Kraft 2009 Annual Report Download - page 134

(iv) In the event of any conflict between this Section 4(b) and other provisions of the Plan or the Prior Plan, the provisions of this section shall control.
Receipt of an Award under the Plan shall constitute an acknowledgement by the Participant receiving such Award of the Committee’s ability to
adjust Awards under the Prior Plans in a manner consistent with this Section 4(b).
Section 5. Awards.
(a) General. The types of Awards that may be granted under the Plan are set forth below. Awards may be granted singly, in combination or in tandem with
other Awards. All Award agreements are incorporated in and constitute part of the Plan.
(i) Stock Options. A Stock Option represents the right to purchase a share of Stock at a predetermined grant price. Stock Options granted under the Plan
may be in the form of Incentive Stock Options or Nonqualified Stock Options, as specified in the Award agreement but no Stock Option designated
as an Incentive Stock Option shall be invalid in the event that it fails to qualify as an Incentive Stock Option. The term of each Stock Option shall be
set forth in the Award agreement, but no Stock Option shall be exercisable more than ten years after the grant date. The grant price per share of
Common Stock purchasable under a Stock Option shall not be less than 100% of the Fair Market Value on the date of grant. Subject to the
applicable Award agreement, Stock Options may be exercised, in whole or in part, by giving written notice of exercise specifying the number of
shares to be purchased. Such notice shall be accompanied by payment in full of the purchase price by certified or bank check or such other
instrument as the Company may accept (including a copy of instructions to a broker or bank acceptable to the Company to deliver promptly to the
Company an amount sufficient to pay the purchase price). Unless otherwise determined by the Committee, payment in full or in part may also be
made in the form of Common Stock already owned by the Participant valued at Fair Market Value on the day preceding the date of exercise;
provided, however, that such Common Stock shall not have been acquired by the Participant within the six months following the exercise of a Stock
Option or SAR, within six months after the lapse of restrictions on Restricted Stock, or within six months after the receipt of Common Stock from
the Company, whether in settlement of any Award or otherwise.
(ii) Stock Appreciation Rights. A SAR represents the right to receive a cash payment, shares of Common Stock, or both (as determined by the
Committee), with a value equal to the Spread Value on the date the SAR is exercised. The grant price of a SAR shall be set forth in the applicable
Award agreement and shall not be less than 100% of the Fair Market Value on the date of grant. Subject to the terms of the applicable Award
agreement, a SAR shall be exercisable, in whole or in part, by giving written notice of exercise, but no SAR shall be exercisable more than ten years
after the grant date.
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Source: KRAFT FOODS INC, 10-K, February 25, 2010 Powered by Morningstar® Document Research℠