purpose to the other parties under this clause. Any notice or other
communication sent by post shall be sent by prepaid first class post (if the
country of destination is the same as the country of origin) or by prepaid
airmail (if the country of destination is not the same as the country of
origin).

17.2                           Any notice or other communication shall be deemed to have been given:

(a)                                  if delivered, on the date of delivery;

(b)                                 if sent by post, on the second Business Day after it was put into the
post; or

 18
 

 

(c)                                  if sent by fax, on the date of transmission, if transmitted before 3.00 p.m.
(local time at the country of destination) on any Business Day, and in any
other case on the Business Day following the date of transmission.

17.3                           In proving the giving of a notice or other communication, it shall be
sufficient to prove that delivery was made or that the envelope containing the
communication was properly addressed and posted by prepaid first class post or
by prepaid airmail or that the fax was properly addressed and transmitted, as
the case may be.

17.4                           Clauses 17.2 and 17.3 shall not apply in relation to the service of any
claim form, notice, order, judgment or other document relating to or in
connection with any proceedings, suit or action arising out of or in connection
with this agreement.

18.                               ASSIGNMENT

18.1                           Subject to clause 18.2, none of the rights or obligations under this
agreement may be assigned or transferred without the prior written consent of
all the parties and any such purported assignment or transfer shall be void.

18.2                           The Kraft Parties may assign the benefit of any of their rights pursuant
to this agreement (in whole or in part) to any member of the Kraft Group
without the consent of the UB Parties provided that KFI shall procure that if
such assignee is to cease to be a member of the Kraft Group, such assignee
will, before the cessation, assign such rights as were assigned to it to
another member of the Kraft Group.

19.                               COSTS

19.1                           Save as expressly provided otherwise in this agreement, each party shall
pay the costs and expenses incurred by it in connection with the entering into
and completion of this agreement.

19.2                           All stamp duty, transfer, registration, capital duty on share issues or
other similar taxes, duties or charges which may be payable in connection with
the transactions contemplated by this agreement shall be paid by NEH including,
for the avoidance of doubt, any such taxes, duties or other charges which may
be payable in connection with the Reorganisation.

20.                               GENERAL

20.1                           The receipt by KFI’s Solicitors of any document to be delivered at
Completion to NEH shall discharge Deluxestar’s obligation to deliver it to NEH.

20.2                           The receipt by UB’s Solicitors of any document to be delivered at
Completion to Deluxestar shall discharge NEH’s obligation to deliver it to
Deluxestar.

20.3                           Each of the obligations, warranties and undertakings set out in this
agreement (excluding any obligation which is fully performed at Completion)
shall continue in force after Completion.

20.4                           Without prejudice to the provisions of Schedule 4, in no circumstances
shall the aggregate liability of the UB Parties under this agreement exceed
£575 million.

20.5                           This agreement may be executed in any number of counterparts, all of
which taken together shall constitute one and the same agreement, and any party
(including any duly authorised representative of a party) may enter into this
agreement by executing a counterpart.

20.6                           The rights of each party under this agreement:

 19
 

 

(a)                                  may be exercised as often as necessary;

(b)                                 except as otherwise expressly provided by this agreement, are cumulative
and not exclusive of rights and remedies provided by law; and

(c)                                  may be waived only in writing and specifically.

Delay
in exercising or non-exercise of any such right is not a waiver of that
right.

20.7                           Save as expressly provided otherwise in this agreement, a person who is
not a party to this agreement may not enforce any of its terms under the
Contracts (Rights of Third Parties) Act 1999.

21.                               NO RESCISSION

Neither
party shall be entitled in any circumstances to rescind or terminate this
agreement.

22.                               WHOLE AGREEMENT

22.1                           This agreement and the other Transaction Documents contain the whole
agreement between the parties relating to the transactions contemplated by this
agreement and the other Transaction Documents and supersede all previous
agreements, whether oral or in writing, between the parties relating to these
transactions.

22.2                           Each party acknowledges that in agreeing to enter into this agreement it
has not relied on any express or implied representation, warranty, collateral
contract or other assurance (except those expressly set out in this agreement)
made by or on behalf of any other party before the entering into of this
agreement. Save as expressly set out in this agreement, no statement, promise
or forecast made by or on behalf any party, or any of their respective
directors, officers, employees or agents or any of their respective advisers,
may form the basis of, or be pleaded in connection with, any claim by it under
or in connection with this agreement. Each party waives all rights and remedies
which, but for this sub-clause 22.2, might otherwise be available to it in
respect of any such representation, warranty, collateral contract or other
assurance.

22.3                           Nothing in this clause limits or excludes any liability for fraud.

23.                               GOVERNING LAW AND JURISDICTION

23.1                           This agreement is governed by English law.

23.2                           The English courts have exclusive jurisdiction to settle any dispute
arising out of or in connection with this agreement and the parties submit to
the exclusive jurisdiction of the English courts.

AS WITNESS this agreement has been
signed by the parties (or their duly authorised representatives) on the date
stated at the beginning of this agreement.

 

 20

 

SCHEDULE 1

UB
IBERIA

 

	
  Name:

  	
  United Biscuits Iberia, S.L.

  
	
   

  	
   

  
	
  Registered
  number:

  	
  B-80662950

  
	
   

  	
   

  
	
  Registered
  office:

  	
  Pol.
  Ind. El Raiguer C/Raiguer, 12 

  08170 — Montornés del Vallés (Barcelona) 

  Spain

  
	
   

  	
   

  
	
  Date
  and place of incorporation:

  	
  15
  July 1993, Spain

  
	
   

  	
   

  
	
  Directors:

  	
  Joan
  Casaponsa 

  Oscar Rangel 

  Anthony Jenkins 

  Susan Furst 

  Mark Oldham

  
	
   

  	
   

  
	
  Secretary:

  	
  Montserrat
  Serra

  
	
   

  	
   

  
	
  Accounting
  reference date:

  	
  31
  December

  
	
   

  	
   

  
	
  Auditors:

  	
  Ernst &
  Young S.L.

