================================================================================


                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549



                                    FORM 8-K


                                 CURRENT REPORT


                       Pursuant to Section 13 or 15(d) of
                       The Securities Exchange Act of 1934


       Date of Report (Date of earliest event reported): November 26, 2002


                                KRAFT FOODS INC.
             (Exact name of registrant as specified in its charter)

                                                                              
             Virginia                                 1-16483                           52-2284372
   (State or other jurisdiction                     (Commission                      (I.R.S. Employer
         of incorporation)                         File Number)                     Identification No.)


          Three Lakes Drive, Northfield, Illinois                                               60093-2753
          (Address of principal executive offices)                                               (Zip Code)


   Registrant's telephone number, including area code:                                       (847) 646-2000
(Former name or former address, if changed since last report.) ================================================================================ Item 5. Other Events. Kraft Foods Inc. (the "Company") has filed with the Securities and Exchange Commission (the "Commission") a Prospectus dated April 25, 2002 and a Prospectus Supplement dated November 20, 2002 (Registration No. 333-86478) in connection with the public offering of $750,000,000 Floating Rate Notes due 2004. The purpose of this Current Report on Form 8-K (the "Report") is to file with the Commission the Terms Agreement and a specimen Floating Rate Note due 2004. Item 7. Financial Statements, Pro Forma Financial Information and Exhibits. The following documents are filed as part of this Report. (c) Exhibits. 1 Terms Agreement dated as of November 20, 2002 4 Specimen of Floating Rate Note due 2004 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. KRAFT FOODS INC. By: /s/ JAMES P. DOLLIVE ___________________________________ Name: James P. Dollive Title: Senior Vice President and Chief Financial Officer Date: November 26, 2002 INDEX TO EXHIBITS Exhibit No. Description - ------- ----------- 1 Terms Agreement dated as of November 20, 2002 4 Specimen of Floating Rate Note due 2004



                                                                       Exhibit 1

                                 KRAFT FOODS INC.
                                   ("Company")

                                 Debt Securities

                                 TERMS AGREEMENT
                                 ---------------

                                                               November 20, 2002


To:  The Representatives of the Underwriters identified herein

Dear Sirs:

         The undersigned agrees to sell to the several Underwriters named in
Schedule A hereto for their respective accounts, on and subject to the terms and
conditions of the Underwriting Agreement dated September 1, 2001 and filed as an
exhibit to the Company's registration statement on Form S-3 (No. 333-86478)
relating to debt securities and warrants to purchase debt securities (the
"Underwriting Agreement"), the following securities (the "Offered Securities")
on the following terms:

                               OFFERED SECURITIES
                               ------------------

Title:

          Floating Rate Notes due 2004 (the "Notes").

Principal Amount:

          $750,000,000.

Interest:

          Three-Month LIBOR (as determined as set forth in the Prospectus
          Supplement, dated November 20, 2002 (the "Prospectus Supplement"))
          plus 0.20%, payable quarterly in arrears on February 26, May 26,
          August 26 and November 26 of each year, beginning on



          February 26, 2003, to the persons in whose name the Notes are
          registered at the close of business 15 calendar days before the
          applicable interest payment date. Interest shall be calculated on the
          basis of the actual number of days during the relevant interest period
          and a 360-day year. Interest is payable from the date of issue of the
          Notes or from the most recent date to which interest on such Note has
          been paid or duly provided for, until the principal amount of the Note
          is paid or duly made available for payment.

          The interest rate will be reset quarterly on February 26, May 26,
          August 26 and November 26 of each year (each, an "interest reset
          date"). The interest determination dates are quarterly, and will occur
          two "London banking days" prior to the applicable interest reset date
          (as more fully set forth in the Prospectus Supplement), except that
          the first interest determination date will be November 22, 2002 and
          will be for the period from the date of issue to the first interest
          payment date.

Maturity:

          November 26, 2004.

Currency of Denomination:

          United States Dollars ($).

Currency of Payment:

          United States Dollars ($).

Form and Denomination:

          Book-entry form only represented by one or more global securities
          deposited with The Depository Trust Company or its designated
          custodian, in denominations of $1,000 and $1,000 integral multiples
          thereof.

Optional Redemption:

          The Notes may not be redeemed prior to maturity.

Conversion Provisions:

          None.

Sinking Fund:

          None.

                                        2



Listing:

         None.

Delayed Delivery Contracts:

         None.

