SUMMARY PLAN DESCRIPTION FOR THE RETIREMENT SAVINGS PLAN OF TYSON FOODS, INC.

Transcription

1 SUMMARY PLAN DESCRIPTION FOR THE RETIREMENT SAVINGS PLAN OF TYSON FOODS, INC. JANUARY 1, 2007 THIS DOCUMENT CONSTITUTES PART OF A PROSPECTUS COVERING SECURITIES THAT HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933.

2 TABLE OF CONTENTS Page NOTICE OF RIGHTS AND OBLIGATIONS UNDER THE RETIREMENT SAVINGS PLAN OF TYSON FOODS, INC...1 INTRODUCTION...1 YOUR 401(K) BEFORE-TAX CONTRIBUTION...1 MATCHING CONTRIBUTION FORMULA...1 MAKING ELECTIONS TO DEFER ANNUAL COMPENSATION...2 OTHER EMPLOYER CONTRIBUTIONS...2 WITHDRAWALS OF BENEFITS WHILE STILL EMPLOYED...2 VESTING...2 INTRODUCTION...4 ELIGIBILITY AND ENROLLMENT...5 WHO CAN PARTICIPATE?...5 WHEN ARE YOU ELIGIBLE?...5 WHEN AM I ELIGIBLE UPON REHIRE?...5 HOW DO I PARTICIPATE?...5 YOUR CONTRIBUTIONS...5 IN WHAT WAYS CAN I CONTRIBUTE TO THE PLAN?...5 HOW CAN I CHANGE MY CONTRIBUTION ELECTION?...6 HOW CAN I STOP MY CONTRIBUTION ELECTION?...6 ARE THERE RESTRICTIONS ON CONTRIBUTIONS?...6 TYSON CONTRIBUTIONS...7 WHAT IS THE MATCHING CONTRIBUTION?...7 WHAT IS THE STOCK MATCH CONTRIBUTION?...7 CAN I LOSE THE RIGHT TO MY TYSON CONTRIBUTIONS?...7 PARTICIPANT ACCOUNTS...7 HOW IS MY BENEFIT REFLECTED IN PLAN RECORDS?...7 HOW ARE AMOUNTS CREDITED TO MY ACCOUNT?...8 WHEN ARE INVESTMENT RESULTS CREDITED TO MY ACCOUNT?...8 WILL I RECEIVE A STATEMENT OF ACCOUNT?...8 ARE MY BENEFITS ASSIGNABLE?...8 WHAT HAPPENS IF I DIE?...9 INVESTMENT FUNDS AND INFORMATION...9 HOW IS MY ACCOUNT INVESTED?...9 HOW DO I INVEST MY ACCOUNT?...11 WHAT ARE REDEMPTION FEES ON SHORT-TERM TRADING AMONG INVESTMENT FUNDS?...12 WHAT HAS BEEN THE INVESTMENT PERFORMANCE OF THE INVESTMENT FUNDS?...12 OWNERSHIP OF STOCK...12 CAN I VOTE TYSON STOCK?...12 WILL MY VOTE BE CONFIDENTIAL?...13 HOW MAY I RESELL TYSON STOCK?...13 DISTRIBUTIONS FROM THE PLAN i-

3 WHEN WILL YOUR ACCOUNT BE DISTRIBUTED?...13 WHAT FORMS OF DISTRIBUTION ARE AVAILABLE?...14 WHAT WILL BE THE AMOUNT OF DISTRIBUTION?...15 CAN I RECEIVE IN-SERVICE WITHDRAWALS?...15 LOANS...16 CAN I OBTAIN A LOAN FROM THE PLAN?...16 WHAT CONDITIONS APPLY TO OBTAINING PLAN LOANS?...16 TAX TREATMENT OF DISTRIBUTIONS...17 FEDERAL TAX INFORMATION...17 MAXIMUM ANNUAL ALLOWABLE BEFORE-TAX AND CATCH-UP CONTRIBUTIONS...19 ELIGIBLE ROLLOVER DISTRIBUTIONS...19 OTHER FACTS ABOUT THE PLAN...19 CLAIMS BY PARTICIPANTS...19 PLAN NAME...21 PLAN ADMINISTRATOR...21 PLAN INTERPRETATION...21 PLAN IDENTIFICATION...22 PLAN SPONSOR...22 APPEALS FIDUCIARY...22 PLAN TYPE AND RECORDS...22 PURCHASE OF STOCK...22 SERVICE OF LEGAL PROCESS...23 TRUSTEE...23 TYPE OF ADMINISTRATION AND FUNDING...23 AN IRA MAY ALSO BE AVAILABLE...23 CIRCUMSTANCES THAT MAY LIMIT YOUR BENEFITS...23 AMENDMENT AND TERMINATION...24 CAN THE PLAN BE AMENDED OR TERMINATED?...24 STATEMENT OF RIGHTS...24 RECEIVE INFORMATION ABOUT THE PLAN AND BENEFITS...24 PRUDENT ACTIONS BY PLAN FIDUCIARIES...25 ENFORCE YOUR RIGHTS...25 ASSISTANCE WITH YOUR QUESTIONS...26 AVAILABLE INFORMATION...26 INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE ii -