  
	
   

  	
   

  
	
  Capital:

  	
  €61,429,284
  divided into 20,408,400 quotas 

  (participaciones sociales) of €3.01
  each

  

 

 21
 

 

 

GALLETAS UB

 

	
  Name:

  	
  Galletas United Biscuits, S.A.

  
	
   

  	
   

  
	
  Registered number:

  	
  A-31018104

  
	
   

  	
   

  
	
  Registered office:

  	
  Pol. Ind. El Raiguer C/Raiguer, 12 

  08170 — Montornés del Vallés (Barcelona) 

  Spain

  
	
   

  	
   

  
	
  Date and place of incorporation:

  	
  26 October 1967, Spain

  
	
   

  	
   

  
	
  Directors:

  	
  Joan Casaponsa Sitjas 

  Anthony Jenkins 

  Óscar Rangel Moretti

  
	
   

  	
   

  
	
  Secretary:

  	
  Montserrat Serra (Non-Director)

  
	
   

  	
   

  
	
  Accounting reference date:

  	
  31 December

  
	
   

  	
   

  
	
  Auditors:

  	
  Ernst & Young, S.L.

  
	
   

  	
   

  
	
  Share Capital:

  	
  €237,560 divided into 237,560 ordinary shares of  

  €1 each.

  
	
   

  	
   

  
	
  Sole shareholder:

  	
  United Biscuits Iberia, S.L.

  

 

 22
 

 

POSTRES UB

 

	
  Name:

  	
  Postres United Biscuits, S.A.

  
	
   

  	
   

  
	
  Registered number:

  	
  A-60172541

  
	
   

  	
   

  
	
  Registered office:

  	
  Pol. Ind. El Raiguer C/Raiguer, 12 

  08170 — Montornés del Vallés (Barcelona) 

  Spain

  
	
   

  	
   

  
	
  Date and place of incorporation:

  	
  28 October 1992, Spain

  
	
   

  	
   

  
	
  Directors:

  	
  Joan Casaponsa Sitjas 

  Anthony Jenkins 

  Óscar Rangel Moretti

  
	
   

  	
   

  
	
  Secretary:

  	
  Montserrat Serra (Non-Director)

  
	
   

  	
   

  
	
  Accounting reference date:

  	
  31 December

  
	
   

  	
   

  
	
  Auditors:

  	
  Ernst & Young, S.L.

  
	
   

  	
   

  
	
  Share Capital:

  	
  €2,935,380 divided into 2,436 ordinary shares of 
 €1,205 each.

  
	
   

  	
   

  
	
  Sole shareholder:

  	
  United Biscuits Iberia, S.L.

  

 

 23
 

 

CARNES Y CONSERVAS

 

	
  Name:

  	
  Carnes y Conservas Españolas, S.A.

  
	
   

  	
   

  
	
  Registered number:

  	
  A-28419372

  
	
   

  	
   

  
	
  Registered office:

  	
  Pol. Ind. El Raiguer C/Raiguer, 12 

  08170 — Montornés del Vallés (Barcelona) 

  Spain

  
	
   

  	
   

  
	
  Date and place of incorporation:

  	
  2 December 1975, Spain

  
	
   

  	
   

  
	
  Directors:

  	
  Joan Casaponsa Sitjas 

  Anthony Jenkins 

  Óscar Rangel Moretti

  
	
   

  	
   

  
	
  Secretary:

  	
  Montserrat Serra (Non-Director)

  
	
   

  	
   

  
	
  Accounting reference date:

  	
  31 December

  
	
   

  	
   

  
	
  Auditors:

  	
  Ernst & Young, S.L.

  
	
   

  	
   

  
	
  Share Capital:

  	
  ESP 1,649,354,559 (€9,912,820.54), divided into 

  2,454,559 ordinary shares, distributed in the 

  following Series: 

   

  A Series: 4,559
  Ordinary shares of ESP 1 (€0.01 each) 

  B Series:
  350,000 ordinary shares of ESP 1 (€0.01 each) 

   

  C Series:
  1,000,000 ordinary shares of ESP 540 (€3.25 each) 

  D Series:
  1,100,000 ordinary shares of ESP 1,000 (€6.01 each)

  
	
   

  	
   

  
	
  Sole shareholder:

  	
  United Biscuits Iberia, S.L.

  

 

 24
 

 

CONSIBER

 

	
  Name:

  	
  Consiber, S.A.

  
	
   

  	
   

  
	
  Registered number:

  	
  A-28569853

  
	
   

  	
   

  
	
  Registered office:

  	
  Pol. Ind. El Raiguer C/Raiguer, 12 

  08170 — Montornés del Vallés (Barcelona) 

  Spain

  
	
   

  	
   

  
	
  Date and place of incorporation:

  	
  31 March 1979, Spain

  
	
   

  	
   

  
	
  Directors:

  	
  Joan Casaponsa Sitjas 

  Anthony Jenkins 

  Óscar Rangel Moretti

  
	
   

  	
   

  
	
  Secretary:

  	
  Montserrat Serra (Non-Director)

  
	
   

  	
   

  
	
  Accounting reference date:

  	
  31 December

  
	
   

  	
   

  
	
  Auditors:

  	
  Ernst & Young, S.L.

  
	
   

  	
   

  
	
  Share Capital:

  	
  €60,101.21 divided into 10,000 ordinary shares of  

  €6 each.

  
	
   

  	
   

  
	
  Sole shareholder:

  	
  Carnes y Conservas Españolas, S.A.

  

 

 25
 

 

UB PORTUGAL

 

	
  Name:

  	
  United Biscuits Portugal, S.A.