Purchase Price:

         99.80% of principal amount of the Notes, plus accrued interest, if any,
         from November 26, 2002.

Expected Reoffering Price:

         100% of principal amount, plus accrued interest, if any, from November
         26, 2002.

Additional Agreements of the Company:

         Not applicable.

Additional Representations and Warranties of the Company:

             The Company hereby represents and warrants and agrees with each
         Underwriter that (i) the documents incorporated by reference in the
         Registration Statement and the Prospectus on or before the Closing
         Date, when they were or are filed with the Commission, conformed or
         will conform, as the case may be, in all material respects to the
         requirements of the Securities Exchange Act of 1934, as amended, and
         the rules and regulations of the Commission thereunder and (ii) the
         Calculation Agency Agreement, to be dated as of the Closing Date (the
         "Calculation Agency Agreement"), between the Company and JPMorgan Chase
         Bank, as calculation agent (the "Calculation Agent"), has been duly
         authorized, and when the Notes are delivered and paid for pursuant to
         this Terms Agreement on the Closing Date, the Calculation Agency
         Agreement will have been duly executed and delivered and, assuming due
         authorization, execution and delivery thereof by the Calculation Agent,
         will constitute the valid and legally binding obligation of the
         Company, enforceable against the Company in accordance with its terms,
         subject to bankruptcy, insolvency, fraudulent conveyance,
         reorganization, moratorium and similar laws of general applicability
         relating to or affecting creditors' rights, to an implied covenant of
         fair dealing and to general equity principles.

                                        3



Additional Closing Conditions:

         It shall be a condition to the obligations of the several Underwriters
     to purchase and pay for the Offered Securities that the opinion of counsel
     referred to in Section 5(d) of the Underwriting Agreement shall include an
     opinion substantially to the effect of the immediately preceding paragraph.

                                  OTHER MATTERS
                                  -------------

Closing:

     10:00 A.M. on November 26, 2002, the fourth business day following the date
     hereof, at the offices of Hunton & Williams, 200 Park Avenue, New York, New
     York 10166, in Federal (same day) funds.

Settlement and Trading:

     Book-Entry Only via DTC.

Names and Addresses of the Representatives:

     ABN AMRO Incorporated
     55 East 52nd Street
     6th Floor
     New York, New York 10055
     Attention: Linda Dawson

     Lehman Brothers Inc.
     745 Seventh Avenue
     New York, New York 10019
     Attention:  Debt Capital Markets - Consumer Products Group
     (For purposes of notices, with a copy to the General Counsel at the above
     address)

Names and Addresses of the Lead Underwriters:

     ABN AMRO Incorporated
     55 East 52nd Street
     6th Floor
     New York, New York 10055
     Attention: Linda Dawson

     Lehman Brothers Inc.
     745 Seventh Avenue

                                        4



     New York, New York 10019
     Attention:  Debt Capital Markets - Consumer Products Group
     (For purposes of notices, with a copy to the General Counsel at the above
     address)

          Each Underwriter hereby severally represents and agrees that it has
not offered, sold or delivered and it will not offer, sell or deliver, directly
or indirectly, any of the Notes or distribute the Prospectus, or any other
offering material relating to the Notes, in or from any jurisdiction, other than
offers, sales, deliveries and distributions made within the United States under
circumstances that will result in compliance with the applicable United States
laws and regulations and that will not impose any obligation on the Company
except as set forth in the Underwriting Agreement and herein.

          The respective principal amounts of the Offered Securities to be
severally purchased by each of the Underwriters are set forth opposite their
names in Schedule A hereto.

          The provisions of the Underwriting Agreement are incorporated herein
by reference, except that (a) Section 4(h) thereof is subject to the letter
agreement entered into on the date hereof between the Company and the
Representatives and (b) Section 5(c)(iii) thereof is hereby amended and restated
in its entirety with respect to the Offered Securities as follows:

          "(iii) any material suspension or material limitation of trading in
     securities generally on the New York Stock Exchange, or any material
     disruption in commercial banking or securities settlement or clearance
     services, or any setting of minimum prices for trading any securities of
     the Company on the New York Stock Exchange, or any suspension of trading of
     any securities of the Company on the New York Stock Exchange;".

          The Offered Securities will be made available for checking at the
office of Hunton & Williams, 200 Park Avenue, New York, New York 10166, at least
24 hours prior to the Closing Date.