4 NOTICE OF RIGHTS AND OBLIGATIONS UNDER THE RETIREMENT SAVINGS PLAN OF TYSON FOODS, INC. This Notice only provides basic information about the Plan and does not discuss several important aspects of the Plan. Please read the remaining portions of this booklet for a complete explanation of your rights and benefits under the Plan. Introduction Tyson Foods is providing this Notice of Rights and Obligations concerning participation in the Retirement Savings Plan of Tyson Foods, Inc. (the Plan ). Please read this Notice carefully and contact the Benefits Counselor at your location should you have any questions. The Notice describes certain material provisions of the Plan, effective January 1, Your 401(k) Before-tax Contributions Once you have completed three (3) full calendar months of employment, you may make before-tax contributions to the Plan, commencing as soon as the first day of the next calendar month. You are able to defer on a before-tax basis up to 60% (but not less than 2%) of your annual compensation to the Plan. Your total 401(k) before-tax contributions, however, may not exceed $15,500 for 2007 (subject to adjustment in future years by the Secretary of the Treasury to reflect increases in the cost of living). Your annual compensation includes your wages during the period in which you are eligible to participate in the Plan (including your before-tax contributions to the Plan and annual bonuses of nonhighly compensated employees only), but excluding other compensation paid on an irregular basis. To satisfy nondiscrimination testing rules, certain highly compensated employees may not be able to participate in the Plan for a portion of their second year of participation. Affected highly compensated employees will be notified. In addition to the before-tax contributions described above, if you are at least age fifty (50) in any calendar year, you may make additional before-tax contributions to the Plan in excess of the limits described above that otherwise apply. These additional deferrals are referred to as catch-up contributions. The maximum amount of catch-up contributions that may be made in 2007 is $5,000 (subject to increase for cost-of-living adjustments). Catch-up contributions are treated like any other before-tax contributions in determining eligibility for matching contributions. Matching Contribution Formula Once you have completed one (1) year of service, Tyson Foods will match your future 401(k) before-tax (and, if applicable, catch-up) contributions to the Plan in an amount equal to 100% of the first 3% of your before-tax (and, if applicable, catch-up) contributions each pay period and 50% of the next 2% of your before-tax (and, if applicable, catch-up) contributions for the same pay period. 1

5 Making Elections to Defer Annual Compensation During any period that you are eligible to participate in the Plan, you may elect to make before-tax contributions, or change your rate of before-tax savings, by calling the voice response system at or by going online at Your election will be implemented as soon as administratively practicable. Other Employer Contributions Tyson Foods also makes contributions each pay period to the Plan on behalf of those employees who participate in the Tyson Employee Stock Purchase Plan and who have completed one (1) year of service. The amount of each contribution generally is equal to 25% of the amount deferred by the employee under the Tyson Employee Stock Purchase Plan without regard to deferrals in excess of 10% of base pay (including overtime and commissions). This type of contribution is not available to highly compensated employees and, at the discretion of Tyson Foods, may be suspended from time to time for one or more classes of identifiable employees following notice to the affected employees. Withdrawals of Benefits While Still Employed You may only withdraw contributions from the Plan in limited circumstances prior to your termination of employment. You may withdraw 401(k) before-tax contributions (but generally not earnings thereon) if you qualify for a hardship withdrawal for any one of the following reasons: purchasing your principal residence, paying uninsured medical expenses for you or members of your immediate family, paying college tuition and related educational fees for the next twelve (12) months for you or a member of your immediate family, preventing eviction from your principal residence or foreclosure of the mortgage on your principal residence, paying for burial or funeral expenses for your deceased parent, spouse, children or dependents; or paying for repair of damage to your principal residence caused by fire, storm or similar casualty if such expenses exceed $100, are not reimbursed by insurance and otherwise qualify for the casualty deduction under federal tax rules (but without regard to the requirement that the expenses exceed 10% of your adjusted gross income). Before taking a hardship distribution, you must take any other in-service distributions and Plan loans that may be available to you. In addition, in order to be eligible to receive a distribution for one of these reasons, you will be prohibited from making any 401(k) before-tax contributions to the Plan for six (6) months after you receive your hardship distribution. In addition, if you are not at least age 59½, a 10% additional penalty tax generally will apply to all amounts taken as a hardship withdrawal. Once you attain age 59½ or if you become disabled, you are eligible to withdraw all of your benefits from the Plan. You may request an in-service withdrawal at any time of all or any portion of your After-Tax Contribution Account, Rollover Account, and, if applicable, any matching contributions originally made on your behalf under the old Tyson Thrift Plan. Vesting You are fully vested in all of your Plan accounts at all times. 2

6 PLEASE READ THE REMAINING PORTIONS OF THIS BOOKLET FOR A COMPLETE DISCUSSION OF YOUR RIGHTS AND BENEFITS UNDER THE PLAN 3