  
	
   

  	
   

  
	
  Registered number:

  	
  502.449.136

  
	
   

  	
   

  
	
  Registered office:

  	
  2 August 2004, Portugal

  
	
   

  	
   

  
	
  Date and place of incorporation:

  	
  Bairro de São Carlos 

  2725-473 Mem Martins (Sintra) 

  Portugal

  
	
   

  	
   

  
	
  Directors:

  	
  Joan Casaponsa 

  Paulo Gonçalves 

  Anthony Jenkins

  
	
   

  	
   

  
	
  Secretary:

  	
  Montserrat Serra

  
	
   

  	
   

  
	
  Accounting reference date:

  	
  31 December

  
	
   

  	
   

  
	
  Auditors:

  	
  Ernst & Young S.L.

  
	
   

  	
   

  
	
  Share Capital:

  	
  €18,090,875 (3,618,175 ordinary shares of €5 each)

  
	
   

  	
   

  
	
  Sole shareholder:

  	
  United Biscuits Iberia, S.L.

  

 

 26

 

SCHEDULE 2

REORGANISATION

PART 1

REORGANISATION STEPS PRIOR TO SATISFACTION OF BANK CONSENT
CONDITION

	
  

  	
   

  	
  Action

  	
   

  	
  Timing

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Step 1

  	
   

  	
  UB Investments shall purchase an “off the shelf”
  Spanish SL registered in the Mercantile Registry (New Iberia)
  that was formed within 60 days prior to the date of its acquisition by UB
  Investments.

  	
   

  	
  As soon as practicable.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Step 2

  	
   

  	
  New Iberia shall open an account with Citibank
  International plc or an affiliate into which funds received pursuant to the
  Loan will be deposited.

  	
   

  	
  As soon as practicable.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Step 3

  	
   

  	
  UB Investments shall sign (and shall procure that
  any prior shareholders of New Iberia shall sign) and deliver to KFI an IRS
  Form 8832 and Form SS-4 to treat New Iberia as a fiscally transparent
  entity that is retroactive to the date of New Iberia’s incorporation.

  	
   

  	
  As soon as practicable.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Step 4

  	
   

  	
  UB Iberia shall obtain the advice of the works
  council of Koninklijke Verkade NV.

  	
   

  	
  As soon as practicable.

  

 

PART 2

REORGANISATION
STEPS AFTER SATISFACTION OF BANK CONSENT CONDITION

	
  

  	
   

  	
  Action

  	
   

  	
  Timing

  
	
  Step 5

  	
   

  	
  New Iberia shall execute the credit agreement in
  respect of the New Iberia Loan Amount.

  	
   

  	
  Subject to (i) the completion of Steps 1 to 4
  and (ii) the satisfaction of the Bank Consent Condition, promptly upon receipt by New Iberia of Citibank
  International plc and UBS Loan Finance LLC’s signed counterparts to the
  credit agreement in respect of the Loan.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Step 6

  	
   

  	
  New Iberia shall deliver to Citibank International
  plc the drawdown notice for the New Iberia Loan Amount.

  	
   

  	
  On the first Business Day
  after the later of the date on which: (i) Steps 1 to 5 above have been
  completed and (ii) the Bank Consent Condition is satisfied.

  

 

 27
 

 

 

	
  Step 7

  	
   

  	
  UB Iberia sells Koninklijke Verkade NV to UB
  Overseas pursuant to the documentation in the Agreed Form. 

  UB Iberia sells Biscuits Delacre SA to UB Overseas
  pursuant to the documentation in the Agreed Form.

  	
   

  	
  On the first Business Day
  after the later of the date on which: (i) Steps 1 to 5 above have been
  completed and (ii) the Bank Consent Condition is satisfied.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Step 8

  	
   

  	
  UB Investments sells UB Iberia to New Iberia in
  consideration for a share capital increase by contribution in kind of the
  shares in UB Iberia and deferred consideration in an amount equal to the New
  Iberia Loan Amount pursuant to the documentation in the Agreed Form.

  	
   

  	
  On the fourth Business Day
  after the later of the date on which: (i) Steps 1 to 5 above have been
  completed and (ii) the Bank Consent Condition is satisfied.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Step 9

  	
   

  	
  New Iberia shall file the notarial deed in respect
  of the share capital increase of New Iberia with the Commercial Registry.

  	
   

  	
  On or before the sixth
  Business Day after the later of the date on which: (i) Steps
  1 to 5 above have been completed and (ii) the Bank Consent Condition is
  satisfied.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Step 10

  	
   

  	
  UB Investments sells New Iberia to Deluxestar in
  consideration for a loan pursuant to the documentation in the Agreed Form.

  	
   

  	
  On the seventh Business Day
  after the later of the date on which: (i) Steps 1 to 5 above have been
  completed and (ii) the Bank Consent Condition is satisfied.

  

 

 28

 

SCHEDULE 3

PRE-COMPLETION
WARRANTIES

1.                                      Claims

1.1                                 No UBSE Group Company has been notified that it is the subject of  a civil, criminal, arbitration or
administrative proceeding which is material to the UBSE Group taken as a whole
(a Proceeding). So far as the UB Parties
are aware (having made reasonable enquiries), no Proceeding is pending or
threatened by or against a UBSE Group Company which is material to the UBSE
Group taken as a whole.

1.2                                 No UBSE Group Company has been notified of any governmental or other
investigation, enquiry or disciplinary proceeding the outcome of which would or
might reasonably be expected to have a material adverse effect on the UBSE
Group taken as a whole (an Investigation)
concerning a UBSE Group Company or the Business and, so far as the UB Parties
are aware (having made reasonable enquiries), none is pending or threatened.

1.3                                 For the avoidance of doubt, and without prejudice to the generality of
the statements in paragraphs 1.1 and 1.2, those statements include any Proceeding
or Investigation concerning:

(a)                                  any real property owned by a UBSE Group Company or exclusively used in
the Business (each a Property);

(b)                                 the pollution or protection of the Environment (including the disposal
of waste) or harm to or the protection of the health of humans, animals or
plants;

(c)                                  any UBSE IP (as to the title, validity, enforceability, entitlement or
otherwise); and

(d)                                 Tax.