          For purposes of Section 6 of the Underwriting Agreement, the only
information furnished to the Company by the Underwriters for use in the
Prospectus consists of the following information in the Prospectus: the
concession and reallowance figures appearing in the third paragraph under the
caption "Underwriting" in the prospectus supplement and the information
contained in the fifth and sixth paragraphs under the caption "Underwriting" in
the prospectus supplement.

                                       5



          If the foregoing is in accordance with your understanding of our
agreement, kindly sign and return to the Company one of the counterparts hereof,
whereupon it will become a binding agreement between the Company and the several
Underwriters in accordance with its terms.

                                            Very truly yours,

                                            KRAFT FOODS INC.


                                            By /s/ JAMES P. DOLLIVE
                                              --------------------------------
                                              Name:  James P. Dollive
                                              Title: Senior Vice President and
                                                     Chief Financial Officer


The foregoing Terms Agreement is hereby
confirmed and accepted as of the date
first above written.

ABN AMRO INCORPORATED


By /s/ LINDA A. DAWSON
  ----------------------------
  Name:  Linda A. Dawson
  Title: Managing Director


LEHMAN BROTHERS INC.


By /s/ KEVIN SMITH
  ----------------------------
  Name:  Kevin Smith
  Title: Senior Vice President


Acting on behalf of themselves and as the
Representatives of the several Underwriters.

                                       6



                                   SCHEDULE A

Principal Amount of Notes ----- Underwriter - ----------- ABN AMRO Incorporated .............................. $228,750,000 Lehman Brothers Inc. ............................... 228,750,000 BNP Paribas Securities Corp. ....................... 67,500,000 Deutsche Bank Securities Inc. ...................... 67,500,000 HSBC Securities (USA) Inc. ......................... 67,500,000 SG Cowen Securities Corporation .................... 67,500,000 Blaylock & Partners, L.P. .......................... 7,500,000 Loop Capital Markets, LLC .......................... 7,500,000 Muriel Siebert & Co., Inc. ......................... 7,500,000 ------------ Total .............................................. $750,000,000 ============


                                                                       Exhibit 4

REGISTERED
No. 1

                                KRAFT FOODS INC.


                          FLOATING RATE NOTE DUE 2004

                                  representing

                                  $400,000,000

CUSIP No.    50075N AJ 3

THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF.
UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN CERTIFICATED
FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TRUST
COMPANY (THE "DEPOSITARY") TO A NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY
OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR
DEPOSITARY. UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITARY TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH
OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH
AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

                  KRAFT FOODS INC., a Virginia corporation (hereinafter called
the "Company," which term includes any successor corporation under the Indenture
hereinafter referred to), for value received, hereby promises to pay to Cede &
Co. or registered assigns, the principal sum of $400,000,000 on November 26,
2004, and to pay interest thereon as set forth on the reverse of this Note.

                  Payment of the principal of and interest on this Note shall be
made at the office or agency of the Company maintained for that purpose in the
Borough of Manhattan, The City of New York, in such coin or currency of the
United States of America as at the time of payment is legal tender for payment
of public and private debts; provided, however, that at the option of the
Company payment of interest may be made by check mailed to the address of the
Person entitled thereto as such address shall appear on the Securities Register
or by wire transfer to an account maintained by the payee at a bank located in
the United States. All payments of principal and interest in respect of this
Note shall be made by the Company in immediately available funds.



                  Additional provisions of this Note are contained on the
reverse hereof, and such provisions shall have the same effect as though fully
set forth in this place.

                  Unless the certificate of authentication hereon has been
executed by or on behalf of the Trustee for the Notes by manual signature, this
Note shall not be entitled to any benefit under the Indenture, or be valid or
obligatory for any purpose.

                                       2



                  IN WITNESS WHEREOF, KRAFT FOODS INC. has caused this
instrument to be duly executed under its corporate seal.

Dated: November 26, 2002

                                                   KRAFT FOODS INC.

                                                   By: /s/ JAMES P. DOLLIVE
                                                      __________________________
                                                      Name:  James P. Dollive
                                                      Title: Senior Vice
                                                             President and Chief
                                                             Financial Officer

[SEAL]

                                                   Attest:

                                                   By: /s/ CALVIN J. COLLIER
                                                      __________________________
                                                      Name:  Calvin J. Collier
                                                      Title: Senior Vice
                                                             President, General
                                                             Counsel and
                                                             Corporate Secretary

                                       3



                         CERTIFICATE OF AUTHENTICATION

                  This is one of the Securities of the series designated therein
described in the within-mentioned Indenture.