7 THE RETIREMENT SAVINGS PLAN OF TYSON FOODS, INC. INTRODUCTION The Plan is a tax-sheltered savings and investment plan designed to provide eligible employees with a unique opportunity to save money, defer taxes, participate in a variety of investment funds and become a shareholder in Tyson Foods. The Plan offers more tax advantages than most other savings methods available today. Normally, if you are a regular saver, federal and state taxes are taken from your pay first, then you pay all of your bills, and finally your savings come from whatever money is left. The Plan enables you to save more efficiently. It offers eligible employees a unique opportunity to design their own personal savings and investment plan to meet future lifestyle needs and goals. Now you have the opportunity to: Decide the amount of money you want to contribute to the Plan through payroll deductions on a before-tax basis. Choose how your contributions will be allocated among different investment funds. Adjust your rate of contribution, or your investment mix, as your financial situation or savings goals change in the future. A major advantage of the Plan is that it enables you to lower your taxable income today by deferring taxes to a later date. The federal government effectively adds to your savings because, under current tax law: Federal income taxes are not withheld from your contributions to the Plan. Your contributions, employer contributions that will be discussed later, and investment earnings are not subject to tax while they remain in the Plan. In summary, you will save with the convenience of payroll deductions, choose your investments, and above all, you will save more by deferring the payment of taxes, and possibly by paying less taxes when taxes are due. Si necesita ayuda para entender sus derechos y obligaciones como participante del Plan de Ahorros para la Jubilación, por favor contacte a su Consejero de Prestaciones. 4

8 ELIGIBILITY AND ENROLLMENT Who Can Participate? You may become a participant in the Plan only if you are an employee of Tyson Foods or any one of its affiliates which has adopted the Plan (collectively, Tyson ). Union employees are eligible only if their collective bargaining agreement provides for participation in the Plan. When Are You Eligible? If you are in an eligible job category, you may become a participant in the Plan as of the first day of the calendar month following your completion of three (3) full calendar months of employment with Tyson if your employer has adopted the Plan. When Am I Eligible Upon Rehire? If you terminate employment and fail to return within one year before you are rehired (a Break in Service ), you will be required to satisfy the eligibility requirement again following your rehire before you may participate in the Plan. If you do not incur a Break in Service before your rehire, you may be eligible for Plan participation at an earlier date. If this situation applies to you, you should contact the Benefits Counselor at your location. How Do I Participate? To participate, you must call the voice response system at or by going online at YOUR CONTRIBUTIONS How much to contribute to the Plan is a decision only you can make. Everyone has different savings needs. Some may want to save more money than others. However, regardless of whether you are a big or small saver, the Plan provides you with the opportunity to save. In What Ways Can I Contribute To The Plan? There are three ways you can put money into the Plan: Before-Tax Savings -- You can contribute a minimum of 2% and up to 60% (in any whole percentage increment) of your before-tax pay. For this purpose, your pay is considered to be base salary and any annual bonus, but does not include other compensation paid on an irregular basis. You may make a separate election in determining what percentage of any annual bonus you want contributed to the Plan, although if you are also a participant in the Executive Savings Plan of Tyson Foods, Inc., any deferrals of annual bonus must be made in that plan. Your Plan contributions are taken from your pay before you receive your paycheck for those pay periods 5

9 during which your savings election is in effect. As discussed below, there is a maximum annual limit on before-tax contributions. Please keep in mind that there are specific IRS rules on when and for what reason you can withdraw your before-tax contributions, as discussed below. Catch-Up Contributions -- If you will reach at least age 50 before the end of a calendar year, a special rule will allow you to make catch-up salary deferrals. For eligible participants, the maximum amount of catch-up contributions for 2007 is $5,000, and this limit will be adjusted for cost of living increases by the Secretary of the Treasury after Rollover Savings -- With the approval of the Administrative Committee you can rollover distributions from other eligible sources to the Plan without paying income tax on the transfer. Other eligible sources include employer-sponsored savings or profit-sharing plans, 403(b) plans and IRAs. The Administrative Committee can provide you with details about rollovers. The eligibility waiting period does not apply to rollover deposits. Rollovers may be accepted from any employee who, other than the eligibility waiting period, is in an eligible job category. How Can I Change My Contribution Election? You can increase or decrease the rate of your before-tax (including catch-up contributions) as soon as administratively practicable by calling the voice response system at or by going online at How Can I Stop My Contribution Election? You can stop (or restart) your before-tax (including catch-up contributions) as soon as administratively practicable by calling the voice response system at or by going online at Are There Restrictions On Contributions? IRS rules limit the amount that you can contribute to the Plan as before-tax savings. This amount is indexed and should, therefore, increase in future years (for 2007, $15,500). This cap does not apply to catch-up contributions. There is also a cap on the amount of pay that may be considered in determining the percentage of your pay that may be contributed to the Plan (for 2007, $225,000). Please contact the Administrative Committee if you have any questions about the amount of either limit for the current year. To satisfy nondiscrimination testing rules, certain highly compensated employees may not be able to participate in the Plan for a portion of their second year of participation. Affected highly compensated employees will be notified. 6