2.                                      Compliance with Law

Each
UBSE Group Company has conducted its business and dealt with its assets in all
material respects in accordance with all applicable legal and administrative
requirements.

3.                                      Real Property

3.1                                 No UBSE Group Company is aware (having made reasonable enquiries) that
there is any resolution or proposal for compulsory acquisition of any property
which is material to the UBSE Group taken as a whole by a local or other
authority or statutory undertaking.

3.2                                 Where a UBSE Group Company holds a property which is material to the
UBSE Group taken as a whole under a lease, tenancy or licence, there is no fact
or circumstance which has been notified to it and nothing has been done by it
which:

(a)                                  would entitle or require a person (including, without limitation, a
landlord or licensor) to forfeit or enter on, or take possession of, or occupy,
that property; or

(b)                                 would restrict or terminate that UBSE Group Company’s continued and
uninterrupted possession or occupation of that property.

3.3                                 So far as the UB Parties are aware (having made reasonable enquiries),
each Property Permit is in force, unimpeachable and unconditional or subject
only to a condition that has been satisfied. So far 

 29
 

 

as
the UB Parties are aware (having made reasonable enquiries), no Property Permit
is expected to be revoked, suspended, cancelled, varied or not renewed.

4.                                      Trading Restrictions

4.1                                 No UBSE Group Company is a party to, any agreement, arrangement or
concerted practice (written or unwritten or intended to be legally enforceable
or not):

(a)                                  which restricts the trading activities of a UBSE Group Company,
including the prices or conditions under which goods or services are supplied
by or to that UBSE Group Company; or

(b)                                 which would be prohibited by Article 81(1) of the Treaty of
Rome or Article 53(1) of the Agreement on the European Economic Area
save for the application of Article 81(3) of the Treaty of Rome or Article 53(3) of
the Agreement on the European Economic Area.

5.                                      Definitions

In
this Schedule:

Environment means:

(a)                                  land, including, without limitation, surface land, sub-surface strata,
sea bed and river bed under water (as defined in paragraph (b)) and natural and
man-made structures;

(b)                                 water, including, without limitation, coastal and inland waters, surface
waters, ground waters and water in drains and sewers; and

(c)                                  air, including, without limitation, air inside buildings and other
natural and man-made structures above or below ground;

Permit means:

(a)                                  permit, licence, consent, approval, certificate, qualification,
specification, registration or other authorization; or

(b)                                 a filing of a notification, report or assessment,

in
each case necessary for the operation of the Business, its ownership,
possession, occupation or use of a material asset and where the lack of or
failure to obtain any such permit would have a material adverse effect on the
UBSE Group taken as a whole; and

Property
Permit means a Permit concerned with a property which
is material to the UBSE Group taken as a whole, its ownership, occupation,
possession or existing use, but excluding a Permit concerned with the
Environment.

 30
 

 

SCHEDULE 4

PRE-COMPLETION
COVENANTS

Each UBSE Group Company will:

1.                                       not create, allot, issue, acquire, repay or redeem any share or loan
capital or agree, arrange or undertake to do any of those things or acquire or
agree to acquire, an interest in a corporate body or merge or consolidate with
a corporate body or any other person, enter into any demerger transaction or
participate in any other type of corporate reconstruction or grant or offer any
option over the whole or any part of its share capital;

2.                                       operate its business in the usual way as carried on at the date of this
agreement so as to maintain that business as a going concern;

3.                                       not acquire or dispose of, or agree to acquire or dispose of, any
revenues, assets, business or undertakings except in the ordinary course of its
business or assume or incur, or agree to assume or incur, a liability,
obligation or expense (actual or contingent) except in the ordinary course of
its business;

4.                                       not make, or agree to make, capital expenditure exceeding in total
£100,000 or incur, or agree to incur, a commitment or commitments involving
capital expenditure exceeding in total £100,000;

5.                                       not pay any management, service, monitoring or other fee to any member
of the UB Group, or to any Affiliate of any member of the UB Group, other than
Permitted Leakage;

6.                                       not declare, pay or make a dividend or distribution;

7.                                       not create, or agree to create or amend, an Encumbrance over any of its
assets or redeem, or agree to redeem, an existing Encumbrance over any of its
assets;

8.                                       continue, without amendment, all insurance policies in force at the date
of this agreement and not do, or omit to do, anything which might, (i) make
any of the policies void or voidable, (ii) entitle any of the insurers
under any of the policies to refuse indemnity in relation to particular claims
in whole or in part, or (iii) result in an increase in the premium payable
under any of the policies provided that this shall not prevent the notification
to insurers of claims in circumstances which might give rise to claims under
any of the policies in accordance with the terms of the relevant policies;

9.                                       not enter into an onerous, unusual or material agreement, arrangement or
obligation;

10.                                 not enter into any agreement involving consideration, expenditure or
liabilities in excess of £100,000;

11.                                 not amend or terminate a material agreement, arrangement or obligation
to which it is a party or terminate any contract or commitment which is not
capable of being terminated without compensation or which is not in the
ordinary course of business or which involves or may involve total annual
expenditure of £100,000;

12.                                 not amend the terms and conditions of employment or engagement of a
director, other officer or employee (except in the usual course of its
business) or provide, or agree to provide, a gratuitous payment or benefit to a
director, officer or employee (or any of their dependents) or employ, engage or
terminate the employment or engagement of, a person;

 31
 

 

13.                                 not enter into any collective labour agreements or any other agreements
with works councils or employee representative bodies of a UBSE Group Company
or give any undertakings to, or make any legally binding statements to, any
such bodies;

14.                                 not amend, or agree to amend, the terms of its borrowing or indebtedness
in the nature of borrowing or create, incur, or agree to create or incur,
borrowing or indebtedness in the nature of borrowing and not to incur any
intra-group debt;

15.                                 not give, or agree to give, a guarantee, indemnity or other agreement to
secure, or incur financial or other obligations with respect to, another person’s
obligation, other than another UBSE Group Company;