                                                       JPMORGAN CHASE BANK,
                                                         as Trustee

                                                       By: /s/ CAROL NG
                                                           ---------------------
                                                             Authorized Officer

                                       4



                               (Reverse of Note)

                                KRAFT FOODS INC.

                  This Note is one of a duly authorized issue of debentures,
notes or other evidences of indebtedness (hereinafter called the "Securities")
of the Company of the series hereinafter specified, which series is initially
issued in the aggregate principal amount of $750,000,000, all such Securities
issued and to be issued under an Indenture dated as of October 17, 2001 between
the Company and The Chase Manhattan Bank (now known as JPMorgan Chase Bank), as
Trustee (herein called the "Indenture"), to which Indenture and all other
indentures supplemental thereto reference is hereby made for a statement of the
rights and limitations of rights thereunder of the Holders of the Securities and
of the rights, obligations, duties and immunities of the Trustee for each series
of Securities and of the Company, and the terms upon which the Securities are
and are to be authenticated and delivered. As provided in the Indenture, the
Securities may be issued in one or more series, which different series may be
issued in various aggregate principal amounts, may mature at different times,
may bear interest, if any, at different rates, may be subject to different
redemption provisions, if any, may be subject to different sinking, purchase or
analogous funds, if any, may be subject to different covenants and Events of
Default and may otherwise vary as in the Indenture provided or permitted. This
Note is one of a series of the Securities designated therein as Floating Rate
Notes due 2004 (the "Notes").

                  The Notes shall bear interest from and including November 26,
2002 until the principal hereof is paid or made available for payment, and shall
be payable from and including November 26, 2002 or from and including the most
recent Interest Payment Date to which interest has been paid or duly provided
for, quarterly in arrears, except as otherwise provided in this paragraph, on
February 26, May 26, August 26 and November 26 of each year (each an "Interest
Payment Date"), beginning on February 26, 2003, to the Holders in whose names
the Notes are registered at the close of business on the Regular Record Date for
such interest installment, which shall be on the 15th calendar day preceding
each Interest Payment Date. If any Interest Payment Date would otherwise be a
day that is not a Business Day (as defined below), payment of interest shall be
postponed until the next day that is a Business Day, unless such Business Day
falls in the next succeeding calendar month, in which case payment of interest
shall be made on the immediately preceding Business Day (in both cases, interest
shall be payable for the period up to, but excluding, such Interest Payment
Date). Interest shall cease to accrue on any Note on November 26, 2004, unless,
upon presentation of such Note, payment of principal is improperly withheld or
refused, in which case, interest shall continue to accrue until such payment is
made.

                  The period beginning on, and including, November 26, 2002, and
ending on, but excluding, the next Interest Payment Date thereafter, and each
successive quarterly period beginning on, and including, an Interest Payment
Date and ending on, but excluding, the next succeeding Interest Payment Date is
herein called an "Interest Period." "Business Day" means any day, other than a
Saturday or Sunday, that is neither a legal holiday nor a day on which
commercial banks are authorized or required by law, regulation or executive
order to close in New York.

                  Each Note shall bear interest during any particular Interest
Period at a rate equal to LIBOR (as described below), plus a spread of 0.20 per
cent (such total, the "Rate of Interest"), for such Interest Period. All
percentages resulting from any calculation of the Rate of Interest on the Notes
shall be rounded, if necessary, to the nearest one hundred-thousandth of a
percentage



point, with five one-millionths of a percentage point rounded upward (e.g.,
9.876545% (or .09876545) would be rounded to 9.87655% (or .0987655) and
9.876544% (or .09876544) would be rounded to 9.87654% (or .0987654)), and all
dollar amounts used in or resulting from such calculation on the Notes shall be
rounded to the nearest cent (with one-half cent being rounded upward).

         The Rate of Interest for the Notes for any Interest Period following
the initial Interest Period shall be determined on the date that is two London
banking days prior to the beginning of such Interest Period (each, an "Interest
Determination Date"). With respect to the Interest Period following such
Interest Determination Date, LIBOR shall be determined to be the offered rate
for three-month U.S. dollar deposits that appears on Telerate Page 3750 at
approximately 11:00 A.M., London time, on such Interest Determination Date. The
Rate of Interest determined on an Interest Determination Date shall become
effective on and as of the immediately following Interest Payment Date and shall
be the Rate of Interest which is payable for the Interest Period beginning on
such Interest Payment Date. "London banking day" shall mean any day on which
dealings in U.S. dollar deposits are transacted in the London interbank market.
"Telerate Page 3750" means the display page so designated on the Telerate
Service for the purpose of displaying London interbank offered rates of major
banks (or any successor page).