10 TYSON CONTRIBUTIONS The Plan provides real incentives to help you become a regular saver. Once you have completed one (1) year of service, Tyson will add to your savings by making a matching contribution based on the level of before-tax contributions and catch-up contributions that you make to the Plan and a number of participants will be eligible for a stock match contribution, as explained below. What Is The Matching Contribution? Once you become eligible for matching contributions, Tyson will match the before-tax and, if applicable, any catch-up contributions you make to the Plan in an amount equal to 100% of the first 3% of your before-tax (and catch-up) contributions each pay period and 50% of the next 2% of your before-tax (and catch-up) contributions for the same pay period (but not in excess of 5% of your pay). For this purpose, your pay will include any portion of your annual bonus that is deferred (assuming you are not also a participant in the Executive Savings Plan of Tyson Foods, Inc.), but does not include other compensation paid on an irregular basis. What Is The Stock Match Contribution? Tyson will make a contribution to employees otherwise eligible to participate in the Tyson Foods Employee Stock Purchase Plan and have completed one (1) year of service with Tyson; provided they are not considered highly compensated employees under federal tax law and provided they are not among one or more categories of employees for whom contributions of this type have been suspended. The amount of the contribution on behalf of an eligible participant will be equal to a percentage (as determined by Tyson subject to a maximum cap) of the amount then being deferred by the participant under the Tyson Foods, Inc. Employee Stock Purchase Plan, but without regard to deferrals in excess of 10% of pay. The actual percentage that applies to any participant within the foregoing guidelines may vary from time to time and may vary among different classes of employees. Participants will be separately notified of the percentage that applies to them at any point in time. Can I Lose The Right To My Tyson Contributions? Vesting refers to your nonforfeitable right to a benefit. Under the Plan, all contributions - your own and Tyson contributions - are immediately vested. How Is My Benefit Reflected In Plan Records? PARTICIPANT ACCOUNTS Your total investment in the Plan will be held in several types of accounts, as follows: Before-Tax Contribution Account: All of your before-tax and catch-up contributions are credited to this account and any before-tax contributions you may have made under a prior plan. Employer Contribution Account: All Tyson matching contributions are credited to this account and any employer contributions made on your behalf under a prior plan. 7

11 Stock Match Account: All Tyson contributions with respect to an eligible participant s participation in the Tyson Employee Stock Purchase Plan are credited to this account. Rollover Account: All of the amounts you have transferred to the Plan from an eligible retirement plan are credited to this account and any rollover contributions you may have made under a prior plan. After-Tax Contribution Account: This account reflects after-tax contributions that may have been credited to you under the Tyson Employee Retirement Income Savings Plan (the Tyson Thrift Plan ) and any other retirement plan that has been merged into the Plan. Collectively, these various accounts are referred to in this booklet as your Account. How Are Amounts Credited To My Account? Your before-tax and catch-up contributions and Tyson matching contributions will be transferred to the trustee for the Plan and invested as soon as possible after the end of each payroll period. Tyson contributions to be credited to Stock Match Accounts will be transferred to the trustee as soon as administratively practicable. When Are Investment Results Credited To My Account? Your Account will be invested among investment funds offered under the Plan. If a Stock Match Account is established for you, that Account will be invested, initially, primarily in Tyson Class A common stock. However, you will be able to select how all of your Account will be invested among the available investment funds, as described below. If you choose to diversify any portion of your Stock Match Account that is initially invested in Tyson Class A common stock, you may not choose to reinvest those amounts in Tyson Class A common stock at a later date because Tyson Class A common stock is not one of the investment funds available under the Plan. Investment earnings or losses will be posted to your Account on a daily basis. General administrative expenses for the Plan may be deducted from Accounts. Will I Receive A Statement Of Account? Approximately one month after the end of each calendar quarter, you will receive a statement of the activity in your Account and your Account balance for the preceding quarter. Are My Benefits Assignable? You may not sell, borrow against (other than loans authorized under the Plan), or assign your Account to another person, other than to designate a beneficiary (as described below). Subject to certain exceptions involving qualifying domestic relations orders, your Account is not liable for your debts, 8

12 contracts or liabilities. This means that, in general, your Account cannot be attached or subjected to legal process. What Happens If I Die? In the event of your death, the value of your Account will be paid to your beneficiary. If you have not designated a beneficiary under the Plan, your Account will be paid to (1) your spouse, if you are married, and (2) if you are not married, to the legal representative of your estate. If you are married at death, payment of your Account will automatically be made to your spouse. You may elect another beneficiary to receive your Account; however, you cannot name someone other than your spouse as beneficiary unless your spouse consents. If you are unmarried, you may elect anyone as beneficiary without restriction. Changes in your beneficiary may be made at any time on a form that is available from the Benefits Counselor at your location. How Is My Account Invested? INVESTMENT FUNDS AND INFORMATION All of your accounts, other than the initial investment of contributions, if any, credited to your Stock Match Account, are invested at your direction in separate investment funds chosen by the trustee. The trustee may establish additional investment funds or delete existing investment funds in its discretion. You may direct the investment of your Stock Match Account at any time after the date contributions are initially credited to that Account. Once you redirect the investment of any shares of Tyson Class A common stock credited to your Stock Match Account to an investment fund, those amounts can not later be reinvested in Tyson Class A common stock. The specific investment funds as of the date of this are provided separately in the Investment Funds Information Sheet, which Tyson Foods will update from time to time. Below is a list of the general characteristics for the various investment funds: Stable Value Fund - The investment objective of this fund is to provide participants with liquidity and relative stability of principal while providing a reasonably predictable level of income. This fund calls for investment primarily in a diversified portfolio of investment contracts with insurance companies, banks and other financial institutions. Bond Fund - This fund generally seeks to provide current income rather than capital appreciation. While bond investments are generally much less volatile than stock investments, the value of this fund will fluctuate with changes in interest rates and with credit considerations. 9