16.                                 not start litigation or arbitration proceedings, other than to enforce
debts in the ordinary course or to take action in accordance with paragraph 20
below;

17.                                 not compromise or settle litigation or arbitration proceedings or any
action, demand or dispute or waive a right in relation to litigation or
arbitration proceedings;

18.                                 not release, discharge or compound any liability or claim;

19.                                 conduct its business in all material respects in accordance with all
applicable legal and administrative requirements in any jurisdiction;

20.                                 protect, defend, enforce, maintain and renew all the UBSE IP and
continue any pending applications relating to any UBSE IP for the Intellectual
Property Rights;

21.                                 not assign, grant any licence, encumbrance, consent, undertaking or
other right under or in respect of any of the UBSE IP; and

22.                                 not make any Tax election (other than elections that are made consistently
with past practice), settle or compromise any Tax controversy or Tax liability
relating to any UBSE Group Company, change an annual accounting period, adopt
or change any accounting method, file any amended Tax Return, enter into any
closing agreement, surrender any right to claim a refund of Taxes, consent to
any extension or waiver of the limitation period applicable to any Tax Claim or
assessment relating to any UBSE Group Company or take any other similar action
relating to the filing of any Tax Return or the payment of any Tax.

 32
 

 

SCHEDULE 5

CLAIMS

1.                                      Financial limits

The
maximum aggregate liability of the UB Parties in respect of any and all Title
Warranty Claims shall not exceed £575 million.

2.                                      Time limits

The
liability of the UB Parties in respect of a Locked-box Claim shall terminate
three months after Completion except in respect of any Locked-box Claim of
which notice is given to the UB Parties before this date. The liability of the
UB Parties in respect of any Locked-box Claim shall in any event terminate if
proceedings in respect of it have not been commenced within three months of
service of notice of that Locked-box Claim.

 33
 

 

SCHEDULE 6

COMPLETION

PART 1

UB
PARTIES’ OBLIGATIONS

At Completion:

(a)                                  Deluxestar shall appear (by means of an attorney duly empowered) with
NEH before a Spanish Notary Public to sign a public document evidencing the
transfer of the New Iberia Shares to NEH;

(b)                                 Deluxestar shall deliver to NEH:

(i)                                     the original Public Deed of transfer of New Iberia Shares, evidencing
ownership over the shares by Deluxestar;

(ii)                                  the Book of Shareholders of New Iberia duly reflecting NEH as the holder
of the New Iberia Shares;

(iii)                               duly executed letters of resignation in the Agreed Form for each of
Mark Oldham and Susan Furst in respect of their resignations as directors of UB
Iberia;

(iv)                              subject to being provided with a duly completed copy of the same, a copy
of the properly executed US tax election on Form 8832 to treat New Iberia
as a corporation for US tax purposes signed by UB Investments; and

(v)                                 a list of all bank accounts and safety deposit boxes held by a UBSE
Group Company, in each case showing the individuals who are entitled to sign on
such account or access such box.

(c)                                  UBGI shall deliver to KFI:

(i)                                     duly executed counterparts of the Transitional Services Agreement, the
Supply Agreements, the Intellectual Property Deed and the Licence Agreements;

(ii)                                  duly executed deeds of release of a share pledge agreement (póliza de cancelación de prenda de participaciones socials)
or notarial deeds of cancellation of mortgage (escritura
pública de cancelación de hipoteca inmobiliaria) (as applicable) in
respect of each security document listed in Part 3 of this Schedule 6;

(iii)                               subject to being provided with a duly completed copy of the same, a copy
of the properly executed US tax election on Form 8832 referenced in Step
3  of Schedule 2 signed by UB
Investments;

(iv)                              copies of the executed Reorganisation documents in the Agreed Form referred
to in Schedule 2.

(d)                                 Deluxestar shall ensure that at Completion a meeting of the board of
directors of UB Iberia is held at which the directors:

(i)                                     appoint persons nominated by NEH to UBGI at least 10 Business Days prior
to Completion as directors and auditors of UB Iberia with effect from the end
of the meeting;

 34
 

 

(ii)                                  accept the resignations of Susan Furst and Mark Oldham as directors of
UB Iberia so as to take effect from the end of the respective meetings; and

(e)                                  Deluxestar shall observe and perform its obligations under clause 7.1
(if any), by payment of the relevant amount in immediately available funds for
same day value, to the account notified to it by KFI not less than 3 Business
Days prior to Completion.

 

 35

 

PART 2

NEH’S
OBLIGATIONS

At Completion NEH shall:

(a)                                  deliver to UBGI the Discounted Securities Extraordinary Resolution in
the Agreed Form, duly executed by NEH as the sole holder of the Discounted
Securities, consenting to the redemption of all the Discounted Securities in
exchange for the transfer of the New Iberia Shares;

(b)                                 deliver to UBGI duly executed counterparts of the Transitional Services
Agreement, the Supply Agreements, the Intellectual Property Deed and the
Licence Agreements; and

(c)                                  deliver to UBGI, for cancellation, the certificate representing the
Warrants, or an express indemnity;

(d)                                 deliver to UBGI, for cancellation, the certificate representing the
Discounted Securities, or an express indemnity;

(e)                                  deliver to UBGI duly executed letters of resignation as directors or
observers of UBGI in the Agreed Form for each of Robert Bradish, Thomas
Dillon, Bernd Dreymueller, Jim McNasby and Linda Hefner;

(f)                                    procure that New Iberia shall pay the New Iberia Loan Amount, together
with any accrued interest to the UB Account in immediately available funds for
same day value in discharge of its obligation to pay deferred consideration
pursuant to the agreement referred to in Step 8 of Schedule 2; and

(g)                                 NEH shall observe and perform its obligations under clause 7.2 by
payment of the relevant account in immediately available funds for same day
value to the UB Account.

