This excerpt taken from the KFT 10-K filed Feb 27, 2009.
The Company shall establish within each Deferred Fee Account one or more Subaccounts to which the Deferred Amounts are to be allocated pursuant to the Participants Election Form or Election Forms. Such Subaccounts shall be credited with earnings and charged with losses, if any, on the same basis as the corresponding Fund, as the same may change from time to time.
To the extent additional investment funds are provided under the Profit-Sharing Plan, the senior Human Resources officer of the Company is authorized to establish corresponding Subaccounts under the Plan. The senior Human Resources officer is authorized to limit or prohibit new investments or transfers into any Subaccount.
Subject to the provisions of Sections 2.2.3 and 2.2.4, on each Allocation Date, each Participants Subaccounts shall be credited with an amount equal to the Deferred Amount designated by the Participant for allocation to such Subaccounts. Each Subaccount shall be credited with earnings and charged with losses as if the amounts allocated thereto had been invested in the corresponding Fund, provided that the Kraft Stock Fund Subaccount shall be credited with additional shares of Common Stock based on the amount of cash dividends that are paid from time to time on the number of shares of Common Stock with respect to which the Kraft Stock Fund Subaccount is determined.
The value of any Subaccount at any relevant time shall be determined as if all amounts credited thereto had been invested in the corresponding Fund, provided, however, that if as a result of adjustments or substitutions in connection with an event described in Section 4 of the Companys Stock Compensation Plan for Non-Employee Directors or the corresponding provision of any successor thereto, a participant has received or receives with respect to the Kraft Stock Fund Subaccount rights or amounts measured by reference to stock other than Common Stock, then any crediting of amounts to reflect
dividends with respect to such other stock shall be allocated among and treated as invested proportionately in the Subaccounts most recently in effect for the investment of Compensation deferred by the Participant.