13 Balanced Fund - This fund seeks to provide current income and, secondly, growth of capital through a flexible mix of stocks and bonds. Large Cap Value Fund - This fund seeks long-term capital appreciation. This fund calls for investment in large cap companies which are believed to be undervalued. Large Cap Core Fund - This fund seeks to provide long-term growth of capital and income primarily through investments in common stocks. The fund s portfolio is typically widely diversified among U.S. companies that appear to offer solid growth potential at reasonable prices. S&P 500 Index Fund - This fund seeks to match as closely as possible, before the deduction of expenses, the performance of the S&P 500 Index. Large Cap Growth Fund - This fund seeks long-term capital appreciation. This fund invests in large growth oriented companies. The fund is generally well diversified across stocks and industries. Small/Mid Cap Value Fund - This fund seeks long-term capital appreciation. This fund invests primarily in small and mid cap companies which it considers to be undervalued. Small/Mid Cap Growth Fund - This fund seeks long-term capital appreciation. This fund invests primarily in small and mid cap companies which it considers to be growing faster than its peers. International Fund - This fund seeks to provide long-term growth of capital by investing in companies based outside the United States. The expenses, sales charges, fees and commissions attributable to the investment choices currently selected for each investment fund described above are set forth in the prospectuses or other materials especially prepared for each of those choices. For specific information about the choices, the average annual rates of return, and the investment managers of the respective choices, see the Investment Funds Information Sheet and any future Summaries of Material Modifications that have modified the Investment Funds Information Sheet. You can also request a copy of each mutual fund prospectus by calling the voice response system at or online at You have the right to request the following information from the Administrative Committee to the extent available to the Plan: A description of the annual operating expenses of each investment fund and the aggregate amount of such expenses expressed as a percentage of average net assets of the fund. Copies of any prospectuses, financial statements and reports, and any other materials relating to the investment alternatives under the Plan. 10

14 A list of the assets of each investment fund, the value of each such asset and regarding any fixed rate investment contract issued by a bank, savings and loan association or insurance company, the name of the issuer of the contract, the term of the contract and the rate of return on the contract. Information concerning the value of shares or units in the investment funds as well as the past and current investment performance of the funds. Information concerning the value of the units in the investment funds held in your Account. Generally, the Tyson Class A common stock acquired by the Plan for Stock Match Accounts will be purchased in the open market, but it can also be purchased directly from Tyson Foods or from Tyson Foods security holders. Tyson Foods will receive the full purchase price of any shares of the Class A common stock purchased by the Plan directly from Tyson Foods. All purchases of assets are to be made at the fair market value of the property purchased. No fees, commissions or other charges are to be paid with regard to purchases not made in the open market. Under the Plan, no charges and deductions, other than taxes and administrative expenses, may be made against participants or against funds, securities or other property held under the Plan, and such taxes and administrative expenses, until paid, shall constitute a charge against assets held under the Plan trust. How Do I Invest My Account? On any business day, you may redirect how your future contributions are invested among the then available investment funds and your directions will be given effect as soon as administratively practicable. You may also, on any business day, redirect how your current Account balance is invested among the then available investment funds. However, frequent changes in your investment directions may result in a charge of a redemption fee on short-term trading among investment funds as described more fully below. You may allocate how these amounts are invested among more than one investment fund in increments of 1%. Once you have made an election as to the investment of those amounts in the Plan, your election remains in effect until you timely make a later election. Investment directions are made by calling the voice response system at or by going online at If it is determined that the number of sell orders received on any day respecting any investment fund or shares of Tyson Class A common stock credited to Stock Match Accounts can not be executed that day for any reason, the sell orders will be processed in an orderly manner as soon as practicable. In such a case, you will receive the average price for the securities sold over the trading period and your proceeds will be available for reinvestment at the close of that trading period. If you fail to provide initial investment instructions concerning the investment of your Account, any contributions made on your behalf will be allocated to the Stable Value Fund (or any subsequent investment fund designated by the Plan Administrator), subject to subsequent transfers given at your 11