 36
 

 

PART 3

SECURITY
DOCUMENTS

1.                                       Spanish law pledge of participations in UB Iberia dated 8 September 2000;

2.                                       Spanish law accession deed for the Spanish law pledge of participations
in UB Iberia dated 27 April 2001 amending and clarifying the deed of
pledge referred to in paragraph 1 above;

3.                                       Spanish law Deed of Mortgage over Spanish real estate between UB Iberia
and the Finance Parties dated 27 April 2001 over plot of land number 3,163
in Bilbao;

4.                                       Spanish law Deed of Mortgage over Spanish real estate between Galletas
UB and the Finance Parties (as defined therein) dated 27 April 2001 over
plot of land number 3,164 in Bilbao;

5.                                       Spanish law Deed of Mortgage over Spanish real estate between UB Iberia
and the Finance Parties (as defined therein) dated 27 April 2001 over plot
of land number 3,592 in Barcelona;

6.                                       Spanish law Deed of Mortgage over Spanish trademarks between UB Iberia
and the Finance Parties (as defined therein) dated 27 April 2001 over
several trademarks under the names of LOSTE, ROYAL and RIERA MARSA; and

7.                                       Spanish law deed of pledge of shares between UB Iberia, Galletas UB,
Carnes y Conservas and the Finance Parties dated 27 April 2001 over the
shares in (i) Carnes y Conservas and (ii) Galletas UB.

 37

 

SCHEDULE 7

INTERPRETATION

1.                                       In this agreement:

Accounts
Date means 31 May 2006;

Affiliate
means, in relation to a person, any other
person, directly or indirectly, controlling or controlled by or under common
control with that person and for the purposes of this definition control when
used with respect to any person means power to direct the management and
policies of such person, directly or indirectly, whether through the ownership
of voting securities, by contract or otherwise;

Agreed Form means, in relation to any document, the form of that document which has
been initialled for the purpose of identification by KFI’s Solicitors and UB’s
Solicitors or otherwise by or on behalf of Deluxestar and NEH with such changes
as Deluxestar and NEH may agree in writing before Completion;

Balance
Sheet means the consolidated balance sheet of the
UBSE Group as at 31 May 2006 contained in Data Room “A” prepared at
an exchange rate of €1.4636 to £1.00;

Bank
Consent Condition has the meaning ascribed to
it in clause 3.1(a);

Business means:

(a)                                  the business conducted by the UBSE Group as at the date of this
agreement;

(b)                                 the business of manufacturing, distributing, marketing, promoting, selling
or exporting products bearing the Merola Marks and/or any other trade mark
owned by the UBSE Group at the date of this agreement, as conducted by the
Wider UB Group as at the date of this agreement;

(c)                                  the business of distributing, marketing, promoting, selling or exporting
products manufactured by the UBSE Group as at the date of this agreement;

Business
Day means a day (other than a Saturday or Sunday)
on which banks are generally open in London for normal business;

Carnes y
Conservas means Carnes y Consevas
Espanolas, S.A. (registered number A-28419372);

Cash means in respect of a UBSE Group Company, the aggregate of all cash
held by such UBSE Group Company at the Accounts Date, and any balances credited
to the account of such UBSE Group Company with banks or other financial
institutions, in each case as set out in the UBSE Group Company’s nominal
ledger, but for the avoidance of doubt excluding Restricted Cash and the
Intra-Group Receivables;

Claims means Title Warranty Claims and Locked-box Claims;

Completion means completion of the transfer of the New Iberia Shares in redemption
of the Discounted Securities in accordance with this agreement;

Conditions
means the conditions precedent to the transfer
of the New Iberia Shares in redemption of the Discounted Securities as set out
in clause 3.1;

 38
 

 

Consiber means Consiber, S.A. (registered number A-28569853);

Data Room “A”
means the documents and information contained
or referred to in the online data room made available to certain of KFI’s
advisers by Merrill Corporation, as listed in Data Room Index “A” in the
Agreed Form;

Data Room “B”
means the documents and information contained
or referred to in the online data room made available to KFI and its advisers
by Merrill Corporation, as listed in Data Room Index “B” in the Agreed
Form;

Deed of
Termination of Shareholders Agreement means
the deed dated on or around the date of this agreement pursuant to which the
Shareholders Agreement will be terminated at Completion;

Discounted
Securities means the £33,096,603,466
Dual Convertible Discounted Preferred Securities 2049 constituted by the
Discounted Securities Instrument;

Delacre
Adjustment means the decrease in the
Inter-Company Debt by an amount equal to £4,818,256 in connection with the
purchase of N.V. Biscuits Delacre S.A. by UB Iberia in January 2006;

Discounted
Securities Instrument means the instrument
entered into on 25 April 2000 by Deluxestar Limited constituting the
Discounted Securities;

Discounted
Securities Redemption Amount means
an amount equal to £280.6 million being the amount required to redeem all the
outstanding Discounted Securities in full on the Accounts Date in accordance
with the Discounted Securities Instrument;

Encumbrance means any option, right to acquire, third party right or interest,
mortgage, charge, pledge, lien or other form of security or encumbrance or
another type of preferential arrangement having similar effect and any
agreement to create any of the foregoing;

Exchange
Amount means £280.6 million;

Galletas
UB means Galletas United Biscuits, S.A.
(registered number A-31018104);

Indebtedness means in respect of a UBSE Group Company, any of:

(a)                                  the principal and accrued interest (if any) on any borrowing or
indebtedness in the nature of borrowing incurred by UBSE Group Company
(including, without limitation, bank debt, loans, overdrafts, guarantees,
letters of credit which are secured by a third party which is not a UBSE Group
Company), any loan notes or bonds, any other interest bearing and/or secured
lending or credit liabilities provided by third parties to such UBSE Group
Company and any early repayment, prepayment, or break costs or penalties in
respect of the above items;

(b)                                 the capitalised element of any lease or hire purchase contract which
would be treated as a finance or capital lease; and

(c)                                  all costs payable by such UBSE Group Company on termination of any
interest rate swap or hedging arrangements to which such UBSE Group Company is
party,

and
for the avoidance of doubt excludes Inter-Company Debt;

 39
 

 