         If this rate does not appear on Telerate Page 3750, LIBOR shall be
determined as follows:

         (i)   LIBOR shall be based on the rates at approximately 11:00 A.M.,
               London time, on such Interest Determination Date, at which
               three-month U.S. dollar deposits are offered to prime banks in
               the London interbank market by four major banks in the London
               interbank market (selected by the Calculation Agent after
               consulting with the Company) for the period commencing two London
               banking days immediately following such date and in a principal
               amount equal to an amount not less than $1,000,000 that is
               representative for a single transaction in such market at that
               time;

         (ii)  The Calculation Agent shall request the principal London office
               of each of the four banks mentioned above to provide a quotation
               of its rate. If at least two such quotations are provided, LIBOR
               shall equal the average of such quotations;

         (iii) If fewer than two quotations are provided, LIBOR shall equal the
               average of the rates quoted at approximately 11:00 A.M., New York
               time, on such Interest Determination Date by three major banks in
               New York, New York (selected by the Calculation Agent after
               consulting with the Company). The rates shall be for U.S. dollar
               loans to leading banks having a three-month maturity commencing
               two London banking days immediately following such date and in a
               principal amount equal to an amount not less than $1,000,000 that
               is representative for a single transaction in such market at that
               time; and

         (iv)  If fewer than three quotations are provided pursuant to paragraph
               (iii), the Rate of Interest in effect for the applicable period
               shall be the same as the

                                        2



               Rate of Interest determined on the immediately preceding Interest
               Determination Date.

         So long as any of the Notes remain outstanding, the Company shall
maintain under appointment a calculation agent (the "Calculation Agent") to
calculate the Rate of Interest payable on the Notes in respect of each Interest
Period, other than the initial Interest Period. If the Calculation Agent fails
to establish the Rate of Interest for any Interest Period, or if the Company
removes the Calculation Agent, the Company shall appoint another commercial or
investment bank to act as the Calculation Agent. The Company may appoint a
successor Calculation Agent at any time at the Company's discretion and without
notice.

         The Calculation Agent shall, as soon as practicable after 11:00 A.M.,
London time, on each Interest Determination Date, determine the Rate of Interest
and calculate the amount of interest payable in respect of the following
Interest Period (the "Interest Amount"). The Interest Amount shall be calculated
by applying the Rate of Interest to the principal amount of each Note
outstanding at the commencement of the Interest Period, multiplying each such
amount by the actual number of days in the Interest Period concerned divided by
360. The determination of the Rate of Interest and the Interest Amount by the
Calculation Agent shall (in the absence of willful misconduct, bad faith or
manifest error) be final and binding on all parties. Notwithstanding anything
herein to the contrary, the Rate of Interest on the Notes shall in no event be
higher than the maximum rate permitted by New York law, as the same may be
modified by United States law of general application. The Rate of Interest for
the initial Interest Period shall be 1.62625%.

         The Calculation Agent shall, upon the request of the Holder of any
note, provide the Rate of Interest then in effect. All certificates,
communications, opinions, determinations, calculations, quotations and decisions
given, expressed, made or obtained for the purposes of the provisions relating
to the payment and calculation of the Rate of Interest on the Notes by the
Calculation Agent shall (in the absence of willful misconduct, bad faith or
manifest error) be final and binding on the Company, the Calculation Agent and
all of the Holders and owners of beneficial interests in the Notes, and no
liability shall (in the absence of willful misconduct, bad faith or negligence)
attach to the Calculation Agent in connection with the exercise by it of its
powers, duties and discretions.

         The Company may, without the consent of the Holders of the Notes, issue
additional notes having the same ranking and the same interest rate, maturity
and other terms as the Notes, except for the issue price and issue date. Any
additional notes having such similar terms, together with the Notes, shall
constitute a single series of notes under the Indenture. No additional notes may
be issued if an Event of Default has occurred with respect to the Notes.

         The Indenture contains provisions for defeasance at any time of the
entire principal of all the Securities of any series upon compliance by the
Company with certain conditions set forth therein.