15 direction. Once a default investment is made, you have the right to direct the investment of those assets to any other investment fund without financial penalty. Investing your money in a mix of different investment funds under the Plan is an important tool to balance investment risk with investment return. When you vary your investments in the Plan, you reduce the chances that a decrease in the value of any single investment will seriously hurt the value of your overall portfolio. You also increase the chances that such a decrease may be offset by increases in the value of other investments. With respect to your accounts, the Plan is intended to constitute a plan described in section 404(c) of ERISA. Consequently, the fiduciaries of the Plan may be relieved of liability for any losses attributable to these accounts which are the direct and necessary result of investment instructions given by you. What Are Redemption Fees On Short-Term Trading Among Investment Funds? Participants may be charged short-term redemption fees in connection with certain investment transactions made under the Plan. The redemption fee will be charged against the accounts of affected participants. Redemption fees are being imposed generally by the mutual fund industry and others to discourage short-term trading, including market timing. Frequent trading and market timing raise costs by increasing the number of times a mutual fund manager has to sell or otherwise readjust a mutual fund s holdings to meet a redemption request. Redemption fees are intended to offset these costs and protect the investment return of a mutual fund s long-term shareholders. You can obtain further information about the short-term redemption fee policies of the investment funds through the voice response system at or by going online at What Has Been The Investment Performance Of The Investment Funds? The table provided in Investment Funds Information Sheet sets forth for the indicated periods the percentage increase (or decrease), including interest and dividend income, in the market value of assets held in each separate investment fund currently offered under the Plan, adjusted to eliminate any increases and decreases resulting from contributions made to and withdrawals or distributions made from such funds during the indicated periods. This Investment Funds Information Sheet may be updated from time to time and distributed to you separately. Can I Vote Tyson Stock? OWNERSHIP OF STOCK You have the right to decide how to vote any Tyson Class A common stock credited to your Stock Match Account. You will be provided with any proxy material distributed to other stockholders and you may instruct the trustee how to vote those shares. 12

16 Will My Vote Be Confidential? Your voting decisions on Tyson Class A common stock will be kept confidential and will not be provided to Tyson. The Administrative Committee is responsible for ensuring compliance with these confidentiality procedures. You may contact the representative for the Administrative Committee at 2210 West Oaklawn Drive, Springdale, Arkansas or by calling (479) How May I Resell Tyson Stock? Shares of Tyson Class A common stock acquired under the Plan for participants who are not affiliates of Tyson Foods within the meaning of Rule 405 under the Securities Act of 1933 (the Securities Act ) generally may be resold to the public when distributed from the Plan without registration or other restrictions under the Securities Act. Tyson Class A common stock purchased for individuals who are affiliates of Tyson generally may not be resold to the public when distributed from the Plan without registration under the Securities Act, unless those individuals comply with the requirements of Rule 144. Rule 405 defines an affiliate of Tyson as any person who directly or indirectly, through one or more intermediaries, controls, or is controlled by, or is under common control with, Tyson Foods. Any person who may come within the definition should consult with counsel to determine whether he may be an affiliate. When Will Your Account Be Distributed? DISTRIBUTIONS FROM THE PLAN Your Account will be distributed after your employment with Tyson ceases and you are no longer considered an active employee whether due to retirement, death, disability or for any other reason. This distribution will be paid, or will commence, no more than 90 days after you terminate employment. A distribution election form will be sent to you automatically approximately two weeks after you terminate employment. If this form is not received by the representative for the Administrative Committee on a timely basis, or if your Account balance is adjusted after you leave, there may be some delay in your receiving your final distribution. If you prefer, and your Account balance is greater than $1,000, you may choose to defer withdrawal of your Account balance. If you choose this deferral option, your Account will be paid no later than the earlier of (1) April 1 of the calendar year following the calendar year in which you attain age 70½, or (2) the date you become disabled. If you die before distribution of your Account commences, your surviving spouse may elect to defer payment until as late as the date you would have attained age 65. The Plan is intended to encourage long-term savings, and government rules place restrictions on the withdrawal of any portion of your Account while you are employed (see below for limited exceptions). This fact should be kept in mind when you are deciding whether and how much to contribute to the Plan. 13

17 What Forms Of Distribution Are Available? General Distribution Forms Once payable, amounts credited to all accounts will be paid in the form of a lump sum payment in cash or, at your option, in equal installments over a period not to exceed your life expectancy (or the joint life expectancies of you and your beneficiary) or, if you are otherwise eligible, a combination of both the lump sum cash payment and installment payments. However, if your total Account is $5,000 or less, you are eligible only for the lump sum distribution option. Once payments to you have commenced, you may not change the form of payment you have selected. If a Stock Match Account has been established for you, that account will be paid in cash, unless you request a distribution in shares of Tyson Class A common stock. In that case, that portion of your Stock Match Account invested in Tyson Class A common stock will be distributed to you in kind. If your total Account does not exceed $5,000, your Stock Match Account will be paid in cash in a lump sum. Any fractional share also will be distributed in cash. The distribution election forms will allow you to make these elections. In addition, if a prior plan account from the Hudson Foods, Inc. 401(k) Retirement Plan (the Hudson Foods Plan ) is maintained for you under the Plan, with respect to this account, you will have the following additional forms of distribution available to you. Additional Forms of Distribution For Former Hudson Foods Plan Participants If your entire Account balance is greater than $1,000 and if you have amounts credited under the Plan that are attributable to contributions made by you or on your behalf from the Prior Retirement Account under the Hudson Foods Plan, those amounts will be distributed as a life annuity or, if you are married, a life annuity with a survivor annuity payable to your spouse in the event you die first equal to one-half or 50% of the payments paid during your joint lives. With the consent of your spouse if you are married, you may also elect to receive these amounts only in one of the following additional choices: A life annuity or, if you are married, a life annuity with a survivor annuity payable to your spouse in the event you die first equal to 100% or 66 2/3% of the payments made during your joint lives. A life annuity with payments guaranteed for at least 5 or 10 years. If you are married and you die before the date benefit payments are to commence, your surviving spouse may elect to receive those amounts from the Prior Retirement Account in the form of a life annuity. 14