Information
Memorandum means the information
memorandum on United Biscuits Group (Investments) Limited and its subsidiaries
prepared by Goldman Sachs International dated June 2006 in the Agreed
Form;

Initial
Amount means £561.8 million (being the sum of £575
million plus £11.7 million (cash) minus £0 (debt) minus £0.1 million (finance
lease) minus £24.8 million (intercompany debt));

Inter-Company
Debt means all amounts owing from the UBSE Group
Companies to members of the UB Group as at the Accounts Date as shown on the
Balance Sheet including any accrued interest, but for the avoidance of doubt
excluding Intra-Group Trading Amounts and the Tulipan Debt;

Intercreditor
Deed means the intercreditor deed dated 28 April 2000
between, among others, certain members of the UB Group and Deutsche Bank AG
London as Security Agent (as varied, supplemented or amended from time to
time);

Interest
Amount means an amount of interest on:

(the
Initial Amount plus the sum of £24.8 million (intercompany debt) minus £11.7
million (cash) minus the Exchange Amount),

from
(and including) the Accounts Date until (but excluding) the date of Completion
at an annual rate of 6.6% which interest shall accrue from day to day;

Intra-Group
Receivables means all amounts owing
from members of the UB Group to UBSE Group Companies as at the Accounts Date
including any accrued interest, but for the avoidance of doubt excluding
Intra-Group Trading Amounts;

Intra-Group
Trading Amounts means amounts payable by or
to a UBSE Group Company to or from a member of the UB Group pursuant to normal
arms length commercial transactions in the ordinary course of trading
consistent with historic practice prior to the Accounts Date for the supply of
goods or services which are invoiced and settled in cash in the ordinary course.

KFI’s
Solicitors means Clifford Chance LLP
of 10 Upper Bank Street, London E14 5JJ;

Kraft
Group means KFI and each of its Affiliates from time
to time;

Kraft
Parties means NEH and KFI;

Lenders has the meaning ascribed to it in the Senior Facilities Agreement;

Licence
Agreements means the Diver Licence
Agreement, the Filipinos Licence Agreement, the Hob-Nobs Licence Agreement, the
McVities Licence Agreement and the Wheatsheaf Licence Agreement, each in the
Agreed Form;

Loan
Facilities Commitment Letter means
the commitment letter to be entered into between New Iberia, Citigroup Global
Markets Limited, UBS Securities LLC, Citibank International plc and UBS Loan
Finance plc and UB Investments on or around the date of this agreement;

Locked-box
Claim means any claim by a Kraft Party the basis of
which is that a warranty or undertaking set out in clause 13.1, 13.2, 13.3,
13.5, 13.6, 14.1, 14.2 or 14.3 is, or is alleged to be, untrue or inaccurate;

Management
Accounts means the management
accounts for the UBSE Group Companies contained in Data Room “A”;

 40
 

 

Merola
Marks means the trade marks the subject of the
Merola Sub-Licence which are listed in the Intellectual Property Deed;

Merola
Sub-Licence means the sub-licence dated
11 July 2000 entered into between Merola Finance B.V. and UB Iberia (then
named Nabisco Iberia S.L.) as amended and supplemented from time to time;

New
Iberia means a Spanish S.L. to be acquired by UB
Investments “off-the-shelf”;

New
Iberia Loan Amount means an amount equal to
the Reference Amount minus the Exchange Amount;

New
Iberia Shares means all the shares of New
Iberia;

P6
Adjustment Payment means the payment of
£6,832,500 from the UBSE Group Companies to the UB Group following the P6
adjustment in accordance with normal practice in satisfaction of Inter-Company
Debt owed by the UBSE Group Companies to the UB Group;

Permitted
Leakage means:

(a)                                  Intra-Group Trading Amounts;

(b)                                 Step 7 of the Reorganisation as set out in Schedule 2;

(c)                                  payments due under the Pan European Cost Sharing Agreement (in the form
set out in Data Room “A”) between the UBSE Companies and members of the
UBSE Group;

(d)                                 normal expenses related to the operation of the Business properly
payable to employees, directors or officers of any UBSE Group Company; and

(e)                                  emoluments and other entitlements properly payable to employees,
directors or officers of any UBSE Group Company and due or accrued up to the
date of Completion by virtue of their employment or directorship, but excluding
any extraordinary stay, bonus, severance, or incentive payment;

Permitted
Payments means:

(a)                                  any interest payable under any loan agreements between the UBSE Group
Companies and members of the UB Group;

(b)                                 any payments due under the Pan European Cost Sharing Agreement between
the UBSE Group Companies and members of the UB Group; and

(c)                                  any payments made in the ordinary course of trading between the UBSE
Group Companies and members of the UB Group as a result of goods or services
supplied on normal arm’s length terms;

Pre-Completion
Warranties means the warranties on the
part of the UB Parties set out in Schedule 3;

Postres
UB means Postres United Biscuits, S.A.
(registered number A-60172541);

Press
Release means the press release in the Agreed Form concerning
the sale and purchase of the UBSE Group;

 41
 

 

Reference
Amount means the Initial Amount plus the Interest
Amount;

Reorganisation
means the reorganisation described in Schedule
2 and to be implemented in accordance with clauses 3.4 and 3.5;

Restricted
Cash means any cash held by a UBSE Group Company
which is not capable of being lawfully spent, distributed, loaned or released
by such UBSE Group Company from the jurisdiction in which it is situated
without deduction or withholding or additional cost (other than the costs of
transfer from a bank account incurred the ordinary course), or which is
otherwise committed (including without limitation any cash held in respect of
or securing rent deposits, in respect of UBSE Group employee withholding taxes
or any other cash held as collateral in respect of obligations of any party);

Senior
Facilities Agreement means the senior facilities
agreement dated 19 December 1999 between, among others, UBGI as Parent,
the Lenders (as defined therein) and Deutsche Bank AG London as Agent (as
varied, supplemented or amended from time to time);

