Research Circular #RS10-158

DATE: March 29, 2010 TO: Members

RE: Cadbury PLC ("CDSCY/CBY & adj. CYI") Pending Compulsory Acquisition with Kraft Foods Inc. ("KFT")

FROM: Scott Speer Kraft Foods Inc. ("KFT") has completed its offer to exchange all outstanding Ordinary Shares (including ordinary shares represented by American Depositary Shares ("ADSs")) of Cadbury PLC ("CDSCY") into the following: Cadbury PLC ("CDSCY") ADS Holders may elect to receive 2000 Pence in Cash and 0.7496 Kraft Foods Inc. ("KFT") Class A Common Shares (previously 1,200 Pence in Cash and 1.0356 Kraft Foods Inc. ("KFT") Class A Common Shares), or, pursuant to a mix and match facility, vary the proportion of KFT Shares and Cash they will receive including electing to receive only Cash or only KFT Shares. The mix and match election may only be satisfied to the extent that other CBY ADS Holders make offsetting elections in the offer. Pursuant to the terms of the Compulsory Acquisition, each ADS of CDSCY outstanding immediately prior to the consummation of the Compulsory Acquisition will be converted into the right to receive: 2000 Pence in Cash and 0.7496 Kraft Foods Inc. ("KFT") Class A Common Shares. Cash will be paid in lieu of fractional KFT shares.

Please be aware that the adjusted CYI option contract currently represents: (A) 1OO ADSs of CDSCY; plus (B) $64.60 cash, and has a contract multiplier of 100. See CBOE Research Circular #RS10-058, dated February 3, 2010, for further information. The Compulsory Acquisition is anticipated to be competed on a date to be announced.

Contract Adjustments Pursuant to Article VI, Section 11, of OCC's By-Laws, all outstanding CBY & adj. CYI options shall be adjusted/further adjusted on the business day immediately following the Effective Time of the Compulsory Acquisition, as follows.

Each CBY contract will require the receipt or delivery of: (A) the U.S. dollar equivalent of 200,000 Pence; plus (B) 74 shares of KFT Class A Common Stock; plus (C) cash in lieu of 0.96 fractional share of KFT Class A Common Stock. Premiums for the adjusted CBY options will continue to be calculated on the basis of a multiplier of 100, i.e., for premium and strike-price extensions,

1.00 will equal $100. The CBY option symbol will change to YRW.

Each previously adjusted CYI option contract will require the receipt or

delivery of: (A) the U.S. dollar equivalent of 200,000 Pence; plus (B) 74 shares of KFT Class A Common Stock; plus (C) $64.60 cash; plus (D) cash in

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lieu of 0.96 fractional share of KFT Class A Common Stock. Premiums for the further adjusted CYI options will continue to be calculated on the basis of a multiplier of 100, i.e., for premium and strike-price extensions, 1.00 will equal $100. The CYI option symbol will remain the same. [Any FLEX series that may exist will be adjusted in a similar manner to the standardized option.] Adjusted Option Symbols On the business day immediately following the Effective Time of the Compulsory Acquisition, trading in the CBY option series will be on an adjusted basis. At 8:30 A.M., Chicago time, the following symbol adjustments to the options will be effected:

EXISTING SERIES ADJUSTED SERIES*

CBY 50.000 2010-04-17 C/P => YRW 50.00 2010-04-17 C/P

CBY 55.000 2010-04-17 C/P => YRW 55.00 2010-04-17 C/P

CBY 60.000 2010-04-17 C/P => YRW 60.00 2010-04-17 C/P

CBY 50.000 2010-05-22 C/P => YRW 50.00 2010-05-22 C/P

CBY 55.000 2010-05-22 C/P => YRW 55.00 2010-05-22 C/P

CBY 60.000 2010-05-22 C/P => YRW 60.00 2010-05-22 C/P

CBY 45.000 2010-06-19 C/P => YRW 45.00 2010-06-19 C/P

CBY 50.000 2010-06-19 C/P => YRW 50.00 2010-06-19 C/P

CBY 55.000 2010-06-19 C/P => YRW 55.00 2010-06-19 C/P

CBY 60.000 2010-06-19 C/P => YRW 60.00 2010-06-19 C/P

CBY 45.000 2010-09-18 C/P => YRW 45.00 2010-09-18 C/P

CBY 50.000 2010-09-18 C/P => YRW 50.00 2010-09-18 C/P

CBY 55.000 2010-09-18 C/P => YRW 55.00 2010-09-18 C/P

CBY 60.000 2010-09-18 C/P => YRW 60.00 2010-09-18 C/P Settlement The OCC will delay settlement of YRW/CYI exercise and assignment activity until the determination of the U.S. dollar equivalent of 200,000 Pence and until the determination of the cash-in-lieu amount for the 0.96 fractional share of KFT Class A Common Stock.. GTC Order Conversion On the Effective Date of the Compulsory Acquisition, immediately after the CBOE close, the system will convert or cancel all resting orders in the CBY order book. If your firm has requested, all booked orders (phone, wire, and electronic) and all ORS orders residing outside the book (booth or crowd routed) will be converted reflecting the adjustments. If your firm has requested, all booked orders and ORS orders residing outside of the book will be canceled. If your firm receives CXL drops, the CXL confirms will print at your booth at 3:15 p.m. ORS CXLs will also be transmitted electronically to your branches.

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A report will be available at the Help Desk listing the orders that are converted or canceled. If converted, this list will also show how the new orders will be adjusted. This report will be available on request anytime during the day prior to the night of the adjustment.

Questions regarding this memo can be addressed to Options Industry Services at 1-888-OPTIONS (1-888-678-4667). CBOE contract adjustment memos can also be accessed from CBOE.com at the following web address:

http://www.cboe.com/ContractAdjustments