18 What Will Be The Amount Of Distribution? When you leave employment, your Account value will be brought up-to-date with contributions made on your behalf and investment earnings and losses. This value is determined as of the date your Account is processed for distribution. Can I Receive In-Service Withdrawals? In certain circumstances, you will be able to receive amounts prior to your termination of employment. Any in-service distribution will be made in cash in a lump sum payment. If you are receiving an inservice distribution on account of attaining age 59½ or due to disability, you may request that shares of Tyson Class A common stock credited to your Stock Match Account be distributed in kind, but only if the value of your total Account exceeds $5,000. The Benefits Counselor at your location can provide you with more detailed information about the timing of your request. Financial Hardship You may withdraw your contributions from your Before-Tax Contribution Account (but only your before-tax contributions credited to that account, not earnings) if you have a hardship that meets certain very specific IRS rules. These rules only allow hardship withdrawals for: The purchase of your primary residence. The payment of college tuition and related educational fees for you, your spouse, or your dependents. The payment of unreimbursed medical expenses for you, your spouse, or your dependents. The prevention of eviction or foreclosure on your primary residence. The payment of burial or funeral expenses for your deceased parent, spouse, children, or dependents. The payment for repair of damage to your primary residence caused by fire, storm, or similar casualty if such expenses exceed $100, are not reimbursed by insurance, and otherwise qualify for the casualty deduction under federal tax rules (but without regard to the requirement that the expenses exceed 10% of your adjusted gross income). In addition, the amount of the distribution may not exceed the amount of your need, increased by an amount necessary to pay federal, state and local income taxes resulting from the distribution. It is your responsibility to report the distribution on your annual tax return and determine if any additional tax is due at that time. In most cases hardship withdrawals will be subject to an additional 10% excise tax by the federal government. Your tax advisor should be consulted concerning how this might apply to you. 15

19 You will be required to obtain other distributions and loans from any other plans maintained by Tyson. In addition, you will be suspended from participation in the Plan for a period of six (6) months after your receipt of the hardship distribution and from any other plan (except health, life and similar welfare benefit plans) maintained by Tyson. Any hardship withdrawal taken from your Before-Tax Contribution Account will be limited to your contributions. In other words, the income earned on contributions after 1988 cannot be included in a hardship withdrawal. Withdrawals After Attaining Age 59½ Once you reach age 59½, you may request an in-service withdrawal of all or any portion of your Accounts in the Plan. Withdrawals On Account of Disability If you become disabled, you may request an in-service withdrawal of all or any portion of any of your Accounts in the Plan. Withdrawals Of After-Tax Amounts, Thrift Amounts And Rollover Amounts You may request an in-service withdrawal at any time of all or any portion of your After-Tax Contribution Account, Rollover Account, and, if applicable, any matching contributions originally made on your behalf under the old Tyson Thrift Plan. Can I Obtain A Loan From The Plan? LOANS If you are an active employee, you may apply for a loan from the Plan in an amount not greater than ½ of your total vested Account balance. Your loan may not exceed certain additional limits which are described in more detail in the Plan. If you have any questions regarding those limits or other loan procedures, you should contact the representative for the Administrative Committee. What Conditions Apply To Obtaining Plan Loans? You will be charged a one-time establishment fee and a commercially reasonable interest rate if your loan is approved. Any loan you obtain will be treated as an investment attributable to your Account, which means that the interest you pay will be credited to your Account. You must repay your loan through payroll deductions. The loan may not have a term exceeding 5 years. The minimum loan amount is $1,000. You may have no more than two (2) loans outstanding at any one time. 16

20 A loan will be considered in default if you fail to pay an installment when due and your failure is not corrected within 90 days. If there is no correction, the entire outstanding balance of the loan may become due and payable. If you terminate employment with an outstanding loan balance, you will be required to pay back the loan in full. If you fail to do so, the trustee may reduce the amount of any distribution otherwise due you by the amount of the unpaid loan. However, upon termination of employment, the Plan may distribute in certain circumstances the promissory note evidencing the debt as part of an eligible rollover distribution. If you are married and all or any portion of your Account is attributable to your participation in the Hudson Foods Plan, the consent of your spouse will be required if you have previously elected to be paid benefits in the form of an annuity. TAX TREATMENT OF DISTRIBUTIONS When you receive your Account, income taxes must be paid on the entire distribution (the only exception would be that applicable to after-tax contributions). However, there are ways you may reduce or further defer your tax liability when your Account payment is made. For example: If you receive your Account at retirement, you may be in a lower tax bracket. You may be able to rollover your distribution to an IRA or another tax-qualified plan in order to defer your tax payment further. If you take a portion of your distribution in Tyson Class A common stock, any appreciation on the stock from the time it was purchased by the Plan will not be taxed until you sell the stock. Federal Tax Information The Plan is intended to be qualified under Section 401(a) of the Internal Revenue Code of 1986, as amended (the Code ). Because of the many complexities of the tax laws, and because they are subject to change, any Plan participant contemplating a withdrawal or distribution should consult with a tax adviser in advance. Contributions So long as the Plan is qualified under Code Section 401(a), company matching contributions will be deductible by Tyson (subject to the limitations contained in the Code) and will not be taxable to Plan participants until actually received by such Plan participants or their beneficiaries. In addition, so long as the Plan remains qualified, earnings of the trust are not taxable to, and losses on investments of the trust are not deductible by, the trust, Tyson or Plan participants (until distribution). If the Plan is found not to be qualified initially or if it subsequently becomes disqualified, all contributions to the Plan by Tyson will be taxable to the Plan participants in the year in which made and will be 17