Shareholders
Agreement means the shareholders
agreement dated 17 March 2000 and entered into between, among others, UBGI
(1), Kraft Foods International Inc. (2), Cinven Limited (3), and PAI partners
SAS (4), and to which MidOcean Associates SPC subsequently became a party, (as
amended from time to time);

subsidiary means a subsidiary for the purposes of the Companies Act 1985;

subsidiary
undertaking and parent
undertaking have the meanings given in section 258 of the Companies
Act 1985;

Supply
Agreements means the eight supply
agreements in the Agreed Form;

Title
Warranties means the warranties on the
part of the UB Parties contained in clause 11 in sub-clauses 11.1, 11.2 and
11.3;

Title
Warranty Claim means a claim by a Kraft
Party the basis of which is that a Title Warranty is, or is alleged to be,
untrue or inaccurate;

Transaction
Documents means this agreement, the
Loan Facilities Commitment Letter, the Deed of Termination of Shareholders
Agreement, the Transitional Services Agreement, the Supply Agreements, the
Intellectual Property Deed and the Licence Agreements;

Transitional
Services Agreement means the transitional
services agreement in the Agreed Form;

Tulipan
Debt means an amount equal to £239.8 million owing
from UB Iberia to UB Overseas as at the Accounts Date as shown on the Balance
Sheet (including any accrued interest);

UB
Account means the bank account of
United Biscuits (UK) Limited which is notified to KFI at least 3 Business Days
prior to Completion;

UBGI means United Biscuits Group (Investments) Limited (registered number
03877866);

UB Group means UBGI and each of its subsidiaries other than the UBSE Group
Companies;

UB Iberia
has the meaning ascribed to it in Recital (A);

UB Iberia Shares
means the 20,480,400 ordinary shares of €3.01 each in the capital of UB Iberia;

 42
 

 

UB
Parties means UBGI, UB Overseas, UB
Investments and Deluxestar;

UB
Portugal means United Biscuits
Portugal, S.A. (registered number 502.449.136);

UB’s
Solicitors means Allen &
Overy LLP of One New Change, London EC4M 9QQ;

UBSE
Group means New Iberia and each of the other UBSE
Group Companies, taken as a whole;

UBSE
Group Companies means New Iberia, UB Iberia
and the UBSE Subsidiaries and UBSE Group Company
means any of them;

UBSE
Subsidiaries means each of Carnes y
Conservas, Consiber, Galletas UB, Postres UB, and UB Portugal;

UB
Transaction Costs means any costs or expenses
of UBGI or any other member of the UB Group relating directly or indirectly to
the sale of the UBSE Group or the New Iberia Shares (including any transaction
or sale bonuses or other payments payable as a result of the implication of the
sale of the New Iberia Shares (to any person));

Vendor
Due Diligence Report means the vendor due
diligence report in the Agreed Form prepared by Ernst & Young LLP
relating to the UB Group;

Warrant
Instrument means an instrument executed
by UBGI on 25 April 2000 (as amended and restated on 25 July 2000);

Warrants means warrants to subscribe for shares in UBGI constituted pursuant to
the Warrant Instrument;

Wider UB
Group means the UB Group and the UBSE Group
Companies; and

a
person shall be deemed to be connected with
another if that person is connected with another within the meaning of section
839 of the Taxes Act 1988.

2.                                       In this agreement any reference, express or implied, to an enactment
(which includes any legislation in any jurisdiction) includes:

(a)                                  that enactment as amended, extended or applied by or under any other
enactment (before or after signature of this agreement);

(b)                                 any enactment which that enactment re-enacts (with or without
modification); and

(c)                                  any subordinate legislation made (before or after signature of this
agreement) under that enactment, including (where applicable) that enactment as
amended, extended or applied as described in subparagraph (a), or under any
enactment which it re-enacts as described in subparagraph (b),

except
to the extent that any legislation or subordinate legislation made or enacted
after the date of this agreement would create or increase the liability of
Deluxestar under this agreement.

3.                                       In this agreement:

(a)                                  words denoting persons include bodies corporate and unincorporated
associations of persons;

 43
 

 

(b)                                 references to an individual or a natural person include his estate and
personal representatives; and

(c)                                  subject to clause 18, references to a party to this agreement include
the successors or assigns (immediate or otherwise) of that party.

 44

 

SIGNATORIES

	
  SIGNED by

  	
  )

  	
   

  
	
  for and on behalf of

  	
  )

  	
  /s/ Jeff Van Der Eems

  
	
  UNITED BISCUITS GROUP

  	
  )

  	
  Authorised Signatory

  
	
  (INVESTMENTS) LIMITED

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  SIGNED by

  	
  )

  	
   

  
	
  for and on behalf of

  	
  )

  	
  /s/ Graham Clempson

  
	
  DELUXESTAR LIMITED

  	
  )

  	
  Authorised Signatory

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  SIGNED by

  	
  )

  	
   

  
	
  for and on behalf of

  	
  )

  	
  /s/ Mark Oldham

  
	
  UB OVERSEAS LIMITED

  	
  )

  	
  Authorised Signatory

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  SIGNED by

  	
  )

  	
   

  
	
  for and on behalf of

  	
  )

  	
  /s/ Mark Oldham

  
	
  UB INVESTMENTS (NETHERLANDS) B.V.

  	
  )

  	
  Authorised Signatory

  
	
   

  	
   

  
	
   

  	
  /s/ Susan Furst

  
	
   

  	
  Authorised Signatory

  
	
   

  	
   

  
	
  SIGNED by

  	
  )

  	
   

  
	
  for and on behalf of

  	
  )

  	
  /s/ Bernd Dreymueller

  
	
  NABISCO EURO HOLDINGS LTD.

  	
  )

  	
  Authorised Signatory

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  SIGNED by

  	
  )

  	
   

  
	
  for and on behalf of

  	
  )

  	
  /s/ Michael Waks

  
	
  KRAFT FOODS INTERNATIONAL, INC.

  	
  )

  	
  Authorised Signatory

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}]]