         If an Event of Default (other than an Event of Default described in
Section 501(4) or 501(5) of the Indenture) with respect to the Notes shall occur
and be continuing, then either the Trustee or the Holders of not less than 25%
in principal amount of the Notes of this series

                                        3



then Outstanding may declare the entire principal amount of the Notes of this
series due and payable in the manner and with effect provided in the Indenture.
If an Event of Default specified in Section 501(4) or 501(5) occurs with respect
to the Company, all of the unpaid principal amount and accrued interest then
outstanding shall ipso facto become and be immediately due and payable in the
manner with the effect provided in the Indenture without any declaration or
other act by the Trustee or any Holder.

         The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities under the Indenture at
any time by the Company with the consent of the Holders of more than 50% in
aggregate principal amount of the Securities at the time Outstanding of each
series issued under the Indenture to be affected thereby. The Indenture also
contains provisions permitting the Holders of specified percentages in aggregate
principal amount of the Securities of that series at the time Outstanding, on
behalf of the Holders of all the Securities of such series, to waive compliance
by the Company with certain provisions of the Indenture and certain past
defaults under the Indenture and their consequences with respect to such series.
Any such consent or waiver by the Holder of this Note shall be conclusive and
binding upon such Holder and upon all future Holders of this Note and of any
Note issued upon the registration of transfer hereof or in exchange or in lieu
hereof whether or not notation of such consent or waiver is made upon this Note.

         No reference herein to the Indenture and no provision of this Note or
of the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of and interest on this Note at
the times, place and rate, and in the coin or currency, herein and in the
Indenture prescribed.

         As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Note shall be registered on the Security
Register of the Company, upon surrender of this Note for registration of
transfer at the office or agency of the Company to be maintained for that
purpose in the Borough of Manhattan, The City of New York, or at any other
office or agency of the Company maintained for that purpose, duly endorsed by,
or accompanied by a written instrument of transfer in form satisfactory to the
Company and the Security Registrar duly executed by the Holder hereof or his
attorney duly authorized in writing, and thereupon one or more new Notes, of
authorized denominations and for the same aggregate principal amount, shall be
issued to the designated transferee or transferees.

         The Notes are issuable only in registered form without coupons in
denominations of $1,000 and any multiple of $1,000. As provided in the Indenture
and subject to certain limitations therein set forth, Notes are exchangeable for
a like aggregate principal amount of Notes of a like tenor and of a different
authorized denomination, as requested by the Holder surrendering the same.

         No service charge shall be made for any such registration of transfer
or exchange, but the Company may require payment of a sum sufficient to cover
any tax or other governmental charge payable in connection therewith.

                                       4



         The Company, the Trustee for the Notes and any agent of the Company or
such Trustee may treat the Person in whose name this Note is registered as the
owner hereof for the purpose of receiving payment as herein provided and for all
other purposes, whether or not this Note be overdue, and neither the Company,
such Trustee nor any such agent shall be affected by notice to the contrary.

         Certain of the Company's obligations under the Indenture with respect
to Notes may be terminated if the Company irrevocably deposits with the Trustee
money or Government Obligations sufficient to pay and discharge the entire
indebtedness on all Notes, as provided in the Indenture.

         The Notes are not redeemable prior to maturity and are not subject to a
sinking fund.

         This Note shall for all purposes be governed by, and construed in
accordance with, the laws of the State of New York.

         Certain terms used in this Note which are defined in the Indenture have
the meanings set forth therein.

                                        5



                                 ASSIGNMENT FORM

    FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

  PLEASE INSERT SOCIAL SECURITY NUMBER OR
  OTHER IDENTIFYING NUMBER OF ASSIGNEE





________________________________________________________________________________
                                (Name and address of Assignee, including zip
                                code, must be printed or typewritten)


________________________________________________________________________________



________________________________________________________________________________
  the within Note, and all rights thereunder, hereby irrevocably, constituting
  and appointing


________________________________________________________________________________



_____________________________________________________________________ Attorney
  to transfer the said Note on the books of Kraft Foods Inc. with full
  power of substitution in the premises.


  Dated:__________________________     _________________________________________
                                       NOTICE:   The signature of this
                                                 assignment must correspond with
                                                 the name as it appears upon the
                                                 face of the within Note in
                                                 every particular, without
                                                 alteration or enlargement or
                                                 any change whatever.

                                        6