21 deductible by Tyson in the taxable year in which made and the earnings of the trust will be taxable to and losses on investments of the trust may be deductible by the trust. Before-tax and catch-up contributions to a Plan participant s account resulting from his or her deferrals of pay do not give rise to an income tax deduction for that participant. However, before-tax contributions are not considered to be part of a Plan participant s current income for federal income tax purposes to the extent that they, in conjunction with any similar contributions to any other cash or deferred arrangement described in Code Section 401(k) whether or not maintained by Tyson, do not exceed an annual limitation, adjusted annually to reflect increases in the cost of living (for 2007, $15,500). (They are, however, considered to be part of a Plan participant s current income for purposes of the Federal Insurance Contributions Act.) Funds held in Plan accounts will not be taxable to Plan participants or beneficiaries until actually received by Plan participants or their beneficiaries as a result of an in-service distribution or following termination of employment, retirement, disability, or death. To the extent that deferrals of pay by a Plan participant cause the participant to exceed the annual limitation, the excess may be includable in that participant s gross income for the year of the Plan participant s deferral. Contributions to the Plan, including deferrals of pay, plus any earnings on all contributions including Plan participant after-tax contributions, distributed to Plan participants following an in-service distribution, termination of employment, retirement, disability or death are taxable to participants as ordinary income, unless rolled over to an IRA or tax-qualified retirement plan. An excise tax penalty is imposed on any Plan participant who receives an early distribution from the Plan. The excise tax penalty is equal to 10% of the portion of the distribution that is includable in the participant s gross income. The excise tax penalty does not apply to the following: (1) distributions made after separation from service after the attainment of age 55; (2) distributions after the participant has attained age 59½; (3) distributions that are part of a scheduled series of substantially equal periodic payments for the life of the participant (or the joint lives of the participant and the participant s beneficiary) or the life expectancy of the participant (or the joint life expectancies of the participant and the participant s beneficiary); (4) distributions that are used to pay medical expenses to the extent that the expenses are deductible under Code Section 213 (determined without regard to whether the taxpayer itemizes deductions); (5) distributions made after the death of the participant; (6) payments made to or on behalf of an alternative payee pursuant to a qualified domestic relations order; and (7) distributions made after a participant has been determined to be disabled. 18

22 If an otherwise taxable distribution or withdrawal is eligible for rollover treatment and is rolled over within 60 days into a qualified individual retirement arrangement or into another qualified plan which permits this type of transfer, no inclusion in gross income or excise tax penalty for early distribution will result from the distribution or withdrawal. However, unless the distribution is rolled over directly into such arrangement or plan, it will be subject to withholding of 20%. Maximum Annual Allowable Before-Tax And Catch-Up Contributions Regardless of the percentage of pay Plan participants are allowed to contribute to the Plan, the sum of a participant s before-tax contributions to the Plan and any before-tax contributions he or she makes to any other plan described in Code Section 401(k) may not exceed $15,500 in The maximum catch-up contribution to the Plan and any other similar plan may not exceed $5,000 in These maximum contribution limits are subject to adjustment in future years. ELIGIBLE ROLLOVER DISTRIBUTIONS The trustee is required to withhold 20% of any eligible rollover distribution, unless such a distribution is directly rolled over to an IRA or an eligible retirement plan such as a defined contribution plan qualified under section 401(a) of the Internal Revenue Code. An eligible rollover distribution is any distribution of all or any portion of the balance to the credit of a participant, except (1) any distribution which is one of a series of periodic payments payable for the life of a participant or payable for a specified term of ten years or more, (2) any required minimum distribution, (3) any distribution which is not includable in gross income, or (4) any in-service hardship withdrawals. Claims By Participants OTHER FACTS ABOUT THE PLAN The Administrative Committee will notify you of your entitlement to receive benefits under the Plan and provide you with the necessary forms. You must apply in order for payment of benefits under the Plan to begin. Should a problem arise when you claim benefits or at any other time, there is an established procedure for resolving the problem. If you believe you are not receiving benefits under the Plan which you believe are due, you should file a written claim for benefits with the Administrative Committee. If the claim is denied, you will receive a written notice within 90 days (45 days with respect to any denial of a claim for disability retirement benefits) after the Administrative Committee receives your claim, unless special circumstances require an extension of time for processing the claim. In no event shall the extension exceed a period of 90 days (30 days with respect to any determination of eligibility for disability retirement benefits). The denial notice will state: the reason why the Administrative Committee denied the claim; the specific references to the pertinent Plan provisions on which the denial is based; 19